Sara Danese, whom I have not met, just wrote an interesting and provocative article on Bordeaux primeur campaigns.
It may be uncomfortable reading for some in the Bordeaux trade, but it encapsulates something that this board has written about frequently; whether there is a future to Bordeaux futures.
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Interesting!
I think her point #1 elides an important (and I believe irreparable) issue: the absence of Robert Parker. Iâm not especially interested in debating the quality of his palate or his personality. I mean only that from the 82 vintage on, for decades, there was one polestar that set the hierarchy, year after year, for the market. And his palate was stable enough (at least for the first couple of decades) for buyers to interpret what he was saying and anticipate what the wines would actually be in bottle. Like him or hate him, he was the constant benchmark against which vintage character and quality was measured. And that was true even for those who did not share his tastes
The voices now are so disparate, so varied in experience, and so fleeting that even the most talented critics have no ability to serve as this sort of benchmark.
I like the idea of turning en primeur into Bordeaux Week. What if the period became a celebration of bdx for all comers instead of a conclave of the Cardinals of Wine? Let chateaux serve their barrel samples but also show the unwashed masses samples of the wines already on the shelf. It might be especially helpful for those down (or off) the 1855 pecking order, this would be a grand way to develop brand identity and a loyal following. A party like Octoberfest, but with more nerds.
There are a handful of Bordeaux (mostly Medoc) Chateaux below the Classified Growth level that now offer vintages going back 10 or more years.
I am now far removed from insight into the economics of the region, but I would like to think that if this became a trend, it could help revive the market for the wines.
During Bordeaux week, donât merely offer tastes of older vintages, offer them for sale. Here are some possible numbers:
A 25 acre property might produce 5000 cases a year. They typically might release the wine 2 - 3 years after the harvest. Letâs say they hold back 1000 cases and release another 100 cases a year for 10 years. During Bordeaux week, consumers could taste 10 vintages and buy what they like that is ready to drink.
Of course all of this would vary widely with vintage yields and vintage quality. You might not hold back anything in a short crop of mediocre quality; conversely, in a fine, abundant vintage you might hold back more, release it more slowly. I am on the website of Chateau Verdignan (I bought cases of their 1959 in the late '60s and have enjoyed other vintages since, when Iâve been able to find them).
Current vintages for sale are '05, '06, '09, '13, '14, '15, '16, '18 and '19.
Thanks for posting this Mark. If Neal Martinâs article was the warning that came too late, this is the death knoll. I just received an EP offer direct from Sociando-Mallet, having bought direct from them in the past. Perhaps Bordeaux producers will become just like their counterparts in other regions now, looking to connect with their clients. I imagine that prices will come down as a result.
While I agree, EP as it stands is not sustainable, the author has a very basic, and often wrong view of EP and Bordeaux in general.
Plus, anonymous interviews are suspect in my opinion. Iâve read direct quotes from owners and negociants that agree EP as we know it is failing .
Please. Just as anonymous sources throw up questions (as well as sometimes serving the common good), so too does throwing shade on others without justification.
In the spirit of charity, care to elaborate on where and how the author errs?
Reading the article again, I canât see either where the authorâs view of EP is wrong, nor about Bordeaux in general, save perhaps the part about classification. The 1855 classification has been replaced, in real terms, by the marketâs classification for decades now, hence the fact that Lynch-Bages, for example, sells for higher prices than Desmirail, despite being only a 5th rather than a 3rd Growth. I donât think the public wonders about the logic of this, nor about the lack of any classification in Pomerol.
The only point which could have been explored further is the question as to what châteaux are doing with the 70% of stock unsold at EP in 2025. The unnamed source states that 2019 was the last successful vintage at EP, so even if they sold more than 30% EP between 2020 and 2024, which remains to be seen, what has happened to all that unsold wine? Most châteaux sell bottles to visitors, at higher prices than those found at retail, so as not to undercut the nĂŠgociants, but that can only be the tip of the iceberg. If only 20 out of 200 (her figures, but letâs say 220?) top châteaux on both LB and RBs are selling 30% at EP, thatâs a gigantic amount of unsold wine per year.
During visits over the last few years, I do recall some having collections of older vintages, and one or two with decent-sized stocks, but most of them simply donât have the space. With the previous success of EP over 40 years, why would they? As to the future, reconnecting with consumers raises lots of questions. Prices will have to fall - so do they undercut La Place?
It would be very interesting to know the views of nĂŠgociants. Very occasionally there have been unusually large batches of wine at auction in recent years, but nothing to suggest a fire sale and nothing special in shops nor on discount websites, so where is it all?
Thanks @Mark_Golodetz for sharing my interview!
Arenât the unsold leftovers from 2020-202x EPs seemingly with the negociants in Bordeaux?
Who until the interest rate hikes didnât have as much of a problem with it hoping for better times?
And until 24/25? refrained from not taking their allocations fearing being cut off in the future?
And wouldnât some comments be to not bite the hand feeding you or even being part of the problem?
The future will show, IMHO crue classĂŠ pricing on 24/25 levels going forward should further support a great QPR for Bordeaux and therefore help sales and allow the private chateaux to still live a comfortable life. The trend for elite / luxury good / veblen pricing did not help bordeaux drinkers as much as drive stock prices of large corps having invested in bordeaux chateaux, which as long as you arenât invested in their stocks should not be of much concern. The pressure on lesser chateaux is an issue but well, that is the same all over the world and not as much related to EP pricing / issues.
Grand Puy Lacoste did a multi format offer, and it was perfect for a gift to my great nephew. Very imaginative and fun. I donât think it will make too much of a dent, but thinking outside the box, putting together verticals and multiformat is a way to add some demand.
Because you asked âŚ
I donât have much interest in rereading the entire article. But a few points.
From the opening paragraph, though this is an opinion having tasted EP for 20 years, the overwhelming majority of samples usually end up showing better in the bottle after barrel tastings. Economically, it might have been a bad buy, but most buyers if they liked the wine in barrel they were not disappointed in bottle.
The place de Bordeaux was never a guarantee on the final selling price, up or down. The market will find and set the price. The purpose of La Place was as a bank for the chateaux as well as instant access to the world market at an economical price.
Today, other than the First Growths, very few consumers care about the classification. It doesnât need an explanation because itâs the market that decides the price, thatâs why you see some Fifth Growths selling for more than Second Growths.
As for the ability for chateaux to hold back stock, itâs not so easy. Every estate does not have the ability to do that. For example, vineyards owned by insurance companies or very wealthy individuals can do that, as the cash flow doesnât matter. But an estate thatâs the sole business for the family will never be able to finance that over an extended period of time.
Chateaux will not be able to sell into the open market. Yes, a few smaller estates do, But if they rely on La Place, and the Negociant system, under cutting a long term buyer of 50-100-200 years is going to make the estate an unreliable partner. At least with Bordeaux. They can reduce prices vintage to vintage, which is not something most wine regions can do.
There are numerous other issues in the article. But hopefully you get the idea. FWIW, there are a few points I agree with as well.
Also, I stand firm on the lack of value in anonymous interviews.
Jeff,
We may be talking apples and oranges. A Classified Estate of 100+ acres, with the taxes, high production costs and often extended family demands on cash can be in a very different situation from a 25 - 50 acre family farm, paid off generations ago, on far less valuable land, with much lower production costs. I gave the example of Verdignan, I know there are others. For entry level Bordeaux, this is not an option as there is no demand for their aged wine. But for upper-mid level properties this could be a way to build interest and a long-term loyal clientele. As a consumer who loves these wines, the value equation is irresistable. I would think such a property could also cultivate a profitable restaurant business.
Hey Dan
True. But the number of large family owned vineyards is quite small these days. And those large estates are generally the wines a majority of consumers focus on. Properties in Pomerol, St. Emilion, Pessac Leognan and Sauternes for the most part will not be able to afford to hold stock for years, especially with high interest rates.
What I also think gets lost and is a real selling point (not EP) is that Bordeaux still offers unrivaled quality in the sub $100 and sub $50 dollar range with loads of availability. Especially when compared to what has happened in the Burgundy market where even the âmehâ middle wines have pushed well north of 100 and even 200 dollars and are hard to find. That seems to drive that burgundy market place and I have tapped out of that chase and have gone back to bordeaux because of the pleasure and quality they bring at a price. Bordeaux futures did convey an exclusivity tied to smart marketing and therefore bestowing on the savvy buyer a sense of cleverness â look I bought this wine for $50 EP, now itâs $100 upon release. Again all made up scarcity and opportunity. Those days in my limited understanding of market forces are over for the most part.
Itâs about moving stock and IMHO Bordeaux needs to exploit the high quality and affordable wines of these recent vintages. I thought this conversation got at some of these issues in a thoughtful way.