Burgundy is facing up to its smallest harvest since the mid-1950s after the vineyards of the Côte d'Or suffered a mixture of frost, hail, mildew and poor flowering.

Price rises are inevitable because - unlike the last much-reduced harvest in 2003 - commercial stock levels are low for both premium and commercial wines.

Harpers understands that one major négociant has already informed French retailer Nicolas that provisional pricing will increase by as much as 35%, and bulk prices for entry-level Bourgogne Pinot Noir have risen 50% in recent weeks.

The Côte de Beaune was particularly badly affected, with hail impacting vineyards in Corton, Montrachet, Volnay and Pommard, among others.

"The quantity [of the crop] is historically small," said Jérôme Prince, a wine broker based in Beaune. "I've never seen that before. In the Côte de Beaune, it's a disaster for the reds because of the hail. I have a contract with a wine grower who is also a friend - normally he has 60 barrels, but this year he has only three."

However, producers are optimistic about the quality of red wines in particular, after a growing season characterised by small bunches and small grapes with thick skins.

"The reds are very concentrated, but without the lack of acidity we had in 2003," said Bruno Pepin, commercial director at Louis Latour.