American merchants wary of Bordeaux 2007 February 29, 2008
Panos Kakaviatos
Some American merchants will skip the Bordeaux en primeur barrel tastings next month due to the high Euro, mixed vintage reports and apprehension of high futures prices.
Merchants cite a lack of interest on the part of the consumer, a poor vintage and high prices as reasons for not attending. Although many will attend to ensure a good quota of wines in future vintages, strategic pricing on the part of the chateaux and negociants has alienated some importers.
'They will screw you in a good vintage anyway,' one anonymous US merchant told decanter.com. 'Future allocations? Rubbish. Who says I want to buy next year? And if 2008 turns out to be an A+ vintage, my experience is that they end up reducing your allocations anyway.'
'None of us are going,' said MacArthur Beverages' Mark Wessels, speaking for several important wine merchants in Washington DC. 'I have heard from some Bordeaux negociants that many other Americans are not going, either. 2007 is a vintage in which I predict my customers will have little or no interest.'
Wessels said that although he was sure good wines had been produced in a difficult vintage, production would be reduced due to much stricter selection in the vineyards and the cellars.
'[This] means prices will not likely be low enough to garner interest, especially with the euro being as high,' said Wessels.
Other importers and retailers agreed.
'We see no reason to go this year,' said Michael Sands of Calvert Woodley, also in Washington. 'We went last year in part to taste many smaller chateaux from the 2005 vintage but no such interest this year.'
New York importers are still considering their options. A strong Euro remains a major factor against going to Bordeaux in April, as is the quality of the vintage.
'We have heard mixed reviews on 2007 and are not likely to pursue it as strongly as the '05s and '06s,' said Beekman Liquors owner David Frieser.
Those with firm plans to go to Bordeaux this year travel with an equally firm message: please lower your prices.
'I am starting to pick up information that the first growths are going to open at 200, first tranche, which will mean over US$300 per bottle,' said Michael Aaron of Sherry-Lehmann. 'I am hoping that the first growths take a deep breath, look at the importance of the American market, and start below 200.'
Ralph Sands, Bordeaux expert for K&L wine merchants in California, one the largest Bordeaux wine sellers in the country, pointed to the lack of demand for top-end wines. All the first growths, he said, as well as chateaux Ausone, Cheval Blanc, Palmer and Angelus were wines which 'have moved their price up rather drastically, and [US] demand for those wines has gone way down'.
'The quality of those wines is exceptional, but the incremental price increases of these estates have alienated many more people than the Bordelais think,' he said.
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In the past I would buy a case of first growth Bordeaux in most years. Then last year the price tripled and quadrupled overnight. Very simply, the Bordeaux wine people have sent a clear message that they are comfortable with their top wines being a product that is only to be purchased and enjoyed by the very wealthy. There is only value in these wines for those who consider $300. to $1000. an acceptable sum of money to spend on a single bottle of wine. Clearly, that is a fairly exclusive audience. Personally, I think it is a shame that the unbounded greed of the Bordeaux wine people has completely removed these wines from the grasp of so many wine lovers who have been able to enjoy them in the past, and who have supported the Bordeaux Chateaus for so many years. I hope everyone who is not awash in money, and admittedly there are those who can and will pay whatever is asked, will move on to other wines, leaving the Bordeaux wine producers plenty of their first growth bottles to drink themselves and to put in their coq au vins and stews. Tom V
No surprise here. Even absent the shift in the dollar, Bordeaux would be feeling a backlash from consumers for their aggressive, anti-consumer pricing on the 2005 Bordeaux vintage. That backlash will be obvious in the lesser vintages of 2006 and 2007. Though I normally buy in every vintage, I do not plan to buy either - at least not until they appear in the discount bin in 5-6 years. Regrettable.
A Wine Consumer, USA
It is time the Bordelais remember that wine is supposed to be a beverage to be drunk by friends and in good company, not a collectible asset to be purchased only be the mega rich. Despite inflation and the value of the Euro, the prices have reached stratospheric levels. One can only hope the prices settle back down to those asked for in the 90s.
Christopher Barrett, Houston, TX, USA
I have always felt a sense of compassion for the Bordelais, because it must felt galling in the first half of this decade, others making such huge profits on the back of their hard work. However, enough is enough, if 2007 does come within 20% of 2006 I know with a firm mind I will stay away from it. To pre-empt that I have already invested considerably elsewhere! I therefore implore those merchants giving off about 2007 don't just bleat vote with your feet; stay away from the tastings this March.
Sean Hardon, Wine enthusiast
In the past I would buy a case of first growth Bordeaux in most years. Then last year the price tripled and quadrupled overnight. Very simply, the Bordeaux wine people have sent a clear message that they are comfortable with their top wines being a product that is only to be purchased and enjoyed by the very wealthy. There is only value in these wines for those who consider $300. to $1000. an acceptable sum of money to spend on a single bottle of wine. Clearly, that is a fairly exclusive audience. Personally, I think it is a shame that the unbounded greed of the Bordeaux wine people has completely removed these wines from the grasp of so many wine lovers who have been able to enjoy them in the past, and who have supported the Bordeaux Chateaus for so many years. I hope everyone who is not awash in money, and admittedly there are those who can and will pay whatever is asked, will move on to other wines, leaving the Bordeaux wine producers plenty of their first growth bottles to drink themselves and to put in their coq au vins and stews.
Tom V
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In the past I would buy a case of first growth Bordeaux in most years. Then last year the price tripled and quadrupled overnight. Very simply, the Bordeaux wine people have sent a clear message that they are comfortable with their top wines being a product that is only to be purchased and enjoyed by the very wealthy. There is only value in these wines for those who consider $300. to $1000. an acceptable sum of money to spend on a single bottle of wine. Clearly, that is a fairly exclusive audience. Personally, I think it is a shame that the unbounded greed of the Bordeaux wine people has completely removed these wines from the grasp of so many wine lovers who have been able to enjoy them in the past, and who have supported the Bordeaux Chateaus for so many years. I hope everyone who is not awash in money, and admittedly there are those who can and will pay whatever is asked, will move on to other wines, leaving the Bordeaux wine producers plenty of their first growth bottles to drink themselves and to put in their coq au vins and stews. Tom V
