Wine lovers to profit from falling prices

Think of wine critic Robert Parker as the EF Hutton of fermented grapes. When he talks, oenophiles listen.

So when Parker, publisher of the Wine Advocate, said recently that the world is entering the 'Age of the Buyer' - a prolonged period of stable or declining wine prices - it was enough to get sommeliers buzzing over their Chateau D'Yquem.

"There's now a tremendous amount of high-quality wines available at reasonable prices," agrees Andrew Bell, president and CEO of American Sommelier, a membership association for wine aficionados. "With supply increasing and consumption decreasing, it stands to reason that prices will fall or stabilize. The pendulum is swinging in favor of the consumer."

To which wine lovers might say: It's about time. In recent years, they have grappled with seemingly ever-increasing prices. With production at top French chateaux like Margaux or Petrus limited, and wealthy Chinese buyers starting to acquire a taste for high-end Bordeaux, bidders have set auction records and the futures market has been priced at sky-high levels.

But things may finally be tipping in favor of the consumer, at least in the broader market. The punishing recession has a lot to do with it: Disposable income is plummeting, so most households just don't have much cash to be splurging on an outstanding syrah or sauvignon blanc.

"The recession drove everyone to trade down," says Barbara Insel, CEO of Napa-based wine-market advisory firm Stonebridge Research Group. "The market disappeared for most wines costing more than $15 or $20. Pretty much anything costing more than $30 was 30 percent off - and often not refilled on the shelves or wine lists."

CURRENCY TRENDS

Currency trends are helping foster the Age of the Buyer, as well - at least for Americans.

"There's some bullish sentiment under the U.S. dollar now because the American economy is starting to perform better," says David Song, a currency analyst with foreign-exchange site http://DailyFX.com. "Meanwhile the outlook for the Euro is pretty bearish, and it will likely trend lower for 2012."

That combination of a steadying greenback and a worsening Eurozone mess will likely drive down prices for European wine imports. From the Euro's current exchange rate of roughly $1.30, already well down from previous levels of around $1.60, Song expects a further slide to $1.20 or even $1.10. That, in turn, could encourage American producers to trim their own prices in order to compete.

Here are a few ways savvy oenophiles can benefit:

- Leverage your online advantage. Historically, wine access has been a restricted and clubby affair, which often depended on personal relationships with dealers.

But the proliferation of online retailers has essentially democratized access to high-quality vintages. An array of websites are now offering so-called "flash" deals of deep discounts on high-end, limited-availability cases. A couple of Andrew Bell's favorites: http://Lot18.com and http://WinesTilSoldOut.com.

- Look beyond Bordeaux. Want a steal on bottles from famed French chateaux like Haut-Brion or Romanee-Conti? You're probably out of luck. That's the stuff that billionaire Chinese buyers really care about, as do investment vehicles like the London-based Fine Wine Fund, which tend to focus almost exclusively on first-growth Bordeaux. One reason is that Bordeaux is - pardon the pun - the most liquid option for wine investors, easily sold to other collectors. Other regions and varietals can be harder to move.

But look to the rest of the world, and the bargains appear plentiful. The quality-to-price ratio is particularly attractive in places like Australia, New Zealand, Argentina, South Africa, Spain and Chile. Stonebridge's Insel says buyers can find an alluring mix of quality and value in Southern Italian reds, whites from Italy's Veneto region and homegrown vintages from Washington State.

- Be active at auctions. As Woody Allen once said, 90 percent of life is just showing up. In that spirit, show up at the wine auctions of prominent purveyors like Zachys, Hart Davis Hart, Sotheby's and Christie's, and you might be surprised at what you come away with. After all, since wine futures have been priced at record levels - and you still have to wait a couple of years for delivery - you'll probably have better luck with more mature vintages.

Tips from American Sommelier's Bell: Do your due diligence beforehand to identify your best quality-to-price opportunities; set budget limits for yourself, so you don't get caught up in auction momentum and overpay; and consider so-called 'mixed' or 'odd' lots, groupings of assorted wines that higher-end collectors might overlook.

Explain how Lokpal is strong: Anna tells Sonia

Hitting out at the government on the "useless" Lokpal Bill, Anna Hazare today challenged Congress chief Sonia Gandhi to a public debate on it to convince people that the proposed legislation is strong.

Hazare said the new Bill is of no use if the anti-corruption ombudsman does not have control over CBI and the lower bureaucracy is not brought under its direct control. "Sonia Gandhi says the bill is strong. If it is so, let she come out and debate with us in front of media. Let people see it.

Convince the people of the country that it is strong. We will explain how it is not strong," he told reporters here. "What is right and wrong with the bill, let us debate in public," he said as government prepared to introduce the bill in Lok Sabha. Hazare's remarks came as a response to Gandhi's speech at Congress Parliamentary Party meeting yesterday during which she said the proposed legislation was strong and she was ready for a fight for it.

Continuing his attack on the government, Hazare said he will go ahead with his three-day fast from December 27 and then 'jail bharo' agitation against the "weak" bill which will not help the poor in their fight against corruption. "I will be part of the group that will 'gherao' the residences of Sonia Gandhi and Rahul Gandhi as part of our jail filling agitation," he said. He said putting CBI out of Lokpal shows how the bill will be "useless". "The biggest victims of corruption are the poor who have to pay bribes to get any work done.

How will the commonman live like this? Out demand is that lower bureaucracy be brought under Lokpal," he said.

Lokpal Bill in Parliament on Wed

As pressure mounts on the UPA government to pass the Lokpal Bill in the winter session of Parliament, sources now say that the bill is likely to be tabled in Parliament on Wednesday for discussion. Not just that, sources also say that Parliament may have an extended session from December 27 to 29 to pass the Lokpal Bill.

Ahead of the Cabinet meeting on the Lokpal Bill on Monday, Opposition leaders LK Advani and Sushma Swaraj met Finance Minister Pranab Mukherjee over a possible extension of the winter session of Parliament so that the Lokpal Bill can be tabled and passed.

Minister of State in the HRD Ministry D Purandeswari assured that the government is committed to getting a strong Lokpal Bill passed. "The Lokpal Bill will come in Parliament and then deliberations will happen with various parties expressing their views," she said.

She also said that the Prime Minister may be included in the Lokpal Bill, but with riders. "If you remember the Prime Minister had said he wants to be included under the ambit of the Lokpal, safeguards are important, so it's likely," she said.

National Conference chief Farooq Abdullah has said, "There should be a strong Lokpal Bill, but shouldn't be a super government and above Parliament. The draft has been prepared and will be discussed in the Cabinet."

Congress spokesperson and Standing Committee Chairman Abhishek Manu Singhvi also said, "We are not here to offer any carrot, it's a piece of legislation, and it needs to be passed in Parliament. Please wait for the bill to be tabled in Parliament."

The BJP, however, said that the government seems confused over the Lokpal Bill. "The government is confused, they take one step forward, two step backwards. We want a strong Lokpal Bill to be passed in the current session. I don't know what this government plans to do," BJP leader Balbir Punj said.

The options that the government now has are:

Firstly, the government may table the Lokpal Bill in Parliament on Tuesday or Wednesday, begin a discussion right away and try and pass the bill this week itself.

A second option is that the bill be tabled on Tuesday or Wednesday, then depending on the mood in Parliament, extend the session to the next week for debate and passage of the bill.

Alternatively, the government may after tabling the bill in Parliament on Tuesday or Wednesday, call for a special extended session in early January for a debate or else once the bill is tabled, the government won't push for a debate till a broad consensus has been arrived at within Parliament.

Cabinet meet on Monday

Meanwhile, as Anna Hazare steps up the attack on the government threatening to go on a fast from December 27 and a jail bharo agitation, the government, sources say, may meet most of his demands.

The Union Cabinet will meet on Monday evening to discuss the Lokpal Bill. Sources say that the UPA, under pressure, has proposed that the Prime Minister be included in the bill with riders, that Group C bureaucrats under the Chief Vigilance Commissioner be supervised by Lokpal and that the CBI director be appointed by a panel comprising the Prime Minister, the Leader of the Opposition and the Lokpal. Sources say the government has also proposed that Lokpal members get a vigilance clearance from the CVC.

Sources say the government is also proposing nearly 50 per cent reservation for Scheduled Castes, Scheduled Tribes and other backward classes in the Lokpal Bill and that the Lokpal monitors the CBI in cases of corruption it refers to the investigative agency.

Samsung Vs Apple

Just when we were hoping that the existing war between Apple and Samsung would dissipate, if not get done completely, by the end of this year; there's news about the battle escalating in Germany. A Reuters report confirms that Samsung has freshly accused Apple of infringing on four of its patents pertaining to the use of emoticons, among other things. This only means that Samsung now has an escalated battle with Apple in Germany (the two have been battling it out over infringments pertaining to telecommunications standard technology WCDMA for 3G mobile handsets owned by Samsung). 

North Korean leader Kim Jong Il is dead

Kim Jong Il, North Korea's mercurial and enigmatic leader, has died. He was 69. Kim's death was announced today by state television from the North Korean capital, Pyongyang.

Kim is believed to have suffered a stroke in 2008 but appeared relatively vigorous in photos and video from recent trips to China and Russia and in numerous trips around the country carefully documented by state media. The leader, reputed to have had a taste for cigars, cognac and gourmet cuisine, was believed to have had diabetes and heart disease.

The news came as North Korea prepared for a hereditary succession. Kim Jong Il inherited power after his father, revered North Korean founder Kim Il Sung, died in 1994. In September 2010, Kim Jong Il unveiled his third son, the twenty-something Kim Jong Un, as his successor, putting him in high-ranking posts.