Editor Rusty’s Rap:   Smart Investment of the Decade: Wine?

The year 2008 definitely ended in a recession.  The stock market tends to be a roller coaster but for 2008 this roller coaster goes down mostly, plummeting steadily!  We all have been worried about our IRAs, 401c3 and other investments.  One of the commodities that has held so well through this year is wine!  In the latest twist, Wall Street types are putting money into one of the growing number of wine funds-akin to mutual funds.  The Wine Growth Fund yields 18.5% up this year, not down!  And the London-based Fine Wine Investment Fund returns 108% in five years (2003 to 2008).  The catch is that the initial investment has to be very large, $50,000 or higher.

Hey, I will not be responsible for any loss if you go out and invest your lifetime fund in one of these wine funds.  Personally, I haven't invested in any of them but as an afterthought I should have done so.  I have my own "investment" buying a good wine and storing it for a few years.  Its value, without doubt, goes up, at least to me and my drinking buddies!  For instance, I bought some Marilyn Merlot wine for approx. $24 each and ten years later the value per bottle is around $500 (source: MarilynWine.com, Marilyn Merlot 1995).  You will notice increased value of some wine in eBay.com.  After all, if my wine does not do well investment-wise, I might as well drink it and be merry!

Fun fact:  Whenever you shop at Trader Joe's, you will find Charles Shaw, also known as "Two Buck Chuck" in the wine section.  Only $1.99 (or is it now $2.99?) a bottle that is sinfully cheap for any wine!  Is it any good, you might ask.  Actually, an over-abundance of grapes that no one else in the wine making business wants, in addition the grapes have past their prime for any better wine, thus making it so cheap to bottle.  The name of the owner, as we can guess, is Charles Shaw, a frugal billionaire who controls more than 30 square miles of California vineyards.  (The rumor has it that he avoids large alimony to his ex-wife without any profit from this wine business again it is only a rumor)  To keep the overhead cost so low, Mr. Shaw avoids marketing and advertising; he just sells his non-vintage wine directly to some large retail stores such as Trader Joe's without going through a middle-man in a distribution center.  The bottom line is, like wine critics have said, that Charles Shaw wine does taste like two-bucks worth.

Wine Making:  Do old vines always make better wine?  Well, while grapes from old vines (anywhere from 20 to 100 years old) are not a guarantee of great wine, they can make a difference.  As grapevines age, they tend to become less energetic, meaning less fruit.  However, these grapes become more intense and flavorful.  Young vines produce more grapes but not as flavorful as those from old vines.  For this reason, grapes from old vines are most desirable for elder wine drinkers.

Answer to the trivia question from the last issue:  A true Beaujolais is usually made from: b) Gamay grapes.  Its wine is light-bodied, low in acid/tannin and fruity.  It is made to be drunk just weeks after harvest, not to be stored and aged.  Without tannin, it does not have "staying power" to keep in a wine cellar.

Question from Our Deaf Grapevine Fans:  Is a box wine any good?  (this question was asked during the wine appreciation workshop in San Leonardo, California last year)  While overall wine continues to gain 5% in popularity yearly, three-liter box wine volume grew 44% this year!  The reason behind this sudden growth is obvious, it is cost effective.  Box wine can save a tenth of bottled wine.  Moreover, spoilage in wine can be avoided with a box wine; it can be used occasionally for weeks without worrying about oxidation in an unfinished wine bottle.  Box wines are not like those 5-liter jugs of cheap headache-inducing wines of the past (these kinds of jug wine had been pasteurized like milk to prevent spoilage, hence destroying the true wine flavor).  Rusty's tip: don’t buy a cheap wine box, but buy more expensive premium box wine!  The cheaper a box wine is the more inferior it is in quality.

Laughter of the Day:

Rx for Rusty: "Drink two or three glasses of red wine daily for your better health!"