Bordeaux Wine News

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2011-06-22T11:39:00.006+01:00

Bordeaux with inclusive gourmet dining and selected tastings. Individually tailored to your interests and budget.. Private Chateau visits ...

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Contact : Maxine Colas

2009-11-03T18:02:00.003Z

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IS THIS THE FINAL EPISODE IN THE SAINT-EMILION CLASSIFICATION SAGA?

2009-02-13T18:17:00.003Z

The Bordeaux administrative court of appeal could reinstate the great growths classification of Saint-Emilion which was cancelled last year :

The Saint-Emilion classification has been through troubled times in the past year : suspension, cancellation, chambers referal, legal amendments and a constitutional advisory committee...The legal imbroglio surrounding the hierarchy of the great estates of Saint-Emilion which was declared invalid last year by the administrative tribunal, may finally have come to an end.

Yesterday, Patrice Lerner, who is the spokesman for the Bordeaux administrative court of appeal, announced the partial cancellation of the 2006 - 2016 classification. If this is the case, the 61 distinguished classified growth and first classified growth estates and among them the eight châteaux which were promoted to classified growth status in 2006 will all be reinstated. The eight properties which lost their classified status in 2006 and which appealed against this decision, will be given the chance to recover their classification because each case will be re-examined by the classification committee.

The basic problem of inequality remains : this concerns the manner in which the contestants' wines were tasted and compared during the last classification in 2006. From the beginning of the tasting, which involved a total of 95 candidates, the classification committee had separated the wines from the 66 estates who were candidates for renewal of their classifed status from those who were competing for a chance to become classified growths. The committee argued that this method enabled the tasters to have a "quality reference level" to which the wines were compared.
"This was unequal differentiation," explains Patrice Lerner. The 1996 - 2006 classification should not have been taken into account in judging the new classification. "The tastings were not done anonymously", regrets Jean-Philippe Magret, who is defense lawyer for two châteaux who were de-classified, Croque-Michotte and La Tour du Pin Figeac. The first A and B classified growths which are the appellation's élite, were clearly visible because they were merely there to renew their status at the top of the hierarchy.

Legal subtlety :

A "grand cru classé" label ensures a price increase of 30% on a bottle and doubles the real estate value per hectare. These are arguments put firmly forward by those in charge of the appellation system, especially since the classfied hierarchy has been under threat.
There were sighs of relief yesterday after spokesman Patrice Lerner explained that it was not a question of erasing the 2006 - 2016 classification by the mere signing of a document.
The legal reasoning behind this statement is founded on the distinction between the competition and the examination.
In the first case, the candidates' wines are compared to eachother. In the second case, candidates are judged in relation to a level of quality. If the classification tasting is considered to be a competition, then any proved discrimination would invalidate the whole proceedure.
If, however, the tasting was considered to be an examination, only the jury's decision concerning the penalised candidates would be invalid.

As there is a limit to the number of châteaux admitted into the classified élite (not more than 90), surely the classification tasting is more a competition than an exam?
"We must put things into perspective. There were only 95 candidates after all," says Patrice Lerner, who lays emphasis on the fact that the jury made decisions based on the "quality reference level" . Where there is a level, there is surely an examination with a pass or a fail in relation to that reference level.....

"Either this classification is legally acceptable or it is not. There must be a clear decision," demands Philippe Thevenin, who is defending Châteaux Cadet Bon, Guadet-Saint-Julien and Lamarzelle.
The proprietors of these châteaux and the rest of those who 'failed' to pass the jury's tasting test, are not particularly reassured by the idea of having to take the exam again. They have not minced their words during this affair and the jury is well aware of that.

As Jean-Claude Martin, defense lawyer for one of the châteaux, said yesterday :"Everyone admits it. Bordeaux wines are getting better and better in terms of quality. However, there are less and less great classified growths in Saint-Emilion : 61 today as opposed to 84 in 1969. People are no longer thinking about the wine itself. All they think about is money. This classification is actually no more than a élitist club of brand-names whose hope is to find Château Ausone or Château Cheval Blanc on tables for 1200 - 1500 euros a bottle."

Author:
d.Richard

doc@sudouest.com
S.O. 13/02/09

Translated by Maxine Colas.

http://bordeauxwinenews.blogsudouest.com

GOOD FOR THE HEART :

2009-02-12T21:06:00.005Z

At last, some heart-warming news for wine lovers just in time for Valentine's Day!

A healthy attitude :
Following studies showing that moderate wine consumption is beneficial to health, Stéphane Courrèges, a Bordeaux oenologist and his Akima (photo), are marketing their wine "Corazon" which is rich in polyphenols.

The scientific world has come to the unanimous conclusion that regular but moderate drinking of wine, with a well-balanced meal, is good for your health : Three glasses for a man and two for a woman per day, with one day's abstinence per week is a recipe for a healthy (and longer) life.
Indeed, the "French paradox" - idea promoted by Professor Serge Renaud who ,after a brilliant international career, is now retired and living in the Gironde area - is still very much alive.

"We read everything that had been written on the subject of wine and health and decided to launch our "health wine" project in 2004," explains Sréphane Courrèges, who, not without a certain amount of nostalgia, recalls "..when I was a child, my grandfather used to pour an inch of wine in my glass, saying how good it was for my future health."

Stéphane, who lives in the Bordeaux area, is a consultant oenologist for some twenty Médoc properties including Château Greysac and La Cardonne. He and his wife have also registered as wine merchants in order to launch the new wine called "Corazon" - the Spanish word for "Heart".
This red wine is produced in A.O.C. Médoc and partly aged in oak barrels. The grapes come from plots specially selected by Stéphane. The yield is deliberately small and the grapes are at optimum maturity (even slightly over-ripe). This makes for a concentrated, full bodied wine. The production is around 30,000 bottles. The first vintage for Corazon was 2006 but it is not the vintage which figures on the label but the mention :"Rich in polyphenols".
"Polyphenols contained in wine help the body fight against cardio-vascular diseases and old age," says Akima Courrèges.

In the plant world, polyphenols form a vegetal defense mechanism and wine, which has a high tanin content, contains large amounts of polyphenols, especially resveratrol.
"We are selling our first bottles and American as well as Japanese buyers are sensitive to the health apsect of our marketing campaign," explain the Courrèges couple, who will be exhibiting both in London and at Vinexpo this year.
"However, we are not doctors and wine is not medicine! We know that associating wine and health is risky because, drunk in large quantities, wine can be a poison!"

Indeed, the "wine and health" argument could well backfire and most merchants avoid the association.

The Courrèges couple have a refreshing attitude towards the concept : "Corazon combines the pleasure of moderate wine tasting with the practical side of looking after one's health. Moderate wine drinking can be part of an individual's healthy régime, just as a balanced diet can."

Corazon is selling for 9.80 euros a bottle.

See : www.courreges-wines.com

In Brief :

THE PINK PANTHER ON A BOTTLE OF BORDEAUX 'CREMANT'(sparkling rosé wine) :

After negociations with Metro Goldwin Meyer, Jean-Christophe Icard, who is a wine producer in the Bordeaux region, acquired the right to sell his wine with a special Pink Panther label. The first bottles of this sparkling Bordeaux rosé will be on the U.S. market by the end of the month. www.chateau-orangerie.com

Author:
César Compadre

doc@sudouest.com
S.O. 12/02/09

Translated by Maxine Colas.

SUDOUEST WINE NEWS

2009-02-11T07:46:00.002Z

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FREE WINE TASTINGS UNDER THREAT

2009-02-10T21:56:00.003Z

Roselyn Bachelot, France's Health minister presented an extensive health bill to the French National Assembly today. The bill, which is mainly about proposed reforms in hospitals and the public health service, also contains two sections relative to wine and other alcoholic drinks.

Firstly, the use of the Internet as a legalised marketing medium in France is confirmed. This comes as a relief to wine business professionals using the Web who, since the 2008 court decision, have been living with a Damocles sword over their heads : Internet did not figure among the legal mediums specified in the Evin Law of 1991 (simply because it did not exist at the time!). Websites devoted to wine and other alcohols were therefore declared illegal last year. This new law could put an end to this anachronism. Indeed, at the end of last year, Roselyn Bachelot had declared that she was not opposed to the idea, under certain conditions (especially where young people were concerned).
Last week the National Assembly's social affairs committee prepared this amendment. And now for the bad news...Publicity via the Internet is authorized...but only for websites belonging to wine business professionals. This does not allow much scope for development in the promotion department...

The second sensitive subject dealt with in the bill is that of wine tastings : Article number 24, which concerns the prevention of alcoholism in young people, puts forward the principle of banning sales of wine "passes" or "open bars" at wine fairs and free tastings. The off-shoot effect of this ban would be to render free tastings in cellars, wine shops and at wine fairs illegal! The same goes for a tasting at a wine producer's property before choosing which bottle to buy or enjoying a glass or two at an estate during "open day" weekends in the various wine regions...

It is difficult to imagine such a stab in the back for products for which the art of tasting before purchase is often a basic principle.

This also means the end of menus with wine included or discount prices for a certain number of bottles bought.

The planned amendments to the bill, especially those proposed by the various wine regions' elected representatives, could well change all that.

César Compadre S.O. 10/02/09

In brief :
A NEW CELLAR FOR CHEVAL BLANC :

The Libourne Wine Merchants Syndicate, chaired by Gérard Milhade, celebrated its centenery today at Château Cheval Blanc, first classified growth of Saint-Emilion.
Pierre Lurton, who is the manager of this estate owned by French and Belgian industrialists Bernard Arnault and Albert Frère, took the opportunity to announce the planned construction of the château's new cellar. The architect, Christian de Portzamparc, is known world-wide and responsible for the design of the French Embassy building in Berlin and the Louis Vuitton Moët Hennessy Tour in New York amongst others.
Building work should begin in a few months.

Author:
César Compadre

doc@sudouest.com
S.O. 10/02/09

Translated by Maxine Colas.

THE BNP PARIBAS BANK SAYS TO THE WINE WORLD

2009-02-07T16:51:00.004Z

"TRY US AND YOU'LL SEE" :

During this period of economic crisis, credit restrictions and other difficulties encountered by the wine world, the BNP Paribas bank puts its cards on the table :

Things are moving in the Gironde region bank sector. The wine industry, which is one of the major money spinners in the region, is attracting attention at the moment.
In fact, the BNP Paribas bank, one of the largest French banks, has just created a special department specially dedicated to viticulture. This is a precedent for the establishment which, despite the world financial crisis, should show a net profit of 3 billion euros for 2008.

The man at the helm of this new wine department is Bordeaux-born Philippe Richébé (left of the photo), who has been working for the bank for 10 years and until recently, at its branch in Toulouse.
"Our bank already has a thousand clients from the wine industry sector, many from the grands crus (fine wines) region and particularly in Saint-Emilion. In this context of economic crisis, we are putting our cards on the table and making public our ambitious plans for development in this particular economic activity. We are interested not only in working with wine property owners but also merchants and other companies involved in the industry, which employs a total of 60,000 people, directly or indirectly, in the Gironde area," says Mr.Richébé, clearly positioning his bank as an serious challenger to other establishments already present in this sector.

Three sub-branches in Gironde :
The new departments team is made up of seven people managing three sub-branches : one in Libourne, a town where BNP Paribas has a traditional foothold in the 'right bank' wine world, and two smaller branches in Pauillac (Médoc) and Langon.
The bank, which employs a staff of nearly 800 people in the region, plans to re-structure under the direction of Mr.Didier Gil (right of photo).

"Our advisors are highly qualified . The wine industry is complex and requires specific skills, whether it concerns buying wine properties, machinery or investing in oak barrels," explains Philippe Richébé, who is well acquainted with the local wine world.

Despite the fact that banks have become much less inclined to lend money to businesses these days, Philppe Richébé clearly announces his bank's intentions :
"We may be swimming against the general current, but we have been planning our move for some time. Although the Bordeaux wine business is experiencing difficulties - and there will be more to come - we have money to lend! I say this to wine professionals : 'Try us and you'll see!' We aim to invest on a long term basis in this important regional economic sector." A statement which may give cause for anxiety amongst colleagues from rival banks.

The "Green Bank" under pressure :
Historically, the Crédit Agricole Bank is the leading financial partner in the region's wine business. Indeed the bank has publicly announced its support for local wine businesses during these troubled times. The Banque Populaire and the Crédit Mutuel are also established banks in the regional wine sector.
BNP Paribas' aim to establish extensive financial relationships within this sector will help to stimulate the competiton. This in turn may well benefit wine professionals at a time when most are complaining about banks, who, anxious to rebuild margins, are refusing to grant loans and turning off the credit taps.
Author:

César Compadre

doc@sudouest.com
S.O. 06/02/09

Translated by Maxine Colas.

POUND STERLING DISRUPTS BORDEAUX WINE MARKET

2009-02-03T18:42:00.003Z

Not only do producers have to make good wine if the merchants are to sell it sucessfully, but the business also needs favorable exchange rates.
At the moment, the deterioration Britain's economy and the weakening of its currency have chilled French wine and spirits (eau-de-vie) exports.
The British market is a major outlet for French wines and especially Bordeaux. Indeed, in 2007 the UK was the number one importer of Bordeaux wine in terms of value and third in terms of volume.
The pound sterling, which was worth 1.50 euros eighteen months ago, fell to 1.06 euros at the end of January. In practical terms, this means that a wine sold for 2 - 3 euros ex-cellars and which was priced at between 5 - 6 euros in London stores (tax and margin included) just a few months ago, is now worth almost 7 euros. Because of the weak pound - and the reduced purchasing power of British consumers - French wine shipments have certainly seen better days and are preparing for worse.
"The effects have already been felt, " explains a merchant, " the figures are down since September."

The unfavorable exchange rate has also had an impact on the specific grand cru wine (top ranked growth) market. The golden boys of the City (which represents a quarter of the country's wealth) have less money to spend on expensive bottles. Furthemore, important quantities of wines bought over the last few years are back on the market....in Bordeaux. For example, an Englishman who purchased a 100 euro bottle eighteen months ago would have paid £74 for it. Today, if he needs quick cashflow, he can sell the same bottle for 80 euros (approximately £76) and not lose any money on it.

"All this is very bad for business, as the Bordeaux market is destablized and our stocks depreciated," cautions a merchant, who dreams of Britain adopting the euro...
Large quantities of wine are crossing the Channel back to France at the moment. In addition, pension funds, which had previously invested for speculative reasons, are now desperately selling wines at reduced prices to increase liquid assets.

French consumers should watch out for bargain prices for 2006 and even 2005 vintage wines and older during the supermarket wine fairs this September.

Author:

César Compadre

doc@sudouest.com

S.O. 03/02/09
Translated by Maxine Colas.

LET'S POSTPONE THE FUTURES CAMPAIGN UNTIL SEPTEMBER

2009-01-31T23:37:00.003Z

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.

NEW APPELLATION 'CÔTES DE BORDEAUX'..... ON ITS WAY

2009-01-28T23:45:00.003Z

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

A NIGHT AT THE CHATEAU :

2009-01-28T20:00:00.002Z

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.

VINEXPO PREPARES FOR JUNE :

2009-01-13T20:55:00.001Z

Today in Paris the Vinexpo team presented the plan of the 15th edition of the professional wine fair to be held in Bordeaux from June 21st - 25th this year.
The Bordeaux exhibition centre (all 40,000 metres square of it) awaits the wine world. While the planetary economic crisis sweeps through all commercial sectors, one wonders what the consequences will be for the wine industry whose figures reached a world total of 150 billion dollars (turnover in retail price sales) in 2007.
On the production side, Australia has been experiencing difficulties for the past two years and, in France, black clouds are appearing on the horizon, especially in the Bordeaux vineyard.
These are just two examples amongst many.

As for the consumer markets, the two driving market forces - the U.S. and Great Britain - are both slipping into a recession. The once priviledged employees of the City and Wall Street as well as pension fund investors now have other things to think about than what wine they are going to buy, and pockets are considerably less deep than before....
In Spain, the domestic market has taken a nose-dive....

Despite these depressing circumstances, Vinexpo organisers say that they are satisfied with the number of exhibitor reservations and that the wine fair is fully booked. There is even a waiting list.
The challenge now will be to entice buyers from all over the world to Vinexpo and this in a context where stocks are high and difficult to shift and new orders are not on the immediate agenda.

In order to clarify the situation for professionals, the Vinexpo organisers have asked a British market survey company, I.W.S.R., to produce a study on market prospects up to the year 2012 (28 producing countries and 114 markets studied).
The conclusion? The economic crisis will have " generally limited consequences on the wine industry". One is tempted to be sceptical in a time when day by day we discover how deep the economic 'malaise' goes. Especially as this study is, by definition, based solely on recent figures.

I.W.S.R. claims that the world wine market will continue to grow. The U.S. will become the consumer market leader (as their previous study also showed), and both the Russian and Chinese markets will continue to progress.
From now until 2012, the wine sector's global turnover should increase by 9% to reach 166 billion dollars. However in France, the world leader in wine production, wine comsumption will continue to drop.

Author:

César Compadre

doc@sudouest.com

S.O. 13/01/09
Translated by Maxine Colas.

THE WINE MARKET STAGNATES :

2009-01-09T14:56:00.002Z

Transactions have slowed to a halt since October.

"The Bordeaux wine market is eerily calm at the moment but market operators can't play the waiting game too long," explains a broker specialised in contractual relations between producers and merchants. This profession is often described as the beating heart of the Bordeaux wine business.
The market's pulse is definately on the slow side this season : transactions are rare between producers and merchants, most of whom have a year's stock ahead of them and are not in any hurry to re-order, despite a historically low yield in 2008. On the production side, growers refuse to lower their prices and quotations are not budging. To add to the difficulties, banks are hesitant about granting loans to finance stocks....As a result business is grinding to a halt, a situation which could well continue throughout the semester.

The wines will have to be sold at some stage to finance the coming season. There is hope for an increase in sales in the Spring....For the moment however, the market is so paralysed that Saint Gobain, the major regional glass bottle manufacturer, has already stopped production from one of it's ovens in the company's factory based in Charente....

The grand cru wines are also in a difficult position. The 2007 vintage prices were expensive and merchants still have a considerable number of unsold bottles in stock. Moreover, the practically non-existant futures campaign in the Spring did little to move stocks.

Pension funds, which had invested in the wine business for speculation purposes, have suffered the effects of the financial crisis and are consequently putting wines on the market at drastically cut prices...and in doing so are brutally re-adjusting the market.

Author:

César Compadre

doc@sudouest.com

S.O. 09/01/09
Translated by Maxine Colas.

RISE IN TAXATION HITS WINE & SPIRITS

2009-01-07T00:03:00.002Z

From January 1st, taxation on wines and spirits increases in France as the French government seeks ways to fill the void of the social security deficit.
In the past, increase in tax on alcoholic beverages was voted in conjunction with finance laws. Now it will be indexed on annual inflation figures and so be revised every January based on the previous year's inflation percentage.

It is important to know that, each time the consumer buys a bottle of wine or spirits in France, he or she is paying a specific tax (in addition to VAT). This "circulation" tax or "accises" in French is then paid by producers to the State. This is one of the most "controlled" areas of the wine and spirit industry as considerable sums of money are involved (several millions of euros...).

With 1,5% inflation in 2007, the tax on wines of less than 15° increases in January from 2,55 to 2,58 euro cents per 75 cl bottle :
a minimal rise. However, liqueur wines such as Pineau des Charentes or Floc de Gasgogne, and spirits will have, in addition to the indexed tax, another 'social security' tax specific to this range of alcoholic drinks.
On buying a bottle of Cognac for example, you will now be paying 5,24 euros (in addition to VAT) as opposed to 4,97 euros previous to January 1st : 27 euros cents more.

Pineau producer Christian Baudry, who is president of the French Federation of Liqueur Wines, feels that these types of wines are being unfairly prejudiced by this additional taxation.
"We are being milked like dairy cows!"he exclaims. A bottle of Pineau will now be taxed 1,63 euros as opposed to 1,60 previously. If one adds VAT, this totals 3 euros on top of a bottle which sells for an average of 7 euros....

Author:

César Compadre

doc@sudouest.com

S.O. 06/01/09
Translated by Maxine Colas.

THE BORDEAUX MARKETING BOARD

2008-12-16T15:03:00.003Z

(C.I.V.B.) WILL BE OUT OF POCKET IN 2009 AND HAVE TO DRAW ON ITS RESERVES.

The Bordeaux Marketing Board is yet another victim amongst many in the region in the never ending downward spiral caused by the economic crisis.
Yesterday, during its annual general meeting, the 'C.I.V.B', which is a financial and promotional entity grouping together both wine producers and merchants, announced a discrepancy between the budgeted number of hectolitres sold in 2008 (5,5 million hl) and the real figure (5,1 million hl). As the wine professionals' obligatory subscriptions to the board are calculated based on the exact figure of total volume sales, the Board will see its ressources reduced by 2 million euros in 2009!

Although it will be out of pocket, the Bordeaux Marketing Board does have deep pockets : its ressources for 2009 will total some 29,5 million euros. It remains the most powerful interprofessional wine board in France.

A slump in sales transactions between producers and merchants since September and a decrease in both foreign and domestic consumer demand have led to a build up of stocks. The professionals priority now is to shift stocks before placing new orders.
In France, the traditional Autumn wine fairs did not fare well and many unsold bottles will be back on the shelves, hoping to tempt consumers at this time of Christmas cheer.

Alain Vironneau, who is not only a wine producer in the North of the Gironde region but also President of the C.I.V.B, is adamant that promotional campaigns for Bordeaux wine should be maintained :
"We will maintain our spending on promotion in 2008 because this is not the time to lower our guard." Indeed, more than 21 million euros will be invested in campaigns to promote Bordeaux wines in the coming year.
Part of the boards financial reserves will be used to balance the 2008 budget. However, its finances will not be in jeopardy as it will still have nearly 14 million euros put aside for further rainy days.

Many wine professionals however, are finding it harder and harder to pay their subscriptions and the question of a possible reduction in subscriptions has already been raised by the neighbouring Loire Valley Marketing Board.

For the moment, this is not on the immediate agenda, even though some 'wine villages' in the Bordeaux area are experiencing very real financial difficulties.

Author:

César Compadre

doc@sudouest.com

S.O. 16/12/08
Translated by Maxine Colas.

THE PLASTIC ATTACK ON GLASS STRENGTHENS :

2008-12-07T21:42:00.002Z

Packaging : The first plastic wine bottles are on the market. The plastic advantage could well tip the balance in terms of wine packaging, explains Bernard Laurence, whose company Semaq is exhibiting at the Vinitech professional trade fair.

In ancient times, the first receptacles for carrying wine were amphoras, then came oak barrels. Today, admidst glass bottles and the ever popular "Bag-in-Box" containers (B.I.Bs), the future may well lie in plastic bottles. The wine packaging sector which, up until now has remained rather conservative (especially in France), is on the verge of a revolution.
At Vinitech, the three-day international wine-technics salon held in Bordeaux this week, rival exhibitors specialised in this new innovation, compare notes and show off inventive packaging which we may see on wine consumers' tables in the near future.
On the Semaq stand, the new plastic wine bottles made of P.E.T (polyethylene terephtalate) are in full view : they contain whisky, calvados, rum, Madera or even Bordeaux wine...
"This is a serious trend for companies such as ours and the wine and spirits sector will follow the general movement towards plastic containers", explains Bernard Laurence, whose family business, Semaq, has been specialised in manufacturing and distributing packaging for industry since 1974. "Look at the evolution in packaging of other liquid food products over the last twenty years : mineral water, cooking oil, fruit juice and milk have all abandoned glass for plastic," he continues, and goes on to specify that one third of Semaq's activity is centred on packaging for the wine and spirits sector including the manufacture of B.I.Bs and plastic 225 litre barrels for transporting wine in bulk.

The market for wine and spirits in plastic bottles is still in embryo but could expand rapidly for two reasons :
the first stemming from concern about consumers safety in certain situations. Glass bottles have a tendency to break. Indeed, night club proprietors are beginning to buy whisky in plastic bottles to overcome this potential health hazard and organisers of outdoor festivals would like to buy wine similarly packaged.
Secondly, plastic (P.E.T.) bottles are not only 100% recyclable but also much lighter in weight than their glass counterparts. This weight reduction means that transporters will use less fuel (an economic and environmental priority today) carrying plastic bottles, which weigh 50 grammes each, than glass ones (450 g each).
"Some clients, such as airline companies and event organisers are looking for an alternative to glass," says Bernard Laurence.
Whatever the priority, these bottles will all be equipped with screw-caps because the traditional action of popping a cork would pose a spillage problem, the container being too light.
The export market is also interested in the plastic alternative, especially those countries less weighed down by tradition than France. Canada, for example, is where the Gironde wine merchant Yvon Mau has chosen to launch its first range of wines in plastic bottles.Other regional operators in the wine business are set to do the same.

On the practical side for consumers, a standard P.E.T. bottle is suitable for a wine which can be kept for 6 - 8 months (for example a rosé). However, there is a special multi-layered P.E.T. bottle for keeping wines from 18 - 24 months.
"Not forgetting the fact that 900 bottles made of P.E.T are equivalent in weight to 600 glass bottles is of great interest in terms of transport costs to wine growers and merchants alike." adds Bernard Laurence.

Author:

César Compadre

doc@sudouest.com

S.O. 04/12/08
Translated by Maxine Colas.
francewinechateaux@gmail.com

IS WINE A DANGEROUS PRODUCT ?

2008-12-02T22:05:00.004Z

Government propaganda seems to be paying off : French government policies likening wine to drugs and giving it almost devilish connotations have had an effect on how citizens now perceive the product, as the results of a recent survey show. In the survey, carried out by the Research Centre for Study & Observation of Living Conditions (in short, the Crédoc : www.crédoc.fr), 51% of the French citizens questioned perceived wine as a food product presenting health risks as opposed to 26% in 2003. In the list of top 'risk' foodstuffs, wine is in second place, behind charcuterie. Butter and cheese come third.

The survey results read as follows : "Wine used to be considered as a noble, regional and cultural product, also as a symbol of French gastronomy's identity. Nowadays it is considered potentially dangerous for our health."

Government efforts to warn consumers of potential risks coupled with mounting general public concern for health issues have resulted in "...a recent and spectacular public awareness. Wine is no longer protected by its traditional ' cultural exception' image and is now assimulated with all the other alcoholic beverages", states the Crédoc analysis.

César Compadre S.O. 02/12/08 Translated by Maxine Colas.

VINITECH OPENS TODAY.

The Wine Technology Show, Vinitech, opens its doors for three days at the Exhibition Centre in Bordeaux-Lac today.
A thousand exhibitors ranging from manufacturers of machinery and corks to barrels and bottles, will welcome over 40,000 wine professionals including wine growers, merchants and oenologists.
On Wednesday ( 3 pm, Hall 3, Seminar Room 303), the regional newspaper, Sud Ouest, will be holding a conference on the theme "Is French wine packaging too conservative? : are labels and bottles really evolving or is it simply that French consumers themselves remain conservative?" Among the guest speakers and experts present will be : Alain Courbière, sales manager of the printing company Autajon ; Vincent Bonhur, marketing director of the merchant Cordier ; Jean-Christophe Icard, proprietor of Château de l'Orangerie (Saint-Félix-de-Fourcaude) and Franck Celhay, author of a thesis on wine labels.

VINTAGE 2008 : LOWEST EUROPEAN YIELD SINCE 1991 :

The International Wine & Vine Organisation (www.oiv.int) has published a comparative study of the 2008 vintage in terms of yield.
For the European Union (27 countries), with a total yield of 160 million hectolitres, this is the lowest yield since 1991. Italy obtained 47 million hl, France 43 million hl and Spain a mere 34 million hl.
Outside the EU, the harvest was more generous, especially in Australia (12 million hl) and the US yield was stable at 20,6 million hl. However, Argentina (14,7m hl) and Chilie (8m hl) registered a slight decrease in volumes compared to 2007.

The total world production for 2008 is 267 million hl, which is practically identical to that of 2007.

Author:

César Compadre

doc@sudouest.com

S.O. 02/12/08
Translated by Maxine Colas.
francewinechateaux@gmail.com

SCREW CAPS GAIN GROUND AROUND THE BOTTLE-NECKS

2008-11-18T16:42:00.005Z

During the coming Vinitech salon, the wine world will reveal its most recent innovations. As for tendencies on the corking front, screw caps are becoming more and more popular, as Joël Elissalde from Vignobles Despagne explains.

The art of unscrewing the cap on a good bottle of wine to enjoy either among friends at home or at a restaurant, has become a habitual gesture for millions of wine lovers across the planet : 3 billion screw capped bottles were opened this year. This 'corking' method, traditionally used by spirits and other alcohols, is gaining ground in the wine sector.

"If all our customers asked for screw-capped bottles, I'd be delighted! Screw caps are the solution for the future because they are practical and reliable. However, making changes happen in the wine world is complicated and many consumers have pre-conceived ideas on the subject," explains Joël Elissalde, who originates from the Basque country and is director of the company Vignobles Despagne.This family-owned company is proprietor of châteaux Tour de Mirambeau, Mont Pérat and Girolate which represent a total of 320 hectares of vineyard. For Vignobles Despagne, based in the Entre-Deux-Mers area of the Bordeaux vineyard, screw caps are already old news, which is not the case in the rest of France. Twenty years ago, the Despagne family began to specialise in the 'aviation-size quarter bottle', a screw-capped 18,7 cl bottle of wine especially designed for in-flight drinking.

"This experience gave us sufficient time to stand back and examine this technology and it's effect on the wines over time. Today we give our clients the choice between a screw-cap or a traditional cork for most of our range of white, rosé or red wines. It's up to our clients which packaging they order," say Vignobles Despagne, who sells two million bottles per year, 90% of which are for the export market.

The screw-cap advantage : Joël Elissalde personnally and openly prefers screw-caps because " ..they protect the wine aromas more effectively. And, of course, there is no risk of a corky smell of taste! Screw-caps are neutral, having no smell or taste which may interfer with the wine. Also, the twelve screw-capped bottles in one case will all have exactly the same taste. Lastly, contrary to popular belief, wines in screw-capped bottles age very well," indicates this expert, who adds, "Our screw-cap sales are on the increase : of the million 75 cl bottles we sell, 20% of them are screw-capped."

The growing success of screw-caps and synthetic corks began with the new millenium, arising from problems of smells and taste from natural corks at the time. Cork is a living material made from the bark of cork-oaks in Mediteranean areas (Portugal, Spain and North Africa) and can sometimes give the unpleasant corky smell or taste to wine when faults occur its manufacture.
As a result, cork manufacturing companies, such as the world leader, Amorim (whose headquarters are in the Bordeaux area), are increasing quality and security levels in their factories to avoid further problems.
Despite competition from the new corking technique, natural corks are still used on the majority of the 17 billion bottles of wine sold on the world market per year. Of this total, 3 billion bottles are screw-capped : ten times more than in 2003!
The attle continues between new and traditional techniques and one of the arguments against screw-caps is the risk that wine, in the absence of gas exchange through the cork, could suffer from "reduced taste" due to "asphyxiation".

The anglo-saxon drive : In France, well-known operators such as Vignobles André Lurton in Bordeaux, Boisset and Michel Laroche in Burgundy or Tariquet in the Gers region, have all made the transition from natural cork to screw-cap. The result will be more bottles being opened by a simple twist of the wrist, easily re-'corked' to be finished the next day or later. Even the quality Bordeaux châteaux are joining the screw-cap movement, like Château Agassac (Haut-Médoc) and Malartic Lagravière (Pessac-Léognan), although only for their bottles of rosé for the moment. Many châteaux in the Médoc and Saint-Emilion are experimenting with the new method.

One thing is certain : thanks to the progress in screw-cap techniques made by the various manufacturers - especially the work on the joins located on the inside of the capsule and the exterior design - screw-cap bottles should no longer be considered of lesser quality than their corked cousins. However, wine is often perceived as a cultural product and its image is sometimes as important as the techniques used to make and package it.
As French consumers often remark : "I would miss hearing the cork pop - it's part of the pleasure of opening a good bottle!"
"This is much less the case for foreign consumers," argues Karine Herrewyn, who is marketing director for Alcan Packaging Capsules, the world leader in screw-cap manufacturing (brand-name "Stelvin"). "Practically the whole of the wine production of New Zealand and two thirds of that of Australia is sold in screw-capped bottles. The anglo-saxons are less influenced by tradition," continued Karine and, when asked if the screw-cap might be a passing trend, she replied : "This is not a fashion. Consumers are more interested in the practical aspect. This is certainly the case in the anglo-saxon countries. In France, the screw-cap market is progressing but we need to convince the distributors. In any case, none of the producers who have already opted for screw-caps want to go back to cork!"

IN BRIEF :

VINITECH SALON IN BORDEAUX FROM 2nd TO 4th DECEMBER :

The most important date in the world of viticulture's calendar is the technical exhibition held at the Bordeaux Lac Exhibition Centre during the first week of December. One thousand exhibitors expect 40,000 professional visitors from all over the world (producers, merchants, oenologists, technicians, cellar masters and cultivation managers..).
In an area covering 80,000 metres square, visitors will find a multitude of equipment for vine management, wine-making and packaging : from secateurs and tractors to bottling machines and various types of cork, including the latest screw-cap designs.

César Compadre

doc@sudouest.com

S.O. 18/11/08
Translated by Maxine Colas.
francewinechateaux@gmail.com

LABELS THAT COME AND GO

2008-11-11T22:09:00.002Z

Bordeaux : Wine properties are born, reborn and often grow in renown, but they can also disappear : for example, the Château La Tour-Haut Brion, great classified growth of the Graves region, which has ceased to exist from this year onwards.

In this final quarter of the year 2008, the illustrious family of Bordeaux classified growths is missing one member. There will be no bottles of La Tour Haut-Brion 2008 released next year and traditional buyers of the château's production will have to content themselves with the last vintage of this great estate, 2005 or previous vintages from existing stocks.
The label of Château La Tour Haut-Brion (5 hectares of red in appellation contrôlée Pessac-Léognan) has ceased to exist.

No tsunami or earthquake is responsible for this, merely a strategic choice on the part of the owners.
This historical estate is owned by the company Domaine Clarence Dillon S.A. which is also proprietor of the neighbouring Pessac properties of Châteaux Haut-Brion (red and white wines), La Mission Haut-Brion (red only) and Laville Haut-Brion (white only). These estates represent a total of 80 hectares of planted vines, 77 of which are in production (71 ha of red and 5,5 ha of white).
This impressive collection of celebrated properties forms the largest concentration of classified growths (of both the 1855 classification and the more recent 1959 Graves classification) in the Bordeaux area.

The story of the disappearance of the La Tour Haut-Brion label shows that although châteaux can be born or reborn thanks to successive purchasing or take-overs, they can also die.
Even the most prestigious...This also means that names, even when they become well-known brand-names are not necessarily attached to an eternal landed heritage.

A cellar story : Jean-Philippe Delmas, estate director for Domaine Clarence Dillon S.A., relates the story behind this rather unusual decision :
"At the beginning of the last century, in an era when the wine business was in difficulty, the then owners of Château La Tour Haut-Brion bought the neighbouring property, La Mission Haut-Brion. The production of both properties was vinified at La Mission and, in time, La Tour Haut-Brion became the second wine of La Mission."
In 1983 the family of Clarence Dillon (New York bankers), owner of nearby Château Haut-Brion since 1935, bought both La Mission and La Tour Haut-Brion (forming a total of 30 hectares of vines) from the Woltner family.

" The vintage 1991 saw the birth of a second wine, specific to La Mission Haut-Brion, called La Chapelle de La Mission Haut-Brion. We wanted to bring La Tour Haut-Brion back to life," continues Jean-Philippe Delmas. It is true that for a classified growth to be reduced to second wine status is upsetting to say the least. However, the new owners had another problem. In order to revive La Tour Haut-Brion, they needed to recover and rehabilitate the building which was previously the 'château' of La Tour Haut-Brion, since then transformed into a retirement home for this urbanised western suburb of Bordeaux. After many years of negociation, this operation proved impossible.
The result : No specific cellar available for La Tour Haut-Brion.
This, coupled with the difficulty of finding a suitable space to build one on site, plus the fact that this estate remained very much overshadowed by its two big brothers, resulted in 2005 being the last vintage in the unsettled history of La Tour Haut-Brion. However, the owners have decided to keep the name. Who knows what opportunities the future might bring? Since 2006 the plots of ex-La Tour Haut-Brion (awaiting better days perhaps) have been supplying La Chapelle de La Mission Haut-Brion.

Clarifying the offer : the strategy of Domaine Clarence Dillon S.A., with its policy of clarifying the offer, may well lead to a second disappearance act, in the shape of Château Laville Haut-Brion, another classified growth of Graves (planted with only 2,5 ha of vines) which produces exclusively white wine. This small vineyard could be used to produce La Mission Haut-Brion white wine, a label which actually used to exist. The idea is being discussed at the moment.

Château Haut-Brion's second wine's new name however, decided earlier in the year, has already come into being. From the 2007 vintage onwards Le Bahans du Château Haut-Brion is re-christened "Le Clarence de Haut-Brion", in honor of Clarence Dillon, purchaser of Haut-Brion in 1935. This second wine will benefit from the same shape bottle as its big brother.

In the end, the Dillon heirs may well find themselves managing just two 'Formula 1' properties : Haut-Brion and La Mission Haut-Brion in both red and white, together with their second wines. The moral of the story? Perhaps that this is a good example of a sensible commercial policy of brand name management.

César Compadre

doc@sudouest.com

S.O. 11/11/08
Translated by Maxine Colas.
maxine.colas@gmail.com

WE PLAN TO CONTINUE OUR EXPANSION

2008-11-04T23:02:00.002Z

In today's context of financial crisis and minimal harvest, Pierre Castel, one of the major French wine merchants (and the oldest, at 82 years of age) explains his company's strategy of expansion.

Sud Ouest : Your company acquired the wine merchant company "OEnoalliance", based in Beychac, Gironde. Do you have other investment plans in the Bordeaux area?

Pierre Castel : OEnoalliance was in financial difficulty but benefitted from a strong image in the distributor brand market which Castel needed to develop. As for other projects in Bordeaux, our priority is volume and brands. If we found suitable opportunities....

S.O : What is your opinion of the Alsace group, Grand Chais de France, which is also expanding rapidly?

P.C : Everyone has competitors but we are not racing against eachother! Each company is working to keep it's head above water especially at the moment when the wine business means large turnovers but small profits ; it's the opposite for my other activities. However, due to certain problems with my partner, I sold my shares in the water business for 860 million euros.

S.O :That sum would enable you to invest in a classified growth château, something still missing among your company's assets.

P.C : Even though the company has considerable cashflow, we don't intend to waste money. A celebrated property? Perhaps, if a good proposition comes up, but nothing overpriced ; wine remains an agricultural product, subject to climate and other risks. I have however invested in the beer industry in Guinea and Nigeria. I am very interested in opportunities in Africa and never hesitate to invest there. As for buying a wine property, it is imperative to study the figures...

S.O : You are one of the most important buyers of wine in France. What do you think of the 2008 vintage which is the smallest yield since 1991?

P.C : There will be no shortage of wine because there is plenty of stock. We have contracts with wine growers for 2000 hectares in the Bordeaux vineyard for our branded wines. We will buy only what we need and no more. Moreover, people are drinking less wine : our wine sales will be down by 3% by the end of the year. The lower price range is suffering and the future lies with the quality wines. In Bordeaux, many of the wines do not reply to the demands of emerging markets, who are looking for easy to drink, fruity wines. In the Val de Loire area, where we are investing 30 millions euros in a bottling plant which will process 1.4 million hectolitres, you cannot find any more muscadet to buy and the vineyard is in a state of neglect.

S.O : What about development of your export market?

P.C : Exports represent a third of our sales and we plan to expand in Russia, where we already employ 150 people in a bottling and distribution centre near Moscow. China is also another objective. The UK, German and US markets are difficult at the moment.

S.O : The famous "Bag-in-Box" is still selling well?

P.C : Yes, and we are investing in packaging plants for this product, mainly for the 3 litre containers. I would never have imagined putting AOC wines or even branded wines in this type of packaging, but in fact the product sells well.

S.O : What advice would you give to young people hoping to make a career in the wine industry?

P.C : They must have some money to invest. If they need to finance their whole project with a loan, they are taking a big risk.Bordeaux remains the best French vineyard in which to invest.

César Compadre

doc@sudouest.com

S.O. 4/11/08
Translated by Maxine Colas.

MODERATION MUST BE OUR GOAL.

2008-11-02T19:57:00.008Z

Thursday saw a succession of demonstrations against the censorship that the wine world in France believes it has fallen victim to in recent months. Alain Juppé, Mayor of Bordeaux, was photographed as he symbolically covered up a road sign indicating the city's name.

This photo was shown all over the world : Bordeaux, the world capitol of wine having it's name covered up by a large sticker with the word "Censored". The scene took place yesterday in the Place de la Bourse, opposite the Garonne River. It was an example among many during this day of demonstrations against what the wine industry in France considers to be unfair censorship.
Indeed, wine professionals in France, the world leader in production, consumption and exportation of wine are "furious, to say the least,"says Alain Vironneau, who is the president of the Bordeaux Wine marketing board. He was not alone. Over 150 professionals and political figures were present at this symbolic masking of the name of the world's most famous vineyard.

A succesion of obstacles has hit the French wine industry recently. The first is in the legal grey area surrounding the use of the Internet as a marketing medium for wine and other alcoholic drinks. Then comes the absence of a clear definition of publicity as opposed to informative articles about wine in the press. In addition to these debates, the government has just voted a rise in taxation on wine and spirits in order to cover the Social Security deficit. Finally, there is talk of banning free wine tastings during wine fairs.

"All this handicaps the professional wine sector, when what we need to concentrate on most is encouraging consumers to practice moderation. That should be the universal goal," explains Mr.Vironneau.

All over France, the operation, named "Censorship - a sign of things to come", was described as a great success by the organisers. It's aim to draw public attention to the debate was achieved and Alain Juppé, along with two pillars of the Bordeaux wine community, André Lurton and Jean-Michel Cazes, rallied the troops : "Prohibition has never worked," said a stern Alain Juppé, "...this is not just a question of selling bottles. In France, the fruit of the vine represents one thousand years of history and a national, cultural heritage which encompasses a craftsman's art and a landscape."
Jean-Michel Cazes, owner of Château Lynch-Bages in Pauillac, urged observers to "..realise that some people in this country want to abolish our profession. Be prepared to fight to save it!"
The idea certainly seems to be gaining ground.

To be continued....on sudouest.com : visit our website for photos and videos of the various demonstrations by wine professionals in the region, as well as interviews of Jean-Michel Cazes and André Lurton and send in your views to our forum.

César Compadre

doc@sudouest.com

S.O. 31/10/08
Translated by Maxine Colas.

WINE SLIDES TOWARDS PROHIBITION

2008-10-28T20:59:00.004Z

Despite the government promises to allow communication about wine on the Internet, Thursday will be a day of demonstrations in particular, in the region of Jurançon.
If you live in a town or village within a wine area, you may find that, from Thursday onwards, its name will cease to exist, at least for a few hours. No tsunami has been forecast by French weather stations, and yet, wine-growers will be getting plastic covers out of their garages, not because of the weather but to hide road signs indicating the "shameful" names of towns or villages, such as Pauillac, Margaux, even the city of Bordeaux. The Cognac, Bergerac, Madiran and Jurançon signs will also disappear. These places, as well as the wines which take their names from them, will all be wiped off the map. This symbolic action, christened "Censorship - a sign of things to come" is being led by most of the French vineyard owners, whose patience has come to an end. This is not a question of problems linked to the harvest or of economic difficulties but of a deeper uncertainty: that of a creeping, silent progress towards prohibition.
Wine is a cultural product: Two recent court rulings have stirred up this unease amongst producers and distributors of the wine world. Firstly the Heineken affair, which concerned the ban on using Internet as a promotional medium for products containing alcohol. This practice was previously tolerated, even if Internet was not specifically mentioned by the 1991 Evin law, one of the most restrictive laws in the world concerning publicity of alcoholic drinks and tobacco.
The second ruling ("Le Parisien" affair) ruled that an enthusiastic press article about champagne was illegal publicity. Needless to say, freedom of the press and promotion are being compromised in the wine sector.
In Jurancon which is an area of 1,100 hectares, producing dry and sweet white wines in the Bearn region, Jean-Marc Grussaute, who is just beginning his harvest, is enthusiastic about the demonstration planned on Thursday. Four road signs will be covered in the area.
"Wine is more of a cultural product than a foodstuff. It is our reason for living and working. This type of restriction undermines our industry. We have always encouraged responsible and moderate drinking which should be a simple pleasure," says Jean-Marc, who is the proprietor of Domaine Camin Larredya an estate of 10 hectares producing 45,000 bottles per year.
"France is beginning to lose faith in its wines. We appear to be on the slippery slope to prohibition. With these obstacles put in our way, our access to markets is put in jeopardy. Without modern methods of communication, how can we hope to reach those clients wishing to discover and drink good wine?" regrets Jean-Marc.
A future on the Internet : Roselyn Bachelot, the Health Minister, interviewed by the "Figaro" yesterday said that she was not opposed to an amendment re-establishing publicity on the Internet. This will be discussed in Parliament within the framework of the Hôpital law which concerns patients, health and territory. She however said that spams, or pop-ups should be banned. Some health associations have criticised the minister’s "false route".
As for Michel Barnier, the Minister of Agriculture, who was supposed to be awarding a prize to Château La Rose Trintaudon in the Medoc on Thursday, quickly altered his schedule, preferring to give a prize in the Landes, a region not renowned for its wines….
If the Internet seems to be in the process of regulation, then there remains the problem of the definition of advertising. Also under parliamentary discussion is a ban on free tastings.

César Compadre

http://www.sudouest.com/

S.O. 28/10/08
Translated by Maxine Colas.

In brief:
VINEXPO:
As in 2008, the next Vinexpo "Asia Pacific" will take place in Hong Kong from the 25th to the 27th May 2010.
The Vinexpo professional wine fair will, as usual, take place in Bordeaux from the 21st to the 25th June 2009.

"MACHINE HARVESTING BECOMES THE NORM."

2008-10-22T20:56:00.002+01:00

Harvest 2008 : Almost 80% of French vineyards are now machine harvested, even those of classified châteaux :for example at Château Rauzan Gassies, in Margaux.

Harvesting machines, costing more than 140,000 euros a piece, seem to be mulitplying in the French vineyards these days and are more technologically advanced than ever. Apart from the Champagne, Beaujolais and noble rot sweet wine areas, where the use of these machines is forbidden for technical reasons, producers in all the other French areas of production can choose between machine or manual harvesting : a large majority have opted for this flexible, efficient, time and labour saving device.
These mechanical harvesters, which first appeared in the vineyards thirty years ago, are gaining ground against the staunch defenders of manual harvesting, even in the most celebrated vineyards, such as Château Rauzan-Gassies, in the Margaux appellation.
"I would never go back to harvesting by hand," explains Jean-Michel Quié, owner of the illustrious Rauzan-Gassies, classified in 1855. "It's so much easier to organise the harvest with these machines....The 1984 havest was a wet one and it was impossible to manage with 300 harvesters, ...so in 1985, after much thought, I took the plunge and bought a machine." And he has never looked back since. The family, who also owns Château Croizet-Bages, classified growth in Pauillac and Château Bel-Orme Tronquoy de Lalande in Haut Médoc now possesses five mechanical harvesters for a total of 90 hectares of red grapes.

"These machines harvest one hectare of vines in half a day (density of 10,000 vine plants per hectare). This means we economise an extraordinary amount of time. We can harvest at optimum maturity and even mobilise several machines at the same time if one particular plot needs urgent action. Furthermore, we only employ our own staff, who are highly trained." explains Anne-Françoise Quié, twin sister of Jean-Michel, who works in partnership with her brother on the family estates.
At Rauzan-Gassies the harvester is now moving at a speed of 2 km/hour through one of the last plots to be picked. On the ground, a technician advises the driver on speed and shaking intensity. The machine hurdles the row of vines and its shakers detatch the bunches from their stems. The bunches are then carried via a conveyor belt into tubs on top of the machine which empty them into waiting trailors. They are then driven to the selecting tables.
With careful "triage", or selection of the best berries (and to eliminate rotten grapes, leaves or insects) on a selecting table at the entrance to the vat room, the quality of the mechanical harvest is comparable to that picked by hand. Indeed, in a blind tasting it is practically impossible to tell the difference...

Châteaux are also finding it more difficult to recrute trained harvesters, as the work is physically taxing and the conditions not always comfortable.
"Many of our colleagues come to watch our machines harvesting and they admit that they would like to use machines but don't dare..", Jean-Michel Quié smiles.
The world is changing and along with it certain images.

César Compadre

doc@sudouest.com

S.O. 21/10/08
Translated by Maxine Colas.

A WINE TOURISM SHOWROOM IN BORDEAUX 2009

2008-10-17T16:13:00.003+01:00

New project : Bordeaux will host the first professional wine tourism fair.

Wine tourism is booming. The French wine sector which has been developing its capacity to welcome tourists in recent years, is to receive a boost in 2009 : in the form of an international professional trade fair for wine tourism. This showroom will take place next year from the 4th - 6th November at Hanger 14, on the quayside in Bordeaux. In 2010, the venue will be the Exhibition Centre. Its name? The International Wine Travel Market (IWTM), inspired by anglo-saxon tourist trade fair terminology.

The news was announced yesterday during the traditional "Best of Wine Tourism" ** gala evening.
The Reed Group, world leader in organising professional trade shows, together with the Chamber of Commerce, will organise the IWTM.

"Wine tourism is a by-product, another way to sell wine. It's intelligent tourism and Bordeaux is the legitimate venue for this event, as it was for the launch of Vinexpo," explains Laurent Courbu, president of the Chamber of Commerce. The twin organisers met for the first time in May to discuss the project. Reed already organises around fifteen trade fairs and events linked to tourism including those in London and Dubai.

7 - 8000 euros for 6m2 : "It's the first time our activity is involved in the wine sector and we believe in the expansion of tourism linked to wine," says Alain Bagnaud, in charge of transport , tourism and communication at Reed Expositions, a subsiduary company of Reed. Indeed, given that there are some 900 million tourists on the planet today and that in fifteen years' time, the number should reach 1.4 billion...wine and gastronomy in general should see their market share become a much coveted and competitive sector.

One hundred and fifty exhibitors from all over the world are expected at the IWTM : châteaux, wineries, bodegas,...all offering a wine tourist service (seminars, congress, hotel accommodation...). The IWTM awaits more than a thousand visitors, coming to buy these services : tour operators, travel agency managers, activity and event organisers for companies..
As usual in this top drawer type of event, the most coverted potential clients will be invited, air fare included, by the organisers.
Which explains the steep floor prices for exhibitors : between 7 and 8000 euros , for example, for a stand measuring 6m2.
"This will not be a mere 'business card exchange fair'. We are scheduling meetings between exhibitors and buyers : contracts will be signed on the spot," forecasts Vincent Lhoste, who manages several fairs at Reed Expositions and who will be overseeing the future IWTM fair. "The tourist industry needs structure and good organisation. Wine tourism is just waiting to explode and this fair will be its chance to benefit from the centre stage, " continues Vincent, who adds that conferences will also be on the fair agenda.

Bordeaux is already the world wine trade capital thanks to Vinexpo and capital for viticultural technology, thanks to Vinitech. It is soon to add a third professional fair to its prize list with a view to becoming the cultural capital of Europe in 2013...

** Prize List of the 6th BEST OF WINE TOURISM :

The 6th night of the Best of Wine Tourism competition welcomed more than 500 guests yesterday at Château Smith Haut Lafitte, owned by Florence & Daniel Cathiard, in Martillac.
87 properties or companies participated in this competition , organised every year by the Bordeaux Chamber of Commerce.
There were 19 prize winners divided into 5 catagories including 5 Gold "Best of" and one "Passion" prize.

1. Architecture, Parks & Gardens : Gold Best of attributed to Château Franc-Mayne, Saint-Emilion.
Other prize winners in this catagory were : Châteaux Lanessan, La Tour de By, Rauzan-Gassies, Haut-Sarpe and Fonplégade.

2. Château Accommodation : Gold Best of attributed to Château Carbonneau, Pessac-sur-Dordogne.
Other prize winners in this catagory were : Châteaux du Petit Puch, Pédesclaux and La Croix de Roche.

3. Discovery & Innovation : Gold Best of attributed to Château Agassac, Ludon-Medoc and the jury's "Passion" went to Château La Rose Bellevue, Saint-Palais.
Another prize winner was the agency "Week & Break".

4. Event Organisation : Gold Best of attributed to Château Haut-Bailly, Léognan.
Other prize winners in this catagory were : Châteaux du Taillan & Pape Clément and the merchant company Millésimia.

5. Enviromental Techniques : Gold Best of attributed to Château Cablanc, St.Pey Castets.
Another prize winner was Château Mercier.

César Compadre

doc@sudouest.com

S.O. 17/10/08
Translated by Maxine Colas.

STANDARD OF LIVING TAKES A NOSE-DIVE :

2008-10-14T20:26:00.002+01:00

America : As the economic crisis goes planetary, the Bordelais Guillaume Touton, an importer based in New York, notices how the market is falling back on less expensive wines.

Based in New York, Guillaume Touton is one of the important wine importers in the U.S. North East. Set up twenty years ago, the company "Monsieur Touton Selection Ltd" employs 130 people in four offices : in New York (headquarters), Washington, Boston and Chicago and imported 1 million cases of wine in 2007. Guillaume Touton is also a consultant for foreign trading. Wine consumption has been on the increase in America for the past fourteen years and hit 26 million hectolitres in 2007. The U.S. market is the second largest in the world after the French domestic market.

Sud Ouest : What is your analysis of the current situation in the U.S, prey to the financial crisis?

Guillaume Touton : Here everyone is very scared and a sort of terrified hysteria pervades. In contrast to France, where peoples' bank savings are often secure, most U.S. savers pump all their money into the stock exchange, even retirement pensions. So we can say that the financial crisis has hit everyone's pockets. Millions of dollars are lost or evaporate every day.

Sud Ouest : What are the consequences for the consumer market?

Guillaume Touton : Americans buy less : less petrol, less consumer products, less meals in restaurants...This has been a very noticeable trend for a month. As for wine, this much is clear - we no longer sell top-of-the-line bottles!

Sud Ouest : Has the market for great wines stopped dead?

Guillaume Touton : Yes. Just today I postponed an order for Bordeaux grand crus. I told the merchant "We'll wait and see". It is important to note that a bottle leaving the Bordeaux area at a price of 15 euros is found in American stores at 50 euros (retail price). Included in this retail price are the transport costs, the sales margin and especially the taxes which are very high. It's the same story for wines from other vineyards. And no one in New York is in the mood to buy a big car or to open an expensive bottle of wine at the moment. Champagne and Cognac imports are also on the decrease.

Sud Ouest : Will Americans stop buying and tasting wine altogether?

Guillaume Touton : No. The standard of living has taken a nose-dive and consumers are making do with cheaper wines. Even in a financial crisis, consumers do not suddenly stop enjoying wine! But I have noticed a shift in consumer values. Wines leaving their country of origin at a price of a few euros and which sell here for around 10 dollars are still selling well. That is why my turnover continues to increase, because I import Malbec from Argentina, Syrah from Australia and many other wines from Spain and Italy. In fact five or six containers (4 - 5000 cases) of each arrive every day here. Bordeaux respresents 10 - 15% of the total volume of my imports, depending on the year.

Sud Ouest : What kind of future do you predict for your profession?

Guillaume Touton : Grey clouds are gathering on the horizon and the problems are only just beginning...All the American states and all the distribution and consumer channels are affected by this crisis. Unemployment will rise. I have never witnessed a situation like this in the twenty years I've been in America. Even after September 11th, or after the French "boycott" following President Chirac's refusal to back the war in Irak.
With a stock of 200,000 cases in New York, which represents between 18 and 20 million dollars (a quarter of which is Bordeaux wine), I am looking at two to three months potential sales. Concerning supplies, I've stopped any new orders appart from the more modest wine properties. In order to sell to the U.S. in the immediate future, I would rather be a producer in the Entre-Deux-Mers or Côtes vineyards than that of a great classified château, as the market for these famous wines is at a standstill. The good news is that the dollar is gaining weight against the euro.

César Compadre

doc@sudouest.com

S.O. 14/10/08
Translated by Maxine Colas.

2008 HARVEST AS DIFFICULT AS 2007 :

2008-10-11T09:17:00.002+01:00

Yesterday in the Blaye wine region, North of Bordeaux, Eric Bantegnies, owner of a 60 hectare property, La Bertinerie, began harvesting red wine grapes between the raindrops.
"This is my 21st harvest. 2007 and 2008 are definately the most complicated vintages so far, perhaps due to the fact that these are both 13 moon years - this will also be the case for 2009..."

A painful season : rainy cold weather over the past few months, with showers during harvestime makes 2008 a vintage, like 2007, a difficult birth. However, Eric is optimistic : "The grapes are ripe and we are making a careful selection to irradicate any rotten berries."
The yield will be small, as in the rest of France. This will automatically increase production costs. "Our property consists of around fifty distinct plots. It is in vintages like this one that the best "terroirs" (soils, micro-climates) and producers technical savoir-faire can make a real difference. A far cry from 2000 and 2005 which were easy vintages for everyone," explains Eric, who is already planning which plots will be used in which wine.
The property offers a range of wines at three price levels : 6, 8 and 10 euros per bottle.

Lyre training : At La Bertinerie, the 17 hectares of white grapes were harvested between the 15th and 24th September. The red harvest has now begun for this late harvest vintage. Everything is picked by hand here, even though 80% of French vineyards are now machine picked.
This property has a particularity unique to this region : all the vines are lyre trained. "This method of training the vines' two main stems into a "V" shape offers a number of advantages, the main advantage being early ripening, reassuring for the producer. But this method requires specific machinery and there is not enough space between the vines for harvesting machines to operate."
Machine harvesting remains however an attractive idea to Eric, especially when : "This morning, without warning, six harvesters did not turn up for work. This manual harvest will cost almost 60,000 euros in wages and social security costs in contrast to the price of a harvesting machine : 120,000 euros, paying itself off in 5 years."
Moreover, these modern machines are efficient and flexible and, in blind tastings, it is often very difficult to distinguish between a manually or mechanically picked wine.
A total of three weeks harvesting is planned at La Bertinerie, spread out over one and a half months. On the best weather days, 80 pickers will be at work in and amongst the vines.
Just like a small army..

César Compadre

doc@sudouest.com

S.O. 07/10/08
Translated by Maxine Colas.

WINE AMBASSADORS

2008-09-30T22:05:00.002+01:00

Export : The new French scheme of international company voluntary service (VIE) is a good way for young people to further their commercial training abroad. Carlos Varela, working in Dublin for a Bordeaux wine merchant, is one such example.

A training course abroad is, for most young people with commercial qualifications, the main objective. The aim? To master a foreign language (usually English), have first-hand experience of the world market and be in a position to meet potential future employers.
The wine sector, with its international market (a third of French wine production is sold for export), is attracting more and more candidates.
To such an extent that the Bordeaux interprofessional wine board has launched a scheme involving financial subsidies to promote recruting of VIE's (international company service voluntiers). This is a first in France : encouraging wine companies to strengthen their representation on a planetary level.
It has to be said that Bordeaux wine exports were down - 1,5% in volume in early 2008.

The VIE - international company voluntary service - is a scheme enabling a qualified 18 - 28 year old to carry out a market study for a company abroad for a duration of 6 - 24 months with a view to developing the company's exports.

"These voluntiers are our wine ambassadors and provide important back up for our importers' sales departments. Carlos Varela is our fifth VIE in Ireland, an important market purchasing around 600,000 bottles per year," explains Nicolas Gailly, director of Barton & Guestier, well-known wine merchants in Blanquefort near Bordeaux. "The advantage for the VIE is to be part of a company team. The advantage for the company is also financial."
Barton & Guestier are planning similar operations in Canada and Singapore.

Around 25,000 euros per year : Ubifrance, the French agency for company development on an international level, handles the administrative and legal aspects of VIE contracts for companies. This is because the public status of a VIE means that the company which takes a VIE on board is exempt from social security contributions in France.
Salary is calculated, based on a reference scale fixed by Ubifrance, depending on the employer's annual turnover and the job location.
The average annual revenue of a young expat is between 21,000 and 26,000 euros. In the USA (where the majority of French VIE are employed, followed by China and Germany), the salary can exceeed 30,000 euros. The wine company pays the wages but the Bordeaux wine interprofessional board reimburses half the total.

"Bordeaux is a vast vineyard, the organisation of which is difficult to understand : the notion of "château" is less easy to sell than that of a brand. The VIEs can explain and promote these differences," argues Georges Haushalter, who is in charge of the VIE scheme for the Bordeaux wine board.

Collaboration : Carlos Varela, a 25 year-old Franco-Columbian who grew up in Grenoble, has been working with the importers Gilbeys in Dublin since November 2007.
"Most of the time, I'm in the field : restaurants, wholesalers, hotels...to sell and promote the various ranges of wines from Barton & Guestier," says Carlos. "I organise tastings and different public relations operations with marketing back up," explains Carlos, who has previous work experience in China.

He has his work cut out in Ireland this year as, for the first time in 20 years, wine sales are stagnating. The cause being the universal financial and real estate crises. " Less purchase power and new, more restrictive legislation on the sale of alcoholic drinks has not helped", adds Carlos.
The verdict so far on the VIE scheme?
"It's more like a proper job in export than a training course." It is also a good job opportunity : in 70% of cases, the VIE is offered a job by the company at the end of the course.....

César Compadre

doc@sudouest.com

S.O. 30/09/08
Translated by Maxine Colas.

OPERATION CHARM :

2008-09-23T22:31:00.002+01:00

Bacchic Brotherhoods : at first glance, these 'wine brotherhoods' seem rather old-fashioned. In actual fact, they constitute a well oiled promotional medium. A good example being the "Jurade" of Saint-Emilion whose impressive procession celebrating its 60th birthday in the medieval streets of the ancient city last Sunday attracted many onlookers and photographers.

These brotherhoods or "confréries" form an integral part of the wine world. Most of the French wine producing areas possess their own brotherhood : Bordeaux, Champagne, Burgundy, Bergerac, Alsace and Gaillac amongst the most well known. The members, almost exclusively wine growers, are all dressed in long brightly coloured robes in keeping with ancient tradition, and together participate in numerous festive ceremonies to do with wine cultivation.

Professional brotherhoods first appeared in the Middle Ages when they were primarily associations grouping individuals of the same profession. The spirit of mutual aid amongst members was strengthened by worship of a chosen patron saint.
In 2008 however, far from the medieval world, one may wonder what role this kind of brotherhood can possibly play in today's market : quaint gadget, curious relic of a bygone age?

"Not at all! The wine brotherhood is, on the contrary, a modern communication tool, not used enough by wine regions," explains Jacques Bertrand, head of the Jurade of Saint-Emilion. The Jurade was originally created in the 12th century, then became obsolete until it was ressurected in 1948. All weekend jurade members celebrated 60 years of brotherhood in Saint-Emilion with great pomp and ceremony, to the delight of tourists and local visitors alike.
Jurade members, standing in the bright September sun in their red robes, were photographed by Japanese guests and filmed by South Corean television, anxious to immortalise an example of French "art de vivre", a concept apparently far from old hat...

A memorable pleasure : far from being old fashioned and outlandish, the wine brotherhood is in fact a well oiled promotional medium, particularly abroad where French wine remains a point of reference.
"The idea of the brotherhood is in keeping with wine's new status in modern society : far from being considered an essential commoditiy, it is a pleasure drink. A consumer who buys a bottle of wine, is looking for history, an anecdote or tradition, something to tell his or her friends," says a professional who admits he is planning to engrave the word "pleasure" above the barrels in his cellar...

Pleasure was certainly on the menu in Saint-Emilion on Sunday. After an apéritif served at the town hall, 600 guests (!) enjoyed a banquet financed by the Saint-Emilion wine syndicate whose budget for this public relations extravaganza approached 150,000 euros. Between partridge supreme, beef chateaubriand with wild mushrooms and vintage wines : Grand-Mayne 2001, Balestard-La-Tonnelle 2000, Beauséjour-Bécot 1996 and Figeac 1990, members of the Jurade talked at length about "their vineyard" to bankers from Brazil, Maltese importers, American businessmen and Parisian insurance brokers. All these visitors were eager to hear news about the coming harvest, the problems caused by the recent cancellation of the Saint-Emilion classification or the latest great growth prices....
Business cards are exchanged. A buyer from Leclerc chats to a potential supplier, useful commercial contacts and introductions are made by merchants, importers and producers, a journalist from the BBC can be seen writing down tasting notes on the wines served...

Because, behind all the festivities, business opportunity is never far away : a pleasant way of further expanding the ever increasing network of wine amateurs.
This is also how we sell wine in 2008.

César Compadre

doc@sudouest.com

S.O. 23/09/08
Translated by Maxine Colas.

WINE NOT TO BE SEEN OR HEARD!

2008-09-17T23:05:00.003+01:00

Internet and publicity : In the absence of precise legislation, a type of "viticultural precautionary principle" has been applied, sometimes to absurd extremes in France during the past few months.

A rather unhealthy atmosphere has been gaining ground like gangrene in the French media, seemingly spread by drinks containing alcohol. A frenetic precautionary attitude has taken over the media : to such a point that even websites evoking alcoholic beverages appear to be under threat and newspapers issuing an article mentioning a bottle of wine find a Damocles sword hanging over their heads!

Two recent legal decisions have caused all the trouble. On the 20th December 2007, the High court in Paris condemned the newspaper "Le Parisien" for an article about Champagne considered too laudatory. Justice qualified the article as an advertisment. Then, in January 2008, the same High court ordered the beer company Heineken to close down its website! The argument put forward was that of the Evin law of 1991 which lays down the rules concerning publicity for alcoholic drinks. The text used by the High court which also figures in the Public Health Code, does not mention Internet amongst the authorised publicity mediums for alcoholic drinks. Not surprising, as at the time the bill was passed (1991) Internet simply did not exist in France!
In both cases, it was the National Association for the Prevention of Alcoholism and Addiction (the ANPAA) which submitted a complaint to the court.

Open umbrellas : In the aftermath of these legal sanctions, many media professionals are attempting to protect themselves from potential attack.
For example, before the recent re-diffusion of the film "Mondovino", the television channel in question broadcast a health warning : "Drink in moderation". This message is in fact only obligatory for adverts. Is an alternative film an advert? In the same mode, press editors add a similar message to journalists' articles on wine fairs. "If the message is added, then it means the editor judges the article content to be publicity." claims the ANPAA.
"If every mention of a name of an alcoholic beverage is theoretically considered to be publicity, then all forms of cultural expression can be potentially sanctioned : no more mention of the Porto-Bordeaux football match (Porto also being the word for Port in French), gastronomic reviews, paintings featuring glasses of wine, etc," laments a wine professional.
In that case, what do we make of the freedom of the press?

The Net is also experiencing a serious case of nerves : the operator Orange refuses to diffuse adverts for alcoholic drinks on its websites. Websites like Camus, the Cognac company, forbid access to individuals who identify themselves in French on their home page. No problem for Germans or Bresilians....
In Bordeaux, the Interprofessional Council (CIVB) will no longer print its website address on its promotional posters for the coming wine fairs.

"We are getting organised so that our profession will be taken seriously", explains Michel Rémondat, who works for the information website "Vitisphère". An association grouping over forty websites called Wine and Web is preparing to retaliate.

Things can certainly be taken to extremes, to the height of absurdity even : as Christian Termote, owner of a restaurant and wine boutique "L'Auberge d'Astarac", near Auch, learnt to his cost. The Post Office refused to issue his order of personalised stamps because the design he chose - a drawing of grapes with a face and a glass of wine - was considered incitement to drink!

The solution to this media paranoia would be to re-define the texts of the law.
For the moment the project appears to be in limbo, but wine professionals are preparing for battle : demands to include Internet in the list of authorised publicity mediums and for a clear definition of publicity policy will be sent to the President.
Another operation designed to make public opinion more sensitive to the problem will be launched in October : signposts indicating villages like Saint Emilion and Saint Estèphe, both important wine producing areas, will be hidden from public view simply because their names are theroretically considered to be illegal publicity......

César Compadre

doc@sudouest.com

S.O. 16/09/08
Translated by Maxine Colas.

FRANCE HEADING TOWARDS A VERY SMALL HARVEST :

2008-09-11T21:34:00.002+01:00

As the 2008 harvest begins in the vineyards, Viniflhor estimates the French yield at 43,6 million hectolitres to be one of the smallest in recent history.

This September the more the wine growers look to the sky, the more worried they get. Indeed, after a wet Spring and Summer, the Indian Summer many had hoped for is not to be. Just as it wasn't in 2007. Furthermore, the weather forecast for the coming days is not promising...
This year, rain stole the show instead of the sun. This was all too apparent yesterday at Château Haut-Brion, first classified growth of Pessac-Léognan in the suburbs of Bordeaux, where 40 pickers waited all morning for the rain to stop. It never did, and not a single bunch of Sauvignon blanc was harvested. Even though sun had been forecast...

On the spot experts notice the number of bunches diminishing (victim to mildew) and, as time goes on, the yield estimates plummet. Yesterday Viniflhor (ex Onivins), national office for the wine industry, announced an estimate of 43,6 million hectolitres for the total French production. On the 1st of August, the Ministry of Agriculture's statistics department had put the estimate at 46 million...

Lowest yield since 1991 : If these 43,6 million hl are confirmed, France will record it's smallest harvest since 1991, year of the killer frost which froze the young shoots in April on thousands of vines along the Atlantic coast. That year only 42,6 million hl went into the fermentation vats.

The regional vineyards are no exception to this phenomenon. In the Charentes area the yield is expected to reach 6,6 million hl, only slightly above last year's already historically low yield. "Much more important than volume is the degree of sugar hence potential alcohol content for the production of Cognac. 8,9 or 10? Impossible to predict yet as the harvest will begin in October. Unfortunately this close, wet weather favours the developement of mildew," explains a technician.
In Gironde, the yield predicted is approximately 5,3 million hl, the lowest since 1991. It's a similar story for other production areas such as the Dordogne, Lot-et-Garonne and Midi-Pyrénées. This volume analysis cannot of course predict the level of quality for this vintage, even though it is certain that it will not be a superb one, far from that...

Tension rises over prices : Many quality criterion can yet come into play : the weather in the next few weeks, selective harvesting, selection between the different wines, the producers technical savoir-faire...Tasting only will tell....
The effect on the prices however, is already being felt : wholesale transactions for white wine in bulk are on the increase. "As for the reds, it's like a game of cat and mouse between merchants and growers", says a professional.
Regarding consumers, it is feared that prices will rise in the next few months, despite fierce competition amongst distributors, due to higher production costs (for low volumes, as in 2007) and to the fact that these last two vintages have been extremely expensive in terms of work and treatment in the vineyard : frequent spraying to save the harvest with increasingly expensive products, higher gasoline and bottle glass prices.....
Far from a barrel of laughs for French wine growers.

César Compadre

doc@sudouest.com

S.O. 10/09/08
Translated by Maxine Colas.

WHEN GLASS TALKS :

2008-09-09T21:19:00.002+01:00

OLD VINTAGES : Bordeaux researchers have perfected a method of dating the glass of wine bottles. A step further in the fight against fraud :

Last week a couple from the Bouches-du-Rhone region were arrested for having sold, via the Ebay auction website, 200 bottles of so-called Grand Cru French wines which turned out to be fancy bottles filled for the most part with very ordinary wine...
Visually, it is difficult to tell a great wine from an ordinary one and so the temptation to falsify is great.
"Especially as the market for old vintage wines is thriving," says Angélique de Lencquesaing, one of the founders of the website www.idealwine.com in 2000. This company which employs 12 people and is based in the Paris area, provides a service of quoting values of vintage wines. "Our experience helps to authenticate bottles : glass, scanned labels, capsules pierced by syringes to top up wine levels...But these new techniques can provide a plus only if the price remains acceptable", she explains.

Important discovery : In today's select market for old wines, a spectacular discovery has just been made by researchers at the Bordeaux Centre For Nuclear Studies (CNRS/Bordeaux 1) in Gradignan. This centre, employing a staff of one hundred, has been studying composition and structure of matter since 1967. The research team, led by Hervé Guégan, has finally perfected, after two years of work, a unique system of dating the glass of a wine bottle by subjecting it to a beam of ions produced by the particle accelerator based at the Gradignan centre. "Thanks to our analysis of over a hundred glass bottles containing Bordeaux wine from the 18th century onwards, we now possess a database of all the different techniques used by glass-makers in the past. For example, since 1957 manganese is no longer a componant in glass", explains Hervé Guégan, who is the head of Arcane, the department for technological transfer for the Gradignan laboratory. Mr Guégan's mission is clearly to communicate the value of their discoveries to the private sector.

In order to complete this database which initially enables the researchers to define time slots of fifteen years, Hervé Guégan analyses bottles of wine from ten or so of the greatest Bordeaux estates, from the most valued vintages (1890, 1892, 1929, 1945, 1961, 1982, 1990, 2000,.).
Some of these wines sell for astronomical prices in auctions.*
In its capacity to confirm the authenticity of age and provenance of these bottles, Arcane has signed a contract with "The Antique Wine Company", the London specialist in old, rare wines. In November, a new company named Vincert SARL will deliver authentification certificates to traders and buyers alike who wish to allay any doubts about rare bottles. This certificate should be worth approximately 500 euros. In the art world where such certificates guaranteeing authenticity rarely exceed 5 to 10% of the product's value, this service is aimed at a market for bottles worth over 5,000 euros a piece...To give an idea of price range, Idealwine values a Lafite Rothschild 1982 at 1,600 euros per bottle and a Mouton Rothschild 1945 at 7,000 euros.

Checking the wine : This new dating method for glass is an additional weapon in the arsenal of tests available to professionals and the government in the war against fraud. In 2002 researcher Philippe Hubert, also based at the centre in Gradignan, developed a technique which detects the presence of the chemical substance Cesium 137 in wine. This chemical is a result of nuclear weapons tests which began in 1945.
Wine definately has a memory, as proves the correlation between the quantity of Cesium 137 it contains (which is analysed without opening the bottle) and the period during which the wine was produced. The only drawback with this method of analysis also used to check the provenance of prunes and mushrooms, is that one cannot go back farther than the year 1950. Research continues and tomorrow we may see the use of carbon for dating.

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doc@sudouest.com

S.O. 09/09/08
Translated by Maxine Colas.

*See the book "The Billionaire's Vinegar" by Benjamin Wallace.

MY BEAUTIFUL RED BALL :

2008-09-04T15:08:00.003+01:00

International French footballers, Johan Micoud and Matthieu Chalmé, invest in a Pomerol vineyard with Alexandre de Malet Roquefort (of Château La Gaffelière) and civil engineer Jean-Luc Deloche :

The vineyard is small (1.45 hectares with only 9,000 square metres planted), but it is situated in Pomerol, one of the most famous Bordeaux appellations and probably the most expensive, not just in terms of land value but also price per bottle. Although the sale price was not disclosed, one hectare in AOC Pomerol can fetch over one million euros....

"I had been looking to buy a vineyard in Pomerol for a year when this opportunity came up. Together our aim is to produce an exceptional wine, a rarity too, as this year, our first harvest, the total production will not exceed 2,000 bottles!" explains Alexandre de Malet Roquefort, whose family already owns several wine properties in the Libourne area.
Château La Gaffelière is of course the flagship but the fleet also includes châteaux Tertre Dauguay and Armens (also in AOC Saint-Emilion) and Château Macaran in AOC Bordeaux Supérieur : in all a total of 80 hectares. In addition, the family also runs a wine merchant business in Saint-Emilion.

The recently acquired vines belonged to the Château des Templiers, joint ownership of 7 hectares (Lagrave family).
"This investment is a venture among friends", assures de Malet Roquefort, who is the major shareholder, "Both footballers love wine and want to learn more about it's subtleties."
Johan Micoud, who has just retired from the Girondins Bordeaux team and Mathieu Chalmé, defense player for Laurent Blanc's team, perhaps see this as an opportunity to link the sacred ball to a good bottle of red, following the example of a certain Jean Tigana who was once owner of a property in Listrac-Médoc.

César Compadre

doc@sudouest.com

S.O. 04/09/08
Translated by Maxine Colas.

CHATEAU QUINAULT IS SOLD :

2008-09-04T14:21:00.002+01:00

BUSINESSMEN Bernard Arnault and Albert Frère expand their assets in the Bordeaux region with the recent purchase of a wine property in Saint Emilion :

Château Quinault, with it's 15 hectares of AOC Saint-Emilion, is situated in Libourne. It's new owners are amongst the wealthiest men in Europe : Frenchman Bernard Arnault, boss of Louis Vitton Moët Hennessey (haute-couture fashion, champagne & cognac), the world's number one in luxury products, and his Belgian counterpart, Albert Frère, shareholder in various multi-national companies such as Suez and Lafarge cements. If all goes well, the final act of sale will be signed today.

The two men also own, in a private capacity, the illustrious Château Cheval Blanc (Saint-Emilion) since 1998. Another addition to their private collection is a close neigbour to Cheval Blanc, Château La Tour-du-Pin (8 hectares), acquired in 2006.
Bernard Arnault's company, LVMH, owns Château d'Yquem, king of Sauternes.

"This acquistion is an inheritance investment", explains an employee. "In legal terms, the company which runs La Tour-du-Pin is the buyer. This is an entirely different entity from Cheval Blanc and d'Yquem". Château Quinault will be managed by Pierre-Olivier Clouet.

Alain Raynaud, who bought the property in 1997, had to resign himself to sell. "I hadn't bought the château with the intention of selling it on! But the bank did not follow through. Banks are always ready to help those with healthy finances but when trouble hits, they disappear.." Raynaud, who was a general practionner for 25 years before devoting himself to viticulture goes on to explain, " I couldn't afford to continue the investment plan for high quality production which had been our ambition for years. We were victim to frost in 2002 and then to hail in 2004. In the middle, the 2003 "heat-wave" vintage gave us a low yield. These are setbacks you don't recover from easily, even if our wine sells for 25 euros a bottle."

Heart-breaking decision : Alain Raynaud is one of the most respected men in the Libourne area. As ex-vice president of the Bordeaux Grand Cru Union (promotional organisation regrouping over a hundred prestigious properties), he also founded the "Right Bank Circle" in 2003, a similar association of Libourne/saint-Emilion properties.

Although it broke his heart to sell Château Quinault, he admits he is satisfied with the financial deal (without giving away the sale price) and that his massive investment in the property served to attract the new buyers, looking for quality potential.
At age 60, Alain Raynaud continues his activities in the wine world. He manages two family-owned properties in Pomerol : Châteaux La Croix-de-Gay and La Fleur-de-Gay (12 hectares in total) with his sister. He is also a consultant for a dozen other properties in the area.

César Compadre

doc@sudouest.com

S.O. 04/09/08
Translated by Maxine Colas.

DEADLY DAMAGE CAUSED BY L'ESCA :

2008-09-03T19:31:00.002+01:00

Anger is rising amongst wine growers about l'Esca, the disease ravaging French vine stocks.

This disease, caused by a fungus, attacks the vine stocks and kills them.
Professionals have noted a new outbreak of this veritable "vine cancer" this year.
The Charentes region (the Ugni Blanc vine variety is particularly sensitive to the disease) but also the Gironde and Gers regions are becoming more and more affected.
"The vine stocks are dying before our very eyes", laments a producer, " We are having to dig up 15 year-old vines and replant."
A demonstration is planned for the 11th September in the town of Auch (Gers) to support the producers' demand for their area to be classified as an agricultural disaster zone and to obtain subsidies for replanting.
In the past this disease was treated successfully by using sodium arsenite but use of this chemical became illegal in 2007 for public health reasons. Since then scientific research has made little progress and the technological dead end is very real.

César Compadre

doc@sudouest.com

S.O. 02/09/08
Translated by Maxine Colas.

WINE FAIR :

2008-09-03T11:12:00.004+01:00

CONSUMERS' WALLETS PUT TO THE TEST :

Despite the purchasing power crisis in France, professionals remain optimistic about the coming "wine sales". Bordeaux will be launching a publicity campaign :

In the French wine world, September is traditionally the month both of the harvest and of wine fairs (where consumers can buy bottles at 'sale' prices).
An unprecedented slump in wine sales in large stores (super & hypermarkets) registered since the beginning of this year means that these Autumn cut price sales fairs will prove to be a real economic test. Will the purchase power crisis prevail?

" We can forget the past and with it the +15% growth per year in sales. That's all finished!" says Guillaume Halley, proprietor of the Champion Bordeaux-Caudéran store which will launch it's wine fair on the 16th September with 400 labels on offer. " I predict the same sales figures as 2007 as I believe consumers will continue to treat themselves. More than half the bottles sold throughout the year are sold during the wine fair season, at an average price of 20 euros per bottle. I think we have nothing to worry about, " continues Halley, who also owns the Château La Dauphine (Fronsac, Gironde). This is the first year that his own wines will be on offer in three major store wine fairs : Leclerc, Auchan and Carrefour.
"Because of the thousands of catalogues distributed in France for the wine fair season, it's a marvelous chance to be in the spotlight."

Inescapable : Jean de Laitre, sales manager for Château Monestier La Tour (30 hectares in the Bergerac region) and Château Vrai Canon Bouché (12 hectares in Canon Fronsac), both of which are very visible in the Autumn catalogues, agrees that these large store wine fairs are essential to boost sales.
"It is very difficult to establish a product image without going through the large store channels," de Laitre explains. " These hypermarket chains are so powerful in France that they simply cannot be ignored. Wine is good for morale so I hope, in the right setting, the bottles will sell themselves".

Indeed, even if specialist boutiques and Internet websites are now proposing their own wine fairs, the large store chains have been responsible for the major market share of domestic wine sales for over a quarter of a century. To such an extent that this time of the commercial year, spread over several weeks, accounts for a quarter of the annual wine sales in this distribution sector. And the figures show that this phenomenon is here to stay. The 2007 season even beat all the sales records : 50 million litres of AOC wine were sold in the hypermarkets (up by 7% as opposed to 2006) for a total of 326 million euros spent (+11%), Bordeaux obtaining the lion's share with 4 bottles of out of 10 and 1 euro out of 2. It has to be said that 2005 was on the shelves last year...Of course the famous Bordeaux vineyard, the largest AOC region in the world (120,000 hectares) is the historic driving force, thanks to it's famous names, available at attractive prices during the 'sales' for those who wish to start or add to their cellar.
Dominique Rey, wine sales manager at the Leclerc store in Saint-Médard, in the Bordeaux suburbs, is confident that this will be another good season : "We still have many 2005 vintage bottles on offer amongst the 800 labels on our shelves, so I am optimistic. Our clientèle is perhaps less sensitive to the economic difficulties."

The Bordeaux Inter-professional Council (CIVB), in an attempt to ensure the success of this key period for the wine industry's economy, is taking the initiative of launching a big publicity campaign.

Radio : the new publicity meduim : The campaign will be launched on the 22nd Septemer. A vast visual campaign (the notion of "château" being put forward) will involve 4800 large 8 - 12 m2 posters all over France, smaller posters on shopping trolleys in the 660 stores. In addition, radio will be used to spread the word via two ads lasting 30 seconds will be broadcast by 11 national radio stations between September 20th and 30th.

These publicity campaigns are financed by compulsory subscriptions paid by wine producers and merchants alike to the Council.

WINE FAIR DATES FOR MAJOR STORES :

CASINO : 9th - 24th Sept.
CARREFOUR, INTERMARCHE & MONOPRIX : 10th - 20 Sept.
LECLERC : starts 24th Sept..
AUCHAN : starts 17th Sept..
SYSTEME U : starts 23rd Sept.
CHAMPION : starts 1st Oct.

César Compadre

doc@sudouest.com

S.O. 02/09/08
Translated by Maxine Colas.

RUN UP TOWARDS A VERY SMALL HARVEST :

2008-09-01T22:03:00.003+01:00

Although the harvest for reds will not begin until the end of September, the Bordeaux Wine Federation, which met yesterday, has announced the end of the Harvest Banns :

It was back to business for the Federation of Great Wines which held their general meeting in Bordeaux yesterday. This professional federation unites all the department's producers.
Laurent Gapenne, the new federation's new president, replaces Jacques Bertrand.
The economic situation and harvest prospects were the main subjects for debate.

At a time when wine sales in French supermarkets and hypermarkets are on the decrease (purchasing power crisis?) and exports were down considerably in terms of volume in the first semester, the 2008 harvest promises to be a historically low yield : between 5.1 and 5.2 million hectolitres (hl), according to the Federation's estimates. If these figures are proved accurate, this year will be the lowest yield since 1991, year of the particularly hard frost on the 21st April. Lower than that of 1993, 1994 and the heat-wave year of 2003 which has so far been the lowest yield vintage record holder.

The culprits : frost and mildew : The reasons for this exceptionally low harvest potential are well known in the Bordeaux area : frost on the 7th April (which was particularly damaging to the white grape vines) and wet, cold weather through May until the last week in June.
The flowering, which occurred at the end of May and beginning of June, was chaotic and regular heavy rainfall (perhaps due to the fact that this is a 13 moon year) made treatment against mildew imperative to save the harvest. As if that wasn't enough, a disease called "l'Esca" which attacks the vine stock and for which there is no remedy, continues to spread and kill.

Late harvest :The situation is complicated to say the least, but the quality of this year's harvest could be considerably improved by sunny warm weather in September, as was the case in 2007. The last weeks of maturity are certainly decisive. In any case, the grapes need more time to ripen and consequently this will be a relatively late harvest, despite the so-called global warming effect on the climate.

The red wine grapes (representing almost 90% of the Bordeaux vineyard) will not be harvested before the end of September. In recent years September had become the "big month" for harvesting. This year, we will see a return to the past when October was the traditional harvesting period.

The white grapes will be harvested earlier as usual, the first bunches picked from the 8th September.

Harvest Bann disappears : All these start dates for the harvest will now be the result of decisions made by each individual producer as there will no longer be a public "bann" or announcement made by the "Préfecture" (government authority) to set the legal start date for harvesting. Up until this year, this traditional authorised harvest start date was set following decisions made by a committee meeting comprised of experts, who also set the date on which producers could begin the chaptalisation process (legally authorised addition of sugar to increase the alcohol content in wine).

With the new regulations in force, the wine growers themselves have maximum responsibility when it comes to making technical choices. With the disappearance of this historic " legal harvest marker", some growers may feel disorientated and it will be up to the technicians to circulate important information in the vineyards.
Of course, before harvesting, the grapes must still be analysed to make sure they have reached the maximum degree of maturity. And in Bordeaux, there is certainly no shortage when it comes to tests and quality controls...

César Compadre

doc@sudouest.com

S.O. 29/08/08
Translated by Maxine Colas.

"FAMILIES WELCOME"

2008-08-26T16:19:00.002+01:00

Wine Tourism : Although this has been a difficult Summer season, wine-based tourism has had a good innings this year.

France holds the world record for the number of visiting tourists and now it's vineyards are proving to be an ever growing tourist attraction.
So much so that Hervé Novelli, Secretary of State for tourism, plans to create a wine tourism quality label which would favour development in this sector by covering all the wine roads & circuits in France.

Despite the bleak weather this Spring and the lack of holiday spending money in pockets, The Bordeaux Tourist Office registered a significant increase in the number of tourists participating in the twenty or so wine tour circuits in and around the Bordeaux vineyard.
Since the beginning of this year, 11,000 customers registered as opposed to 8,500 last year.
The "Unesco effect" (Bordeaux having Unesco national heritage status since 2006) has played a major role in attracting tourists but more and more wine properties have adapted their reception facilities to cater to the growing demand.

The educational walk through the vineyards and visit of the wine-making facilities can certainly make for a succesful family outing, explains Jean-Daniel Debart, owner of Château Cablanc, a 120 hectare property including 65 hectares of vines, 60 kilometres East of Bordeaux.
The Château provides a warm family welcome, a circuit through vineyards and woods including explanatory signs and riddles to solve, followed by a simple explanation of the wine-making process and a relaxed tasting of wine or grape juice.
"90% of our visitors had never been inside a wine château before" and nine families out of ten come away from the visit with a bottle of Château Calanc (3 - 7 euros per bottle). The château also boasts a gîte and a reception room.
Meanwhile, the adults continue their tour of the property and are still having trouble finding the origin of the quote " Better to drink the wine from here than the water from there", perhaps the answer is right under their noses.....

César Compadre

S.O. 26/08/08
Translated by Maxine Colas.

HAUT-BRION CHANGES BOSS :

2008-08-04T15:53:00.006+01:00

PESSAC : Prince Robert of Luxembourg replaces his mother and becomes president of the Domaine Clarence Dillon company which controls the illustrious first growth acquired by his ancestor.

A page has turned in the history of Château Haut-Brion : the Duchess of Mouchy, president since 1975 of the Domaine Clarence Dillon company of which this Pessac first growth is the flagship property, has today handed the company's reigns over to her son, Prince Robert of Luxembourg.
The latter had been company vice president for several years.
And so the Prince becomes executive manager of Haut-Brion, seventy-four years after his great grandfather, Clarence Dillon bought the château.
This event marks a new era in the history of this highly prosperous American family who fell in love with France long ago.

Passionate about France : Clarence Dillon, who died in 1879 and who gave his name to the family company which runs Haut-Brion, was a successful New York banker.
Dillon, who was of Polish immigrant origin, studied at Harvard, then became principal shareholder of the business bank Read during the first world war. The bank was re-named Dillon Read and Clarence Dillon played a major rôle in the rescue plan for the firm Goodyear aswell as in the sale of Dodge to Chrysler.
Aswell as being a major player on Wall Street, Dillon also had a passion for France, where he lived for two years after his wedding, before purchasing an appartment in Paris in 1929.

He was a great Bordeaux wine lover and Haut-Brion was his favorite. In 1935 he bought the château from André Gibert. The latter was a rather excentric wine grower who, having no heirs, had originally decided to bequeath the property to the city of Bordeaux but in the end, agreed to sell to Dillon.

Douglas Dillon, son of Clarence, was also an important figure in American history. From 1960 to 1965, he was Secretary of the Treasury Department for the democrat presidents John Kennedy and Lyndon Johnson. He had previously been under-secretary of State for economic affairs for the republican Eisenhower administration.
Before developing his political career, Douglas Dillon had lived in Paris from 1953 to 1957 in the rôle of American Amassador to France.
Ties between this American family and France continued to strenghten.

Shared property : Before marrying the Duke of Mouchy, , Joan Dillon, daughter of Clarence, had been wife to Prince Charles of Luxembourg who died in 1977. Prince Charles, a direct descendant of King Henri IV of France, was the father of Prince Robert and his sister, Charlotte Cunningham. Charlotte, who lives in London where she runs a theatre and is also employed by Sotherbys in New York, is a member of the Domaine Clarence Dillon administrative committee. The property is shared with other heirs of Clarence Dillon : Mark Collins, banker and Alexandra Allen, who has a degree in French from the University of Sorbonne.

Haut Brion is not the only château owned by the Dillon company. In 1983 the Dillons bought Château La Mission Haut-Brion (located on the opposite side of the Bordeaux-Arcachon road from Haut-Brion) from the Woltner familly.
Two other quality properties were added to the domain, La Tour Haut Brion and Laville Haut-Brion.

THE SECOND WINE NOW CALLED "CLARENCE" :

Another change is the the new name for Haut-Brion's second label, formerly known as "Bahans Haut-Brion" after the family who had previously owned the small vineyard closest to the château itself. From the 2007 vintage onwards, the second wine will be named "Clarence de Haut-Brion" in memory of the enlightened ancestor, Clarence, who purchased the property in 1935. Also, this second label no longer be sold in a "classic Bordeaux" style bottle, but in the same more rounded style bottle created half a century earlier for it's big brother, Haut-Brion. This bottle, which has helped to re-inforce the Pessac first growth's identity and will surely benefit that of it's second wine.

Prestige aside, Haut-Brion has proved itself to be a highly profitable business. At the end of 2006, the company Domaine Dillon possessed a comfortable capital of 119 million euros, the fruit of profits accumulated over several years. For 2006, the last financial year published, the company, whose headquarters are in Paris, announced a net result of 6,6 million euros for an annual turnover of 25,7 million euros. The company, which has no financial debts, can afford massive investment. Haut-Brion and the other properties owned by the company have already benefitted from regular investment for modernisation over the years, and will surely continue to do so.

Bernard Broustet SO 01/08

Translated by Maxine Colas..

CALIFORNIA...FOR A SMALL FORTUNE :

2008-07-23T17:30:00.005+01:00

Michel Reybier, owner of Cos d'Estournel, second classified growth of Saint-Estèphe, has just purchased Château Montelena, one of the most famous vineyards of California's Napa Valley.

This is perhaps the biggest wine property transaction made by a French wine château owner abroad. Businessman Michel Reybier, owner of the illustrious Château Cos d'Estournel in the Medoc and previously owner of the brand "Jambons d'Aoste" has just acquired Château Montelena, one of the famous wineries in the Napa Valley.

The total sale price has not been disclosed but sources hint that the price per hectare is close to that of recent grand cru estate sales which reached a peak of two million euros a hectare for the purchase of Château Pichon Lalande for example. Château Montelena possesses eighty hectares of planted vines. It's acquisition therefore could cost at least 150 million euros...

"Judgment of Paris" : Château Montelena is located in Calistoga, in the North of Napa Valley. This property, built at the end of the 19th century in the English manor house style, not unlike several Médoc châteaux, has had a mixed history. After a period of relative notoriety, the vineyard suffered a long purgatory though neglect which came to an end in 1970 when lawyer Jim Barret acquired the estate and invested in it's renovation. A telling symbol of it's resurrection was the triumph of Montelena's chardonnay in the "Judgment of Paris" white wine blind tasting in 1976 where it topped the famous growths of Meursault and Batard-Montrachet...

From cured meats to riches : Jim Barret, aged 80 decided to sell out to Michel Reybier, the latter having made his fortune in the ham and sausage business thanks to his group "Aoste" which comprised of some twenty factories and controlled two other brand names, Justin Bridou and Cochonou. Reybier sold this meat empire to the American giant Sara Lee, then invested in the Cuban oil industry. He also owns three luxury hotels in Ramatuelle, Paris and Geneva.

The most remarkable of Michel Reybier's investments remains the Château Cos d'Estournel, famous classified growth of Saint-Estèphe, well-known not only for it's excellent wines but also for it's 19th century pagoda-style towers which sit atop the cellars.

Jean-Guillaume Prats, right-hand man at 38 : Cos d'Estournel is managed by Mr.Prats whose parents owned the estate until it was sold in the 1990s. Mr.Prats is to play a key role in Michel Reybier's Californian adventure : he will be president of a special management committee for the Californian estate. Other committee members include the technical director of Cos d'Estournel and Bo Barret, son of Jim, previous owner of Château Montelena.

The Californian property is comprised of 40 hectares surrounding the winery and another 40 scattered in the vicinity. Like many Californian wineries, grapes are bought in from other neighbouring producers. It's own production, almost exclusively cabernet sauvignon and chardonnay, producing 20 000 caisses per year. The best bottles are sold for a château price of 125 dollars a piece (80 euros). It may not be Cos d'Estournel but it's a far cry from Justin Bridou...

Bernard Broustet, S.O. 23/07/08
Translated by Maxine Colas..

THE LABELS PLAY MUSICAL CHAIRS :

2008-07-13T23:25:00.004+01:00

Saint Emilion : A government amendment adopted by the Senate re-instates the 1996 classification to fill the legal void caused by the nulification of the 2006 classification :

Just after the Saint Emilion 2006 classification was invalidated by the Bordeaux administrative court in early July, we now witness the re-establishment of the 1996 classification!
This is the result of government intervention, in the shape of an "additional article" passed in the Senate on Wednesday night, to the bill on economy modernisation.

"This is emergency action", explained the legal department of the I.N.A.O. (government bureau for the control of all appellation contrôlée wine regions). This interim solution was found after much pressure from the Saint Emilion wine growers who, since the annulment of the 2006 classification which itself had cancelled out that of 1996, found themselves without a defined quality status.

The return of the 1996 classification means re-instatement of the eleven châteaux de-classified in 2006. It has however created much discontent to say the least, among the eight châteaux who were up-graded in 2006 and who now feel they are back to square one after 10 years of effort to achieve deserved promotion.
"I am disgusted", exclaims François Despagne, whose Château Corbin-Despagne had just regained "noble" classified status after ten years in non classified purgatory. He recalls, "When our château was de-classed in 1996, we did not question the decision but instead doubled our efforts to produce a better wine".
All the other recently up-graded châteaux owners agree that they have been isolated and deplore "a great injustice" .* They are demanding that their up-graded status be intergrated into the current classification of 1996. A legal conundrum indeed for the lawyers involved.

In contrast, those châteaux owners who have regained their classified status (lost in 2006) express their "great satisfation"** : "We are extremely happy about the decision", exclaims Philippe Genevey, manager of Château La Marzelle, whose owners had been at the forefront of the appeal case against the outcome of the 2006 revision, when the château lost classified status despite impressive financial investment on their part to bring it "to the top of the appellation". It seems that their victory over what they felt was victimization has created a different set of victims in the process.

Although most professionals agree that a quality classification is a necessity for the Saint Emilion appellation, some feel that the methods used and rules for qualification should be revised. Discussion on the subject involving all the players seems improbable for the moment, given the scars incurred by this legal battle.
The government's intervention has left a two year breathing space for solution finding. "There are several potential options," added one I.N.A.O official, but did not care to elaborate..

*The châteaux promoted in 2006 who bear the brunt of this retrograded classification :
Pavie-Macquin and Troplong Mondot were both granted first classfied growth grade B status.
Bellefond-Belcier, Destieux, Fleur Cardinale, Grand-Corbin,Grand-Corbin-Despagne and Monbusquet all became classfied growths.

**The châteaux who have now regained their classfied growth status after being de-classed in 2006 :
Bellevue, Cadet Bon, Faurie de Souchard, Guadet-Saint-Julien, La Marzelle, La Tour du Pin Figeac (Giraud-Bélivier), La Tour du Pin Figeac (Moueix),
Petit Faurie de Soutard, Tertre Daugay, Villemaurine, Yon-Figeac.

Summary of article by Jacques Ripoche S.O.11/07/08
translated by Maxine Colas..

MY WINE CELLAR AT THE TOUCH OF A CLICK

2008-07-09T00:33:00.002+01:00

INTERNET : Wine is jumping onto the expanding band-wagon of private sales websites. A new wesite, created in the Gironde region, www.e-bouteille.fr , enables consumers to manage their cellars and buy and sell wine online.

The development of private sales (consumer to consumer) websites on the Internet is in full swing. This trend has obvious advantages for consumers, for example on e-Bay or PriceMinister, this sector's two major wesites, individuals can cut out the middleman and good bargains are available to all.

Xavier Hubert, 43, who lives in Gironde, is passionate about wine and possesses a personal cellar of 2000 bottles. It was this passion that inspired him to set up a website specific to wine, www.e-bouteille.fr , which went online a few weeks ago.
This website has two major functions : cellar management and private wine sales.
The idea is to advise consumers about managing their own cellars : where and how to store bottles, to recognise and classify bottles which have lost their labels and to evaluate individual bottles or whole cellars.

Interactive : "I wanted to provide a complete service : free cellar management without the consumer having to install special software but also a trade window for individuals wishing to buy or sell their own wines", explains Xavier. He goes on to stress that safe payment is guaranteed and that there is no publicity for individual wines on his website.
"Not forgetting the 'community' spirit of today's websites, our clients can send in their impressions of a wine tasted."

Xavier, who previously worked in the hotel-restaurant business, is also a computor science buff and employed specialists to complete the project which he financed himself.
In practice, wine amateurs looking for cellar management advice benefit from the website's easy access to enter their bottles' characteristics (appellation, vintage...) using a database. Photos of labels and bottle prices can also be found in specific guide sections. All this information is then stocked in virtual compartments which enable the cellar owner to stock check by region or vintage. "Like a virtual cellar inventory with an updated value per bottle made visible via a system of graphs. These files also leave a trace for insurance companies in case of theft," adds Xavier. Thanks to a password, each client manages his stocks.

Supply and demand : Behind each cellar owner lies a potential merchant : some may find their bottles have increased considerably in value as has their need for extra cashflow, some may be looking for a particular vintage for a birthday present, some may simply wish to speculate and earn a quick euro....For all these reasons and more, the private sales sector for wine buffs is expanding rapidly.
So much so that the French government is seriously considering the creation of a "self-declared entrepreneur" status to put an end to the legal grey area surrounding an almost professional activity for some speculators. Above a certain financial threshold, the latter could be subjected to regulations...and taxation.

On the e-bouteille website not only can clients can buy and sell online but every cellar's contents can be viewed anonymously by the other amateurs, potentially provoking spontanious offers!
"The two parties are put in contact via email. We collect the payments and the seller is paid only once the bottles have reached their final destination intact. The website looks after the logistics and dispatch follow up in exchange for a commission," explains Xavier.

Another illustration of this growing demand for private wine sales is the planned launch of a consumer to consumer sales platform in September by the well-known online wine website Wineandco. This Bordeaux-based operator underlines the fact that wine is often a recognised value in inheritance and can be a serious financial investment : "A bottle of 2000 Haut Brion selling for 150 euros in 2001 is now worth 600 euros..." For an elitist market only of course.

César Compadre S.O. 08/07/08

Translated by Maxine Colas..
doc@sudouest.com

SAINT EMILION DECLASSIFIED :

2008-07-03T01:14:00.003+01:00

SAINT EMILION DECLASSIFIED :

French court invalidates the Saint Emilion grand cru classification claiming that previously classified properties enjoyed an unfair advantage due to tasting methods.

The decennial Saint Emilion grand cru classfication, suspended in March 2007 and re-established several months later by the Council of State, was finally declared void yesterday by the Bordeaux administrative court. The jurisdiction, presided over by Henri Pac, considered that the nine classification commission members, appointed by the Saint Emilion syndicate, "had not recognised the principle of equal treatment amongst the classification candidates".

The 2006 - 2016 classified châteaux list, legally validated eighteen months ago by ministerial decree, is now obsolete. It should take at least two years for an appeal to go through the administrative court so yesterday's decision takes effect immediately.
The 16 first classified growths and the other 46 classified growths which were top of the list are now just ordinary Saint Emilion châteaux - at least on the labels.

Discrimination : More than 30 properties had been upgraded or degraded. Nine of the latter initiated the legal battle which has blown the Saint Emilion hierarchy apart. The failed candidates grievances were varied : the incompetence of certain tasters, a biased jury and suspicions aroused by commission visits to certain properties...all added sparks to the fire of discrimination according to those who claim to be the victims in this affair.

The administrative court accepted only one of the aforementioned methods : the tasting proceedure adopted by the commission members. This consisted in isolating the group of previously classified châteaux defending their status as a reference basis for the tasting. This method was criticised as giving these wines an established advantage over others.
"The commission divided up the properties into distinct categories depending on whether they had been previously classfied or not, even though in this classification the right to maintain benefits does not exist", explained court officials.

Saint Emilion professionals have always defended "reliability, discipline and impartiality" in previous classification revisions, not to mention the "quality excellence" of their selection. Yesterday they argued that the death of the classification would have serious financial repercussions for châteaux losing their classified status. These views fell on deaf ears.

Philippe Thévenin and Philippe Magrez, lawyers acting for several litigants, were pleased with the decision : "Up until now an air of suspicious speculation hung over the classification. From now on we are in a position to establish a new indisputable basis. This will be a guarantee of transparency for wine growers and consumers alike".

Necessary revision : If the classification systems are the marketing motors behind the Bordeaux vineyard, they are not without their faults. Many criterion come into play : clearly defined measures of choice based on the principle of equality for all, motivations behind the decisions, the role of local operators, and so on...The competitions' organisation needs to be re-thought through in order to regain credibility lost in legal wrangles. The irradication of the Saint Emilion classification follows last year's cancellation of the Medoc Cru Bourgeois classification. The latter was accused by the court of lack of impartiality : several château owners on the classification list where also members of the jury of tasters....

Dominique Richard, S.O. 2/07/08

Translated by Maxine Colas...
doc@sudouest.com

WINE BY THE SWEAT OF HIS BROW :

2008-06-26T17:52:00.002+01:00

Turkey : Bordeaux oenologists consult all over the world. In the Turkish Cappadoce region, Stéphane Toutoundji, a producer with high hopes, is making Turasan wines.

Stéphane Toutoundji, 41, has found an immense and original "playground" in Turkey. "Our profession has one major drawback", explains this oenologist from Bordeaux, "A vine can only produce one harvest per year!"
Turkey is the sixth largest producer of grapes in the world, but this production is mainly for dried raisins and table grapes. However, wine production which up until now was a marginal activity, is on the increase.

Hasan Turasan is one of several wine producers who wish to speed up this process. His property is based in Urgup, in the heart of the touristic region of Cappadoce, between Ankara and Kayseri.
"Our winery was founded in 1943...We produce table wines but I believe the future is in higher quality wine", explains Hasan. "I needed qualified consultants," and so he turned to France and, in 2006 through a cooper contact, found Stéphane Toutoundji, who became wine consultant for Turasan wines in 2007.
Stéphane manages a wine analysis laboratory in Libourne, together with Gilles Pauquet and is a consultant for some 60 properties in the Gironde region. Like many of his colleagues, Stéphane has similar responsibilities abroad.
"I travel to Urgup four times a year for the important stages : harvest or blending times. But we needed someone on the spot on a permanent basis", says Stéphane, and that is how Edouard Guérin, agronomy engineer and oenologist aged 25, landed his first job in Turkey. "After extensive studies and on the spot training in the Champagne and Bordeaux regions, I was offered poorly paid (1200 euros per month) and un-challenging jobs in France," explains Edouard, "Here in Turkey I have a house, a car and responsibilities I couldn't hope to find in France" says this native of Orange (Vaucluse region).
The work is certainly challenging in Anatolia, where the continental climate produces temperatures of around 35° C in Summer and -20°C in Winter." explains Edouard, "The vineyard is situated at an altitude of 1000 metres so we protect the vine stock against the cold with a blanket of earth. Last year we didn't have a drop of rain from May to Septemer so the drip irrigation system is essential."

Hasan Turasan possesses two vineyards of 20 and 30 hectares, but he also buys grapes from all over the country and uses not only local varieties but also the more internationally known Cabernets and Sauvignon.
"I am investing 2 million euros between 2007 - 2012 in a project to produce the best wines in Turkey with a view to exporting them," resumes Hasan, who already commercialises 1 million bottles per year. He also believes in a bright future for the domestic market : "Ours is a secular country and despite heavy taxes on wines, there is a market for good wine".
For an average of 20 euros a bottle (red or white), consumers looking for new, original wines can already appreciate the excellent results of the first vintage 2007 of this new Franco-Turkish venture.

César Compadre S.O. 24/06/08

Translated by Maxine Colas.
doc@sudouest.com

"THE SWORD OF DAMOCLES IS OVER US" :

2008-06-20T11:00:00.005+01:00

Certain anachronisms can leave one flabbergasted. In 2008, the era of new technologies, where blogs abound in this numerical planet, the French tribunal has banned advertising for alcoholic drinks on Internet websites.

This decision was pronounced on the 13th February by the Paris Court of Appeal following a complaint from the National Association for Prevention of Alcoholism & Addiction (Anpaa) about the slogan "For a fresh world" used by the brewers Heineken on their website.

The court supported this complaint and went on to state that because Internet had not been mentioned on the limited list of mediums allowed by the Evin law of 1991, the Web is not considered to be an authorized media for communication for alcoholic drinks. This severe interpretation of the already restrictive Evin law surprised professionals, especially as at the time the law was in preparation, the Web network did not exist! The text mentions its French fore-runner, Minitel...

As a result, Heineken has shut down its website and the Internet world of wine and spirits, already suffering from several important restrictions since the Evin law (now part of the Public Health Code) came into effect, is now in a legally insecure position.

"The sword of Damocles is over us", deplores Catherine Alby, promotion manager for the Bordeaux & Bordeaux Supérieur Syndicat. This syndicat, the largest in France, with more than 5000 members, has been developing a communication strategy for the last two years, largely based on their successful website and various blogs where consumers send in their opinions on wines tasted.
An on-line wine cellar is to be added to their website in July with more than 900 references for sale.
"Competition is fierce, so we must look to the future and use modern technology or disappear. We need to validate this activity on a legal level otherwise we will be sitting targets for any complaints or court decisions", explains Catherine.
A Bordeaux wine professional explains that even though Internet is now a generally recognised media, because of these legal restrictions even the touristic websites which mention wine properties could come under attack.

Only the "merchant" websites, which do not contain advertising like WineandCo are safe. However it is a general feeling amongst professionals that Internet should be recognised as an authorized medium by law.

A study group, organised by the Health & Agricultural Minsitries, which is working on modifying the
law, held it's first meeting in Paris yesterday. Michel Barnier, the French minister for agriculture, has committed himself to finding a solution to the problem. Indeed, in today's context of modernising viticulture and communication, to deprive the industry of Internet would be like trying to run the 100 metres race with a ball and chain....

It was generally agreed by all the participants of the meeting (including politicians, health inspectors, wine professionals) that Internet authorization should be legalized with certain restrictions on websites available to minors, who must be protected at all costs.

"At the end of July a text produced by the group consensus will be added to a new health law", explains senator Gérard César.

Following this debate, another more complicated challenge, that of the various press groups will need to be addressed.

César Compadre S.O. 17/06/08

Translated by Maxine Colas.
doc@sudouest.com

DURAS OPENS UP TO FAMILIES :

2008-06-17T15:19:00.002+01:00

DURAS OPENS UP TO FAMILIES :

Lot-et-Garonne : The Maison des Vins de Duras (the Duras wine marketing board & boutique) officially inaugurated its new tourist information activity today.

Several dozen children with helmets on their heads, park their bicycles at the entrance to the tasting room ready to sip grape juice. Another group wander through the new Vine Garden, a mini-park surrounding the building. The children study the educational signposts showing the vine-plant's life cycle and, pen in hand, fill in a quiz.
These young cyclists were welcomed by the Maison des Vins de Duras last week during the annual cyclo-tourist circle organised by the Lot-et-Garonne Educational League.

"We aim to provide a welcoming and educational platform with fun activities for families. Because France is a country for children," explains Corinne Lacombe, who is in charge of the "Maison" which was opened in 2002.
The boutique stocks around one hundred bottles produced by some 200 producers. A fee tasting can be enjoyed and the average price per bottle is 4 euros.
The Appellation Controlée Duras region boasts a vineyard of 2 000 hectares (2 thirds red wine, 1 third white) and was awarded AOC status 70 years ago.

"We are making wine tourism our priority", says Marie-José Bireaud, President of this AOC geographically hemmed in between Bordeaux and Bergerac. Indeed, in addition to their Vine Garden with its thousand vine-plants, fruit trees, picnic areas and "winemakers discovery trail" which now includes the superb medieval castle, visitors can also enjoy the "Keys to the Vineyard" exhibition on the second floor. This educational, inter-active exhibition organised in association with Cap Sciences, concentrates on the taste and aromas of wine.
Duras wine growers also have an excellent reputation when it comes to welcoming visitors in a relaxed atmosphere. There is also a large choice of local restaurants in the area which is approximately 35 minutes from Bergerac Airport. The beautiful villages of southern Gironde and Perigord also attract tourists. Bergerac and Duras are now working on a dual "wine route".

Other vineyards aiming to develop their "wine-tourism" potential (even the mighty Bordeaux) should look to Duras for ideas. Investment need not be an obstacle : Duras invested 170 000 euros in the aforementionned projects, part of which were financed by subsidies.

César Compadre S.O. 17/06/08

Translated by Maxine Colas.
doc@sudouest.com

PLAYING HARD TO GET....

2008-06-16T23:04:00.003+01:00

The 2007 vintage futures campaign has produced mixed results.

"Irritating", "competetive", "electrifying"...The adjectives used by the professionals (producers, brokers and merchants) indicate how the 2007 futures campaign will not go down in history as being the most successful....

Every year, from April to June, this specific Bordeaux marketing campaign, consists of promoting sales of the vintage harvested the previous Autumn but which will only be delivered eighteen months later.
For example, customers will have to wait until Autumn of 2009 to receive bottles of 2007.
In fact, this particular market concerns primarily some 200 high class châteaux whose wines are aged in oak for eighteen months.

The lukewarm reaction to this vintage comes as no surprise to the professionals. The mediocre quality of 2007 (for 80% of the reds) attracted few enthusiastic buyers. "The U.S. market only buys the great speculative vintages. The exchange rate is disuasive and the banking crisis has made hundreds of London financiers redundant." explains a professional. These economic difficulties have not helped the campaign as the futures market is primarily an export market.

The tendancy is therefore a decrease in price compared to 2006, even though some châteaux wines are still considered too expensive.
"In some cases producers seem to have missed the point but those who were prepared to lower their prices sold well," recalls a broker, who mentions Domaine de Chevalier (Pessac-Leognan), Pichon Baron (Pauillac) or Branaire-Ducru (Saint-Julien). These properties sold all the cases on offer.

"We lowered our price by 3 euros as the market is fragile and our partners, the wine merchants advised us to do so. As a result we have had a satisfactory campaign" say the owners of Brane-Cantenac. This classified growth of Margaux is selling for 22.50 euros per bottle (Bordeaux merchant wholesale price) as opposed to 25.50 for its 2006, 32 euros for the 2005, 19 for the 2004 and 21.75 for the 2003.

Retail prices can be found on the internet via wesites such as www.millesimia.fr where Léoville-Barton (Saint-Julien) is available for 40 euros (duty-free), Montrose (Saint-Estèphe) for 50 euros or Clos-Fourtet (Saint-Emilion) for 32 euros. Whereas Châteaux Margaux, Lafite-Rothschild, Mouton-Rothschild, Latour and Haut-Brion, whose prices have just been made public, are all available for 280 euros (duty-free) per bottle (a drop of 25% from the 2006 future price).
Another website, www.vins-fins.com proposes Beaumont (Haut-Médoc) for 7.20 euros (duty-free), Troplong-Mondot (Saint-Emilion) for 48.50, Grand-Puy-Lacoste (Pauillac) for 34 and Lascomes (Margaux) for 44 euros.

The lack of enthusiasm for the 2007 vintage shown by the traditional customers for Bordeaux wines (European Union countries) has had a double result. Firstly, the French hypermarket chains have stocked up. A massive choice of bottles of 2007 at competetive prices will be on offer during the stores wine fares in Autumn 2009.
Secondly, more exotic new markets (Mexico, Bresil, Thailand, Africa...) have gained a foothold in the market.
A way of preparing for the future...

César Compadre S.O. 16/06/08

Translated by Translated by Maxine Colas..
doc@sudouest.com

THE GREAT CHATEAUX OPEN THEIR DOORS :

2008-06-10T16:00:00.002+01:00

TREND : Wine tourism is booming. This Spring/Summer season sees a dramatic increase in visits to properties. The prestigious châteaux in Bordeaux, like Haut Bailly (Graves) are getting involved.

"Why do you plant roses at the end of each row of vines?", "How should I hold my glass when tasting?"...are amongst the many questions asked by a group of 30 vistors from Brussels at Château Haut Bailly on Saturday. This classified growth of Graves, situated 20 km South of Bordeaux has been developing it's "business tourism slot", says Caroline Perromat, in charge of the tourist sector of this 28 hectare property owned by an American banker, Robert G.Vilmers. In fact, since the beginning of September, around fifty receptions have been held at Haut Bailly and two thirds of these vistors are from abroad. The price of the visit & lunch/dinner on the property depends on the "package" : caterer, agency fees...but usually costs between 100 - 150 euros for the visit/tasting/meal.

" We have always welcomed visitors to the château even though our wines are sold by the Bordeaux wine merchants and not on the property" explains Caroline, " often clients wanted to come back for a visit with friends and family. But as demand for visits from non-professionals increased, we decided that the time had come to organise our reception capacity for this new wine tourist market."

A wine boutique has now been opened at the château which refused to sell wine direct to customers before.

Many châteaux, cooperatives and wine merchants in Bordeaux, Bergerac, Lot-et-Garonne and Jurançon have followed the pioneering example of the Cognac properties in opening up to the tourist trade.

The Belgian visitors enjoying a walk through the vineyards of Haut Bailly that day, explained that they had come to the region to see the "magnificent city of Bordeaux". Opera, musuems, good restaurants and a trip on the tramway were all on their holiday agenda. "But it would have been inconceivable not to visit a wine château whilst we were here".

César Compadre S.O. 10/06/08

Translated by Maxine Colas.
doc@sudouest.com

WINE FESTIVAL ON BOTH BANKS :

2008-06-05T20:56:00.001+01:00

"Bordeaux Fête Le Vin" (Bordeaux Celibrates Wine) , the popular bi-annual wine festival, situated on the banks of the Garonne River, a short walk from central Bordeaux, will run from the 26th - 29th June this year.

Yesterday saw the event's official presentation to local politicians and professionals.
Financed by the CIVB, (inter-professional Bordeaux wine marketing board) and Bordeaux City Hall, this wine festival first launched in 1998, has become increasingly linked to the "cultural" image of wine in the region. For the first time the Union of Classified Growths - 132 wine properties amongst the most prestigious in Bordeaux, and the Great Classified Growths in 1855 of the Medoc & Sauternes - the top of the class - will be participating in the festivities.
Indeed the stakes have been raised as the festival's success will surely have a role to play as a step forward in Bordeaux's bid to become the European Cultural Capital in 2013. Part of the city was awarded Unesco heritage status in 2007 and Alain Juppé, Mayor of Bordeaux, together with Alain Vironeau, president of the inter-professional Bordeaux wine marketing board both realise the importance of conveying the image of Bordeaux wine as a cultural product. This is especially so in a region where wine making is the main economic activity and where new French laws designed to limit the consumption of alcohol spread the "sour taste of prohibition" : recent tribunal decisions state that internet is not a suitable medium of communication for alcoholic products and that a flattering article in the press could be considered as publicity.
In this light, it is not surprising that the organisers of the Bordeaux Wine Festival would rather have the event compared to the Venice Carnival than the Munich Beer Festival...
In addition to wine tasting at the kiosks which will stretch over 2 km along the river bank and represent over 80 different regional appellations, visitors are invited to attend a lecture on "Taste & Moderation" at the City Hall (27th June 10.30 am), to enjoy the magnificent Aquitaine National Orchestra's "Carmina Burana" opera in the Place de la Bourse (26th June) together with sound & light shows and firework displays throughout the week.
Approximately 350,000 visitors are expected.

A project to create a "Wine Embassy" in Bordeaux is also in the making - more details mid-July.

author C.Compadre

doc@sudouest.com

A PLAN RUNNING IN NEUTRAL

2008-06-05T20:52:00.002+01:00

A five-year plan to modernise viticulture administrative procedures was presented yesterday by Michel Barnier, French Minister of Agriculture.

Unfortunately, the 16 pages of this plan reflect a lack of funds (French coffers being empty) aswell as a lack of new ideas especially in the economic "reforms" proposed - recycled from European Union reforms applicable since December last year.

Concerning the profession's governing bodies, there is however a desire to simplify communication and coordination between the various regional wine councils, the inter-professional marketing boards and Paris. The question is how to reduce numbers and / or merge certain organisations into "federations" in an efficient, coherent manner.

A special committee will be in charge of the previously named "vins de pays", which now come under the European Union product catagory IGP (protected geographical indication).

The 27 EU members have adopted certain common economic reforms which will be applicable from next August : one of the consequences will be more freedom for producers of ex-table wines whose yields will no longer be limited and who will be authorized to mention the vintage and grape varietal on their labels. These details, helpful for the consumer and therefore useful marketing aids, were exclusive to AOC wines up until now.

It is therefore regretable that not one euro-cent more than the 171 million euros budget for the next campaign which Paris will manage this year instead of Brussels has been allocated for promotion, marketing and communication!
One questions the impact of such a plan which appears more preoccupied with setting up work groups than ensuring a stability in product sales.

author C.Compadre
30th May 2008
Maxine Colas..
doc@sudouest.com

New Wind in French Vineyard Sales

2008-05-27T17:45:00.004+01:00

2007 : « Renewed interest in purchasing vineyards in France continues since the 11% increase in sales registered in 2006 », explains Hervé Olivier of « La SAFER » The French Department for Rural Land Development. Last year saw 9 900 transactions for 14 900 hectares of vines totalling

620 million euros.

Investors, foreign or native, are not always wine professionals either : many businessmen and industrials are taking the plunge into the world of wine-making. One such man is Pierre Satin, a businessman from Lyon, specializing in solar panneling, who bought the Château Puypezat-Rozette in the Bergerac area last Summer. »I had never imagined becoming a wine producer » says his 28 year-old daughter Cecile who gave up her job as a journalist in Dallas to run the château in France.

« I'm getting a real taste for it! I accept the challenge and am putting all my energy into this venture » And, talking of energy, the Satin family plan to use solar power for the whole property - a trend picking up speed amongst châteaux in the Bordeaux area : Château Montrose in St.Estephe and Clerc Milon in Pauillac are already equipped.

Indeed due to the difficulties in wine sales over the past few years, the average price per hectare (especially in the less prestigious regions) has become attractive to investors. Of course the price gap between the famous appellations and the more modest wine areas is wide...One hectare in Champagne is worth 73 times one hectare in Duras!

A few figures for prospective buyers : the average price of a hectare of vineyard in France ranges from around 10 000 euros (in Languedoc-Roussillon) to 734 000 euros (in Champagne!)

In the South West, the gulf is wide between the famous Bordeaux appellations such as Pomerol (700 000 euros per hectare), Margaux & Pauillac (700 000 euros per hectare) and the regions producing table wine such as the Marmandais (8 500 euros per hectare).

author C.Compadre
doc@sudouest.com
27/05/08

Tourism

2008-05-23T07:40:00.004+01:00

Millions of Chinese to Convince...

A potentially enormous clientèle. "This is a considerable market", confirms Philippe Dourthe, President of the Regional Tourism Committee. Not all can afford to travel but the potential remains significant since 55 million Chinese have a high purchasing power and spend freely.
"However, it is not always easy to attract Chinese customers. All they know about France are a few names : Paris, Cognac, Bordeaux...."

They will not be convinced if we simply invite them to "visit the Gironde region". "So we are now working with neighbouring departmental committees such as the Charente region in order to devise more comprehensive and attractive offers for Chinese tourists", explains Philippe Dourthe. Offers capable of satisfying Chinese tour operators who are notoriously demanding and partial to "Inclusive Package Tour" formulas which enable their clients to travel all over a country in one week and have a glimpse of as much of that country's rich diversity as
possible : beautiful countryside, national heritage, gastronomy, wine, luxury boutiques, festivals...

The CDT will be in Hong Kong (during Vinexpo Hong Kong) from the 27th - 31st May with an aim to show China what the Gironde region has to offer.

Published 05/2008
doc@sudouest.com

The First Home Wine Bar

2008-04-15T13:22:00.012+01:00

CONSUMER NEWS. Introducing the first "Bag-in-Box" home wine bar : wine tasting at home is becoming less and less restricting.This could well be a revolutionary product. In the same way as expresso coffee machines, once expensive & impossible to find are now a regular domestic item."Sowine is the first home wine bar, product of ten months research"explains Stéphane Lenain, director of EuroCave SUD-OUEST, a 30 year-old company based in Villeurbanne (Rhône) with an outlet in central Bordeaux, is one of the leading companies manufacturing French wine refrigerators (to keep wine in the best conditions). A rapidly developping market (1).

author C.Compadre
Published 15/04/2008
doc@sudouest.com

Bienvenue au château!

2008-04-14T14:07:00.003+01:00

Annual certification open to all Medoc wine producers.

2008-04-08T13:45:00.013+01:00

In the Bordeaux region :
Under fire but not sunk. The quality reference "cru bourgeois" which was dismantled by the admistrative tribunal of Bordeaux in February 2007, is making a comeback. If the recent groundwork pays off, this qualification will not disappear from the labels. In fact it may even gain more credibility than before due to a new concept in this wine region - "annual certification".
Suspense is at it's maximum and time is running out.....

author C.Compadre
doc@sudouest.com
Maxine Colas..

LES BORDEAUX SUPÉRIEUR

2008-04-06T14:21:00.007+01:00

Bordeaux and Bordeaux Supérieur wines account for half of the volume produced in Gironde. These labels are joining the more illustrious appellations in the "futures dance".

author C.Compadre
Translated by Maxine Colas..
doc@sudouest.com

News From Bordeaux

2008-04-06T09:45:00.012+01:00

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