iDealwine update: a quest for the ideal

Most critics agree there has been a jump in quality at Pauillac estate Pontet-Canet in the past decade. iDealwine assesses the implications of this for the market.

In 1989, with the ambition typical a young winemaker, Jean-Michel Comme began experimenting with the latest technologies and viticultural techniques, freshly learnt from Bordeaux University: green harvesting, leaf-thinning, use of pesticides, chemicals fertilisers and herbicides.

In parallel, he launched a second label, Les Hauts de Pontet, in 1982, selecting only the best barrels for the grand vin. The wines showed beautifully and were a commercial success. Yet Comme wasn’t fully satisfied. Quoting the late Anne-Claude Leflaive, Burgundy’s biodynamic icon, he said that “the greatest wines should elevate the soul and not only the body”.

To him, Pontet-Canet had not yet reached this standard. Thus he decided to go further in the pursuit of quality, though not in the sense of striving for greater concentration and power, rather for elegance and sustainability. His vision and mission would have a tremendous impact on the quality and style of the wines.

Organic gamble
At the time, organic viticulture was feared by many Bordeaux grands crus for the lack of control over pests and diseases it implied, and the consequent drop in yields. Despite this, Comme managed to convince the estate’s owner, Alfred Tesseron, that this was the way forward, and set the family estate on this risky path from 2004.

The transition was not easy and the difficult conditions of 2007 nearly led to the loss of the vintage’s whole crop. Today, the vines grow as naturally as possible, with no leaf-thinning or green harvesting, using horse power instead of tractors and following the lunar calendar. In the cellar, concrete egg-shaped amphorae were introduced in 2012, replacing about a third of the traditional oak barrels.

In 2010, Pontet-Canet became the first grand cru to be granted double certification from Ecocert and Biodyvin, setting the organic standard for classed growths. The proportion of grand vin increased to 90% from about 50% in previous years.

Going against the flow, the idea at Pontet-Canet is to express the whole terroir of the estate in the grand vin and learn to improve and incorporate lesser parcels instead of rejecting them.

Financially, this decision has helped to compensate for the increased costs and lower yields associated with the new viticultural approach. The investment and innovation of recent decades has had a clear positive impact on ratings from international critics, with a rare double 100 Parker points for its 2009 and 2010 putting the spotlight on the Pauillac estate.

On iDealwine, Pontet-Canet shook the traditional ranking of the ‘Wines on Alert’, which is usually restricted to a privileged few estates including Lafite, Yquem and Angelus.

The 2015 ranking placed Pontet-Canet 2009, 2010 and 2005 in 11th, 16th and 17th position, respectively. However, despite such quality and interest, Pontet-Canet remains an affordable wine at a mere fraction of the price of other top Bordeaux grands crus, and one of the cheapest 100 Parker-point wines, with the 2009 and 2010 reaching €228 and €192, respectively, in June auctions.

Quality and price
In the minds of many wine collectors, Pontet-Canet is traditionally an affordable cru, whose price is probably limited by its position as fifth growth in the historical 1855 classification. The wine is also widely available with volumes of grand vin that reach about 250,000 bottles a year.

Moreover, as with many other Bordeaux grands crus, en primeur prices have risen significantly in recent vintages – from about €40 (VAT incl) in 2000 to €65 in 2005 and €138 in 2010 – logically limiting the mark-up in the secondary market.

However, overall quality and price increases in recent vintages have been instrumental in increasing demand for older vintages, whose prices have experienced continuous growth.

Following a sustained price increase, the 2000 vintage crossed the threshold of €100 (+12%) in the second auction of May and the 2005 sold for €126 (+11% on previous year – see chart).

At iDealwine, we believe Pontet-Canet is a true challenger of the super seconds, with an impressive terroir next to Mouton-Rothschild, a strong brand identity and a clear benchmark in terms of winemaking and innovation. Bids on this wine remain mostly European.

However interest and demand from collectors from Asia and the US will continue to grow. The above factors should promote a sustainable price increase. But for those who own Pontet-Canet in their cellars, whether you drink it or sell it, you should in both cases enjoy it!

Price evolution of Pontet-Canet, selected vintages, 2008-2016