Robert M. Parker, Jr. (Born 1947 in Baltimore) is the world's most influential wine critic. He attended the University of Maryland where he majored in History and the History of Art. He graduated in 1973 with a Juris Doctor (Law) Degree. On leaving university he entered the legal profession and worked as a lawyer for Farm Credit Banks in Baltimore. In 1978 Parker published his own guide to fine wines through a newsletter called "The Wine Advocate". The first issue was mailed free of charge to mailing lists Parker had purchased from major wine retailers. By issue two he had over 600 paid up subscribers. Today this number stands at 50,000 subscribers in 37 countries. Parker is famed for his beautifully descriptive tasting notes and rates newly released wines on a 100 point scale. Such is his influence his score/rating and reviews are a major factor in setting the prices for newly released Bordeaux Wines. The New York Times wine critic Frank Prial has gone on record saying that Parker is the world's most influential wine critic. Further a profile of Parker written in the December 2000 edition of The Atlantic referred to him as "The Million Dollar Nose". This is born out after the release of Parker's tasting notes regarding the 2008 Chateau Lafite Rothschild. Parker rated this wine the highest score 98-100. In just one day the price for a case of 12 bottles rose from £2,000 to £3,500. That is a 75% increase in just ONE DAY.
Interesting Facts and Figures
Until recently only a few investors have been able to capitalise on the high investment returns that are produced by fine wines.
At The Premier Wine Company we are changing the way that people invest in wine, making investment a much more understandable and transparent vehicle.
UK tax law considers wine a wasting asset and therefore not subject to Capital Gains Tax. It is also considered a chattel and is therefore preferentially treated with regard to inheritance tax.
Wine investment is not a new activity. In the past English merchants invariably bought more fine wine than they were able to consume and often sold off surplus wines at a profit.
As the world has become richer, the fine wine market has also changed considerably. During the 1990s demand from the United States rose sharply and more recently we have seen a huge increase in demand from Asia.
As a result, the fine wine market has grown to an extent where the world-wide auction market is now estimated at circa £185,000,000 P/A.
In addition to this, interest from professional investors, specialist investment funds and individual collectors have all increased demand.
Supply however is restrained and in recent years it has actually been reduced. Restrictions imposed by the relevant authorities, reductions in yields, geographic consequences and the quest for ever greater quality have all contributed to this.
A long-term view is essential and it is a fact that the best wines from the best vintages have over the past couple of decades proven to be sound investments.
However, like other investments, wine is also affected by global events and the recent financial crisis has seen prices drop off from their recent peaks.
Having said that, fine wine has proven to be a much less volatile investment and shows less volatility. This is partly due to the limit of supply (stock of any top wine is limited to begin with and is constantly diminishing) and partly because wine is a tangible asset, a luxury product that is sought after and aspired to by a growing number of people.
Asia
In a recent wine growers association report it was forecast that by 2012 wine consumption in Hong Kong is set to reach 33 million bottles of which 70% is expected to be red wine. This kind of consumption and demand will certainly affect the availability of certain wines and without a doubt have an effect on prices, driving available vintages higher and making the investment market an excellent prospect. It is expected that by 2013 demand throughout the whole Asia-Pacific region will see an overall increase in demand of 25% reaching 1.3bn litres which is worth over US$6 billion.
The affects of this are already being seen. As investors pile into the fine wine market attracted by the huge demand from Asia and the fantastic returns to be made on investments the price of Chateaux Lafite and Latour is surging ahead. The example being the price of a case of 2008 Latour when released into the market in May 09 was £1,590. It has since climbed to £3,000, close to a 100% increase. A case of 12 bottles of Chateaux Lafite Rothschild was initially priced at £1,950. In the following two months as supplied dwindled and large numbers of buyers came in it hit the £3,500 mark.
