Chateau Latour has announced a release price of 110 on the 2008 nearly half the price of its 2007 wine.
The first of the first growths to announce its price, which translates to around 130 a bottle from the negociants, Chateau Latour is regarded as one of the successes of the vintage.
'The precision and depth of Latour was amazing,' said Decanter's consultant editor Steven Spurrier at the en primeur barrel tastings two weeks ago.
Compared to the 2007 wine, whose exit price from the Bordeaux negociants was 240, the 2008 vintage represents a drop of 45%.
'This is in line with expectations, although the English market could have done with a bit more,' a Bordeaux negociant, who did not wish to be named, told decanter.com. 'It sends out a signal of the biggest percentage discounts that we can expect with this campaign, but generally this is good news.'
Christian Moueix, who released prices from some of his properties including Chateau Hosana and La Fleur Petrus last week to private clients, said he hoped an early campaign would 'help the whole of Bordeaux'.
'But some chateaux will do well at reasonable prices and others will fail - their policy over the past few years may well have an effect,' he said.
He has yet to announce the release price of his top property, Chateau Petrus.
Following the early release of Chateau Angelus last Monday (at 59 ex-negociant price), the announcement of prices slowed throughout the rest of the week.
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So who will cross the line in the sand? Will we see more 45% cuts or will some doggedly stick to high hopes for a low vintage?
Kasey
Rather good price it seems to me, especially because I cannot usually afford Latour although the 2002 was offered at 80 euros retail when it came out en primeur. So I just (barely) snatched at 140 euros per bottle 3 bottles of Latour from the French retailer Chateau Primeur (limited quantities available per customer) with an established track record and reassurances from a Bordeaux grand cru broker I know that the risk with this establishment is minimal: an important consideration when deciding to lock your money away for two years or so, in this difficult financial climate.
Panos Kakaviatos
The Bordelais with their short memories, have now finally remembered their experiences with shifting the infamous 1997, but it has taken them a long time. Or is it that with their cellars still full of the 2007, their bank accounts are in need of a top up, the consumer finally wins, or does he? The next time we have a decent vintage, it will be back to normal again.
The other point is that if the vintage is as good as merchants are now telling us, why a 40% reduction over 2007. It simply doesn't add up.
Caveat emptor!
David Stuart
I think at that price the Ch. Latour will work and is buyable, but the les Forts (just released) is too high especially as the 2006 is a similar price and a better wine and available now.
Alan Rayne, Chairman, Magnum Fine Wines, London, UK
Has this 45% drop in negociants price got anything to do with the sale of wine? I agree with David Stuart, something is up.
My conclusion is the following. This 45% drop is more about weakening the financial strength of 2nd/3rd/4th and even 5th growth producers. In doing so many will get into financial trouble and a few will be forced to sell. With the property prices being what they are and the price ceiling of 1st growth wines having dropped, these industry giants will go about buying up quality vineyards at a bargain and when the market shifts they will be ready to hedge their bets across multiple price sensitive markets.
It is an old strategy for cash positive companies during difficult times. Those poor 2nd-5th growth producers who have over capitalised and determined their cashflow and revenue based on 07 prices will be eaten for dinner. Not a great place to be if you dont have big cash reserves to see out the siege.
Good luck you will need it.
Clem
I agree with Alan that Latour is priced reasonable and is buyable. In fact, most of the big UK merchants have sold their allocation within hours. What does that tell us? Not a lot if we don't know how many cases Latour released. The general consensus is that it will be a very small percentage of total production, the strategy being to test the water and potentially release subsequent tranches at a adjusted price. Or just sit on it until the market turns again. Having said that, Latour is to be congratulated on making this bold move ahead of all the other First Growths.
It will be very interesting to see what this will do to pricing of back vintages. The 2008 is now the cheapest vintage in the market, with a better quality than a lot of them.
Mark Schuringa, Ditton Wine Traders, Surrey, UK
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