Primeur results 2009 Bordelais
Results of the primeurs campaign
new presidency, new strategy for the Bordeaux wines
Admittedly, by its gustative qualities and its ageing potential, the 2009 vintage is inevitable for the connoisseurs. But six months later, SommelierS International wanted to take stock of the Primeurs campaign with two influent -but discreet- brokers of Bordeaux... and, with the arrival of the new Chairman of the CIVB, to approach the new strategy of the Bordeaux wines.
Georges HaushalterApril, May, June, July...
The great tasters and international personalities of the wine world played their role of critics in the end of March. At the beginning of April, the brokers worked as middlemen between the estates and the wine merchants to draw up trends and to assess the demand. As advisers with these two families, their tasting qualities, their memory of the vintages and their knowledge of the markets have made these Bordeaux brokers become essential actors of the well-functioning of the sales, to the end, of a certain number of wines, though reduced compared to the global volume of Bordeaux wines (3 to 5% in volume and 8 to 10% in value depending on the vintages).
“The Primeurs system is complicated: the buyer creates the increase and the seller makes the fall in prices, contrary to the generally accepted idea... The important demand for this vintage of anthology, with a volume of production close to 2008, coupled with excellent comments made by the great tasters, has had an impact on the prices. We also witness a selection of first wines even more severe then in 2000.
The release prices that we noticed are based on the 2005 prices, with a bracket fluctuating between -10% to +10% or even +20% for châteaux which have a good qualitative repute, a good trade background and well-balanced, permanent relations with the merchants who distribute them.
It is true that the Primeurs week took place within a context of economic instability and that the situation remains poor. But the demand is strong despite a bit late campaign, although it is quite the same as the 2005 one by a few days. Each château is a special case. Some sold the 2005 a bit too expensive and had to be more reasonable in 2009. On the contrary, for others who were moderate in 2005, it seemed obvious they would rise their prices.
The 'great châteaux' on a very good vintage generally announce their price at the end of the campaign. The market can then realize before their release. This avoids to stifle the demand for the other wines by prices that could be too high. Or even to weaken some wines like, for example, a Château Léoville Barton 2000, released at a very reasonable price whereas at last the consumers paid it too expensive because of the intermediaries (cellars, importers, distributors...) who made high profits and speculated. A paradox of the Primeurs that can be noticed every year for some wines. It is interesting, for the great wines, to detect the interest showed by the demand and to have maximum of elements to fix their prices. Certainly there is something irrational when speaking about top ranked growth and great vintages. The American market, China and the European countries were present to purchase the exceptional 2009. Most of the great brands were selling well, even very well. The market is healthy, the business was made correctly. All wines were not sold out, as some released at a too expensive price compared to their habit. When they will be ready to be delivered, there will thus be good bargains. We are still astonished by some release prices never seen before, but the business was carried out.
In general, for several years ('06/'07/'08), the Primeurs have been focusing on about fifty brands. We are lucky to face big demand with the 2009. Those who know the values of our vineyard turn with pleasure towards less prestigious appellations, on the Left as on the Right Bank. The latter will benefit from the sale of part of their wines as Primeurs: some fresh air for their cash flow, with extremely low prices for the consumers. Some wine lovers will look after wines to speculate, like art enthusiastics. It is inevitable for the twenty most famous names, but they also are connoisseurs who take risks. The only advantage most probably, compared to the Stock Market... is that, at least, they will drink a very good wine anyway!...”
July, and Future... for the Bordeaux wines “Bordeaux demain”
On last July 19th, the Bordeaux Plan has been unveiled jointly by Alain Vironneau (ex-Chairman) and Georges Haushalter, just elected at the Presidency of the CIVB for a three-year mandate. The results of a year of hard work, associating different working parties, lean on an inventory and propose the necessary transformations to put the field back on its feet in the coming years, subject to the fulfilmement of the recommended reforms.
The survey shows a lack of competitivity that has been intensified by the crisis. Commercial performances short of the potential, as much in France as in export, and a brand that is deteriorating and does not play anymore the role of a point reference in terms of quality standard.
The CIVB wants to conquer its markets with high ambitions and positioning itself as “Bordeaux, the most beautiful wines in the world” (a mix of traditional, ancestral work, rigourous know-how, taste and style associated to a unique terroir).
On the Bordeaux wines pyramid, four groups are identified: the first is called “Art” and represents the wines sold for €20 or more; the second,
“Exploration”: €6 to €20. Then the wines classified as “Fun”: €2 to €7, and at last, the category “Basic” sold for €2 or less. The new strategy is based on the
“Exploration” and “Fun” segments (including rosés, Clairet, and light red wines, those produced by cooperatives that are going to gather) that should represent respectively 28% and 70% of the marketed volumes; the category “Art” is not a problem and moves in a special universe.
Regarding the catering industry in France…
The Bordeaux remains the most distributed wine in the catering and hotel industry (76% of the establishments present at least one Bordeaux wine) with 6.4 references on average. In the top quality restaurants, the number of references can be 3, 4, or even 5 times more important. The regional distribution remains problematic: the Bordeaux wines are very present in the North of France, Paris, and the Southwest. The middle and top of the range establishments are good prescribers for Bordeaux (restaurants with an average bill of €20 to €30 have at least 7 references on their list). Even if the decrease of attendance in restaurants mecanically leads to a decrease of wine consumption, we can assess that a good revival of the top quality and prestige catering and hotel industry will favour the sales of Top Ranked Growths of Bordeaux.
SommelierS International wanted to interview
G. Haushalter about the restauration sector especially:
“Our wines are more complex than average and we are thus going to reinforce our training programs in the catering and sommellerie schools in all countries. To help the operators of Bordeaux, we are going to multiply our actions to the key accounts of the restauration. We often suffer of the fact that the sommeliers think they already know the Bordeaux wines. But our diversity enables again and again discoveries among the 60 appellations, and especially in the middle of the range that offers a real pleasure/quality/price ratio.”
Consultations, consensus, dialogues will be favoured. The four brainstorming groups will keep on working on “the competitivity of the field”, “economic development of the brand”, “trade dynamics” and “running the field”. Considering the fact that the latter cannot play alone on the national and international scene, regional and national partners will be associated to this new strategy.
F. Varaine
Some figures:
(source CIVB 2009 -
Economy and survey department)
Bordeaux vineyard: 60 appellations: 117,500 ha (89% in red), 8,650 wine growers
Brokers: 96 brokers
Trade: 300 companies
Cooperatives: 40 cellars and 6 cooperative unions
Employment: 50,000 in Gironde
Marketing 2009: In 2009, the turnover was of €3.37 milliards
and €4.96 millions hectolitres of which 68% on the French market.
Export of Bordeaux wines
on the Chinese market: Core market between €2 et €6 representing 71%
of the volume and only 3% over €15.
Georges Haushalter…
He has family roots in Alsace and Gironde. Marketing man, after he studied at the ESSEC [business school], he made a career in food marketing at Procter, Pepsi, Besnier. Then in the wine field at Cordier, Jadot; and since 2002, as Managing Director at the Compagnie Médocaine des grands crus. In 2006, he takes over the Presidency of the Promotion Comittee of the CIVB, in 2008, of the Union des Maisons de Bordeaux and in 2010, he ads the hat of President of the CIVB.
Conseil Interprofessionnel
du Vin de Bordeaux (CIVB)
1, cours du XXX-juillet
33000 BORDEAUX
Tél : 33 (0) 5 56 00 22 66
Fax : 33 (0) 5 56 00 22 77
www.bordeaux.com
