DOMAINE CLOS DE TART WINE ANALYSIS

Transcription

1 E CHAMBOLLE MUSIGNY - LUNE ARGENT - GRAND PUY LACOSTE - CASCINA FRANCIA - RIOJA ALTA RIOJA GRAN RESERVA DUHART POLICELLA CLASSICO SUPERIORE TERRE DI CARIANO - CHAPOUTIER E ROTIE TURQUE - JOSEPH FAIVELEY MAZIS CHAMBERTIN - LEOVILLE - GUSBOURNE BLANC DE BLANCS - PONSOT CHAPELLE CHAMBERTIN AGES - BOUTISSE - DUCRU BEAUCAILLOU - MEYNEY - PETIT MOUTON MONTRACHET - TROTTEVIEILLE - PELICAN ARBOIS SAVAGNIN OUILLE CE ROUGE - BEAUSEJOUR DUFFAU - PONSOT CLOS ROCHE VV LAMBRAYS - POUJEAUX - DOMAINE LEFLAIVE BIENVENUES BATARD AND ROUSSEAU CHARMES CHAMBERTIN - MOET & CHANDON EROY CLOS VOUGEOT - BAHANS HAUT BRION - BENJAMIN T CHAMP GAIN - MASSETO - MICHEL OGIER COTE ROTIE AZIN (POMEROL) - TUA RITA REDIGAFFI - LAVILLE HAUT ANTI BRUNELLO MONTALCINO RISERVA - SAINTAYME ES NOELLAT NUITS SAINT GEORGES CRAS - HARLAN ROAD RIESLING BLOCK 1 - JOSEPH FAIVELEY ARLOT ROMANEE SAINT VIVANT - CLOS ST JEAN EX MACHINA - EVANGILE - PONSOT GRIOTTE ATEAUNEUF DU PAPE - BEYCHEVELLE - CLOS S CHAMPAGNE - FELTON ROAD PINOT NOIR OY CORTON CHARLEMAGNE - FELTON ROAD DROUHIN GRIOTTE CHAMBERTIN - KRUG DON DOM PERIGNON ROSE - TIGNANELLO ENGARTEN GROSSES GEWACHS - PICHON E - DOMAINE LEROY VOSNE ROMANEE GES - DRC ROMANEE CONTI - GUIGAL ART DOM RUINART - COMTES LAFON VILLE LAS CASES - CANON GAFFELIERE NE - DRC ECHEZEAUX - FLEUR PETRUS TENAC - CHAPELLE MISSION - CLINET PEZ - OPUS ONE - DOMAINE LEFLAIVE ASCOMBES - DUJAC CLOS ROCHE GER VV FRANCAISES - PAGODES COS AUT BRION - CHENADE - GAJA COSTA MBERTIN CLOS ST JACQUES - LOUIS INUS - CHAPOUTIER ERMITAGE BLANC ERMITAGE CHAPELLE - FELTON ROAD EMILION) - CLARENCE HAUT BRION LOCK 5 - SMITH HAUT LAFITTE - COS ERRE - PINGUS - HENRI JAYER NUITS - GEORGES ROUMIER CHAMBOLLE EGLA - BRUNO GIACOSA BAROLO UX - DOMAINE JEAN-LOUIS CHAVE ES LAFITE - VIEUX CHATEAU CERTAN RIC MUGNIER CHAMBOLLE MUSIGNY EVAL BLANC - ARROSEE - JOSEPH OLLINGER RD - JACQUES FREDERIC IE BONNES MARES - LOUIS ROEDERER AGE - GUIGAL COTE ROTIE MOULINE AUT BATAILLEY - ARMAND ROUSSEAU MITAGE PAVILLON - AUSONE - ROCHE N LALANDE - FRATELLI ALESSANDRIA SCLAUX - BRANCAIA BLU - BRUNO ROIX BEAUCAILLOU - DOME - COMTE 1ER CRU - HAUT BRION - SCREAMING HAMPAGNE ROSE - DOMAINE LEROY OTS - DOMAINE JEAN-LOUIS CHAVE IS - FREDERIC MAGNIEN GEVREY L ROGER SIR WINSTON CHURCHILL OTHSCHILD - SOLAIA - BEAUCASTEL QUINAULT L'ENCLOS - MOUTON ALARTIC LAGRAVIERE BLANC - GAJA CLOS GOISSES BRUT - ANGELUS ANDRIE - COMTES LAFON MEURSAULT RUS - CONSEILLANTE - HENSCHKE HILL PERCARLO - PONTET CANET - FELTON BURN - MONTROSE - PIN - BRUNO FALLETTO - GIACOMO CONTERNO O - PEBY FAUGERES - CHAPOUTIER AVIE - CLARENDON HILLS ASTRALIS UNELLO MONTALCINO TENUTA NUOVA A UNICO - MARGAUX - TORTOCHOT RANDE ANNEE - COUTET (BARSAC) EY CHAMBERTIN CLOS ST JACQUES ERMITAGE ERMITE - HOSANNA - HAUT Y RED - GAJA SPERSS - DRC TACHE USIGNY AMOUREUSES - TRAPET PERE TIN - BEAUCASTEL CHATEAUNEUF DU EPH PHELPS INSIGNIA - PONSOT CLOS UNELLO MONTALCINO - EMMANUEL ROS PARANTOUX - PETIT CHEVAL V - EGLISE CLINET - FORTS LATOUR GEORGES ROUMIER BONNES MARES IGEAC - YQUEM - HENRI JAYER VOSNE E - TRAPET PERE ET FILS CHAMBERTIN UVIGNON - CRUZELLES - MONDOTTE HILD & CONCHA Y TORO ALMAVIVA ARES - TROTANOY - GAY - JANASSE - PEGAU CHATEAUNEUF DU PAPE ONFURON ROMANEE SAINT VIVANT MAINE LEROY NUITS SAINT GEORGES BERNARD DUGAT-PY CHAMBERTIN TIN VV - BONNEAU MARTRAY CORTON UE MUSIGNY VV - PETER SISSECK OY VOLNAY SANTENOTS - GIACOMO - PAVILLON ROUGE - TROPLONG GNARD CHASSAGNE MONTRACHET AUD - COMTE VOGUE CHAMBOLLE GRAND PUY LACOSTE - GIACOMO FRANCIA - RIOJA ALTA RIOJA GRAN N - CECILIA BERETTA VALPOLICELLA I CARIANO - CHAPOUTIER ERMITAGE DOMAINE CLOS DE TART WINE ANALYSIS ECHO LYNCH BAGES - DRC ROMANEE CONTI - GUIGAL COTE ROTIE LAND - COMTES LAFON MEURSAULT GOUTTE D'OR - LEOVILLE LAS CASES - CAN CHAPELLE AUSONE - DRC ECHEZEAUX - FLEUR PETRUS GRUAUD L CHAPELLE MISSION - CLINET - DRAGON QUINTUS - ORMES PEZ - OP CHEVALIER MONTRACHET - LASCOMBES - DUJAC CLOS ROCHE - TERTR FRANCAISES - PAGODES COS - RONAN BY CLINET - MISSION HAUT BR RUSSI - FOURRIER GEVREY CHAMBERTIN CLOS ST JACQUES - LOU DOMINUS - CHAPOUTIER ERMITAGE BLANC OREE - PAUL JABOULET FELTON ROAD RIESLING DRY - CANON (SAINT EMILION) - CLARENC PINOT NOIR BLOCK 5 - SMITH HAUT LAFITTE - COS D'ESTOURNEL HENRI JAYER NUITS SAINT GEORGES MURGERS - GEORGES RO CRAS - RAUZAN SEGLA - BRUNO GIACOSA BAROLO FALL DOMAINE JEAN-LOUIS CHAVE HERMITAGE BLANC - CARRU CERTAN - LAFLEUR - JACQUES FREDERIC MUG AMOUREUSES - PALMER - CHEVAL BLANC - ARROSEE MARES - BOLLINGER RD - JACQUES FREDERIC MU BONNES MARES - LOUIS ROEDERER CRISTAL - TAL COTE ROTIE MOULINE - JOSEPH DROUHIN M ARMAND ROUSSEAU CHAMBERTIN - CHAPO AUSONE - ROCHE BELLENE CLOS ROCHE - ALESSANDRIA BAROLO GRAMOLERE - PED BRUNO GIACOSA BARBARESCO ASILI - CR COMTE VOGUE CHAMBOLLE MUSIGNY SCREAMING EAGLE - TAITTINGER COMTES LEROY NUITS SAINT GEORGES BOUDOTS HERMITAGE - CLOS MARQUIS - F CHAMBERTIN CAZETIERS - POL ROGER SI MACQUIN - LAFITE ROTHSCHILD - SOLAIA DU PAPE - QUINAULT L'ENCLOS - MOUTO MALARTIC LAGRAVIERE BLANC - GAJA CLOS GOISSES BRUT - ANGELUS MONTLANDRIE - COMTES LAFON ME MESNIL - PETRUS - CONSEILLANTE - HEN - SAN GIUSTO PERCARLO - PONTET CAN BANNOCKBURN - MONTROSE - PIN ROCCHE FALLETTO - GIACOMO C MONFORTINO - PEBY FAUGERES - C ERMITE - PAVIE - CLARENDON HILLS AS NERI BRUNELLO MONTALCINO TENUTA SICILIA UNICO - MARGAUX - TORTOCH GRANDE ANNEE - COUTET (BARSAC) - CHAMBERTIN CLOS ST JACQUES - C ERMITAGE ERMITE - HOSANNA - HAUT B RED - GAJA SPERSS - DRC TACHE - MUSIGNY AMOUREUSES - TRAPET CHAMBERTIN - BEAUCASTEL CHATEAU PERRIN - JOSEPH PHELPS INSIGNIA - PO SANTI BRUNELLO MONTALCINO - ROMANEE CROS PARANTOUX - PET VOUGEOT VV - EGLISE CLINET - FORTS SEGUR - GEORGES ROUMIER BONNES DENIS - FIGEAC - YQUEM - HENRI JAYE COMTESSE - TRAPET PERE ET FILS CABERNET SAUVIGNON - CRUZELLES - M ROTHSCHILD & CONCHA Y TORO ALMA MARES - TROTANOY - GAY - JANASSE PEGAU CHATEAUNEUF DU PAPE CONFURON ROMANEE SAINT VIVAN DOMAINE LEROY NUITS SAINT GEORGE BERNARD DUGAT-PY CHAMBERTIN - FO VV - BONNEAU MARTRAY CORTON CH MUSIGNY VV - PETER SISSECK (ALNA VOLNAY SANTENOTS - GIACOMO CO PAVILLON ROUGE - TROPLONG MON CHASSAGNE MONTRACHET BOUDRIO COMTE VOGUE CHAMBOLLE MUSIGNY LACOSTE - GIACOMO CONTERNO BARO ALTA RIOJA GRAN RESERVA DUH VALPOLICELLA CLASSICO SUPERIO CHAPOUTIER ERMITAGE MEAL - GUIGAL FAIVELEY MAZIS CHAMBERTIN - LEOVI RIG - GUSBOURNE BLANC DE BL CHAMBERTIN - DRC RICHEBOURG - LYN BEAUCAILLOU - MEYNEY - PETIT MO BATARD MONTRACHET - TROTTEVIEILL OUILLE - MIRAVAL COTES DE PROV DUFFAU - PONSOT CLOS ROCHE VV - LAMBRAYS - POUJEAUX - DOMAINE L MONTRACHET - LATOUR - ARM CHAMBERTIN - MOET & CHANDON DOM CLOS VOUGEOT - BAHANS HAUT BRION MONTRACHET CHAMP GAIN - MASSETO GAJA SORI SAN LORENZO - GAZIN (POM LAVILLE HAUT BRION - FARGUES MONTALCINO RISERVA - SAINTAYME - P NOELLAT NUITS SAINT GEORGES CRAS FELTON ROAD RIESLING BLOCK 1 - JO CLOS DE BEZE - ARLOT ROMANEE SA CHATEAUNEUF DU PAPE DEUS EX MA GRIOTTE CHAMBERTIN - CLOS PAPE BEYCHEVELLE - CLOS FOURTET - TAITT FELTON ROAD PINOT NOIR CORNISH PO CHARLEMAGNE - FELTON ROAD PINO DROUHIN GRIOTTE CHAMBERTIN - KR CHANDON DOM PERIGNON ROSE - JORDAN JESUITENGARTEN GROSSES MALARTIC LAGRAVIERE - DOMAINE BEAUMONTS - ECHO LYNCH BAGES - D COTE ROTIE LANDONNE - RUINART DO MEURSAULT GOUTTE D'OR - LEOVILLE LA CANTEMERLE - CHAPELLE AUSONE - DR - GRUAUD LAROSE - BRANE CANTENAC

2 Wine as a Passion Asset (0) wineinvestment.com

3 Introduction Domaine Clos de Tart Key Information Owner: Artémis Group Previous Owner: Mommesin Family Grand Vin: Clos de Tart Grand Cru Other wines: La Forge de Tart Premier Cru AOC: Clos de Tart Total Annual Production: 2,300-2,500 cases Classification: Grand Cru since 1939 Vineyard Area: 7.5 Hectares Main grape variety: Pinot Noir Other four Grand Crus in Morey-Saint-Denis AOC: Bonnes Mares, Clos de la Roche, Clos Saint-Denis, Clos des Lambrays Other Grand Cru Monopoles in Burgundy: Comte Liger Belair Romanee; La Tache, Romanée-Conti (DRC); La Grande Rue Lamarche Iconic Vintages: 2016, 2015, 2010, 2009, 2005, 2002, 1989, 1985, 1978, 1962, 1945 History Founded in 1411, Clos de Tart had only three owners over nine centuries. As the largest Grand Cru classified property covering 7.53 hectares of vines in Burgundy, the Clos de Tart has never been parcelled out, a highlight that would be greatly appreciated by wine lovers and investors who seek for quality consistency and highly-controlled distribution strategy Cisterician nuns from the Tart Abbey acquired the vineyards (later became the Clos de Tart) 15th Century The reconstruction of the walls around the vineyard was completed The Clos de Tart was acquired by Nicolas-Joseph Marey, the sole owner of Romanee-Saint-Vivant at the time The Mommessin family purchased the Clos de Tart during the Great Depression Artemis Group, a family-run investment firm founded by Francois Pinault, has acquired Clos de Tart from the Mommesin family The Clos de Tart vineyard is wholly owned by Domaine Clos de Tart and therefore classified as a Monopole a rare occurrence in Burgundy. Clos de Tart is the only Grand Cru Monopole that can be found in Morey-Saint-Denis AOC, Cote d Nuits. Other iconic Monopoles include Romanee-Conti and La Tache from Domaine de la Romanee-Conti and La Romanee from Domaine du Comte Liger-Belair. These benchmark wines enjoy a world class reputation and are amongst the most revered red Burgundies produced. Clos de Tart sits firmly along side them in terms of quality and heritage. Typically, bottles are labelled with the monopole for easy recognition (0) wineinvestment.com

4 Analysis Market & Vintage Performance The cumulative returns for older vintages ( ) of Clos de Tart have been very strong over the last few years. For example, outstanding 2002 and 2005 vintages have delivered absolute returns of 232.8% and 189.7% respectively over the past 10-years (Exhibit 1). This performance is indicative of the wider market and compared to Bordeaux, Burgundy has seen its overall performance soar to a record high levels. The Burgundy 150 (Liv-Ex s benchmark index) has consistently outperformed other markets for the past few years. In the current market environment, it is prudent to adopt a targetted approach when selecting stocks. Vineyards that can take advantage of higher classification, such as Grand Cru, and operational structure of monopoles have the potential to rise further in value. More importantly, it is not only the older vintages that are improving, modern vintages are gaining momentum as well and the growth is broad-based across the most recent vintages of Clos de Tart. +44 (0) wineinvestment.com 4

5 Analysis Development of Brand Francois Pinault, the owner of Chateau Latour, acquired Clos de Tart through the Artemis Groupe which is his familyheld investment company. The deal confirmation was announced in July 2017, however, the acquisition price remained unknown to the public. As the holding company of the world s largest luxury and retail giant, Artemis Groupe is the controlling shareholder of many leading luxury brands including Gucci, Yves Saint Laurent, Bottega Veneta, Balenciaga and Alexander McQueen. Artemis Group also owns Christies auction. With respect to its wine portfolio, Artemis Group has successfully acquired Chateau Latour, Eisele Vineyard, Domain Eugenie, and Chateau Grillet. Price Expectation/Catalysts Burgundy has convincingly outperformed Bordeaux and the rest of the world wine regions since (Exhibit 3) In a world where consistent return is still hard to come by; top-quality Burgundy wines offer a very impressive capital appreciation relative to other regions. Importantly, top-level Burgundy producers attract a certain calibre of wine consumer; the wine thinkers and deep-pocketed romantics. Exhibit 3 demonstrates the performance of two other prodigious Grand Cru monopoles; DRC s La-Tache and Comte Liger-Belair s La Romanée, which have been amongst the best performing wines from the region. Although, the Clos de Tart Index has performed well, we expect a positive uplift in light of the track record of the new owners (0) wineinvestment.com

6 Analysis Acquisition of a Grand Cru as a competitive advantage? Acquisition of a vineyard sometimes can be complex, and it isn t the answer for every company who wish to gain access to the exceptional terroir of Burgundy, especially of its highly coveted Grand Cru vineyards. But those that can manage the complexity of acquisition by establishing the capabilities and have successful acquisition experience required to explore its full potential for growth can enjoy an enduring competitive advantage. The Artemis Group, the holding company of Chateau Latour, is safely qualified as such companies with a great reputation as an experienced acquirer and perceived as capable of providing distinctive capabilities for its target vineyards, including Chateau Latour in Bordeaux, Eisele Vineyard in Napa Valley, Chateau Grillet in Rhone Valley and Domaine d Eugenie in Burgundy. The decision to add the 18.5-acre Grand Cru Clos de Tart to their roster of world class wineries must have been an easy one +44 (0) wineinvestment.com 6

7 Case Studies Case Study No. 1 Successful acquisition of Chateau Grillet We studied the impact on value and brand power of one of the group s previous acquisitions; Chateau Grillet, situated in the Rhone Valley, was purchased by Artemis in With François Pinault s vision and the support of Latour s managing director Frederic Engerer installed as wine maker, Chateau Grillet has undertaken substantial works including operating buildings and equipment renovations at the vineyard to help bring out the best out of the unique terroir, whilst maintaining the winemaking customs of Rhone. Since its acquisition announcement made in 2011, Chateau Grillet has witnessed significant price increase across most vintages. For example, vintages 2014 and 2012 delivered a return of 71.3% and 56.7% respectively within only one year from (Exhibit 4) Eisles Vineyard in Napa Valley is another good example which demonstrates the knowhow of the group and how they have improved the perception of already well-established wine properties around the world. Case Study No. 2 Clos Des Lambrays How has the competition faired? Key Information Owner: LVMH (since April 2014) Vineyard area: Clos 8.84 hectares (8.66 hectares of which is Clos des Lambrays grand cru) Main Grape Variety: Pinot Noir Grand Vin: Clos des Lambrays, Grand Cru AOC: Morey-Saint-Denis, Cote de Nuits, Burgundy Annual production: 30,000 bottles Interestingly enough, Clos des Lambrays, situated next to Clos de Tart in Morey St Denis AOC, was acquired by another French luxury group LVMH in April As one of the oldest and most prestigious Grand Cru vineyards in Burgundy, the name Clos des Lambrays can be traced back to the year of Further refined its strategic vision, LVMH added this old Burgundy vineyard to its wine portfolio, which includes many world-famous wineries such as Krug, Dom Perignon, Cheval Blanc and Chateau d Yquem, to better explore the potential of Clos des Lambrays. Exhibit 5 shows that the post-acquisition performance of Clos des Lambrays has steadily improved, and the average return of these 10 vintages* being evaluated is around 80% since acquisition in (0) wineinvestment.com

8 Case Studies In conclusion, we believe that potential benefits that Artemis Group could provide for its target vineyards may include: 1. Accelerate market access for the target vineyards 2. Access to Group s professional global network reaching numerous industry segments 3. Synergies among acquired Artemis Domaines and obtain new growth opportunity About the author Yijun(Lena) Lu Research Analyst Lena joined Cult Wines in early 2018 having previously completed several internships in the finance industry, including in a venture capital fund and the Investment Banking arm of China Securities, as well as passing her CFA level II Qualifications. The experience in the investment industry combined with her passion for fine wine enables her to view this market with a fresh and unique perspective. In turn, this positions her unequivocally capable of identifying opportunities and risks in this complex market, using quantitative and scientific economic methods (0) wineinvestment.com

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