Investing in Champagne: the good, the bad and the bubbly

Australians are prodigious drinkers of Champagne - even more so over the Christmas period when a glass or two of bubbles is de rigueur for many.

Wine broker Langtons has just released Australia's largest allocation of luxury Champagne and is promoting it as an investment.

Australia is consistently landing in the top 10 markets for Champagne globally and Langtons believes "the local fine wine market is expected to mimic overseas success with Champagne making it a key collection and investment category for fine wine enthusiasts".

My advice is to always buy wine you want to drink down the track, not merely as as an investment. To my palate Champagne does not improve with age. Others disagree. 

“When it comes to cellaring, Champagne is a category that deserves more of the spotlight here in Australia," says Michael Anderson, head of auctions at Langtons.

"As we’ve seen overseas, Champagne has an impressive ageing potential which sees the wine develop with grace to place itself as a wine category regularly fetching eye-watering prices under the hammer.

"We can expect to see Champagne rise up the ranks in the secondary market here in Australia, with savvy investors already purchasing sought-after bottles to cellar away for future auctioning."

Overseas, avid collectors are displaying an ever-growing interest in rare cuvées, prestige bottlings, and late-disgorged releases and most recently, non-vintage (NV) Champagnes are also joining this list, Langtons says. 

We shall see. 

RACV unveils major expansion at Gippsland resort

Gippsland tourism is to get a huge boost with the announcement this week of a huge expansion of the RACV Inverloch Resort.

Plans include a multi-million-dollar extension featuring 36 premium rooms that it is estimated will create 120 jobs during construction and 15 ongoing positions once operational, injecting an estimated $6.5 million annually into the local economy.

The development comes as regional accommodation providers struggle to meet soaring demand, with the popular Bass Coast destination regularly turning away visitors during peak periods due to capacity constraints.

"This is an investment into Inverloch and Gippsland tourism that RACV is tremendously proud to be a part of," said RACV executive general manager for leisure, Craig Peachey.

"With regional tourism booming post-pandemic, these new premium rooms will help address a significant market gap while elevating Inverloch's status as a premium destination.

“We’re pleased that the Victorian Government shares our vision for the project, and we’re appreciative of their assistance in making this expansion possible, with RACV a successful recipient of a grant from the Victorian Government’s Regional Tourism Investment Fund 2024.”

The resort currently operates at almost full occupancy during peak periods and is fully booked months in advance, forcing many potential visitors to seek alternatives outside the region.

The expansion will enable the facility to welcome up to 20,000 additional guests annually.

“Our nine RACV Resorts across Victoria, Queensland and Tasmania have something for every traveller - from dramatic coastal scenery like you’ll find at RACV Inverloch Resort - to rich bushland or a bustling city break and we’re delighted to be able to continue to invest in our accommodation options for our RACV members and guests,” Peachey said

Architectural renders released this week (above) showcase a two-level wing that will feature floor-to-ceiling windows capturing panoramic views across Andersons Inlet. The design by GHD aims to blend seamlessly with the coastal landscape using sustainable materials and native vegetation.

Located just 90 minutes from Melbourne, the expanded resort will serve as a gateway to Victoria's emerging coastal experiences, including the recently established Yallock-Bullock Coastal Park and Bunurong Marine Park.

Construction is scheduled to commence in mid August with the new wing expected to welcome its first guests by December 2026.

See racv.com.au/travel-experiences/.

Airline boss slams "outdated" Heathrow

The head of one of the world's leading airlines has unloaded on London's Heathrow Airport, saying it is not fit for purpose.

Emirates Airlines chief Sir Tim Clarke described Britain's busiest airport as a “Second World War” era facility, industry portal Travel Mole reports.

Heathrow opened just after the end of the war in 1946 and Clark says Terminal 3, where Emirates is based, is looking outdated and showing its age.

It "looks like a utilitarian structure, post-Second World War" he said at the International Air Transport Association’s (IATA’s) annual meeting in Dubai.

He said any new owner of Heathrow must be prepared to invest.

Heathrow is "seriously lagging behind" airports in the Middle East and Asia for customer service innovations, he added.

“New airports are built employing the latest tech to streamline their processes, whether it be security, check in, immigration or whatever.

“I’m hoping that the new owners will get that but airports worldwide are not famous for spending money.”

Airlie Beach resort gets an $8 million upgrade

An $8 million refurbishment to transform all 160 guest rooms at Airlie Beach’s Mantra Club Croc has been unveiled this week.

Owned by Well Smart Group and operated under Accor’s Mantra brand, the resort’s new interior design concept aims to showcase "seaside elegance", offering boutique-style accommodation with coastal-inspired décor.

Situated close to the beachfront and Coral Sea Marina, Mantra Club Croc is housed around a traditional Queenslander-style building, providing guests with a glimpse into the region's history.

Accor Pacific Chief Operating Officer for the region Adrian Williams said: “The transformation of all 160 guest rooms, coupled with the upcoming upgrades to other areas of the resort, solidifies Mantra Club Croc as a premier holiday destination, seamlessly blending historical charm with modern coastal flair.

"It has raised the bar on hotel accommodation, and elevated the guest experience, in the holiday hotspot of Airlie Beach.

“Accor and Well Smart Group have a long and successful relationship, and we are thrilled for the opportunity to partner with them again on this landmark refurbishment. Their incredible vision is evident in every detail of this project.”



“Our commitment to continuous improvement underscores our dedication to providing a world-class tourism offering," said Well Smart group director Jack Jia.

"The resort has been tailored to savvy leisure and business travellers who value immersive spaces, modern dining, and leading-edge design - it offers a seamless and intuitive experience, while providing access to the Whitsundays’ famed blue waters, white sands and rugged green-clad islands.”

Notable features of the room refurbishments include local photographers' artworks, pendant lighting, coastal-style wall panelling, a free-standing minibar, a robe with an open hanging rail and shelves, custom bedheads, and a storage banquette with an upholstered seat pad."

In addition to the room upgrades, Mantra Club Croc now offers a reimagined room service offering, a new poolside cocktail service, and has received a full resort high-speed wifi upgrade (which is provided complimentary to all guests).

The refurbishment will also extend to the resort’s reception area and poolside restaurant and bar later in the year.

Mantra is Australia’s largest hotel brand with 75 properties across the country. Accor operates two well-appointed resorts in Airlie Beach - The Sebel Whitsundays Airlie Beach and Mantra Club Croc Airlie Beach.

Mantra Club Croc room start from $175 per night, including breakfast daily and a welcome drink. To book, visit ALL.com

Rep rehab: Qantas outlines planned improvements

The beleaguered Qantas Group has signalled a series of planned improvements to its service standards as new CEO Vanessa Hudson gets her teeth into the role after succeeding unpopular Alan Joyce.

Qantas will invest a further $80 million in customer improvements across the financial year 2024 in addition to the $150 million previously budgeted, which will be funded from profits, the airline said in a statement issued today.

The additional investment is aimed at addressing a number of customer ‘pain points’ through improvements such as better contact centre resourcing and training, an increase in the number seats that can be redeemed with Frequent Flyer points, more generous recovery support when operational issues arise, a review of longstanding policies for fairness and improvements to the quality of in-flight catering, the statement said.

Qantas is also working to accelerate some initiatives already underway, such as the re-platforming of the Qantas app.

Qantas and Jetstar expect to carry more than 4 million passengers over the September/October school holidays and football finals period on almost 35,000 domestic and international services.

This compares with around 3.7 million passengers on approximately 28,000 services over the same four week period last year.

New aircraft deliveries and wet-leasing arrangements will help Qantas and Jetstar boost international capacity by 12 percentage points by the end of the calendar year – an increase of almost 50 additional flights a week.

This includes Qantas resuming its Sydney-Shanghai services and starting two new routes, Brisbane-Wellington and Brisbane-Honiara, as well as a new Jetstar service from Brisbane to Tokyo.

Image: Qantas 

Champagne sets a course for the next decade

Champagne makers and growers have revealed a major investment plan for the next decade, and set the course for the future of the world's most famous sparkling wine region.

The Comité Champagne recently unveiled a plan to "ensure that Champagne is always available, always desirable and always exemplary".

The Comité Champagne will increase its annual budget by an additional €10 million, which will be invested in particular in research and development along with sustainability and strengthening its foundational missions.

The announcement followed the revelation that Champagne shipped 326 million bottles in 2022 (+ 1.6% compared to 2021).

Champagne is also experimenting with new grape varieties, researching ways to combat the various forms of vineyard decline, defining new soil maintenance methods and new oenological strategies.

"It is not just a question of responding to the changing demands of consumers; it is a question of ensuring the productivity and sustainability of the Champagne vineyard; of designing and promoting a viticulture that is in balance with the ecosystem, to produce a sufficient quantity of quality grapes," says Maxime Toubart, president of syndicat général des vignerons and co-president of the Comité Champagne.

"This is what we aim to achieve, and the course we have set for ourselves."

David Chatillon, president of the Union des Maisons de Champagne and co-president of the Comité Champagne, added: "The investment we make embodies the social responsibility of our sector.

"It is an absolute priority to ensure that Champagne continues to be recognised as an exceptional wine, supported by a united, responsible and committed industry.

"Our plan gives new impetus for new ambitions, for our appellation and our terroir."

Qantas to splash out on new and upgraded lounges

There is some good news for business class travellers and Qantas frequent flyers.

Qantas CEO Alan Joyce this week announced a program of new and refurbished Qantas lounges across the globe, proclaiming it as the biggest investment in the airline's lounge network in over a decade.

Joyce said the work had been enabled by the faster-than-expected recovery in travel demand, with the project including a new First Lounge at London Heathrow Airport.

Also on the agenda is a refreshed Hong Kong International Lounge, upgrades for the International Business lounges in Sydney and Melbourne, a new Hobart Qantas Club and an expanded Broome Regional Lounge.

The new London First Lounge is anticipated to open in late 2025, aligned with the debut of direct London-Australia flights.

The new $100 million lounge program is in addition to previously announced upgrades in Auckland, Adelaide, Rockhampton and Port Hedland.

The national carrier has an extensive lounge network, including 42 in Australia (12 of which are in regional destinations) and nine overseas.

“Being back in profit means we’re back to making long term investments for our customers," said Joyce. That started with the major aircraft order we announced last year and now we’re building on that with a major investment in our lounges.

"Millions of people a year visit our lounges and they are typically our frequent flyers who travel with us the most, so anything we do to improve them is a way of saying thank you to our most loyal customers."

Good news for Tasmanians with the proposed relocation into a brand new Hobart Qantas Club with larger premises in line with the overall terminal redevelopment. Qantas is targeting a 50% increase in capacity from 96 to approximately 150 seats.

That further strengthens Qantas' postion in Hobart with Virgin Australia still not having a lounge despite promising one over a decade ago.

Eligible Qantas lounge customers include: Qantas tiered Frequent Flyers (gold and above), customers travelling in business class and first on Qantas operated flights and eligible oneworld and partner airline customers.

Spicy future envisaged for Chinatown

A new plan to upgrade and reinvigorate Dixon Street in Chinatown has been unanimously endorsed by the City of Sydney Council. 

Consultation with more than 1,150 residents and businesses helped shaped the plan, which includes $5 million to revive Dixon Street Mall, restore its famed gates, install new seating as well as creative lighting overlays and improved services to support events.

 

Lord Mayor Clover Moore said it was important for the City to work with local communities to breathe new life into the historic area, especially following the impacts of Covid-19.    

 

“Our community in Chinatown was one of the first and hardest hit by the pandemic, and it continues to suffer while international tourism and study has not yet fully returned,” Moore said.

 

“While we have been safely activating public places and inviting people back to experience all Chinatown has to offer since Covid restrictions were eased, we’re excited to ensure its long-term future by reinvigorating Dixon Street as a dynamic space for people, daily life and culture.

 

“Our communities have enthusiastically embraced the opportunity to help us shape the Dixon Street precinct and painted a picture that celebrates the diversity of Asian cultures, food and history. 

 

“We know the renewal of the Chinatown Gates is incredibly important and it is a focus for us as we move forward with our plans.”  

 

Since 2010, Sydney has has initiated several public space investments in the Chinatown precinct. 

 

“Now, through our proposed public domain improvements in the heart of Chinatown, we will make the area an even more attractive environment for people to walk around and spend time, which will in turn support local businesses and economic activity,” Moore says.

 

Residents, businesses and visitors were invited to complete surveys and attend community forums in English and Asian languages to ensure they were part of the plans for the area. 

                                                                                                  

Contributors highlighted the need to reflect the cultural diversity of the area, increasing authentic and affordable food and retail experiences. They said it was important to respect the heritage and traditions of Chinatown while exploring exciting new ways to express culture. 

 

Key long-term priorities for Haymarket are:   

 

• boosting lighting to create a safe and colourful atmosphere 
• increasing events, activities and outdoor dining on the streets 
• more seating  

• preserving the local character and cultural heritage 
• extending trading hours to boost the thriving nightlife 
• more public art. 

 

Dixon Street’s management is split between the City of Sydney and the NSW Government, with Placemaking NSW (a name obviously created by a committee of creatives) taking over Dixon Street north between Goulburn and Liverpool streets and the City of Sydney managing the pedestrianised area between Goulburn and Hay streets. 

For more details see cityofsydney.nsw.gov.au/haymarket-precinct  

A very expensive bottle of Australian wine

A bottle of the first vintage of Penfolds Grange went under the hammer for over $150,000 at a Langton's live auction in Sydney this week.

“It’s a fantastic result, and shows a really vibrant, strong fine wine market here in Australia,” said Langton’s general manager Tamara Grischy.

“This particular Penfolds Grange 1951 was in excellent condition and is still in its original cap, which is very rare. In addition, the label was among the most intact of this vintage I have ever seen. The buyer is thrilled to add it to their wine collection.”

The buyer was not revealed but is "a wine collector from the Greater Sydney area", and was competing for the coveted bottle against two other bidders.

The Penfolds Grange Hermitage Bin 1 Shiraz 1951 is the first vintage ever made of Australia’s most famous wine, and is in high demand among wine collectors looking to complete their Penfolds Grange sets.

A set contains all vintages of Penfolds Grange from 1951 to 2018 (67 bottles in total), and will sell for at least $400,000, Langton's estimates.

“Penfolds Grange is one of the sought-after brands on the secondary wine market. It is liquid gold in a bottle, and as the first vintages become rarer to find, we will continue to see demand increase,” Grischy said.

In total, 31 lots sold at the auction for $470,000. Other highlights include a Jacques Selosse Selection three-bottle set of Champagne, which sold for $6,407 (reserve price $1,380), and a Domaine Armand Rousseau Grand Cru Chambertin three-bottle set, which sold for $34,950.

The auction took place at The Eveleigh in Sydney, where 200 guests enjoyed a three-course meal with matching wines from Penfolds, Wynns Coonawarra and Champagne Bollinger.

The old "get 'em tanked before they start bidding tactic.   

“The secondary fine wine market is the hottest it has ever been, and after a few years of lockdowns, it was exciting to bring wine lovers together and to let them get up close and personal with rare treasures many will never see in their lifetime!” Grischy said.

In December 2021, another bottle of Penfolds Grange Hermitage Bin 1 Shiraz 1951 went under the hammer at a Langton’s online auction for $157,624, making it the most expensive bottle of Australian wine ever sold.

* All prices include Buyer’s Premium, which is 16.5% including GST, and is paid on top of the hammer price.

Big plans for key Yarra Valley site

The developers behind two ambitious tourism projects in regional New South Wales today unveiled plans for a new Yarra Valley development.

Winarch Capital’s Cedar Mill Group has acquired a 100-acre site on the Maroondah Highway in the Yarra Valley for its third purpose-built outdoor amphitheatre and tourism project, expected to open in 2024 at a cost of up to $200 million.

It follows the previously announced $235 million redevelopment of Morisset Golf Course, to be known as Cedar Mill Lake Macquarie, with plans for a 30,000 person concert venue, cafés and restaurants, accommodation and Australia’s largest aquatic park. Construction is underway.

Last August, Cedar Mill Group also announced the purchase of one of the Hunter Valley wine region’s most premium development sites, in Pokolbin, for its second purpose-built outdoor amphitheatre and tourism project, expected to open late 2023 at a cost of about $150 million.

A premium wine tourism destination, the Yarra Valley already hosts over six million visitors per year.

Plans for Cedar Mill Yarra Valley, which is just over one hour's drive from Melbourne central, include a 300-bed hotel, conference and function facilities, three restaurants, 20 boutique villa units, tennis courts, a lake and gardens precinct, arts and craft village, and outdoor amphitheatre to host live concerts and events from major local and global touring acts.

The plans include local growers and operators providing boutique goods and dining experiences inspired by the local agricultural produce along wiith winemaking, distilling and brewing.

Winarch Capital and Cedar Mill Group managing director Paul Lambess said: “This strategic purchase is the beginning of our rollout of multiple sites in Victoria, as we are currently doing in NSW.

"This marks the first interstate purchase that will begin our realisation of a national and international network. All venues will include world-class and purpose-built amphitheatres that the Cedar Mill brand will be known for.”

Development plans for Cedar Mill Yarra Valley will be lodged in the coming months, with the construction phase estimated to create over 500 new jobs and inject upwards of $200 million through build costs, job creation, supply chain and consumption over the next two years.

The Cedar Mill group are actively searching for future Cedar Mill sites across Australia, their PR team reports.

 

Young people see wine as an attractive investment

Forget Non Fungible Tacos, or whatever they are called. Young investors in the UK are increasingly seeing wine as a key platform of their portfolios.

A survey of 2,000 investors in Britain found links between Generation Z, loosely those up to 25 years of age, and fine wine investment, Decanter Magazine reported.

While close to half of all survey respondents said they had invested in alternative assets, such as fine wine, whisky, art or crypto currency, this proportion rose to 62% for the under 25s.

Commissioned by wine merchant Bordeaux Index and conducted by market research agency 3Gem, the survey suggests younger investors ‘are turning to fine wine’ as a way to grow wealth, the survey authors said.

Of the respondents under 25 who invested in wine, nearly three-quarters spent up to £20,000 per year on top bottles, the survey. reported. A remarkable 7% percent said they spend between £50,000 and £500,000 per year.

A total of 39% of all survey respondents – across age groups – said they chose wine due to its relatively accessible entry point, compared to other alternative assets.

Matthew O’Connell, head of investment at Bordeaux Index and CEO of its LiveTrade platform, said: ‘For those worried about what 2022 may bring to their investments, wine’s clear capital preservation across the pandemic and its outperformance in 2021 (+19% versus +14% for UK equities) is clearly very encouraging."

Auction house Sotheby’s recently highlighted the appeal of fine wine and spirits to younger collectors in general in its auction sales report for 2021. 

It said around 40% of wine and spirits auction buyers in 2021 were new to the scene, and one-third of bidders were aged under 40.

My advice to new investors: Why would you invest in something you know very little about? Buy wine you want to drink, not bottles you think might make you money down the track.

Hotels predicted to drive Melbourne's economic revival

                                                Novotel & ibis Styles, Melbourne Airport

A new generation of international hotels will be a key driver for the revival of Melbourne tourism prior to the re-opening of international travel, Simon McGrath, Chief Executive Officer of Accor Pacific, Australia’s largest hotel operator, has predicted.

While corporate and non-leisure travel to Melbourne has dipped over the past year, impacted by the closure of local and international borders, and is likely to remain subdued for the next 12 months, McGrath forecasts that leisure travel will shape a recovery.

“Melbourne is one of the world’s greatest cities and, over the next two years, we are bringing eight hotels and 1,583 rooms to the city," he said. 

"That is an investment of over $700 million by a variety of owners. This will create around 600 jobs, while boosting the appeal of the city and the quality of accommodation available.

“As well as the new Mövenpick hotel, which will open in June, we will be opening new hotels which include SO/ (shown below), 25hours, Mercure and Peppers - before the end of 2023. 

"These new properties will complement our current portfolio of 43 hotels in Melbourne, offering even greater choice for travellers.

”People love to visit Melbourne for its world-leading events calendar – for its sport, arts and culture. Sporting events such as the Australian Open, the AFL and Formula One are also tourism events, attracting thousands into the city. Even without international travel, events can contribute to the city making a serious tourism comeback.”

Accor is Australia’s leading operator of hotels, and is set to unveil the second of its Mövenpick branded hotels in Australia next month, in a prime location in the Melbourne central business district. 

Mövenpick Hotel Melbourne on Spencer follows the debut of the brand in Hobart earlier this year and brings to the Victorian capital a design-focussed hotel that captures the vibrancy of Melbourne’s dining and fashion district.

The Mövenpick opening follows the addition in 2019 of the lifestyle-focused Hotel Chadstone, part of Accor’s MGallery collection. 

The proposed Accor hotel opening schedule:  Mövenpick Melbourne on Spencer, June 2021 (172 rooms); Mercure Doncaster, 2022 (181 rooms); Novotel & ibis Styles, Melbourne Airport 2022/23 (464 rooms); SO/ Melbourne, 2023 (288 rooms); 25hours Melbourne, 2023 (203 rooms);  Peppers Richmond, 2023 (83);  Mercure La Trobe, 2023 (192 rooms).