Bordeaux en primeur ‘didn’t go far enough’ with price cuts

The 2023 Bordeaux en primeur campaign “didn’t go far enough” in cutting prices, a new report from Liv-ex has said, despite many of Bordeaux’ estates making “a small step towards a healthier system”.

As already reported, the average drop in price this year came in at around 22.5% lower than last year’s average – somewhat lower than the 30-35% that was demanded in the run up to the campaign’s launch.

Within this however, lay a large span of percentages, from Léoville-Las-Cases’ early release at -39.5% down from last year and the -40% offered by Château Figeac on the final days to the campaign to the far less generous -6.7% ‘reduction’ offered by Château Pape Clément 2023 or the-8% of Château Duhart-Milon.

Although the overall price drops for the 2023 vintage suggested “some level of commitment” to the en primeur system, and marked a “small step towards a healthier system”, the slow sales suggest that “the cuts did not go far enough”.

For as Liv-ex pointed out, the net result was actually an average price increase of 20.8% compared to 2021, and the 2023 vintage appearing to be around +2.8% higher than the average current* prices of the previous ten vintages.

“When last year’s overpricing and recent market conditions are considered, this year’s price drops are negated overall,” the report said.

Commentating on the report, Justin Gibbs, Liv-ex’s deputy chairman and exchange director said the reductions had represented “an olive branch to those who have supported Bordeaux over the years but who have increasingly reaped little reward”.

“While the price cuts were a step in the right direction, what the market needed was a leap. For En Primeur to be sustained, a new committed collector base will need to be found – and that might well require a price reset.”