Unsold US fine wine stock returns to Bordeaux

Fine wine producers have been busy buying back stock from Diageo Chateau & Estate Wines since the US importer decided to cease purchasing Bordeaux and sell off existing stock.

The likes of Gruaud Larose and Pétrus have been acquiring unsold wine to prevent discounted cases undercutting prices set by rival suppliers.

According to AFP, in late December, 2,700 cases of Gruaud Larose, going back 15 vintages, returned to the cellars of the château.

"When it was official that DC&E was stopping everything and going to sell off its stock, immediately we were in contact,” Jean Merlaut, owner of Château Gruaud Larose told the news agency.

"We said that we wanted to buy back our wine that they still had in stock."

Other estates such as Pétrus, as well as Greysac and Simard have also reputedly bought back stock.

Meanwhile, North American wine merchants have bought vast amounts of discounted wine from DC&E and two competing Bordeaux specialists have emerged to take on the supplier’s cru classé customers.

Joanne Bordeaux USA began trading on Monday this week having bought large quantities of DC&E’s stock, while La Compagnie Médocaine is due to start business on 1 March, also having purchased substantial amounts of DC&E stock and apparently formed a partnership with US fine wine specialist Frederick Wildman.

Back at DC&E, the fine wine importer and supplier has received its last shipment of Bordeaux – the 2007 vintage – which it will begin selling on 1 March.

As for fears the DC&E sell-off will destabilise the global fine wine market, The Fine Wine Fund noted in a recent market report that the impact would not be widespread.

DC&E’s attempt to liquidate US$28 million (£16.8m) worth of fine wine stock it said "is very much a local issue.”

Patrick Schmitt, 04.02.10