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Random ruminations…

Random ruminations indeed, I seem to have very little that is burning in my mind that begs release.

Just a couple of market-related observations :

  1. The market for Burgundy has slowly returned to something equating to a sustainable business model – at least for the producers. There are still many wines from 2006-2008 in the supply pipeline, but with the 2009 vintage starting to grease the wheels of commerce, and no visible impact (yet!) attributed to governments’ austerity packages, there is optimism that even those less-stalked producers can pay their bills in 2011.
  2. hospices de beauneOne recent ‘failure’ for Burgundy was their attempt to energise the Chinese market towards Burgundy wines; at auctions in the region wild prices have been paid for trophy wines – including those of Burgundy – prices that reflected ‘face’ rather than sense, as many of the same wines could have been sourced through merchants at significantly lower prices.
    Some might say that the most cynical of marketing has so-far come from the Château of Bordeaux, and certainly the market in China has taken-up the baton of Bordeaux, but there is no doubt that last week’s Hospices de Beaune auction was a qualitative marketing match! Sale catalogues in Chinese, tastings in China and Chinese actors at the sale – well the latter in theory, the actor had to go home before the sale. Some sales were made in the region, but no great ground was broken.
    That was probably a good thing for regular buyers, as one less pricing spike in an ever-more bipolar market can’t be a bad thing. Overall prices were a little higher, helped by a record for the ‘President’s lot’ a 500 litre barrel of Beaune cuvée Nicolas Rolin – but the reds are anyway very promising.

Lastly; wishing you a good end to 2010 and an even better 2011 – may your glasses never be empty of good wine…

4 responses to “Random ruminations…”

  1. J W Pinxten

    Hi Phil, thanks for a great new issue of your Burgundy report, always interesting to read. I was wondering whether it would be possible to download the entire issue in a pdf format, which would come in handy when wanting to read the various articles off line? Thanks!

    JP

  2. Berry C

    How is it producers can’t pay their bills without the huge price increases iniated by the 2005 vintage? If 2005/2006 is the new pricing baseline that has to be hit to sustain the producers in the region then they have serious porblems as I am sure I am not the only person who will move on to other regions. The prices increases from 2002 to 2006 were enormous.

Agree? Disagree? Anything you'd like to add?