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Resting on the bottom of aged red wine bottles and created over time.
Sediment from red solid particles in the size of confetti is most commonly formed in unfiltered wines but in some wines that have a few years on their backs as well. It's nothing more than salt compounds, tannins, anthocyanins and proteins that exist anyway, dissolved in the wine and rally against aging and because of their wieght, they settle at the bottle's bottom.
Therefore the only problem they create, is aesthetic. However, since the aged wine is recommended to get transfused in special decanters it's easy to get rid of the sediment which flows only along the last drops of wine. There are of course special cones with stainless steel screen which not only facilitate the transfusion from the bottle to the decanter, but they filter the sediment from the wine, till the last drop as well.