'We have large inventories we are trying to run down, but Bordeaux is a major part of our fine wine business.'
He blamed the rumours on disgruntled wine producers.
'This is people complaining after not selling as they would like to,' he said.
However, Dick admitted the company was currently not buying Bordeaux unless absolutely necessary - and would only buy 2008 en primeur if clients paid in advance.
'We have heavy inventory of 2006, 2007 and a bit of 2005,' he said. 'These are tough times and we are being very careful.'
Dick also said this strategy is a necessary reaction to the tough economy and no different from what other companies are doing.
'We are waiting for the tide to turn.'
He said a few clients were considering buying 2008 en primeur but so far he had no firm commitments.
Sources in Bordeaux also said another major American buyer, Diageo's Chateau & Estate Wines, has frozen orders.
For many producers and negociants already finding it hard to shift stocks, two heavyweight buyers pulling back would be a blow.
Several producers at Vinexpo called the news 'shocking but not surprising', and described the American market as 'complicated right now'.
Melvin Dick comes in fourth on the Decanter Power List, published in the July 2009 issue.
Have your say... To post your comment on this story, email us at news@decanter.com, making sure the relevant headline is in the subject field
Every Bordeaux consumer I know has pulled back or stopped buying completely after the 2006 and 2007 pricing debaucles, so of course it makes sense that Southern would do the same. The problem is the head-in-the-sand producers who are used to being able to sell forward their wines into the system under threat of lesser allocations in the future if they are not purchased. Well, the huge backlog has caught up to them at last, and it will require dumping massive quantities of wine to clear. Bordeaux is suffering from its own greed.
Andrew Skroback, New York
The statement that “the American market is complicated right now” shows a basic misunderstanding of the market on behalf of Bordeaux producers. There is an abundance of overpriced (though admittedly very fine) Bordeaux in warehouses all around the United States at this moment. Retailers are discounting even the amazing 2005's, lest they continue to sit on the shelf and collect dust. There's nothing complicated about the sluggish nature of the marketplace right now.
Anonymous, Florida
Start a new trend a stop buying any wines distributed by Southern Wine and Sprits. Their business practices are monopolistic and protectionist and seek to prevent the distribution of small, family run wineries.
Carolyn Madson
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