Decanter World Wine AwardsBordeaux 2011: Price drops boost campaign
- Friday 11 May 2012
Giscours: 33% down
Following Pontet Canet’s 34% drop earlier in the week, Pessac-Leognan’s Chateau Pape Clement came out today at €57.60, a drop of 39%, Chateau Giscours at €29.10, down just over 33% on last year and rated Margaux third growth Chateau Malescot St Exupery at €33.60, a full 44% drop from its 2010 price.
Other drops include St Emilion’s Chateau La Gaffeliere at €36 ex-Bordeaux, down 36.8% on 2010, and Margaux’s Chateau Marojallia at €42, down 15.6% on last year.
Hamish Wakes Miller, UK agent for Bordeaux negociant Vintex, told Decanter.com, ‘Pontet Canet got it sensibly right, and that has been the tipping point. Other chateaux seem to have listened to the need for price drops, which is not always the case.
‘It’s strange that Cos [d’Estournel] dropping 45% a few weeks ago didn’t have the same effect on its neighbours, but perhaps just shows the current power of Pontet.’
Adam Green of Roberson in London was less sure. ‘Price drops have not yet made a difference to consumers. They may have left it too late – enough chateaux have chanced their arm with high prices, and to a lot of consumers it feels all a little bit like the 2007 campaign – maybe not in quality of the wines, but the inept pricing strategies.
‘En primeur has to offer a true discount on existing vintages as a reward for buying early, and we’re still not convinced enough chateaux are going to offer that this year.’
Jeremy Stockman, trading director of Watson’s Wine in Hong Kong, said part of the problem has been the number of lesser-known wines released that took the steam out of the campaign before it even got going.
‘Too many wines have been released which are not followed en primeur and which I feel should be released only as physical wines.’
Have your say!
Matthew
May 17 21:22
I hate to go off on a tangent but, Steve, it is totally wrong to say that a product is only ever reduced in price if quality is an issue. Even someone who has only studied economics to a high school level could tell you that price (absent regulation) is a function of supply and demand. There are a whole range of factors which can influene both supply or demand. Reduced quality can certianly reduce demand (and so price) for wine, but so also can reduced disposable income (e.g. a recession with increased unemployment), changing societal attitudes (e.g. popularity of a particular wine region or grape, or increased focus on health and wellbeing). On the other side of the coin, a bumper crop, making more wine available, forces produces to reduce price to move stock.
Paulo
May 15 14:37
My issue is that as Jane Anson writes above, EP should offer a discount to the consumer for giving the Chateaux 2 years before getting the product. Otherwise I'm better off keeping my money, earning any interest and buying the product when it is delivered and available.
So far the prices are far too close to 2008, 2004 and 2001. I can get any of those vintages now, they have been tasted and reported on many times, I tasted the Pontet 2008 myself a few weeks ago and I know exactly what I'm going to get. For parity of moneyu, I will get that now and in 2014/15 I will try and decide on the 2011.
adrian latimer
May 15 11:42
People have short memories and/or very poor mathematical skills. Let us look at a typical 1st growth 2004. In France it was about 120 euros en primeur (inc VAT). The same wine in 2005 jumped massively, x 3 or more. By 2009 it was 500 euros++ and by 2010 it was 750-1000.
Meanwhile the production costs had not risen that much (ignoring the cost of designer architect marble monuments to the ego that masquerade as new chais etc).
So if they cut 2011 by say 40% where do we end up..? Maybe a mere 400 or 500 euros...in other words about a 400% rise in 7 years, not bad for the worst recesssion since 1929. I know I speak of only the most greedy, top chateaux, but they do lead the way sadly.
Ah yes, very reasonable!
Eric
May 14 19:34
@ Steve, because I'm not buying wine to drink now, I'm buying for 2020+