Investment Ideas for Barolo 2019
Investment Ideas for Barolo 2019
The wine of kings, the king of wines, the A-Side
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Hello wine lovers,
I had promised a follow-up on Hunting for Barolo 2019 Bargains and, in a well-belated fashion, this is it. The A-Side will focus on Barolo's well-known producers; here’s where I’m also promising another, a B-Side, on grower Barolo makers.
In recent discussions about the Barolo 2019 campaign, many wine merchants find the Barolo 2019 reception lackluster.
Surprising, since 2019 was a standout vintage. I wrote about it in more depth in Hunting for Barolo Bargains. After the challenges of 2018 and 2017, 2019 brought powerful, nuanced wines, evoking vintages like 2016, 2005, and 1999.
Climate change complicates understanding these wines. Historically, Piemontese wines varied based on weather: cool years gave structured wines, warm years softer, fruitier wines. But warmer conditions, which once favoured grape ripening, are now the norm. Despite 2019's heat, periodic rain and winery techniques prevented typical warm vintage characteristics.
Price plays a role in the reception. Many ask: Why buy 2019 when 2016 has similar prices?
This is an argument that I myself sometimes use when purchasing back vintages. Which one is the better vintage? And, why would I buy the lesser vintage for more?
This argument is valid but only to a point. The 2016 vintage stands out as a pinnacle in recent winemaking history, often drawing comparisons to the legendary 2010 vintage. Wines from this year are lauded for their impeccable balance, profound depth, and a structure that suggests they will age with grace for decades to come. Yet, while 2016 captures much of the limelight, overlooking the 2019 vintage would be a missed opportunity. The 2019 Barolos are emblematic of what can be termed a 'classic' vintage. They possess an inherent quality, a purity of expression that brings to life the essence of Barolo, and while perhaps more approachable in their youth, they too hold the promise of ageing beautifully. For collectors and connoisseurs, the allure of both these vintages lies not just in their individual qualities but in the chance to delve into the nuances of each year, to appreciate the subtle interplay of climate, soil, and human touch that defines each vintage. While the stellar reputation of the 2016 vintage suggests potential appreciation over time, the 2019, with its classic character, might emerge as a dark horse in years to come, especially as it garners more recognition. That’s diversification.
In addition, I’ve been the biggest critic of the crazy increases in prices from La Place both during the Bordeaux EP 2022 season (read: The earliest harvest ever) and the September releases (read: The Ministry of Silly Pricing). However, beyond the sensory and investment merits, there's another dimension to consider: economic factors also impact wine prices. The 2019 vintage, released during high inflation, in some cases, might seem pricey. But it's more about market dynamics than quality. By contrast, the 2016 release had a different economic backdrop. The real concern is if the price hike is justified. On that, we will delve into the specific wines. However, it’s also worth noting that yields were down 15 – 20% on the 2016 vintage, mirroring what we have seen in Burgundy of late.
Comparisons between Barolo and Burgundy are common. Both regions feature small-scale, often family-run producers. These fragmented areas produce limited quantities. Barolo production has doubled in 25 years, now at 14 million bottles. But production from top iconic winemakers of top MGAs (crus) will stay the same or, likely, decrease.
Below you can see a comparison that shows several renowned producers representing each region.
Barolo Producers' Bottle Production:
Barolo:
Giuseppe Rinaldi: Approximately 30,000 bottles.
E. Pira & Figli (Chiara Boschis): Approximately 40,000 bottles.
Bartolo Mascarello: Approximately 50,000 bottles.
Luciano Sandrone: Around 100,000 bottles.
Castiglione Falletto:
Brovia: Around 40,000 bottles.
Cavallotto: Approximately 80,000 bottles.
Paolo Scavino: Approximately 250,000 bottles.
Vietti: Around 300,000 bottles.
La Morra:
Fratelli Revello: Approximately 40,000 bottles.
Elio Altare: Around 60,000 bottles.
Oddero: Around 70,000 bottles.
Roberto Voerzio: Approximately 55,000 bottles.
Renato Ratti: Around 120,000 bottles.
Monforte d'Alba:
Mascarello Giuseppe e Figlio: Approximately 40,000 bottles.
Elio Grasso: Approximately 55,000 bottles.
Domenico Clerico: Around 80,000 bottles.
Aldo Conterno: Around 100,000 bottles.
Giacomo Conterno: Around 100,000 bottles.
Neive:
Bruno Giacosa: Approximately 150,000 bottles.
Novello:
Elvio Cogno: Around 60,000 bottles.
Serralunga d'Alba:
Massolino: Approximately 150,000 bottles.
Verduno:
Fratelli Alessandria: Around 40,000 bottles.
Comm. G.B. Burlotto: Around 45,000 bottles.
Burgundy Producers' Bottle Production:
Domaine Mugneret-Gibourg: Around 30,000 bottles.
Domaine des Lambrays: Approximately 30,000 bottles.
Domaine Leroy: Approximately 30,000 to 40,000 bottles.
Domaine Michel Niellon: Approximately 40,000 bottles.
Domaine Hubert Lignier: Approximately 40,000 bottles.
Domaine Ponsot: Around 40,000 bottles.
Domaine Jean-Louis Chave: Around 50,000 bottles.
Domaine Georges Roumier: Around 50,000 bottles.
Domaine Patrick Javillier: Around 50,000 bottles.
Domaine Comte Georges de VogĂ¼Ă©: Approximately 50,000 bottles.
Domaine A.-F. Gros: Around 60,000 bottles.
Domaine Jean Grivot: Around 60,000 bottles.
Domaine Armand Rousseau: Approximately 65,000 to 75,000 bottles.
Domaine Meo-Camuzet: Approximately 70,000 bottles.
Domaine Ramonet: Approximately 70,000 bottles.
Domaine Simon Bize & Fils: Approximately 80,000 bottles.
Domaine Henri Boillot: Around 80,000 bottles.
Domaine de Montille: Around 80,000 bottles.
Domaine de la Romanée-Conti (DRC): Around 80,000 to 100,000 bottles.
Domaine Henri Gouges: Approximately 100,000 bottles.
Domaine Bruno Clair: Approximately 100,000 bottles.
Domaine Leflaive: Around 90,000 to 110,000 bottles.
Domaine Dujac: Around 90,000 bottles.
Domaine William Fèvre: Approximately 150,000 bottles.
Domaine Louis Michel & Fils: Approximately 150,000 bottles.
Domaine Faiveley: Around 350,000 bottles.
Maison Joseph Drouhin: Around 400,000 bottles.
Domaine Bouchard Père et Fils: Approximately 300,000 bottles.
Bouchard Père & Fils: Around 300,000 bottles.
Louis Jadot: Approximately 500,000 bottles.
Both regions emphasise terroir, with distinct sensory profiles: Pinot Noir and Chardonnay for Burgundy, Nebbiolo for Barolo.
In uncertain times, a flight to safety is physiological. Trusted wines gain attention —Liv-ex's H1 2023 search data showed ChĂ¢teau Lafite Rothschild, Tenuta San Guido, Bolgheri Sassicaia, and ChĂ¢teau Mouton Rothschild in the top spots. I believe that this might be just the right time for savvy investors to pick up some Barolos instead. Be fearful when others are greedy, and greedy when others are fearful... I picked the three Barolo producers that are included in the Liv-ex Italy, and they are Bartolo Mascarello, Bruno Giacosa and Giacomo Conterno. There could be many more to present here, and I am resolute to do that in the future — Mascarello Giuseppe & Figlio, Domenico Clerico, Comm. G.B. Burlotto, Luciano Sandrone, … why these three? Just to highlight the investment possibilities of the three most liquid names.
This is quite a year to buy Barolos as, not only the 2019s have been released or will be released in the autumn, but also some 2016 Riserva are coming onto the market.
Barolo is quintessentially for the patient, and for those with a keen grasp of local geography…
Let’s dive in.
Bartolo Mascarello
The winery still embraces a sense of tradition. Until 1989, they didn't even have a telephone, with Bartolo receiving calls at a local restaurant. The company also only transitioned to computers in 2006 and doesn't have a website or email. This simplicity shows in their winemaking. They own four plots of vines, in Barolo (Rue and Cannubi), Bussia (Monrobiolo), and in La Morra (Rocche dell’Annunziata), and they are always blended, which Mascarello always insisted was the tradition here before single-vineyard wines gained more prestige. Fermentation in cement and wood vats without temperature control and usually with indigenous yeasts. The Barolo from Bartolo Mascarello is known for its elegance, longevity, and purity of expression.
You may remember my investment case for their Barolo 2013. I still believe the 2013 to be fairly priced at £280/750ml bottle, while most of their average vintages are available for £200/bottle.
2016 goes for £380/bottle.
The 2019 is released at £280/bottle and the question is whether it’s worth it. For those asking Why would I buy the 2019 vintage at this price when I can buy the 2016 for similar prices? — the 2019 vintage is currently at a 35% discount from its 2016 counterpart. Even when accounting for the 2% ageing discount (read: Is Cheval Blanc Undervalued?), the 2019 is still trading at a 19% discount.
Another variable to account for is stock levels. According to WineDeciderPRO (see third chart below), production levels in 2019 for the Bartolo Mascarello are half of those (already low) of 2016.
Lastly, Maria Teresa Mascarello compared the 2019 of her Barolo with the famed 1999 vintage. Aldo Fiorelli at Decanter mentioned that blending the grapes from different MGAs in 2019 has produced wines with more volume, refinement and complexity at this early stage, while the single-MGA wines will need more time to develop their complexity, although they already demonstrate signature characteristics.
Bruno Giacosa
Richard Baudains (Decanter) believes Bruno Giacosa to be one of five of Italy’s First Growth. While Bruno Giacosa passed in 2018, He writes:
If there were an Oscar for careers in wine, Bruno Giacosa would be first in line for the Piedmontese nomination. Giacosa is a living archive of the terroir of the Langhe. He started out as a commerciante (négociant), then through the 1990s began to acquire vineyards of his own to add estate productions to a range of impeccably high standards. In recent years his wines have become a little less uncompromisingly rugged in their youth, but the style remains very much Giacosa – big, deep and austere with prodigious ageing potential. The legendary red label riservas come from some of the greatest crus in the Langhe: Falletto di Serralunga and Le Rocche di Falletto for Barolo and Asili, Rabajà and Santo Stefano for Barbaresco. When it comes to selection, Giacosa is a perfectionist. If he has the slightest reservations about a vintage, he will not bottle a cru. If he does bottle it, you can guarantee it is great.
The wines included in the Liv-ex index are the Bruno Giacosa, Barolo, Falletto Vigna Le Rocche Riserva, which has been relabelled many times. From 1997 this wine was labelled 'Le Rocche del Falletto di Serralunga d'Alba'; after 2007, 'Le Rocche del Falletto' and in 2010 as 'Falletto Vigna Le Rocche'.
"Falletto" refers to the Falletto estate, which is one of Giacosa's vineyards.
"Vigna Le Rocche" indicates a specific parcel or section within the Falletto vineyard.
"Riserva" means that the wine has undergone extended ageing, both in barrel and bottle, before being released to the market. Riserva wines are typically produced only in exceptional vintages and are expected to have greater ageing potential.
According to the production regulations, Barolo must be aged for at least 3 years and 2 months after the harvest. Of these, it must spend at least 18 months in wooden barrels. For a Barolo to be labelled as Riserva, it must be aged for at least 5 years and 2 months after the harvest. Again, a significant portion of this ageing must occur in wooden barrels.
What’s the effect on wine?
In essence, barrel ageing is more about interaction — between wine and wood, and wine and oxygen. It's an active phase of the wine's development. Wooden barrels, especially oak barrels, add secondary aromas to the wine itself, such as notes of vanilla, toast, smoke, spice, and caramel. In addition, it adds tannins to the wine, which can contribute to the wine's structure and ageing potential.
On the other hand, bottle ageing is more about preservation and slow evolution, allowing the wine's inherent characteristics to shine through and develop complexity over time. Wines in bottles develop secondary (e.g., nuts, leather, and truffles) and tertiary aromas (e.g., earthy, mushroom, and forest floor) over time. These last flavours are also developed.
Currently, on the market, we can observe three wines:
Bruno Giacosa, Barolo, Falletto Vigna Le Rocche 2019 at £180/bottle
Bruno Giacosa, Barolo, Falletto Vigna Le Rocche 2016 at £540/bottle
Bruno Giacosa, Barolo, Falletto Vigna Le Rocche Riserva 2016 at £561/bottle
While there’s an argument to be made for the incredibly low stock levels of the Bruno Giacosa, Barolo, Falletto Vigna Le Rocche 2016, the wine appears to be grossly overpriced both when compared to the latest release of the 2019 and the Bruno Giacosa, Barolo, Falletto Vigna Le Rocche 2016 Riserva. For approximately the same price, one could buy the Riserva or alternatively enjoy the 2019 vintage at a 67% discount.
Giacomo Conterno
And last, but not least, another Riserva wine is included in the Liv-ex Italy index — the Giacomo Conterno’s Monfortino Riserva.
The Monfortino Riserva, a jewel from the Piedmont region, traces its legacy to the early 20th century when Giacomo Conterno decided to produce a unique wine capable of extensive ageing. Named "Monfortino" in tribute to his father from Monforte d'Alba, this wine represents the epitome of traditional Barolo craftsmanship. Sourced from the esteemed Cascina Francia vineyard in Serralunga d'Alba, the finest Nebbiolo grapes undergo prolonged fermentation and maceration, followed by a 7-year maturation in large Slavonian oak barrels. The result is a wine celebrated for its profound depth, intricate complexity, and unparalleled longevity. Monfortino unveils its peak character after several decades, bearing witness to the region's terroir with its robust structure and rich flavours. Today, Roberto Conterno, Giacomo's descendant, upholds this treasured tradition, producing the Monfortino Riserva only during exceptional vintages. This selective approach reinforces its global reputation for quality and exclusivity. Beyond its exquisite taste, Monfortino stands as a testament to the Conterno family's dedication to Barolo's timeless tradition, marking its stature as one of the wine world's most revered icons.
Roberto Conterno's approach to winemaking at his Serralunga estate is meticulous and often diverges from generalised perceptions about vintage quality in the Barolo region. While the 2016 vintage in Barolo has received accolades, Conterno's decisions are driven by his personal criteria and the unique characteristics he seeks in his wines. Notably, in challenging years like 2014 and 2002, Conterno chose to bottle only his flagship Barolo Monfortino, deeming those wines worthy of the Monfortino label despite widespread challenges in the region. However, in the acclaimed 2016 vintage, Conterno opted not to produce Monfortino. He has consistently expressed a preference for the 2015 vintage over 2016 for his wines. The 2016 Barolos from his estate, specifically the Francia and Arione, are outstanding but exhibit a more austere character than in some recent vintages. Their evolution in the bottle will be keenly observed by enthusiasts. Conterno's decisions underscore his commitment to the individuality and integrity of his wines, rather than adhering to broader market sentiments.
The 2015 Barolo Riserva Monfortino is said to be magical. It also is currently in the market for £850/bottle. It used to be a single-cru Barolo, sourced exclusively from the Francia vineyard in Serralunga d'Alba, but the 2015 returns to a multi-vineyard wine, incorporating 20% from the Airone MGA (still in Serralunga d'Alba).
An argument can be made for an established producer, such as Conterno, to have the power to go against the current and be more truthful (or perhaps, more specific) about the quality of their wines.
Therefore, why not try his single MGAs/crus that make up the Monfortino in 2015 — Barolo Francia 2015 (£180-250) and Barolo Airone 2015 (£185)? Note that the Arione Barolo was a new addition in 2015 to the Conterno’s roster and that there is no Barolo Francia 2013 or 2014 because they were entirely incorporated into the Monfortino Riserva.
Although the 2019 vintage isn’t available yet, in this vintage, Giacomo Conterno (sadly) only produced two Barolos, Cerretta and Monfortino. The Francia and Arione MGA/crus were all blended into the Monfortino. Antonio Galloni said, perhaps because of it, that it was the most refined young Monfortino he recalls tasting.
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đŸ‘‹ Sara Danese
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Disclaimer
My investment thesis, risk appetite, and time frames are strictly my own and are significantly different from that of my readership. As such, the investments covered in this publication and in this article are not to be considered investment advice nor do they represent an offer to buy or sell securities or services, and should be regarded as information only.
Great article!