Tracking the value of 2004 Sea Smoke Ten Pinot Noir
Friday, June 22nd, 2007The movie Sideways seems to have started something in the wine industry. Pinot Noir is the favored wine in that movie, and at this point Pinot Noir seems to be in great demand among those people who, like me, are relatively new to wine collecting.
Why do I say this? Well, it’s quite simple: All you need to do is track the value of the 2004 Sea Smoke Ten Pinot Noir and you’ll understand my point. At 1,100 cases produced, the 2004 Ten release is not necessarily rare. I’d define “rare” domestic Pinot Noir in terms of 2003 Domaine Serene “Monogram” Pinot Noir (100 cases, $200 list price), or 2004 Domaine Drouhin Louise Pinot Noir (189 cases, $85 list price, available only to DDO Direct members). Those two Oregon Pinot Noirs are pretty darn rare; I haven’t even seen a bottle of Louise (from any vintage) on the aftermarket in over a year. Privé is another major rarity on the aftermarket too. All great wines, by the way, even if they’re a little expensive up front.
As for the 2004 vintage of California Pinot Noir, there are a ton of rarities to choose from, including luminaries such as Hirsch and Aubert. These guys clearly make awesome wine. They get top ratings in the big publications. So what makes the 2004 Sea Smoke Ten such a valuable wine?
Maybe it’s the movie Sideways and the exposure that Sea Smoke received during the dinner scene. Maybe it’s the buzz generated among youthful wine connoisseurs who equate screen time with quality wine. I know I made that assumption last year. Maybe people just want to buy into something that sounds good and that they think will appreciate. If that’s what you think, you’re quite close to the truth, I suspect. Check the numbers from wine retailers:
- The wine entered the market at $69/bottle in late May 2006.
- By October 2006, the average cost of a bottle on the aftermarket was $110.
- At the start of 2007, the average cost was up to nearly $165/bottle.
- As of June 22, 2007 this wine costs an average of $242.50 on the aftermarket.
- Wow.
- Don’t forget, that price has escalated despite the availability of 1,100 cases of wine!
Think about that for a minute. In about one year, this wine has appreciated 250% from the original asking price. Although it is possible to obtain bottles for less money through person-to-person auctions at winecommune.com, I’m not as interested in those prices because they do not reflect actual store prices. Granted, you don’t need to spend $242.50 to taste the Ten. But you do need to spend over $100 for a second-hand bottle.
Is this the Sideways effect? Or is something deeper at work here? I don’t know. All I know is that I have 1 bottle of 2004 Sea Smoke Ten, and I plan to drink it with dinner in a couple of weeks. I will have a couple of friends there too, of course. But I might have the sommelier pour a bit more for me….