iDealwine update: Fine wine la-la land

A combination of limited production and value relative to top Bordeaux and Burgundy has made the iconic ‘La La’ cuvées of Domaine Guigal a prime investor target

In previous market analyses we have highlighted the strong performance at auction of Rhône Valley wines – in particular the rise of ‘lesser’ appellations like Cornas (August 2015 issue) and the emblematic Châteauneuf-du-Pape, Chateau Rayas (September 2015 issue). In the north of the region, in Côte Rôtie, the celebrated Domaine Guigal, which vinifies about 40% of all the wine made in the appellation, clearly sets the benchmark with its legendary trio of ‘La La’ cuvées: La Landonne, La Mouline and La Turque.

These wines are highly praised and sought-after by wine connoisseurs all over the world. Their reputation, combined with their relative scarcity, has pushed their prices skyward in recent iDealwine auctions – for both young and mature vintages. In November, a lot of 2009 La Las reached €1,380 (£1,006), an increase of 21% on iDealwine’s estimate. Other recent auctions have produced even higher increases, with iDealwine estimates often doubled or even tripled.

A THIRST FOR QUALITY

Domaine Guigal was founded in Ampuis in 1946 by Etienne Guigal, who fought hard to raise the quality of the Côte Rôtie appellation following the terrible impact of the phylloxera plague, the 1929 economic crisis and the two world wars. The constant thirst for quality from the Guigal family has undeniably contributed to the success and reputation of Côte-Rôtie wines.

Today, Marcel Guigal overlooks the estate, supported by his son and talented oenologist, Philippe. The team continues to treat all of wine-making tasks with the utmost care and attention through sustainable pest management, carrying out work by hand (almost a necessity, in fact, on the appellation’s the 45° slopes) and owning their own cooperage (enabling a longer dry ageing, which is better suited to the Guigal style). Ageing is one of the key elements of Guigal and the La Las can spend up to 42 months in 100% new French oak barrels.

A SUNKISSED AMPHITHEATRE

La Mouline is a barely one-hectare plot (400 cases) in a shape of a Roman amphitheatre on the Côte Blonde. This parcel of loose granite, limestone and gneiss soils has belonged to the Guigal family since 1966. Its 75-year-old vines enjoy a south-facing exposure that nudges grapes into full maturity.

La Mouline is usually the first of the three La Las to be harvested. Boasting exceptional minerality and finesse, the wines reveal sublime notes of blackcurrant, blackberry and violet. The high proportion of Viognier gives the cuvée its unique, velvety body, which makes it accessible from its early years while also conferring impressive ageing potential.

At auction, it is not only the old vintages that perform well: on 25 November, La Mouline 2010 went under the hammer at €1,140 (£831) to a wine enthusiast from the UAE, exceeding the estimate by 218%!

BOLD AND TANNIC

La Landonne is located in the Côte Brune and unlike the other two crus is not a monopole. Guigal owns nearly two hectares (800 cases) and since 1978 has produced wines from Syrah vines of 40 years’ age on average. The terroir is made up of steep slopes of granite, iron and shale. La Landonne is certainly the boldest and most tannic of Guigal’s wines, displaying remarkable complexity of aromas – dark berries, leather, liquorice, roasted coffee and spices.

Its structure, richness and concentration are matched only by its long ageing potential. Despite La Landonne being the largest of the La Las, prices are on a par with those for the smaller vineyard areas, and old vintages are particularly sought-after. In the auction that closed on 9 December, a bottle of La Landonne 1988 was sold to a Swiss collector for €1,440 (£1,050), an increase of 166% on its estimate.

YOUNG AND RARE

Produced since 1985 on less than a hectare, La Turque is the youngest and rarest of the three. It is situated on the slopes of the Côte Brune, not fare from La Landonne, on soils of granite, schist, limestone and iron. Facing south, with the steepest slopes of the three La Las, the vines (93% Syrah, 7% Viognier) benefit from constant sunshine, with grapes harvested as late as possible to achieve perfect grape maturity. La Turque possesses powerful and delicate aromas of morello cherry, blackberry and oriental spices.

This is a wine of extraordinary richness and is often delicious in its youth, though with ageing it develops a majestic, voluptuous texture. Historically the La Las have produced wines of an extraordinary consistency, even in lesser years.

The combination of the price increase for top Bordeaux and Burgundy, and growing interest for the Rhône, has supported the reputation of these cuvées among wine lovers and investors from the all world. The strong personality of each ‘La’, their limited production and stock, and very high quality have raised them to icon status and prices have logically increased over the years. Yet, in the last few months, the growth has been even more rapid, pushing the La Las to new heights. Recent records on iDealwine auctions suggest this is just the start of a sharp upward trend.