CHAMPAGNE VINTAGE STOCKS – Holding back the years

Champagne houses are keeping vintages back and disgorging at a later date to fulfil demand for a truly individual and luxurious product, says Conal Gregory MW

Champagne has a wonderful capacity to age. Its different stages of development intrigue wine lovers, creating a market which is closely followed by the enthusiast and investor alike. The two key factors in maturing Champagne are: place of storage – whether in the original cellars or not; and length of time on the lees, pre-disgorgement.

To maintain interest and price, scarcity is paramount. Not only are mature vintages a delight to many Champagne lovers, but they are increasingly of interest to the financial community, as to whether additional profit can be taken in France or by traders.

The concept of commercially launching a “recently disgorged” Champagne was invented by Madame Bollinger in 1961. “Aunt Lily”, as she was affectionately known throughout the region, started with the 1952 vintage. “It was a very modern and visionary idea and the concept is still unique by essence,” says Ghislain de Montgolfier, président directeur générale of Bollinger. He says that recently disgorged – the RD initials were trademarked by the firm – “reveals the aptitude of a great vintage from Bollinger to further express itself”. This is thanks to the very long contact between the wine and the lees through the yeast autolysis process.

The major demand for late disgorged Champagne is from the UK, France, the US and Italy. Recently disgorged Champagne commands a premium price because the wine has to be financed for longer – and to maintain scarcity. It is one of the ultimate ways to create a prestige cuvée.The differential hammer prices at auction for Bollinger, according to Christie’s, is £30-40 per bottle for 1990 but £50-60 for 1990 RD.

Currently “there is an insatiable demand for acquiring prestige vintage Champagne”, says Serena Sutcliffe MW, international wine head at Sotheby’s. At the late June auction, she says the “superb array of Champagne on offer was a Krugiste’s dream”.

Krug, founded in 1843, is renowned for its longevity, derived in part from vine selection and initial fermentation in small oak casks. The finest vintages appear to approach a “second life” when they reach around 20 years. While retaining vitality, such Champagnes develop an amazing richness and complexity.

The re-release of stock from Krug started in the 1980s, following years of international requests to Remi Krug for a special, older bottle. Starting with the 1969 vintage, he named the concept the Krug Collection. In outstanding vintages, Krug holds back some bottles and magnums to mature longer in its cool, deep Reims cellars. They are not released in chronological order but based on taste, time and maturity.

The Krug Collection commands a substantial premium over the same vintage which has been shipped and therefore disgorged at an earlier date. Sotheby’s says the 1981 sells for £73 and Collection at £161, the 1979 at £92 and £184 and the 1961 at £230 and £1,208.   

With relatively little publicity, Moët has developed Dom Pérignon Oenotheque, which started with the 2003 vintage. Each re-released DP is given a later dosage as against storing in an export market like the UK for 15-20 years on the original cork. Benoit Gouez, Moët’s chef de caves, says: “The ageing on lees is completely different from ageing after disgorging. Lees protect a wine from oxidation, as well as allowing it to become more complex on the nose and achieve more volume on the palate.”

Already investors are prepared to pay significantly more for DP from the Oenotheque. Chris Munro from Christie’s has sold 1964 DP for £180-£220 but the later release at £400-£600, while the 1985 is £70-£100 but £150-£180 for stock matured in France.

Not to be outdone, Charles Heidsieck has created Grosvenor House’s L’Oenotheque and used the opportunity to re-release key vintages. Amid the 17 different Champagnes offered are 10 rare and special cuvées.

It appears that in their move to hold back stocks and disgorge at a far later date, key Champagne houses are fulfilling demand for a new deluxe product and creating flair and individuality which has always been their metier.

At the same time, by removing some of the available vintage when first released, they are drastically reducing the risk of parallel exporting  and taking more of the profit that brokers and financiers creamed off.

© db June 2007