The reasoning behind a push of wine and spirits into the Far East is compelling

Vine Expo

Vinexpo is a big deal. The annual wine and spirit trade fair alternates between Bordeaux and Hong Kong and has industry movers and shakers licking their lips in anticipation when the event rolls around. It’s widely acknowledged as Asia’s principal wine and spirit expo.

It’s Bordeaux’s turn this year, with the trade-only show taking place in June. A significant number of buyers from Greater China typically attend. With this in mind, Vinexpo’s CEO, Guillaume Deglise, visits Hong Kong just ahead of the main event to promote it. He brings with him the findings of the benchmark study of the global wine and spirits market.

This bit of educated crystal ball gazing is commissioned annually by Vinexpo from International Wine & Spirits Research (IWSR) and is regarded in the trade as the most reliable source of wine and spirits market data and analysis. The study has been produced by the IWSR for 15 straight years, and has generally turned out to be impressively accurate.

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The picture that emerges this year is one of increasing dependence on Asia Pacific markets for growth, and particularly on China. According to the IWSR, global consumption of still and sparkling wines will increase by just 1.9 percent between 2016 and 2020.

The sad truth is that while Asians and Americans appear to be getting thirstier, Europe – the continent to which we owe our wine culture – is cutting down on consumption. The biggest old-world producers of fine and not-so-fine wines are all facing contraction in their domestic markets.
“It is not a surprise that Europe is losing market share,” said Deglise. “It has been happening for years now. Growth in the wine business is coming from Asia and the Americas.”

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Although 64 percent of all still wine produced globally is currently consumed in Europe, by 2020 the IWSR forecasts a fall to 59 percent. France, Germany, Italy, the UK and Spain are all expected to experience a decline in wine sales and consumption, or at best, for their markets to remain flat.
It’s a similar story for spirits. Between 2016 and 2020, Asia Pacific is expected to increase its spirits consumption by 51.7 million 9-litre cases. Europe, Russia and the former Soviet Union states are all expected to consume significantly less.

Text: Robin Lynam

Ain’t it Grande: The world’s most lavish cognac

Cognac-Henri-IV-Dudognon-Heritage-Gold-24K-SilverCognac has long been considered one of the more refined spirits, enjoyed by emperors and kings and coveted by noblemen and women alike. It might not, therefore, come as a complete shock to learn that the world’s most expensive cognac will set you back a right royal US$1,982,300 per 100cl bottle. Best sipped not sculled. This most decadent of drops is the Henri IV Dudognon Heritage Cognac Grande Champagne and has been dubbed in some quarters as ‘the DNA’ of cognacs. Produced since 1776, this ultra-fine liquor is aged in barrels for more than 100 years. While the cognac itself is undoubtedly lavish, a good deal of the expense is also in the bottle that holds this veritable nectar of the gods.

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The bottle is dipped in 24-carat yellow gold and sterling platinum and decorated with no less than 6,500 certified brilliant-cut diamonds. Weighing in at 8 kilograms, the bejewelled bottle is the brainchild of world renowned jeweller Jose Davalos. Named in honour of French King Henri IV – whose descendants are responsible to this day for producing this fine cognac – this spirit is composed of carefully selected grape varieties grown exclusively in the Cognac region. The Henri Dudognon Heritage Cognac Grande Champagne has an alcohol content of 41 percent – although given the price-tag, there’s probably not much chance of anyone getting sozzled on it anytime soon.

Lasting Legacy: Ex-director of The Macallan on the world’s most valuable whisky

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Sotheby’s recently held an auction in Hong Kong where the Macallan in Lalique Legacy Collection – a set of six crystal decanters containing the rarest of The Macallan’s single malts aged from 50 to 65 years old – sold for US$993,000 (HK$7.7 million).

David Cox, who recently retired as director of fine and rare whiskies for The Macallan, flew into Hong Kong for the ‘Finest & Rarest Wines and The Macallan’ auction.

David, who worked in the scotch whisky industry for 35 years, played a lead role in the development of The Macallan in Lalique Six Pillars series.

We spoke to David after the auction about the Six Pillars, brand identity and how The Macallan is received in Hong Kong and China.

How did The Macallan establish such a strong brand identity?

Before The Macallan was marketed as a brand in the 1980s, the product had long been admired and sought after by blenders as a ‘top dressing’ single malt. It was also popular among a small number of consumers who enjoyed its distinctive rich, full-flavoured character, much of which owed to The Macallan’s use of sherry casks from Spain for maturation.

Since that time, what was something of a cult-like following by a few has turned into an ever-growing loyalty by many around the globe. This is down to the merits of The Macallan’s product reaching a wider audience through active engagement with trades and consumers. This engagement is grounded in some product truths –  the Six Pillars –  which have been consistently talked about and understood by trades and consumers. Consistency has therefore been critically important, which is based on a great appreciation of outstanding and distinctive product quality.

Have you tweaked the brand at all for the China and Hong Kong markets?

We maintain the prestige and luxury positioning for all markets across the world. It is arguably the most precious whisky in the world, substantiated by the multiple world records of ‘The Most Expensive Whisky Ever Sold In Auction’ by The Macallan 64 Years in Lalique Cire Perdue Decanter and The Macallan Imperiale 6L M-Decanter Constantine.

How’s The Macallan received in China and Hong Kong?

The Macallan is received exceptionally well across Hong Kong, Taiwan and China. The consumers are basically professional, upper income and high net-worth individuals. The brand also has a good following among younger consumer groups, which is a visible trend in Asia among single malts.

The younger consumers are more open in terms of trying new categories of drinks, single malts among the many they are experimenting with. They collect, collate, categorise, compare and conclude which ones they prefer and for what occasions.

What’s the biggest challenge for The Macallan in this region?

Supply has always been an issue.The challenge is to always stay vigilant, always aim to be better and to always put consumers at heart. We always remind ourselves to stay close to our customers, be relevant to consumers and be aware of any changes in the market.

What is The Macallan in Lalique Six Pillars collection?

It is a celebration in crystal decanters filled with some of The Macallan’s oldest and rarest whiskies – the oldest was filled to cask in April 1945.

The Macallan’s Six Pillars are six facets of The Macallan which, when taken together, help explain the distinctive, rich character of the whisky.

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What exactly did you do in your lead role in the development of The Macallan in Lalique Six Pillars series?

I was introduced to Lalique back in 2004, and at the time my plan was to develop a series of decanters in crystal to celebrate the six pillars, releasing one every other year, making this a 12-year project.

I was immediately struck by the extraordinary artistic legacy of Lalique and felt they would not only deliver an outstanding series of unique crystal decanters, but that we also shared many values which would ensure a partnership of understanding and longevity. I am delighted to say this proved to be the case.

You were in Hong Kong for the auction at Sotheby’s. How did it go?

The result exceeded our expectations. The combination of The Macallan’s unrivalled reputation in single malt whisky, allied to Lalique’s artistic inspiration, helped to ensure that the Legacy Collection, the only complete collection of Six Pillars decanters ever released by The Macallan, achieved a world record hammer price for a single lot at auction. Most satisfying of all, though, is the proceeds will be divided equally among five charities.

The Hong Kong charities are:

Society for the Community Organization, which supports disadvantaged people in Hong Kong.
Food Link Foundation, which specialises in coordinating food needs for disadvantaged families in Hong Kong.
Crossroads Foundation, which supports disadvantaged people in Hong Kong, specifically helping unemployed people who lack the required skill sets between jobs.

The regional charities are:

Watsi, which provides support to those in need of medical and surgical support and works globally and regionally.
One Sky Foundation, which supports orphans in Asia-Pacific.

Each of the five charities will receive a 20 percent donation of the net proceeds. The first three charities are based in Hong Kong and the last two work in Asia-Pacific, so Hong Kong charities will share 60 percent and Asia-Pacific charities will share 40 percent of the net proceeds.

In 2015, The Macallan was the most valuable whisky brand at auction, why do you think that was?

The Macallan has been the most valuable whisky brand at auction ever since the first whisky auctions were held in Scotland in the late 1980s. I think it derives from a combination of our great reputation, a track record of high prices and ever increasing value and, in the case of some Macallan products at auction, of scarcity.

Text: Andrew Scott

From grape to glass: Jackson Family Wines masterclass highlights American wine

Cabernet Sauvignon and Chardonnay may very well be the grapes most commonly grown in the United States, but they are not the only varieties to be found in vineyards. Although pinot noir has earned a reputation as the world’s “most fickle grape,” according to sommelier Michael Jordan, some wineries in the West are taking up the challenge of producing delicious and well-balanced pinot noirs.

The United States is the fourth largest wine producer in the world, but internationally its wine-producing regions are less famous than France’s Bordeaux or Argentina’s Mendoza. Jordan, director of global key accounts for Jackson Family Wines, wants to change that and help put California and Oregon on the map as globally-recognised wine regions in their own right.

The family-operated Jackson Family Wines owns 55 wineries in North and South America, France, Italy, South Africa and Australia. In the US alone, it operates about three dozen wineries in California and Oregon.

At a recent masterclass held in Hong Kong’s Conrad Hotel, Jordan discussed the key differences between California and Oregon wines, as well as the conditions that make the regions so suitable for wine grape cultivation.

Pinot noir made from Oregon grapes tends to be fresher than its “fruitier, jammier” cousin in California, Jordan said. However, it’s more intensely fruity than Burgundy wines.

Oregon pinots also tend to be more acidic than California wines, and they fall somewhere in between Burgundy and California wines on both the tannin and richness scales.

“We’re not trying to make Burgundy wine. We’re trying to make Oregon wine,” Jordan said. “I think it’s been pigeon-holed and compared for so many years to New Zealand or Burgundy or to someplace else that we’ve lost track of the identity and characteristics of true Oregon pinot noir.”

The company’s latest vintage to hit store shelves is the Gran Moraine Yamhill-Carlton 2014. Derived from the Yamhill-Carlton American Viticultural Area (AVA) in Oregon’s Willamette Valley – a region designated for grape cultivation – the wine features flavours of cranberry, rose hips, orange zest, Meyer lemon, morel mushroom, red cedar and spices. According to the winery, 2014 will long be considered “one of the best vintages ever for the Willamette Valley,” thanks to favourable weather conditions that year.

The masterclass featured a guided tasting of eight different offerings from Jackson Family Wines – four from California, and four from Oregon.

Jordan, who has an extensive background in the restaurant business, previously served as the global manager of wine for Walt Disney Parks and Resorts worldwide, and he has been named ‘Sommelier of the Year’ by multiple organisations throughout the years.

Text: Emily Petsko

Burgundy, more than a colour: French wine board hosts tastings across Hong Kong

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Bordeaux may very well be the largest wine-producing region in France and, consequently, the most widely recognised wine among international imbibers – but that doesn’t mean it should steal all the credit.

Indeed, the central eastern region of Bourgogne (known as Burgundy in English) has just as much to offer. In an effort to drive home this point and expose more Hong Kongers to Burgundy’s unique offerings, ‘Bourgogne Week’ has returned to the island. Organised by the Bourgogne Wine Board (BIVB), the event features wine tastings, events and special promotions until 3 March, with some promotions extending until the end of March.

On Wednesday, 1 March, a Chablis White Party for wine traders and partners will be held at the The Conservatory at Crown Wine Cellars. Party-goers will have the chance to sample a variety of wines from Chablis, the northernmost wine district of Burgundy. For those who can’t attend the party and don’t want to miss out on the wine tasting, nearly 50 wines will be part of an ongoing Chablis promotion throughout the month at a number of wine specialist shops, including Rare & Fine Wines, Grand Wine Cellar, Red Wine Village, The Wine Guild and more.

Bourgogne Week has been popular in the UK for over a decade, but it only made its debut in Hong Kong last year. Anne Moreau, of BIVB, says: “Hong Kong is a dynamic, mature wine market with highly sophisticated wine lovers. It was obvious that a Bourgogne Week elsewhere than in the UK had to be in Hong Kong.”

Click here for the full schedule of tastings, events and promotions.

Hong Kong Whisky Festival returns for second year

 

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Calling all whisky lovers, the Hong Kong Whisky Festival is returning on 4 March at the InterContinental Grand Stanford and Tiffany’s New York Bar in Tsim Sha Tsui.

With the inaugural edition drawing a large crowd, there was demand for the whisky festival to return.

This time, though, the Hong Kong Whisky Festival will have over 110 brands, while there will be more than 400 different whisky expressions — a different version of the same whiskey.

As if that isn’t enough, the event will also feature 16 masterclasses and a VIP class for true whisky connoisseurs. Also lookout for an award-winning mixologist performance at the Chivas pop-up bar at Tiffany’s New York Bar, a barrel assembling demonstration and the dram shop, where people can purchase over 300 different bottles of whisky.

“Last year we organised the inaugural Hong Kong Whisky Festival, and it was an overwhelming success as it received a lot of positive feedback from our participants and partners, and from that we really see a great whisky culture in Hong Kong and it grows daily with interest,” John Drummond, resident manager and whisky ambassador of InterContinental Grand Stanford Hong Kong, said.

The whisky exhibition will be held from 12pm to 8pm on 4 March, while the Chivas pop-up bar will run from 3pm to 11pm.

For those interested, tickets will cost HK$250 and come with a complimentary Glencairn whisky glass. As for the masterclass, it costs between HK$250 to HK$350.

For more information, visit: www.hkwhiskyfestival.com

New range of pseudo-champers has a genuine sparkle

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With Christmas and New Year just around the corner, we are now at least four months into champagne’s annual marketing drive, all designed to leave us in no doubt that if it doesn’t fizz, it ain’t festive. It is, indeed, the safest of assumptions that a huge number of champagne corks will be popped over the Season of Good Will. At the risk of sounding heretical, however, it seems many of us are likely to break with the orthodoxy and indulge in other forms of fizz over the festive period – and not just out of price considerations.

For generations, it has generally been assumed that champagne is the only wine that truly says celebration. Should other bubblies be substituted, this has been seen as more of a matter of penny-pinching than of preference. In most instances, that is probably still pretty much the case. Much of the attraction of Spain’s cava or Italy’s prosecco is their appeal to the pocket rather than to the palate. As a result cava, typically topped up with orange juice, is now a well-established choice, while prosecco sales have similarly boomed over recent years.

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Perhaps more surprising is the surge of interest in English sparkling wines. More surprisingly still, these often cost more than the champagnes they often beat in blind tastings. The Champenois are certainly conscious of the competition. With wine consumption falling in many key markets, they seem resigned to the fact that champagne sales may never again reach the giddy heights of yesteryear.

In 2007, some 339 million bottles of champagne were shipped. In 2008, though, global sales took a major hit on account of the financial crisis. Recovery has been gradual. As of the end of 2015, sales were still only hovering around the 312.5 million mark.

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Other sparkling wine categories have been notably more lively. In terms of volume, global sales of Italy’s prosecco overtook champagne in 2013, maintaining its lead ever since. Prosecco also overshadows cava although the latter is, in many ways, a more interesting drink. As the very apex of quality in the sparkling wine world, Champagne still has the territory more or less to itself. There are few contenders outside the region to compete with Dom Perignon, Krug or a number of the top cuvees from Billecart-Salmon, Bollinger or Perrier-Jouet. For more casual consumption, though, champagne has some serious competition. So what’s worth trying? While, for many, prosecco seems to be the answer, there are just as many who would demur.

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Italy, however, is responsible for several sparkling wines that are far closer in style to serious champagnes – particularly in Lombardy in the Franciacorta DOCG. Franciacorta has only had its DOCG status since 1995 and, although wine has been made in the region since Roman times, it only started going into bubbles in the 1960s. U n d e r I t a l i a n w i n e l a w Franciacorta’s sparkling wines have to be made by the “traditional methods.” As a result, the region’s quality tends to be
impressively high. To date, only a limited selection is available in Hong Kong and China, although one of the best of the
producers – Bellavista – is represented by Altaya Wines.

Many lovers of sparkling wines believe that the highest quality available outside Champagne comes from one of two regions. Franciacorta is one, and the other – pretty much to everyone’s astonishment – is now southeast England. This really shouldn’t be all that surprising. The areas that are home to the most successful of the English sparkling wine producers are, after all, located close enough to Champagne to enjoy similar terroir. Unlike cava and prosecco, English sparkling wine has not had the option of competing with champagne in terms of price. Neither can it approach its production volume. Essentially, it is expensive to make, the grapes grow on small parcels of land and the vintages are unpredictable. Wine from a number of UK producers – notably Chapel Down, Gusbourne and Nyetimber – have performed consistently strongly in blind tastings in recent years. In fact, when an English sparkler beats a French fizz, it is scarcely deemed newsworthy these days.

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The stand-out here is Gramona, a cava house that Berry Bros & Rudd have been promoting in Asia for some time now. As with the Franciacorta producers, Gramona uses the “traditional method.” Not all of the serious competition to the Champagne region, of course, comes from outside France. While Champagne has long been an important part of the Parisian lifestyle, when The Parisian Macao opened recently, Arnaud Echalier, its beverage operations manager, said it wouldn’t be the only sparkling wine on offer. Its wine l ist features both international sparkling wines, as well as France’s regional fizzes – Crémant de Bourgogne, Crémant de Limoux and Crémant de Loire. He says these “second tier bubbles” do not lack in quality. While Angelina is not the first sparkling wine to be made in China, it is the first to be made by the “traditional method.” It comes courtesy of the Grace Vineyard, one of the more artisanal producers and one that has garnered praise for its still wines. Its initial release in 2015 consisted of a 2009 blanc de blancs, a non-vintage blanc de blancs and two other single varietal sparkling wines – one Cabernet Franc and one Chenin Blanc. While the limited release 2009 is probably a challenge to track down now, the others in the range will certainly add a different kind – though not inferior – sparkle to your celebrations.

Alsasian

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As a wine producing region, Alsace is both complicated and diverse. This is not least because, as much as the terroir, recent history has had quite an impact on the wines produced in this particular part of northeast France.

Etienne Hugel is the commercial director of Famille Hugel, one of the region’s top end producers. Staking his claim for a reassessment of Alsace’s output, he says: “Many people think it is a very simple region – just eight grape types and eight different kinds of wine. Actually, though, there is a greater diversity of Riesling in Alsace than there is of Chablis in Burgundy.

“Alsace is a mosaic of soils, with volcanic, slate, granite, schist and red sandstone all to be found. Around us in Riquewihr, on two fault lines, there is also marly soil – a clay and limestone mix, the result of centuries of sea deposits. In fact, the village has at least 10 different types of soil, within the space of just one and a half kilometres.”

The Hugel family can trace its history in Alsace back to 1639. Perhaps unsurprisingly, it is also a member of the highly exclusive Primum Familiae Vini association. This body is limited to 12 winemaking families and includes such notable surnames as the Antinoris, the Rothschilds and the Symingtons.

Set close to the River Rhine, Alsace has long been the subject of historical territory disputes. Over the centuries, its ownership has regularly alternated between Germany and France. The region formally became part of France under the Peace of Westphalia, a series of treaties that brought the Thirty Years War to a final settlement. This, though, was not the end of the story.

Explaining the shifting sands that have shaped the region, Hugel says: “We were French from 1648 onwards, but then the Germans won the Franco-Prussian War. Alsace was the price France had to pay.

“Back in 1871, the name of the company was Hügel & Söhne, the brand during the German time. Then, in 1918, we were French again. During the Second World War, of course, we were back to being German.”

Alsace is home to a number of notable producers, including Maison Trimbach in Ribeauville, Domaine Zind-Humbrecht in Turckheim, and Marcel Deiss in Bergheim. All of them – including Hugel – make wines that, while being distinctively Alsacien, embody both French and Germanic elements.

Etienne Hugel’s father and uncle were both wartime conscripts in the German army. The memory of their experiences is fresh enough for the German aspects of the house to be seldom acknowledged. Hügel – meaning “hill” – is a German name. The absence of the umlaut from the family’s wine labels, though, is no accident.

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Tellingly, there are no signatures in the estate visitor’s book from 1940 to 1945. Bluntly explaining this apparent omission, Hugel says: “Nobody was considered decent enough to be allowed to sign.” A further sign of the family’s allegiance can be found in the company’s files, where a thank you letter from Winston Churchill for a 12-bottle case of wine takes pride of place.

Jean Hugel, Etienne’s uncle, was a hugely influential figure in the development of Alsace as a wine region after the end of the World War II. It is no coincidence that it was only after his death that the family reintroduced a recognisably German element to the wine’s packaging.

On a recent visit to Hong Kong, Etienne Hugel was keen to introduce the marque’s new range of wines, the successors to its Jubilee Collection, launched in 1989 to celebrate the family’s 350th anniversary. This latest range rejoices under the title of Grossi Laüe “Great Growth” in the Alsacien dialect. The term might actually have been introduced earlier had Jean Hugel felt able to countenance an umlaut on a Hugel label.

Quoting Robert Parker’s description of the family’s 2010 Pinot Noir Grossi Laüe, Etienne Hugel said: “Grossi Laüe signifies the finest vineyards … and represents an equivalent to the German Grosses Gewächs or the Burgundian Grand Cru.

“This is a Pinot Noir with real minerality, profound and deep that every year comes closer to the quality of a Côte d’Or. It is a truly profound and complex red wine, one that is aged for eight to 10 months in partially-renewed oak barriques.”

While the wine certainly tasted more like a Burgundian Pinot Noir than a German Spätburgunder, there was a degree of strategy behind the inclusion of that symbolic umlaut. In truth, the family is looking to edge Alsace’s finest into the spotlight hogged by German wines since the beginning of the Riesling revival, a phenomenon particularly notable in the United States. Making this bid more explicit still, a superb 2010 Riesling Grossi Laüe was also among the wines Hugel sought to introduce to Asia’s more discerning wine drinkers.

Clearly making his pitch to such connoisseurs, Hugel said: “Riesling is back after 30 years of hell, but now it is dry Riesling. We, of course, believe that we know how to make these particular wines much better than the Germans do.”

As well as introducing Grossi Laüe, Hugel was in Hong Kong to highlight coming changes to the style and branding of all Hugel wines. The range now features redesigned labels and a number of new bottles. The occasion also marked the introduction of several new wines in the Famille Hugel range, wines principally derived from Muscat and Pinot Gris.

While Hugel’s wines are now distributed in Hong Kong and China by Summergate Fine Wines and Spirits, this does not mark their debut. Back in 1950, they were originally introduced by Jardine Matheson.

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Looking back on the marque’s Asian connection, Hugel said: “In 65 years we have only had three importers working for us in Hong Kong. That tells you a lot. We’ve actually had the same importer in Thailand for 55 years, while we’ve only had two in Japan since 1950. Japan is now our third largest export market, something I think my grandfather might not entirely have approved of.”

The chief executive of the family firm is currently Jean Philippe, while the wines are made by Marc, his elder brother. Except for the United States, which comes under the auspices of his son, Jean Frederic, Etienne is the roving ambassador for the company’s wines. In this role, he has long had particular interest in Asia. His wife, Kaoru, after all, is Japanese and was formerly a sommelier at the Mandarin Oriental in Tokyo .

Clearly emboldened as to the marque’s prospects across Asia, he said: “I believe my brother is responsible for the best wine my family has ever made. I also think we have the best distribution of any Alsace wine producer.

“Hugel is now the leading Alsace wine in every Asian country. That did not come about by itself. Japan was historically our biggest Asian market, while our wine have been sold in Hong Kong since 1950, as indeed they have in Singapore. We’re now the number one Alsace brand in every market in Asia, including India and Sri Lanka. We’ve also just visited Phnom Penh, so we will soon even have wines in Cambodia.

“All of this is the result of our real focus on Asia. You don’t have to be a genius when you are visiting Shanghai, Guangzhou or Shenzhen to see that Asia will be the centre of the world. You are all very lucky. Except, maybe, for the pollution, of course.”

While it certainly sounds impressive, the numbers associated with some of those countries may well not be very large. It could also be that, in some of them, Hugel is not only the leading Alsace brand, but also the only one. That aside, the wines certainly do suit Asian climates and cuisines.

Crisp and aromatic with ample depth and complexity, there is nothing in the Hugel range that wouldn’t be welcome on a hot summer’s day. When it comes to the dry Rieslings, they seem made for pairing with Cantonese dishes. Similarly, the spicier Gewürztraminers would stand up well with Sechuan or Thai cuisine, while the Pinot Noirs are a good alternative to classic red Burgundy and duck combinations.

In truth, you can’t go far wrong with anything in the Hugel Classic range. The very best introduction to the family’s wine – and indeed to those of Alsace in general – is the Hugel Gentil, a blend of Riesling, Pinot Gris, Pinot Blanc, Gewürztraminer, Muscat and Sylvaner. Modestly acknowledging its quality, Etienne says: “We don’t make anything worse than this.” As an entry-level wine, the 2014 vintage sets the bar pretty high.

For many, though, the highpoint of the tasting was the Gewürztraminer Vendange Tardive 2007 – luscious, elegant, perfumed and literally crying out to be paired with foie gras or Roquefort.

The Pheres Factor

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Narcisa Pheres runs her own Tokyo-headquartered Italian fashion house with studios around the world. She also designs and sells jewellery, while advising on investing in fine art and even finer wines.

Click here to see Narcisa Pheres on video

You are involved in quite a range of business sectors. Why do you think your career has proved to be quite so eclectic?

I am a professionally-certified diamond expert and jewellery designer and so, about 18 years ago, I began buying diamonds for Japanese collectors. A number of the buyers liked the centre stone, but not the jewellery itself. They would then ask me to re-design it for them. That was the beginning of my jewellery line. Later, I became quite interested in fashion design. So off I went to Milan to study the design aspect of fashion, then to London to learn more about the marketing side. Ultimately, this led me to launching my men’s fashion line in Tokyo some 10 years ago.

Given my background, I get invited to lecture on investing in jewellery and gem stones, as well as in fine art and wines. I recently organised one of the largest purchases of impressionist art outside of Europe. It was a very complicated project, but also quite fascinating. Given a choice, I prefer to deal in the old masters and rarely handle any contemporary art – unless, of course, I know the artists personally.

I also advise film stars, politicians, celebrities and even royalty as to how to dress for success or just how to dress to impress. Most of my clients know what they want and I just add a hint of colour and that extra finishing touch. You only ever have a few seconds to create a first impression – one that must last – so it’s vitally important to get it right. People need something to remember you by, that special element that makes all the difference. It’s a part of my work that I really thoroughly enjoy.

Sentient robots – ever on the cards or purely the stuff of sci-fi?

I work with someone who is very involved with robotics and artificial intelligence and so I am sure that will come to pass. The current thinking is that robots will be able to make decisions at a certain level, but probably not as intelligently as humans. Many of our own decisions, however, are based on statistical analysis and that’s something robots can handle with ease.

If you had your own TV show, what would you like it to be about?

Well, I have had a few and I know what they were about. I think now, though, I would change my direction. I’d love to host a show about travel and lifestyles. I enjoy travel and I am doing a lot of work now with spas, while also looking at exploring exotic places. It would be great to introduce some of the more interesting destinations to people. There are too many fashion shows on TV nowadays, though, and sadly they are mass-produced and lacking in any real quality. I would like to integrate fashion into lifestyle, while also considering its wider impact. All the current street fashion, for instance, is non-biodegradable and, in its own way, it is helping to destroy the earth. Fads change too quickly, so clothes become out-dated while they are still virtually new. I want to make fewer clothes, but of a higher quality so people will wear them for longer. I would like to mix these ideas up with, travel, food, eco-friendly living and green hotels. I’d like to show you can have a good life, be fashionable and still be “green.”

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What’s your take on the current crop of reality shows?

Project Runway, to be fair, did help a number of aspiring designers to suddenly become well known. America’s Next Top Model also did some good for the beauty industry. I am less convinced of the value of things like Keeping Up With The Kardashians. It displays the fashion world in the most negative way. Suddenly these people have become muses for all the famous fashion shows. It’s quite sad. Up and coming brands are using these sort of people to get their messages across on social media. If they have these people in mind when they are designing their latest looks, then the whole fashion world is in trouble.

When did you last go to the cinema?

I went a few weeks back. I like to have a Saturday movie night every now and again. The last one I remember seeing was The Martian. That was quite a while ago now though.

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Is there a word that you feel you use too often?

“Amazing” – it is something I am always saying. I suppose it is better than “awesome” or “bloody.” I like that word. It relates to my state of mind. It is a very happy word and I’m a happy person. I find it can also be used in so many different instances.

What’s the worst advice that you’ve ever been given?

I am sure there’s been lots of such advice, but I never listen. I generally like to make my own mistakes. I suppose quite often, when I ask for advice, I am actually looking for confirmation of something I’ve already decided about. My husband always says to me: “Why do you ask me when you already have the answer?” I tell him that I have to check that my decision is right. If I make a mistake, then I really only have myself to blame.

Where do your children go to school?

They go to Beacon Hill School – part of the English Schools Foundation. We live near Kowloon Station, so we are in the capture area for that school. I am really happy with it. My eldest daughter – my seven-year-old – loves the school. The younger one is just five so doesn’t understand much yet. The school really promotes creativity and encourages art, playing the piano, public speaking, anything like that. They also stage debates, which I think is amazing for seven year olds. They are always exploring and discovering new things.

In your view, who is the greatest person to have ever lived?

Oh there are so many. Probably at the top of my list would be the great Greek mathematicians and philosophers – Plato and Socrates – or some of the more recent scientific figures, Einstein, Galileo, Edison, Da Vinci … Da Vinci was one of the most incredible. You have to wonder just how he had the time to do all the science-related things that he did, as well as his paintings. We mustn’t forget other amazing people, though, people like Mother Teresa. Greatness really depends on how you change other people’s lives – what you leave behind.

Do you believe in the death penalty?

As a punishment, no. I don’t think anything gives us the right to kill. Imprisonment for life I understand. Take away a person’s freedom, but not their life. That makes us no better than the people we are trying to punish. I don’t see that it’s ever proved to be a deterrent. Life imprisonment gives people a long time to think about what they’ve done and is actually a far more severe form of punishment in many ways.

Which do you think is the most overpaid profession?

Banking. Look at the whole financial meltdown. Everyone was just focused on getting their bonuses and were too bullish on the markets. It’s a different story now, but a lot of people got hurt back in 2008 on account of all that greed. Plastic surgery is another overpaid profession. It does absolutely nothing for humanity. I can accept reconstructive surgery after an accident or an injury. The whole plastic surgery thing is quite prevalent in the fashion arena due to the superficial nature of the industry and the huge insecurities that go with it. Then again, the whole fashion industry is based on other people’s insecurity.

Is there a TV show you particularly detest?

I suppose I don’t really hate anything on TV that much. If I am not enjoying something, I just turn off the TV. Hong Kong could do a lot better in terms of TV. They should do more to promote travel and Hong Kong’s cultural heritage, all those little things that make this place so absolutely unique.

What was your most extravagant purchase?

A chinchilla coat that I bought in Saks on Fifth Avenue earlier this year. I needed something warm for a ball that I was attending in Monte Carlo in March. I felt rather guilty afterwards. It was just a small bolero coat.

What is in your handbag right now?

Credit cards, my driving licence, some money – in a number of different currencies. I don’t know why I always have a certain amount of US dollars with me. Some make-up, some extra jewellery for the photo shoot today, an Octopus card, my laptop computer and two phones. One is my personal phone and the other one takes better pictures, which is important in my line of business.

What’s your greatest indulgence?

Oh I have a few. I love chocolate. I’d like to say spas, but no, its chocolate – especially dark chocolate made from more than 70 percent cocoa. I also like many of the Japanese chocolates – the ones with spices inside. The Japanese make some of the most amazing – that word again – chocolates. I also love good wine and cheese, especially the wines from the Bordeaux region. I also love good champagne. I try and have a champagne brunch every weekend if I can.

Are you a good listener or good talker?

I don’t think I am a good listener. I admit it. I tend to listen at the beginning and get an idea of what is needed. As I am usually operating in an advisory role, I am expected to talk more. I listen a lot when I am with friends.

What is your favourite style of food?

Japanese, without a doubt, though I am also very partial to fine French cuisine. I especially like duck à l’orange. As a lover of seafood, I am very found of sushi and sashimi. When I am in Japan, I go to those little tiny corner family-style restaurants. You find you’re always in for something of a surprise. There are some places where they have no menu. They just ask if you have any allergies and then make a special dish to surprise you. I love that sort of thing.

Do you keep a diary?

Yes, I do. I like to go back and read things over again. Even my daughter keeps a diary. It is such a busy world. Sometimes I can’t even remember what I had for breakfast, let alone what I did yesterday. I feel duty-bound to write things down for posterity.

Thank you.

 

 

Malty Tasking

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“ Whisky is a lot less volatile than wine, but it’s not indestructible. You can, for example, drop the bottle…” It’s a rueful reflection from David Robertson, Chief Investment Officer of the Platinum Whisky Investment Fund, speaking amid the debris of an 80-year-old single malt from the Speyside Mortlach distillery.

Robertson’s bid to place the venerable spirit on a table that proved to be stubbornly absent reduced the Fund’s whisky collection, at a stroke, from 7,682 bottles to a still respectable 7,681, with its total valuation said to be in the region of US$4.5 million. Strictly speaking, at the time of the accident though, the Speyside had yet to be formally inaugurated in to the Fund’s portfolio.

It still technically belonged to a collector with whom Robertson and his partner, Rickesh Kishnani, the Fund’s Chief Executive Officer, were negotiating. With an air of some relief, Kishnani says: “Luckily the seller was nice enough to cover that loss.”

Even without such trauma, whisky can be rendered – if not undrinkable – less agreeable to drink in a variety of ways, most of which do not involve shattered glass. Nonetheless, unlike wine – which spoils easily in less than optimum storage conditions – whisky needs only to be kept at a fairly stable and relatively cool temperature, while protected from direct sunlight, to remain in near peak condition.

Expanding on the spirit’s robust nature, Kishnani says: “With wine you have to worry about vintages, how it has been stored, and whether it is still drinking well. With whisky you don’t have to worry about any of those things.”

Another thing you don’t worry about is economic jitters on the Chinese mainland. Over recent years, much of the ridiculous inflation of the cost of fine wine has been directly attributable to the willingness of Chinese buyers to pay increasingly outlandish asking prices for premium vintages.

Of late, many such punters have exited the market. This has left some investors – many of whom were banking on the boom going on indefinitely – with significant amounts wine on their hands, much of it worth less than they actually paid for it.

The same thing could, of course, quite easily happen with whisky. There are, however, some very good reasons for assuming it won’t in the case of the bottles the Platinum Whisky Investment Fund tends to – unless, of course, Robertson goes and drops a few more of them.

Reassuringly, the international collectible whisky market isn’t dependent on Chinese money. There are plenty of serious – and seriously rich – collectors in Europe and North America, as well as in Asia. This has meant the decelerating mainland economy has had little impact on the value of the more collectible bottles of single malt.

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Another factor in this retention of value is the sheer rarity of good aged spirits. Highlighting this, Kishnani says: “The most expensive bottle we have in the Fund is the 90-year-old Valerio Adami Edition of The Macallan from 1926.

“There were only ever 12 individually numbered bottles produced, with all 12 being sold. Of these, we know four or five have been consumed, meaning there are between six and eight bottles left in the world. While we don’t know where they all are, we know we have one – bottle Number Eight, to be precise.”

That particular bottle is currently valued at more than US$200,000. Even Edrington, owners of The Macallan distillery, doesn’t possess one.

Other highlights of the Fund’s portfolio, which Kishnani says is fast becoming one of the largest collections of single malt whisky in the world, include 50 year old whiskies from Springbank, Balvenie, Dalmore and Mortlach; a Laphroaig distilled from 1903 and a Highland Park distilled from 1902.

He says: “We also have a Glenfiddich 1937, a distillation from immediately prior to World War II that was bottled in 2001, which is truly incredible.  After all that time, there were only 61 bottles left in the cask, so we feel very lucky.”

He deems such specimens “trophy bottles,” but emphasises that most of the Fund’s whiskies are far more affordable. At present, bottles worth less than US$500 make up 70 percent of the Fund’s holdings. These were all bought within the last 18 months and most are now worth appreciably more than they cost.

The Fund was launched in June 2014 with a mission to buy and sell all its stock within a period of seven years. To date, it has raised a total of US$9 million from 37 private investors, with US$4.5 million having already been spent. The target is US$10 million and this should be more than achievable. After all, according to Kishnani, the collection increased in value by approximately 26 percent in its first 18 months.

Most subscribers to the Fund, which is said to be the first of its kind in the world, are from Asia. They range in age from their mid-20s to their mid-60s, with the majority – unsurprisingly – being whisky lovers. They all have the option to take some of the returns on their investment in liquid form, as well as in cash, but, according to Kishnani, there are also a couple of teetotalers who see the Fund purely as an investment opportunity and never touch a drop.

You don’t have to sign up for the Fund to invest in whisky, of course. For those who are thinking of buying a few bottles to sell in the future, rather than to drink, though, there is probably something useful to be learned from its investment strategy.

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Robertson, a former Master Distiller at Macallan and a former Rare Whisky Director at Dalmore, has some 20 years experience in the industry. So far, he has focused on vintage bottles of great antiquity, iconic whiskies aged up to 64 years, and limited edition bottles from Japan, while also placing a strong emphasis on “silent stills” – distilleries which have closed, with their supply of spirit necessarily finite.

Japanese whiskies from such silent distilleries are commanding surprising prices at auctions across Asia. As a result, Robertson has invested in some prime examples, and has secured a number of rare  bottles of Karuizawa.

He says: “Karuizawa has become one of the fastest growing bottles at auction, both in this part of the world and in the UK. It’s a silent distillery, which is very unusual in Japan. It closed in 2000, but it’s probably still Japan’s most iconic distillery.

“Not so long ago, bottles were available for a few hundred pounds. Then they went up to more than three thousand. We bought early in the Fund’s life and at what we thought was a very attractive buy-in price – about a third of the current value. This effectively gave us a cornerstone for the growth that we’ve achieved in the last year and a half.”

He now believes, however, that Karuizawa has reached a plateau in terms of its appreciation and suggests that investors should look at other distilleries. He says: “I think Yamazaki has probably got a little left to run, while Nikka is probably a little bit undervalued right now.”

In terms of auction prices, Karuizawa is to Japanese whiskies what The Macallan is to Scotch. Robertson, however, thinks rare bottles of “the Rolls Royce of single malts” are now a little overpriced.

He says: “We just don’t see the value in it right now. Some of the brands that we see more value in are Brora, Port Ellen and Rosebank, all of which are distilleries that stopped production back in 1983. They are silent stills that are never going to reopen.

“This means the supply of whisky in the market from these places is only ever contracting, largely because people are drinking, or even dropping them.

One of the dangers of investing in rare whisky, though, is the growing number of fakes. Robertson, who personally authenticates every bottle the Fund invests in, says he has  declined quite a few imposters.

Highlighting the giveaway signs of such counterfeit spirits, he says: “Normally, with an old bottle, you would expect a little evaporation, so, if the fill level is high, that looks a bit odd. You should also check all the packaging. There was a classic example of a Macallan Gran Reserva fake that we were offered which had words spelled wrongly on the back label.

“You should also always inspect the seal, and check the colour. We know the typical colour of a bottle of Founders’ Cask Karuizawa, for example. So if it’s a bit too light or dark, that rings alarm bells.”