Feds pump $500,000 into wine industry

Big news for the wine industry came out of Naramata on the weekend. Federal Agriculture Minister, Gerry Ritz, made a funding announcement at Red Rooster Winery. "The government is helping the grape industry with an investment of almost $500,000 to the Canadian Vintners Association," says Ritz.

"Roughly half of this investment will help vintners get the word out about the variety of premium quality wines it's marketing in Canada and to enhance the competitiveness of our VQA wines in global markets. The balance will help the association upgrade food safety material.

Ritz was joined by Okanagan-Coquihalla MP Stockwell Day who says people may not realize just how much of our wine is enjoyed around the world. "Some people may think that the exports all go to the U.S. but in fact it's about half that," says Day.

"About nine million litres goes to the U.S. and about 10 million around the world."The money will be used to put together a long-term strategy to continue marketing wine internationally and set higher safety standards. In 2009, Canadian exports of wine exceeded $19 million with more than 10.7 million litres of wine going internationally.

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The trick to choosing the perfect wine for Thanksgiving

Thanksgiving is the perfect time to showcase wines that people wouldn't normally serve at any other family gathering, says Mark Esterman, wine buyer and category manager for Meijer Inc. "There is a vast array of aromas, flavors, spices and textures associated with the feast," he said. "Think about it, spices in the stuffing, the sweetness of the cranberries, the fat and salt in the gravy, along with the different textures makes your mouth a playground for wine."

And, he adds, there is no right or wrong wine to serve. Those who enjoy a white wine should stick with white wine, same goes for red. But he says pick a wine with a good backbone of acid to cleanse the pallet during dinner.

"You want a wine that is going to marry well with the citrus in the cranberry and the spices in the stuffing," he said. "You want a wine that has a nice flavor of fruit. That's not to be confused with sweetness. It can be a dry wine.

"Find something that is structured and complex enough to stand up to all the food you're going to be eating, but not so strong as to overpower it," he adds. Whether you are a novice or pro at the wine game, Esterman offers a few suggestions for wines that can become part of the feast. For example a wine made from the malbec grape, such as Reza.

"It's from Argentina," he said. "It offers flavors and a medium body that goes great with all the typical Thanksgiving meals," he said. "People are getting into alternative reds. It's basically not a merlot. Everyone knows what they taste like. This is something different. Something they haven't had before. Something that's trendy."

Esterman suggests in the red variety, Blackstone or Pinot Noir. "It's medium bodied with a nice back bone of acid," he says of the Pinot Noir. "There is a ton of fruit to this wine. It smells like deep dark cherries, fresh raspberries and blackberries."For white try Riesling based white blends from Michigan.

Suggestions include Chateau Grand Traverse, Leelanau Cellars, St. Julian and Tabor Hill. "I'm going to have a wine from Good Harbor Winery," he said. "They make a Trillium, made from three different grapes."

With Michigan being the fourth largest producer of wine in the United States, Esterman says look for these homegown varieties when choosing wine for the gathering. For dessert, Esterman suggests Tomasello, a cranberry wine that's very popular this time of year, or perhaps Jackson Triggs.

"They have an ice wine," he said of Jackson Triggs. "It's absolutely decedent. It's harvested in January. The grapes are the size of a plum. It's an ice wine because the grapes are frozen when they are harvested."On the dry side, Esterman suggests Woodbridge brut, made in the methode champagnois method, which works with appetizers or as a meal finisher.

The good news is, you don't have to spend a fortune to serve a fine wine. All wines suggested here are under $20, and most are under $10. "Thanksgiving is a celebratory time of year," he said. "We're thanking God for all the gifts he's bestowed upon us. When guests come over give them something sparkling in their glass to toast before dinner."

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Garage brand wine

When Frank Gregus and Maurice Hamilton decided to start a winery in April 2005, the award-winning amateur winemakers from Vancouver didn't have anything except a dream and a business plan. In rapid order, they needed to find a facility, equipment, grapes and virtually everything else required to make, store, bottle and retail wine. A location was secured in an industrial park in New Westminster, a Vancouver suburb located 25 minutes from the downtown core. The drive to create an urban winery fell into place from there.

Five years later, Pacific Breeze Winery has made a name for itself by winning countless international awards, including top honours as Winery of the Year at the 2010 InterVin International Wine Awards. Cassini Cellars from the British Columbia, Norman Hardie Vineyards and Winery from Ontario, Spy Valley Wines from New Zealand and Tawse Winery from Ontario round out InterVin's top five producers.

The partners knew that they wanted to source grapes from ideal growing locations in California, Washington, Oregon and British Columbia. They also knew they had zero interest in owning a vineyard.

The business plan was partly inspired by a wine tour that Hamilton took to Woodinville, Washington, where he visited numerous wineries, including Betz Family Winery, which was then operating out of a warehouse facility akin to a garage.

"Having a garage winery and not owning any vineyards is not common in Canada, but it's very widespread in the United States," said Gregus, who retired from a sales and marketing position with PepsiCo Inc. to concentrate full-time on the winery.

Gregus and his partner traveled to California and elsewhere to seek out grapes for their venture. They made appointments with growers with the same stipulation. The visitors wanted to taste finished wines produced with their grapes.

"What we did know was winemaking," Gregus said. "We knew we wanted to make wines that made people say wow."What Gregus came to realize is the grapes that delivered the profile he was looking for didn't always come from the most fashionable addresses. For instance, he recalls rejecting fruit from a vineyard located next door to the fabled Opus One vineyard in the Oakville region of the Napa Valley.

Instead, they opted for bolder, more flavourful raw material they encountered in the more humble Lake County district in California's north coast region. "Good wine is good wine," Gregus says matter-of-factly. "You judge it by what's in the glass."

The same could be said of Pacific Breeze Winery's production. The tarmac that surrounds the warehouse facility doesn't inspire the same romantic reaction as seeing undulating vineyards, but the juice in the glass certainly leaves a lasting impression.

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Glass of red wine a day 'treats diabetes by helping body regulate blood sugar levels

A small glass of red wine every day could keep adult diabetes under control, scientists claimed last night. A new study found that the drink contains high concentrations of chemicals that help the body regulate levels of sugar in the blood. Just a small glass of red contained as many of these active ingredients as a daily dose of an anti-diabetic drug, the researchers found.

Although the study didn't look at the effects of wine on people, its authors believe moderate drinking as part of a calorie controlled diet could protect against type 2 diabetes. However, their conclusions angered Diabetes UK who accused the researchers of making 'astonishingly bold suggestions' based on 'limited research'. The charity warned that wine was so high in calories it could lead to weight gain - outweighing any benefit.

Around 2.6million people suffer from type 2 diabetes in Britain. The disease occurs when the pancreas is unable to produce enough insulin - the hormone that regulates blood sugar - or when its insulin does not work properly. High levels of sugar in the blood can cause tiredness, heart disease, strokes, blindness, nerve damage and kidney disease.

Past studies have shown that natural chemicals found grape skin and wine called polyphenols can help the body control glucose levels, and prevent potentially dangerous spikes or dips in blood sugar. The new study compared the polyphenol content of 12 different wine varieties. The team, from the University of Natural Resources and Applied Life Sciences, Vienna, found that levels were higher in red wines.

The scientists then studied how these polyphenols interact with cells in the human body, focussing on a particular 'receptor - or molecule that sits on the surface of cells - called PPAR-gamma - involved in the development of fat cells, energy storage and the regulation of blood sugar. The authors showed that polyphenols in wine bind to the receptor and that a small glass of wine contains enough to rival the activity of the potent diabetes drug Avandia.

The researchers who report the findings in the Royal Society of Chemistry journal Food and Function believe moderate red wine consumption could have benefits for diabetics

'You could derive a natural extract from grape skins for the treatment of diabetes,' Professor Alois Jungbauer said. 'Also, this is further scientific evidence that a small amount of wine really is beneficial for health.'Previous research involving thousands of people has shown that moderate drinking of alcohol can reduce the risk of diabetes type 2, he said.

'Moderate is the equivalent of a small glass each day for women, and two for men,' he added. 'Our big problem is to convey the message of a healthy lifestyle because too much wine will cause diabetes and obesity. 'If you have wine then you must reduce your intake of calories from food by the same amount.'

But Dr Iain Frame, director of research at Diabetes UK was critical of Prof Jungbauer's conclusions. 'It is very difficult to see how this limited research will have any benefit to people with Type 2 diabetes. It is a basic study into the chemistry of red wine and has no clinical relevance at this stage,' he said.

'The researchers have made an astonishingly bold suggestion based on the results of their research suggesting that a very small glass of red wine may be beneficial to people with Type 2 diabetes. This assumption is fundamentally wrong based on the evidence presented from this research.

'Previous studies have demonstrated potential health benefits from chemicals isolated from red wine. However the alcohol in wine is high in calories and can lead to weight gain, which can outweigh the benefits of these chemicals.

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Could red wine treat diabetes?

A new study has revealed that red wine is packed with anti-diabetic compounds – so does that mean it could be a potential source of treatment?

Alois Jungbauer and colleagues at the University of Natural Resources and Life Sciences in Vienna, Austria, tested 10 reds and two whites to find out how strongly the wines bound to a protein called PPAR-gamma, which is targeted by the anti-diabetic drug rosiglitazone. PPAR-gamma regulates the uptake of glucose in fat cells. Rosiglitazone targets PPAR-gamma in fat cells to make them more sensitive to insulin and improve the uptake of glucose.

The team found that the white wines had low binding affinities, but all the reds bound readily: the tendency of 100 millilitres of red wine – about half a glass – to bind to PPAR-gamma is up to four times as strong as the same tendency in the daily dose of rosiglitazone.

"It's incredible. It's a really high activity. At first we were worried it was an artefact, but then we identified the compounds responsible in the wine," New Scientist quoted Jungbauer as saying. However, not all the anti-diabetic compounds may be absorbed by the body. Plus, it also contains ethanol, which will add to your calories.

Veronique Cheynier at University of Montpellier agreed, saying that most polyphenols do not pass through the digestive tract unchanged and may not be absorbed at all. The next step for Jungbauer and his team will be to measure the metabolic effects of the wine compounds on healthy people.

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Choices are varied for Thanksgiving wines

Jennifer Simonetti-Bryan, who holds the title Master of Wine, suggests a rich California Chardonnay would be perfect to accompany butternut squash for the traditional American meal but if chestnut stuffing is on the menu she suggests a Norton.

"I would go with a Norton from Linden Vineyards in Virginia. This was a wine served at the White House and it is their policy to serve wines that are produced in America," said Simonetti-Bryan whose "Everyday Guide to Wine" was released recently on DVD.

John Hart, chairman of the Chicago wine auction house Hart Davis Hart, sees the Thanksgiving holiday on November 25 as the perfect opportunity to share special bottles with family and friends.

He plans to start with Krug Grande Cuvee Champagne, which averages about $150 a bottle, followed by an equally expensive red Burgundy, a 1995 Mazis-Chambertin from Domaine Bernard Dugat-Py.

"We always end with a Sauterne. This year, a half-bottle of 1981 Chateau Climens, usually with some homemade pie," he said.

Chris Baggetta, the head sommelier at New York's Michelin-starred restaurant Eleven Madison Park, said her preferences for Thanksgiving wines are dry, crisp whites. She likes Austrian Rieslings or Gruner Veltliners for a hint of sweetness and dry but fruity red wines like Cru Beaujolais and Cotes du Rhone."

When pressed for American wines, she would turn first to Oregon because she is impressed by the quality of their Rieslings and their ability to age. Amity Vineyards in Yamhill County is at the top of her list with their Estate Dry Riesling.

"With turkey, I would stay in Oregon. Cristom Louise Vineyard Pinot Noir has power and perfume, with lots of spice, almost like cinnamon red hot candies -- perfect with all the Thanksgiving trimmings," she said. "Chehalem's Reserve Pinot Noir is elegant and earthy, focusing on more mushroom and savory notes."At the Peninsula Beverly Hills hotel, sommelier David Jones can't resist California's abundant offerings.

"Turkey dinner is notoriously known for being a difficult (food) pairing. We like the Keller Estate Pinot Noir ... the fruit coming from the Sonoma Coast brings cherry to the table," he explained. Wine consultant Maureen Downey is opting for some Spanish wines and California Pinot Noirs from MacMurray and Dutton Goldfield.

"I love the Pinots for quaffing and light hors d'oeuvre noshing and I love the rich, full flavors of many Spanish wines for Thanksgiving dinner," she said. "Whether the huge wines of Toro, or the lighter and fruitier wines of the south in Jumilla and Yecla, I think Spain has all the spice and richness to match well with holiday fare."

For dessert wine expert Doug Frost, who is both a Master of Wine and a Master Sommelier, has one guiding rule -- the wine should always be sweeter than the dessert. So if guests still have room for apple, pecan or pumpkin pie, break out the Port, Madeira, sherry or ice wines from Canada and New York's Finger Lakes region.

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Mango wine seeks new markets

A central Australian mango wine maker is trying to crack the Singaporean and Mexican markets, after exporting to China for more than two years. Johnny Crayford, who owns Red Centre Farm, about 200 kilometres north of Alice Springs, has been making mango wine for 16 years. He's just returned from a wine expo in Singapore and says his product seems to suit tastebuds in South-East Asia.

"We're talking to different countries in South East Asia. I'm talking to people in Mexico, our wine should go to Mexico this year," he said. "We're just created a distributor in Hong Kong, we're starting to supply Hong Kong and we've actually sent a shipment to Hong Kong about three months ago."

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Chinese billionaires splash out on fine wine

He Wei Qi, a businessman from eastern China's Zhejiang province, says he routinely pays more than 30,000 yuan ($US4,500) for a bottle of wine to entertain guests.

“A price tag of more than a million yuan a bottle - that does more than show off your wealth, it shows you have good taste,” He, 38, said while attending a three-day Hong Kong wine and spirits exhibition that drew about 700 companies from 29 countries and regions. “We don't care how outrageously expensive the wines are.

Wine sales in the city by Sotheby's and Christie's International will raise more than in New York and London combined this year, the top two auction houses said, with vintage Chateau Lafite selling in excess of $US200,000 a bottle. Sales at Hong Kong's auctions have more than quadrupled since the city cut duties to zero two years ago.
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“What we've seen emerging in the last year are people paying virtually any price for wine,” said David Elswood, Christie's London-based head of wine. “That's not investment. That is just uncontrolled spending.”

Buyers from China, where the number of billionaires rose more than 60 percent from last year, may double auction sales in Hong Kong next year, he said.

“Red wine is better than stocks,” wine merchant Alex Yu said while touting a HK$80,000 ($US10,321) 5-litre bottle of Chateau Mouton Rothschild. “Chinese wine lovers are pushing up prices.”

Vintage Lafite

Three bottles of Chateau Lafite's 1869 vintage sold for a record $US230,000 each on October 29, 28 times Sotheby's top estimate before the auction.

Chinese collectors in Hong Kong, China and Taiwan hold about one in four bottles of fine or rare vintage wine globally, according to Crown Wine Cellars, which stores about HK$1 billion of wine in a network of converted ammunition bunkers in Hong Kong. Total consumption has doubled in China in the past five years, with red wine accounting for 75 percent of demand, according to a March report by Citigroup.

Wine isn't the only product Chinese buyers are mopping up. The fastest growth of any major economy and an appreciating currency have led them to pick up properties in London and artwork in New York. In Hong Kong, mainland Chinese demand drove luxury property prices past the 1997 peak, spurring the government to warn of an asset bubble.

1,400 Percent Markup

Asia's wine market will expand four times faster than the rest of the world, said Robert Beynat, chief executive of wine exhibition organiser Vinexpo Asia Pacific. Much of the growth will come from China, which is the final destination of a “large part” of the wine imported into Hong Kong, he said.

Liu Xue Biao, a wine merchant from Shenzhen, said that wine he buys in Hong Kong for about $US3 a bottle can be sold in mainland China for 300 yuan, a 1,400 percent markup. “They are willing to pay just about any price,” said Liu, accompanied by two female assistants carrying suitcases for their purchases.

Imports by Hong Kong merchants jumped to $US600 million in the first nine months, more than the whole of last year. The value of auctions reached $US120 million this year, almost double the $US64 million in 2009, according to the government.

Sotheby's had to issue tickets for the first time for its October 29 wine auction at the Mandarin Oriental, when it offered almost 2,000 bottles of Lafite shipped directly from the Bordeaux chateau's cellars.

No Catching Up

The sale beat the auction record for a single bottle set in 1985 in London, when publisher Malcolm Forbes paid 105,000 pounds ($US169,000) for a 1787 vintage.

“New York and London aren't going to catch up,” said Richard Sleigh, who moved to Hong Kong from New York in August to run Sotheby's Asia wine business. “People like the fact that the wine is here in Hong Kong. You just go and pick it up.”

Sotheby's sold $US52 million of wine in eight auctions this year in Hong Kong compared with a combined $US24 million so far in New York and London, previously the world's biggest- and second-largest markets. The New York-based company had 11 consecutive sold-out wine auctions in the Chinese city.

The Hong Kong sales are an indication of how far mainland Chinese buyers have come since the 1990s, when they would drink Coca-Cola with wine and merchants hawked unwanted vintages to them, said Gregory De'Eb, general manager of Crown Wine Cellars.

“Through their own aggressive tasting, they have built a better knowledge of what suits their palettes,” De'Eb said. 'Inflating a Bubble' While the Chinese are the ninth-largest consumers of wine globally, the spirit accounts for only 2 percent of alcohol drunk in the country, according to Citigroup analysts.

That's changing as wine starts to win favour compared with the traditional Baijiu and Maotai liquor. In 2008, Domaines Barons de Rothschild (Lafite) agreed to develop more than 25 hectares of vines in Shandong province with Citic Group, China's biggest state-owned investment company.

The burgeoning wealth is “inflating a bubble” in wine, said Christie's Elswood. “When you're paying four, five times or even more than the reference price then you have to seriously question the market knowledge of that buyer.”

At Sotheby's April 3 auction in Hong Kong, a 12-bottle lot of Chateau Latour 1982 fetched HK$338,800 or $US43,649. About two weeks later, New York-based Tribeca Wine Merchants ran a newspaper advertisement offering the same for $US2,250 a bottle.

“Westerners drink wine slowly as a way of enjoying life,” said He, strolling around the Hong Kong exhibition holding a glass of wine. “Just look around you. Mainland Chinese tilt the glass and pour it straight down the throat.”

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Kiwi wine first in the world to spell out its carbon trail on label

A New Zealand wine company has become the first in the world to declare its carbon footprint for each glass. Bottles of Mobius Marlborough sauvignon blanc - which go on sale today - will show the carbon emissions for a 125ml glass on the label. The New Zealand Wine Company, parent company of the Mobius Marlborough brand, is the first maker to show how many grams of carbon dioxide were emitted as the wine was transported and refrigerated.

The company's marketing manager, Helen Wilkes, said the emissions initiative matched New Zealand's clean and green image and had taken two years to develop. "The original idea came out of customer demand. "Overseas, especially in the UK market ... they are wanting to show consumers what the carbon footprints are for each product so consumers can make a more informed choice."The carbon footprints are calculated separately for each export market.

For example, bottles sold in New Zealand will carry a figure of 140g CO2, whereas bottles shipped to Australia will display a 190g carbon footprint. Ms Wilkes said a sustainability consultant had helped the company work out the emissions. Ms Wilkes predicts that carbon information will soon become as common as nutritional details on products.

A small footprint stamp will be displayed on the bottom left of the wine labels, with a small number inside the print showing the carbon emissions. "The whole idea is when consumers are choosing their product they can make a more informed decision. "They can choose a product which is making them feel better about what they are doing for the environment and for themselves."The carbon footprints were added to the already established Mobius Marlborough savignon blanc, and have been certified by Britain's Carbon Trust.

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Napolean III-era claret that 'probably tastes like vinegar' fetches record £147,000

A bottle of wine from Napoleon III's reign in France almost 150 years ago has sold at auction for a record £147,020. The 1869 Chateau Lafite-Rothschild was sold by Sotherbys in Hong Kong to Chinese investors, along with a series of other vintages. A 2009 blend fetched £3,600, more than three times the price available a few months ago.

The Bordeaux red, which came as a group of three and a grand total of £441,060, has been hailed in some quarters as one of the finest ever made, but critics feared the taste would be little better than vinegar.

However the initial joy at such a high price was tempered by fears that it would push the overall cost of fine vintages further and further out of reach for the majority of drinkers. The cost is being driven, some claim, by a small group in the Far East, with demand now out-stripping supply.

Gary Boom, the head of Bordeaux Index, which specialises in trading fine wines, said in the Telegraph: 'We've already seen that people who can no longer afford Lafite start to buy Mouton, and those who can't afford Mouton, buy Leoville Barton. It goes on down the chain.'

Simon Staples at Berry Bros added: 'It has had an instantaneous effect, with prices of the 2008 Lafite increasing by 40 per cent in 48 hours.Some of the other big houses have gone up in price.'He added: 'Once mainland China wakes up to fine wine, and India too, we will ave a serious shortage of supply. That has to force prices up. 'In five years time I worry that it will be impossible for many drinkers to afford good wine.'

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Hands off Lafite, signals China

With Chateau Lafite Rothschild 2008 recording an overnight 20% price jump last week to £10,160 ($ 16,000) a case by adding the Chinese symbol ‘eight’ on the bottle and the record price of HK$ 1.815 million (over $232,000) each for three bottles of Lafite 1869 sold at the Hong Kong auction by Sotheby’s last Friday, China seems to have signaled to the wine world to keep hands off Lafite, using the M power- not Military but Money.Anyone studying Chinese wine industry won’t tire of cribbing about the cheap quality of wines that shows no signs or the need for improving; or the industry figures churned out by computers doing the double or triple counting. But Lafite has created history, going by the penchant of the super-rich to buy it at any price. At the current prices, all the Lafites of the world might be traveling to China soon, directly or via Hong Kong.

The stories, jokes and anecdotes about Lafite abound, especially in Hong Kong. From the incredible story of how a Chinese wine merchant could not believe why he was refused when he went to Lafite and offered to buy only the Lafite labels at a hefty premium or that the market price of an empty bottle of a Chateau Lafite ’00 fetches as much as HK $3000 (Rs. 18,000), many such stories are doing the rounds in wine circles.

At the International Hong Kong Wine and Spirit Competition that concluded yesterday, the hot topic of discussion has been the unnatural love affair the new Chinese millionaires have developed for Lafite. Says Fongyee Walker one of the judges who is a wine consultant in Beijing, has partially cleared her MW and conducts WSET wine courses, ‘the rich Chinese are obsessed with the thought of drinking the world’s best wine which they believe is Chateau Lafite. They believe Lafite adds another dimension to Luis Vuitton, luxury yachts and Lamborghinis.’

Interestingly, most of these nouveau rich millionaires who have made uncountable money in the fields like real estate and mining are uneducated and have no knowledge about the 1855 Classification of Bordeaux.

It is not that they have not heard of the other First Growths. Some of them do know it is owned by Rothschild family, but are not as smitten by Mouton- the first growth label owned by the other arm of the family. Latour and Margaux are also lagging while Chateau Haut Brion is at a clear disadvantage as most Chinese cannot pronounce the name correctly and avoid drinking it.

So impressed are the Chinese with Lafite that they refer to Chateau Duhart Milon-owned by the same owner- Baron Eric de Rothschild of Domaines Barons de Rothschild, as ‘Little Lafite’, says Fongyee, adding. ‘They would rather buy Carruades de Lafite (second wine of Chateau Lafite) than the Chateau wine of Second Growths-Cos D’Estournel or Pichon Lalande.’

What is the reason for the long lasting love affair with Lafite? ‘If I could have a dollar for every reason given to me for their charm, I would be a rich woman,’ says Fongyee. Most people give credit to X-factor which includes luck and being at the right place at the right time. But Lafite also gambled when it invested in the development of the market at the right time. Even the recent announcement of etching the letter 8 in Chinese (when pronounced it means ‘prosper’ and so is considered very lucky by them) is part of the marketing strategy. They are perhaps the only Bordeaux company that has the complete website in Chinese. They make regular visits and follow ups with trade tastings and have focused strategy for this market.

To take advantage of the popularity and to entrench themselves for the long haul, Lafite has also tied up with CITIC, China’s largest state-owned investment company, to develop 25ha of vines on the Penglai peninsula in the Shandong province, reports Decanter.

Serena Sutcliffe, Sotheby’s international head of wine says reportedly, ‘There’s a lot of speculation about why the Chinese like Lafite so much. People say it’s because the name is easy to pronounce in Mandarin. Actually, they like the taste; otherwise they wouldn’t pay such high prices for these wines.” Most of the wine journalists from China disagree. Apparently, the people who drink Lafite have no knowledge of wine, would drink it in any glass, with any food and without any idea of how to the taste. Best wines in the world, according to these nouveau super-rich, should taste like Latour.

Of course, like Louis Vuitton and thousands of other luxury products that find their duplicates in China, there are any numbers of fake Lafites or look-alikes available at any wine shop. They even carry catalogues with different fake labels that can be affixed on the bottle the price of which varies with the quality of the liquid. No wonder, the empty bottle of Chateau Lafite brings a premium, of up to US $300-400 in Hong Kong, bringing memories of the premiums on the empty bottles of JW Black in India which supposedly consumes more Scotch whisky than produced in Scotland.

What is the relevance of this love affair for India? There is also a huge population of nouveau rich and the super-rich who spend a lot on the high-end luxury goods. Like China which had no knowledge or availability of wine till a few years ago, these people are not yet aware of wine as a lifestyle product or the status symbol fine wine represents. Once they are catalysed, the boom may be unprecedented and the market will be transformed overnight.

However, there are two major differences. The high taxes in India are a big damper-even in Hong Kong the explosion has taken place after the government waived off duties in February 2009. The second reason is that in India, even the super-rich look for some value. Unless the brand is impeccable-as one discovered recently with around 160 Mercedes sold in the small town of Aurangabad in Maharashtra during a road show, the super-rich won’t rush for the brand-be it Lafite or Latour.

Soon after these two landmark incidents, there would be a rush to flood China with Lafite-through Hong Kong; there are carriers who act as couriers to deliver wine anywhere in China at a small premium to the duty free price. Yesterday, Acker Merrall and Condit, one of the premier US- based auctioneers with offices in Hong Kong, announced today the sale of 12 cases of Chateau Lafite at US $20,000 each-undoubtedly aimed at the Chinese market. With all the current hullaballoo, all the cases might be sold in a couple of days. There seems to be a new business opportunity – sourcing Lafite to sell to China. But if you are a connoisseur of fine Bordeaux wine, be advised to leave Lafite alone for the Chinese

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Growers' tractor protest tries to squeeze homes out of wine land

There was a tractor protest against a housing development at McLaren Vale yesterday and full-page advertisements against a proposed highway bypass in the Coonawarra appeared in weekend newspapers.

Winemakers are up in arms over the proposed developments, saying they will swallow valuable land for growing vines and could damage tourism in the area. Yesterday a convoy of about 150 tractors and cars travelled through McLaren Vale, about 40km south of the centre of Adelaide, protesting against plans to build 1170 homes on 77ha of land on the edge of the world-renowned wine region.

Chalk Hill winemaker Jock Harvey said a recent geological survey found the land was on "some of the most spectacular geology for viticulture in the world".He also said the development site at Seaford Heights was a gateway to an area with economic and tourism value estimated at $940 million a year.

"And that's put in jeopardy by taking what is the last green buffer between suburbia and the McLaren Vale wine region and covering it with housing," he said.

Protest organiser Laura Jackson, who works in the wine industry and lives in McLaren Vale, said there was no need for more housing in the area. "We've got investment properties lying empty and people won't rent them," she said.

Mr Harvey said Planning Minister Paul Holloway could rezone the land to rural "if he wants", and called for a moratorium on the development until a development plan for the region was finalised.

But Mr Holloway said the fate of Seaford Heights was sealed 20 years ago when it was earmarked for development.

"Even if the decision had not been made 20 years ago to zone this land residential, it would still be very difficult to justify agricultural activities on that particular 77ha, given that it is adjacent to existing housing," he said.

"The long-held expectation that this land would be developed for housing also informed the decision to invest $291m on extending the Noarlunga rail line to Seaford."

Meanwhile Treasury Wine Estates, part of the Foster's Group, has published advertisements about a proposed highway bypass through the Coonawarra wine district, in the state's southeast, famed for its cabernet sauvignons.

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