SUGGESTS THE DIRECTOR OF COS D'ESTOURNEL:
The sale of the 2008 vintage, via the traditional 'future' tasting and marketing campaign will "fall flat on its face" if it is to be held this Spring, according to Jean-Guillaume Prats, general manager of Cos d'Estournel, classified growth of Saint-Estèphe. He advocates postponing the campaign until the Autumn, in the hope the market will have risen from the dead by then.
"The market has been stock still for months." "Just like in 1973, the sales team will be playing cards in the office to pass the time."
"I've never seen such a dead market in all my thirty years in the wine business".
These comments from brokers and merchants alike illustrate how drastically the market for Bordeaux wines has been affected by the economic crisis.
The market has literally ground to a halt, with clients all over the world closing their chequebooks and putting away credit cards, obviously waiting for better days.
Wine is not of course an essential commodity and the world markets have made that quite clear. Even if producers selling direct to customers have not seen their sales suffer too badly, the global figures tell a sad story indeed : In the past five months (August - December), wine transactions between producers and merchants have tumbled by 37%! January is no better. The wine is desperately stuck in the cellars of Gironde. Customers seem to have sufficient supplies and around the globe distribution channels, apparently well stocked, are emptying....slowly.
This is food for thought indeed when one thinks back to the healthier economic situation in Bordeaux during the 2006 - 2007 period. After years of difficulty, the wine was selling again. Sold it may have been, but not drunk....even if world wine consumption has been on the rise for the past few years. Cognac and Champagne are both experiencing the same phenomenon as Bordeaux wine and, after years of healthy sales progression, their 2008 figures will show a sharp decline.
How can the market be resuscitated? With such a varied range of wines and prices - from a few euros to several hundred per bottle, it is diffcult to see a clear path ahead. Professionals are therefore apprehensive about one of the key dates in the Bordeaux calendar, the future tastings of the 2008 classified growths and the launch of the future sales campaign, due to start in less than three months' time.
Every year, at the beginning of April, the Bordeaux vineyard welcomes buyers and journalists from all over the planet. They judge the quality of the vintage and advise consumers to buy (or not to buy) 'futures'.
An ingenious system :
This 'future' market is specific to Bordeaux and concerns some 200 to 300 labels - the élite : the classified growths of the Médoc, Sauternes , Graves, St.Emilion and the Médoc crus bourgeois aswell as the estates of Pomerol. A small market in terms of surface area and volume but which represents a sustantial percentage in value : 15 - 20% of the 3 billion euro global turnover of Bordeaux wines. These élite estates are also important media locomotives for the region.
Future sales allow customers to purchase vintage wines in the Spring immediately following the harvest, when the wine is still undergoing its aging process in Bordeaux cellars and will not be delivered until 18 - 24 months after the harvest.
For example, in the case of a 2007 vintage wine, a 'future' purchase in the Spring of 2008 will arrive bottled at its final destination (the customers home) during the second semester of 2009. Future sales are therefore based on anticpated buying influenced by the reputation of a rare (or supposedly rare) vintage.
The wine becomes the customers property upon payment (before delivery) and the customer benefits from attractive prices for bottles which should appreciate in value with time. Most future buyers are from outside France.
"It's an ingenious system" says Jean-Guillaume Prats, who is the general manager of Cos d'Estournel, a classified growth of 91 hectares in Saint-Estèphe. "However, if the futures campaign is held in the Spring, as is the custom, we will run into a blind wall. If a donkey isn't thirsty, you can't make it drink! The economic situation is too drastic," says this professional who spends a hundred days per year abroad promoting his wines.
"Let's leave President Obama time to settle in and the plans to revive the world economy take effect. Bordeaux should postpone the 2008 future sales campaign until September but keep the 2008 tastings in April. At worst, properties will sell their wines at the same price as they would have in the Spring. Our 200 important world buyers (importers, distributors,..) must be informed immediately and it's up to the first growths (Margaux, Latour, Lafite, Mouton and Haut-Brion) to propose this change of schedule."
Jean-Guillaume Prats is the first professional to offer a defined plan of action admist the general apathy which seems to have overtaken perplexed market operators who seem to have trouble admitting the gravity of the situation. The illustrious estates, some of whose wines have hit strato-spheric prices since 2005, are finding it hard to come back down to earth. Merchants are hoping for a drop in wholesale prices this year, at the risk of seeing the 2006 and 2007 de-valued.
And finally consumers, especially in France, are waiting to take part in a market which has eluded them for so long.
Author:
César Compadre
doc@sudouest.com
S.O. 30/01/09
Translated by Maxine Colas.
Saturday, January 31, 2009
Wednesday, January 28, 2009
NEW APPELLATION 'CÔTES DE BORDEAUX'..... ON ITS WAY
After four years of preparation, bottles bearing the new appellation "Côtes de Bordeaux" on their labels should be on the market in late Spring, about the same time as the bottling of the 2008 vintage.
"In early March, the I.N.A.O. (French National Institute for the Appellations of Origins) will ratify the reform and then the minister of Agriculture will sign the decree," explains Christophe Chateau, the aptly named head of the association which regroups the côtes or 'hillside' wines of Bordeaux.
The aim of this new label is to restructure and simplify. At the present date four appellations (with perhaps more to follow) are concerned by this reform : Premières Côtes de Blaye, Côtes de Castillon, Bordeaux-Côtes de Francs and Premières Côtes de Bordeaux. These will all now be grouped under the general "Côtes de Bordeaux" appellation and represent a total of 700,000 hecto-litres or 90 million bottles, which account for 14% of production in the most important wine producing 'department' of France.
Bottles costing 5 - 10 euros retail price :
The 1,500 producers of these four appellations will be allowed to add the name of their specific area either next to the "Côtes de Bordeaux" heading or below it but the real aim is to associate the word "Côtes" (hillside) which is positively perceived - the high ground vineyards benefit from better sun exposure and good drainage - with "Bordeaux" which of course is world famous. "We also want to keep the specific 'terroir' names, all from the right bank of the Garonne River," adds Mr.Chateau.
Even though 86% of sales of these four appellation wines go to the domestic market, namely the 5 - 10 euro price range, it is hoped that the reform will produce a more simplified and visible offer for the foreign markets.
In effect, who outside France knows where the Côtes de Castillon" are? The new Côtes de Bordeaux may well benefit from the 'mass effect' as do both the A.O.C. Médoc and Haut-Médoc.
Merchant branded wines :
Moreover, merchants and cooperatives will be able to produce "Côtes de Bordeaux" brand wines by blending wines from the four A.O.Cs, which beforehand could only be sold under brand labels as A.O.C. Bordeaux, the baseline regional appellation.
A massive media campaign will be launched to accompany the label change of these 90 million bottles. The hope is that the other "Côtes" A.O.Cs (Côtes de Bourg, Saintes Foy-Bordeaux and Graves de Vayres) will join the first four.
The last A.O.C. creation in the Bordeaux region was Pessac-Léognan (Graves) in 1987.
After this grouping of the 4 "Côtes" into one single A.O.C, there will be 54 appellations instead of 57 in the Bordeaux region.
Author:
César Compadre
doc@sudouest.com
S.O. 23/01/09
Translated by Maxine Colas.
Cell Phone: 0033 615 791 509
"In early March, the I.N.A.O. (French National Institute for the Appellations of Origins) will ratify the reform and then the minister of Agriculture will sign the decree," explains Christophe Chateau, the aptly named head of the association which regroups the côtes or 'hillside' wines of Bordeaux.
The aim of this new label is to restructure and simplify. At the present date four appellations (with perhaps more to follow) are concerned by this reform : Premières Côtes de Blaye, Côtes de Castillon, Bordeaux-Côtes de Francs and Premières Côtes de Bordeaux. These will all now be grouped under the general "Côtes de Bordeaux" appellation and represent a total of 700,000 hecto-litres or 90 million bottles, which account for 14% of production in the most important wine producing 'department' of France.
Bottles costing 5 - 10 euros retail price :
The 1,500 producers of these four appellations will be allowed to add the name of their specific area either next to the "Côtes de Bordeaux" heading or below it but the real aim is to associate the word "Côtes" (hillside) which is positively perceived - the high ground vineyards benefit from better sun exposure and good drainage - with "Bordeaux" which of course is world famous. "We also want to keep the specific 'terroir' names, all from the right bank of the Garonne River," adds Mr.Chateau.
Even though 86% of sales of these four appellation wines go to the domestic market, namely the 5 - 10 euro price range, it is hoped that the reform will produce a more simplified and visible offer for the foreign markets.
In effect, who outside France knows where the Côtes de Castillon" are? The new Côtes de Bordeaux may well benefit from the 'mass effect' as do both the A.O.C. Médoc and Haut-Médoc.
Merchant branded wines :
Moreover, merchants and cooperatives will be able to produce "Côtes de Bordeaux" brand wines by blending wines from the four A.O.Cs, which beforehand could only be sold under brand labels as A.O.C. Bordeaux, the baseline regional appellation.
A massive media campaign will be launched to accompany the label change of these 90 million bottles. The hope is that the other "Côtes" A.O.Cs (Côtes de Bourg, Saintes Foy-Bordeaux and Graves de Vayres) will join the first four.
The last A.O.C. creation in the Bordeaux region was Pessac-Léognan (Graves) in 1987.
After this grouping of the 4 "Côtes" into one single A.O.C, there will be 54 appellations instead of 57 in the Bordeaux region.
Author:
César Compadre
doc@sudouest.com
S.O. 23/01/09
Translated by Maxine Colas.
Cell Phone: 0033 615 791 509
A NIGHT AT THE CHATEAU :
More and more wine properties offer accommodation in the form of attractive guest bedrooms :
In the wine world, the 'must' is to spend the night in a château. Especially in the Bordeaux region which boasts several thousand properties, many of which are magnificent. However, not everyone is welcome. It is mostly V.I.Ps who are allowed the privilege of sipping a few glasses of good claret at the château proprietors table, retiring to their room on the spot instead of having to drive to a hotel and opening the shutters the next morning to enjoy an unparalleled view of the vineyards....
Who are the members of this elite? Some are supermarket buyers from Singapore, others select wine store owners from Paris or sommeliers from Tokyo, importers from Las Vegas, distributors from Geneva and journalists from Moscow. These are the sort of professionals the wine world likes to pamper, especially when practically all of them come to Bordeaux in early april for the future tastings or in mid-June for the wine fair Vinexpo.
Supplementing income :
More and more château owners are transforming outbuildings which used to house machinery or staff and even proprietors lodgings into attractive bedrooms. In fact, when renovating a château nowadays, practically every owner includes several "guest bedrooms". Bernard Magrez possesses several in each of his various properties, the château Cos d'Estournel (Saint-Estèphe), undergoing renovation at the moment, has extra bedrooms planned, André Lurton has redesigned château La Louvière (Pessac-Léognan) with guest accommodation in mind and the interior decorator, Jean Guyon has similar plans for the château Rolland de By (North Médoc).
Among the other estates equipped with guest bedrooms are Lagrange (Saint-Julien), Pontet-Canet (Pauillac) and Les Carmes Haut-Brion (Pessac-Léognan).
Appart from attracting professionals, the expansion of wine tourism has provoked another trend in the Bordeaux area : many more modest properties are now offering a bed and breakfast service. This enables wine growers to supplement their income and gives clients a chance to stay admidst the vines, to get a 'taste of terroir'. One can even rent out an entire château, such as the Château de France (Entre-Deux-Mers).
On another level, some estates have been transformed into luxury hotels : Cordeillan-Bages in Pauillac, the Sources de Caudalie in Martillac and Franc-Mayne in Saint Emilion are three fine examples.
There is a plan (although still rather vague) to create 100 guest bedrooms at Château Cantenac-Brown in Margaux, which is owned by the businessman Simon Halabi.
However, in an area already serviced by the Relais de Margaux and the Pian-Médoc Golf-Hotel, one wonders if the offer may surpass the demand in the Médoc wine region.
Author:
César Compadre
doc@sudouest.com
S.O. 23/01/09
Translated by Maxine Colas.
In the wine world, the 'must' is to spend the night in a château. Especially in the Bordeaux region which boasts several thousand properties, many of which are magnificent. However, not everyone is welcome. It is mostly V.I.Ps who are allowed the privilege of sipping a few glasses of good claret at the château proprietors table, retiring to their room on the spot instead of having to drive to a hotel and opening the shutters the next morning to enjoy an unparalleled view of the vineyards....
Who are the members of this elite? Some are supermarket buyers from Singapore, others select wine store owners from Paris or sommeliers from Tokyo, importers from Las Vegas, distributors from Geneva and journalists from Moscow. These are the sort of professionals the wine world likes to pamper, especially when practically all of them come to Bordeaux in early april for the future tastings or in mid-June for the wine fair Vinexpo.
Supplementing income :
More and more château owners are transforming outbuildings which used to house machinery or staff and even proprietors lodgings into attractive bedrooms. In fact, when renovating a château nowadays, practically every owner includes several "guest bedrooms". Bernard Magrez possesses several in each of his various properties, the château Cos d'Estournel (Saint-Estèphe), undergoing renovation at the moment, has extra bedrooms planned, André Lurton has redesigned château La Louvière (Pessac-Léognan) with guest accommodation in mind and the interior decorator, Jean Guyon has similar plans for the château Rolland de By (North Médoc).
Among the other estates equipped with guest bedrooms are Lagrange (Saint-Julien), Pontet-Canet (Pauillac) and Les Carmes Haut-Brion (Pessac-Léognan).
Appart from attracting professionals, the expansion of wine tourism has provoked another trend in the Bordeaux area : many more modest properties are now offering a bed and breakfast service. This enables wine growers to supplement their income and gives clients a chance to stay admidst the vines, to get a 'taste of terroir'. One can even rent out an entire château, such as the Château de France (Entre-Deux-Mers).
On another level, some estates have been transformed into luxury hotels : Cordeillan-Bages in Pauillac, the Sources de Caudalie in Martillac and Franc-Mayne in Saint Emilion are three fine examples.
There is a plan (although still rather vague) to create 100 guest bedrooms at Château Cantenac-Brown in Margaux, which is owned by the businessman Simon Halabi.
However, in an area already serviced by the Relais de Margaux and the Pian-Médoc Golf-Hotel, one wonders if the offer may surpass the demand in the Médoc wine region.
Author:
César Compadre
doc@sudouest.com
S.O. 23/01/09
Translated by Maxine Colas.
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