European rush to snap up Bordeaux 09

Despite low allocations, Bordeaux Index has reported huge sales of the latest Bordeaux vintage as UK and European customers rush to grab what they can ahead of Asian buyers.

Bordeaux Index has sold £23 million of 2009 en primeur, and as a result the company’s H1 sales for 2010 have surpassed those from the whole of 2009.

However, results could have been even better if allocations from the châteaux themselves had been larger.

“We sold £15m worth of en primeur in June, but in reality we could have sold significantly more,” said Gary Boom, founder of Bordeaux Index.

“The stock goes from being allocated to sold without even hitting our website. We’ve never seen an en primeur campaign like it.”

Contrary to expectations, and in accordance with a great many fears, interest from Far Eastern buyers appears to have been minimal.

Only 10% of Bordeaux Index’s sales were from its Hong Kong office, whereas the private UK market took 60% of sales and 30% went to European or UK traders and investment groups.

Boom said: “The majority of buyers from the Far East are exclusively interested in the top estates – particularly Château Lafite – so they’re currently missing out on the en primeur frenzy as they won’t get allocated the stock unless they have purchased good amounts of the lesser classified growths.

“The UK has always had a massive relationship with en primeur so when the greatest vintage in the world comes out they’re going to buy it,” he told the drinks business.

Meanwhile, Farr Vintners claim to have sold just over 30,000 cases of 2009 en primeur worth £53m from both their London and Hong Kong offices.

Only 15% of Farr’s sales were in Asia, but those clients accounted for 40% of the value. Unsurprisingly, the likes of Lafite, Latour, Mouton Rothschild, Haut-Brion and Ausone were the biggest-selling wines by value – by virtue of being among the most expensive.

Smaller châteaux have also seen healthy sales, with over 50% of Farr’s stock now sold out.

The biggest disappointment for UK merchants so far is Yquem, which has only been bought by 20 people. Farr complained that LVMH was “deaf to all sensible advice” on pricing.

Tom Hudson, director of Farr Vintners, told the drinks business: “Despite the prices, people still want these wines and we’ve sold a lot more wine in the UK and Europe than in Asia.

“If European buyers think they can sell the wine on to Asia for a higher price when it becomes physical in two years time, that’s what’s driven the market.”

However, Boom said: “The UK has always been a great collector. At the very top end people are saying this is the 1961 vintage of our generation so when people are buying it they buying it to keep.”

Rupert Millar, 08.07.2010