Burgundy wine sales slump due to UK squeeze…
Burgundy wine has become the latest casualty of the financial crisis, with producers bemoaning a slump in sales to the UK.
Rather underlining that point and market move is the 25% discounting of 2006 Burgundies announced by one well-known importer into the US. Some might try to spin the message that it is due to the renewed strength of the dollar, but the strengthening is only 8% in the last calendar year (0.7 to 0.76 €/$) same as when they will have been negotiating 2006 prices, and exactly where it was 2 years ago. The discount is because the wines are not selling…
And from today’s Liv-ex report on fine wine:
Around 20%, sometimes more, has been knocked off the peak prices of Bordeaux’s leading labels – a result of both their high liquidity (they are the easiest wines to sell) and also, as reported in previous surveys, the fact their prices have increased the most in recent years
DRC, Krug and Grange overtake some of the cream of Bordeaux in the Fine Wine Top 100 Power List. Interesting reading…
There are 2 responses to “burgundy: a sales slump but still a ‘power’ boost”
Well this is an interesting article. In the year to September, Burgundy imports declined by 23% compared to the year to September 2007. Perhaps all this indicates is that British consumers were more interested in the 2005 vintage than they were in the 2006.
Philip – you are right – it’s far from rocket science. I think many were buying as before (until the real drop in October), but mopping up 05’s instead of buying the 06’s. Despite how pretty they are, it will only get worse with the 07’s.