A tasting of Penfolds wines gives Australia a chance to show what it can do at the higher end of the market, writes Joe Breen
A couple of weeks ago two complete sets of Penfolds Grange, from the inaugural, experimental 1951 vintage to the recently released 2002 vintage, sold at auction for almost €190,000. A single bottle of 1951 Grange sold for more than €30,000. These prices put into context the growth at the high end of Australian wine. Grange is, of course, the high end of the high end, an iconic example of South Australian Shiraz (and a dash of Cabernet Sauvignon) that takes its time before revealing itself as a wine of massive power and complexity.
Dillons, Penfolds' distributor in Ireland, recently held a tasting of two vintages each of Grange, Bin 707 Cabernet Sauvignon, Bin 389 Cabernet Shiraz, Bin 407 Cabernet Sauvignon and other Penfolds wines. The tasting was tutored by a former maths teacher named Peter Gago, now Penfolds' chief winemaker, who had little trouble keeping his small class under control. "Penfolds is all about style, not formula," he said, and proceeded to show us why.
Because the fruit for almost all of the top Penfolds wines is sourced from far and wide, in different quantities, depending on the vintage, each vintage is unique. For example, the resistant Grange 2002 was sourced from the McLaren Vale and the Barossa Valley, but the fruit for the gorgeous and rapidly emerging Grange 1998 came from the Barossa, plus Padthaway and Magill Estate.
The same was true of the massive 707, 407 and 389, all nomad blends defined by the grape selection and the work in the cellar or, as Penfolds puts it, its "multi-vineyard, multi-district blending philosophy". Ironically, this is somewhat out of step with the drift towards regionality and celebration of place, in a manner similar to the French touting of terroir.
Though Grange and its quality stable companions have long been feted as an Australian elite, the rest of the country's wineries are aiming to catch up. Wine Australia, a government body, wants the country to "become a more significant participant in the regionally distinct and fine wine market". It aims to increase the value of the Australian wine trade by almost €2.5 billion over the next five years. This might seem like a huge task, especially for an industry recently devastated by drought, frost and generally hostile weather.
But although Australia is producing fewer litres, it is being paid considerably more for them, especially in the burgeoning US market. And it is being paid more because the wine is better. All Australian wine, particularly in the top half of the market, can offer extraordinary value for money.
"We have not been a source of cheap wine for a while," says John McDonnell, Wine Australia's man in Ireland, who points out that most of the big sellers retail for more than €8.50. "Certainly, the drop in this year's harvest" - down from 1.9 million tonnes in 2006 to 1.3 million this year - "will put a squeeze on prices."
Initially, he says, this will be softened by using surpluses from the massive vintages of 2005 and 2006. "After that, yes, many companies may have to reconsider their attitudes to discounting. I'm sure some would actually like to move in this direction."
So enjoy those half-price Aussies while you can. They will be history soon enough.