Bordeaux first growth prices fall as investors turn to Burgundy
- Details
- Published on Friday, 14 October 2011 11:49
- Written by Carol Emmas
Bordeaux prices have softened, but it's market diversification, not a "bursting bubble", says managing director Gary Boom.
Boom adds that a correction was inevitable. "This summer we saw investor after investor simply refuse to buy at those price points, instead they're expanding their horizons and looking for a variety of different wines to purchase."
"It's important to remember this is one part of a much bigger market.
"Our turnover is up almost a third on last year in spite of buyers turning away from established favourites like Châteaux Lafite and instead seeking wines that are offering better value for money."
"Just because Lafite goes out of fashion doesn't mean it's a burst bubble. It just means that there's not the demand for that particular wine at the moment - and other wines are selling well."
Boom says the proof of the market's diversification can be found in a massive rise of sales for the rarest and most premium Burgundy wines, and the ‘super seconds' Bordeaux wines.
"These wines are benefiting from renewed attention from Asia," said Gary Boom.
"Buyers from Singapore and China are definitely being more selective, with Domaine de la Romanée-Conti in particular is proving popular.
"We've seen a whole host of various DRC wines in all formats being snapped up like there's no tomorrow. If this level of demand continues, DRC may end up becoming ‘the new Lafite' in China."
Comments
Would growers such as DRC or, for example, Gaja, raise prices in similar fashion? Like almost all traditional European regions, such growers come from places rooted in small farming, rather than the business-like approach for which Bordeaux is perhaps unique in Europe.
I wonder if this culture and the known integrity of such producers with respect for their agents and markets may affect decision-making in ways different to Bordeaux.
There is, as is evident, a fair bit of conjecture to this position but it’s nonetheless interesting to consider.