Bordeaux en primeur: high quality but too pricey?

Tastings of a few finished wines have confirmed that Bordeaux 2009 is an impressive vintage but talk of releasing labels at 2005 prices is concerning merchants.

“Far too much is being gambled on the Far East taking this vintage,” said Simon Staples, sales director at Berry Bros & Rudd, who spoke to the drinks business this week.

Having recently returned from a few days of tasting in Bordeaux, Staples said his initial and limited experience of 2009 was that the wines were “superb, sexy, generous and very pure.”

He further described the vintage as “a cross between 2005 and 2003: it is not as precise as 2005 but a little bit more flamboyant,” adding: “You might be drinking 2009 before 2005.”

As for the mood among the Bordelais, Staples described the chateaux owners as being “bullish” and “like stags rutting in the morning.”

In terms of pricing 2009 he said: “Unfortunately, because the vintage resembles 2005 in quality terms they are talking about 2005 prices.”

With the 30% depreciation of the pound versus the euro since the 2005 en primeur campaign, if 2009 release prices were set at a similar level it would be the most expensive vintage on record for UK merchants.

The expectation of increased Asian demand for the vintage is providing further encouragement to price the wines ambitiously.

However, Staples warned: “The interest in Hong Kong is only in the top five or six wines and all we’ve been selling over the last year has been Lafite, Mouton and Latour.”

He also questioned the potential impact of Robert Parker on this year’s pricing. “He was the only person on the planet who thought that 2008 was sensational – and it was better than we initially thought – but how can he upgrade 2009 on that.”

Concluding his discussion with db, he added: “Bravado aside, the market will decide what prices the wines will sell for.

"And it is such a generous year there are great wines sub £500 [a case] that mere mortals like us can drink.”

Elsewhere, Richard Brierley, head of fine wine at Vanquish Wine, told the drinks business of his concerns for the 2009 en primeur campaign.

“The US won’t be buying in force they were because of collapse of Diageo Chateau & Estate and then there’s Southern Wine & Spirits’ lack of position on this year’s en primeur," he said.

"So who will be buying? There is room to go back to traditional markets in Europe and new markets in Asia and beyond.

“But I’m still not convinced private customers in Asia buy en primeur – paying now and waiting over two years for delivery doesn’t suit their desire for immediate consumption.”

Summing up he said: “It will a drawn out campaign, tentative early on, with small first tranches, and plenty of jockeying. But frankly the châteaux owners are happy to be bringing the vintage to market this April rather than the last.

“And from a merchant standpoint, how much is still stuck in the distribution system will decide how much you can spend – it’s a good time to have lots of cash.”

Finally, Bordeaux Index has reported a record-breaking waiting list for 2009 Bordeaux, which it attributes to hype surrounding the vintage; the rapid rise in fine wine demand from the Far East; and the fact that people are looking to make unconventional investments as confidence in traditional assets declines.

“We’re seeing lots of first-time wine investors asking about this year’s en primeur,” said Bordeaux Index managing director Gary Boom.

“Many people are disillusioned with traditional investments, which have been hard-hit by the recession. The buzz around the 2009 vintage has led many people to consider investing in fine wine for the first time. This has been complemented by a huge surge in interest in fine wine from the Far East – particularly China – in recent months.”
 
Bordeaux Index added that in January daily orders for fine wine from China reached £500,000.

According to the wine merchant the threat of inflation in China is encouraging more to invest in the asset.

Patrick Schmitt, 18.02.2010