Bordeaux needs to cut prices by half if the 2008 en primeur campaign is to be a success, according to Berry Bros & Rudd.
Simon Staples, BBR's fine wine director, told decanter.com that he does not plan to buy a single case for stock, because he still has leftover cases of 2006 and 2007 Bordeaux that remain unsold. He added prices will have to come down to 2002 levels.
'I would be much happier as a stockholder to have a bargain vintage, to get everyone excited about it. No one has been excited about Bordeaux since 2005 – no one at all. The consumers are either bored of the prices, or bored of buying five or six vintages on the trot,' he said.
'The châteaux want to come down in price by 10%–15%, but even if it's 30%–40% lower, we won't buy any stock. The 2007s were much too expensive. Unless there's a reduction to 2002 levels, I can't see consumers being interested.'
Bordeaux negociants are looking for a similar price cut to Staples. 'In general, negociants are asking for a return to 2002 or 2004 prices but we'll have to wait and see,' said Jean-Christophe Esteve of Sovinat.
Staples predicted that first growth châteaux will be courageous and drop prices, perhaps as low as the €100 mark, 'as opposed to €250 last year'. He warned that if that does happen, 'consumers will just buy the first growths and nothing else'.
'Given the really rocky economic times, it will be a really good thing for Bordeaux to give us a bargain. And, believe it or not, I do have some sympathy for the châteaux, because they are trying to increase quality.'
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Simon Staples is, as even, right in most respects - Bordeaux must drop its release prices (in both euros and, more significantly, in sterling) if the 2008 en primeur campaign is to attract any interest and any action. However, he's surely far too savvy to think that this is really going to happen. Moreover, there's a fairly obvious contradiction in how you report this - if the first growths are the only wines that will sell in the absence of a significant price reduction (as you suggest and as seems realistic), then what possible incentive do they have for stoking the rest of the market by releasing at 100 euros (as opposed to 200-250 euros) per bottle? And, given that they tend to release their prices at the very end of the campaign, can they really be seen as price-setters for the vintage as a whole? If the second growths release at in excess of £1000 per case, are the first growths really going to relase below that level? The other factor in all of this is that a substantial drop in 2008 release prices is likely to start something of a run on the 2006s and 2007s. That would be excellent news for consumers, but is surely likely to be seen as something of a mixed blessing for the negociants and others holding a significant stock of previous releases.
Colin Hay, Professor of Political Analysis, University of Sheffield, UK
I would buy at 2002 prices. I would not buy at anything approaching what we've seen recently; there's simply too much good wine (including Bordeaux) out there to warrant paying more than that. Yes, I would buy some wine at 2002 prices, but not a penny higher... m'entendez-vous, les bordelais?
Dave, Ireland
Put simply, why should they?
The wine market is paying the heavy price for their sheer greed, which most merchants showed during the 2005 En-Primeur campaign… Forgive my bluntness but it's becoming very tiresome hearing/& reading the same 'quoted' UK merchants whingeing on about the 07 and up and coming 08 Bordeaux prices...
Virtually everyone in the trade dropped their pants during the 05 campaign and paid silly money for the wines, which in my book were not and can never be justified. Please read my article, which I posted to my clients on 1st December 2009… There is naturally an update to market conditions and I would further add some 2006 Parker scores, which endorses that most got carried away with the 2005 campaign…(06 Lafite Rothschild for example received a much higher score than the 05)
The situation is simple – You can not drop your pants one year and then expect massive discounts the following… The trade can only blame themselves… Three great forces rule the world: stupidity, fear and greed.
Stuart McCloskey, Z&B Vintners, UK
Mr. Staples might stiffen his demand by lapping up some wines from the Right Bank. I hear they're going begging.
Bill Marsano, New York, USA
It would be very interesting to see if the En Primeur price return to the level of 2002. I honestly doubt this is going to happen because the first release offer of 2002 is the lowest in the last decade, not because the weakness of the vintage, the main reason being that "the most influential wine critic from the U.S." did not make it to Bordeaux for the tasting report. Anyway to stop him from going?
Fred Yeung
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Simon Staples is, as even, right in most respects - Bordeaux must drop its release prices (in both euros and, more significantly, in sterling) if the 2008 en primeur campaign is to attract any interest and any action. However, he's surely far too savvy to think that this is really going to happen. Moreover, there's a fairly obvious contradiction in how you report this - if the first growths are the only wines that will sell in the absence of a significant price reduction (as you suggest and as seems realistic), then what possible incentive do they have for stoking the rest of the market by releasing at 100 euros (as opposed to 200-250 euros) per bottle? And, given that they tend to release their prices at the very end of the campaign, can they really be seen as price-setters for the vintage as a whole? If the second growths release at in excess of £1000 per case, are the first growths really going to relase below that level? The other factor in all of this is that a substantial drop in 2008 release prices is likely to start something of a run on the 2006s and 2007s. That would be excellent news for consumers, but is surely likely to be seen as something of a mixed blessing for the negociants and others holding a significant stock of previous releases.
