Category: Bordeaux

The Fine Wine Market Expands to Further Heights

Recently reported, July proved to be a positive month for the fine wine market, due to an ever-broadening array of wines being traded.

Liv-ex states on its website that the number of unique wines traded on the exchange in the first half of 2020 was 37% higher than the same period in 2019.

These are wines marked with code known as an LWIN7, which identifies the producer or brand as well as a specific grape variety or vineyard associated with it.

The second half of the year got off to an even stronger start when the number of wines with an LWIN7 traded in July alone exceeded 1,000 for the first time, 20% higher than the previous record monthly high.

This is due to an on-going broadening of the market at the expense of Bordeaux. Although a vital component of the fine wine secondary market, Bordeaux’s share of trade has been in decline for some time now. January 2020, 46% of unique wines traded on Liv-ex were claret, but by July that figure was down 34%.

At the same time, while Bordeaux has seen the smallest growth in new wines traded, Italy, Spain and the Rhône are recording exponential growth; with unique wines traded up 154%, 153% and 127% respectively since January.

Wines from Austria, Germany, Chile and the Loire have also seen growth (from a small base) and added new and unique wines

Italy of course has been rising for some time now. In October last year it was noted that the number of Italian wines traded on Liv-ex had risen 1,500% in the last 10 years.

Italian wines were also excluded from the 25% import tariffs the US recently imposed on numerous EU produce.

Spain, a small player in fine wine, has seen the number of its unique wines traded rise to match those of the US.

Liv-ex  https://www.liv-ex.com/news-insights/

Source:  Liv-ex

France pours more aid as wine sector faces ‘Major Difficulties’

This week the government of France stepped up financial support for wine growers faced with a deep drop in demand after lockdowns closed restaurants and bars and U.S. tariffs curbed exports.

“The state will increase to 250 million euros its support plan to wine growing and we will request this aid to be distributed as quickly as possible because cash needs are pressing,” French Prime Minister Jean Castex said on Wednesday.

Castex made the announcement during a visit to the Menetou-Salon and Sancerre vineyards in the Loire region.

“The international situation, the health crisis, a drop in exports: our wine sector faces major difficulties. State support must continue and intensify,” Castex said on Twitter earlier.

France has already provided some support, but the wine industry has called for more action.

In April, the European Commission decided to support crisis management measures in wine and other agriculture sectors affected by the coronavirus crisis.

In May, France cleared a 140 million euro ($165.87 million)crisis mechanism to distill surplus wine into industrial alcohol to be used to produce hand sanitizers.

Then in June, the government unveiled an additional 30 million euros of support for the wine industry, including 15 million for the launch of a private storage scheme for two million hectolitres of surplus wine, an alternative to distilling.

In addition to the impact of COVID-19, France’s wine industry has suffered from U.S tariffs on imports imposed as part of the trade dispute between the European Union and the United States over aircraft subsidies.

Source:  Reuters

 

The CIVB (Conseil Interprofessionnel du vin de Bordeaux) to set aside wines from 2020 to reduce oversupply

At its AGM last week, the Bordeaux wine marketing council CIVB unanimously approved the introduction of a reserve stock aimed at “reducing the increase in marketable inventories of red Bordeaux and Bordeaux Supérieur appellations”. By adopting an amendment to the three-year trade agreement for 2020-2023, the CIVB is pursuing the objective outlined last year by chairman Bernard Farges, which is “to re-establish a balance between supply and demand for Bordeaux wines”.

“We are currently witnessing an imbalance in the market due to crop levels in excess of sales”, sums up Ann-Cécile Delavallade, head of the CIVB’s economic department. According to the statistician’s estimates, inventories of AOC Bordeaux should reach 2.2 million hectolitres during the 2019-2020 marketing season, which is a 21% rise in one year, before distillation is taken into account. Stocks of Bordeaux Supérieur are estimated at 1.05 million hl (+14%). “We are seeing an upward trend in stocks, requiring the introduction of regulatory measures”, stresses Delavallade.

The Bordeaux region will benefit from crisis distillation – 450,000 hectolitres are currently subsidized though an extension is needed. It will also cut its yields significantly in 2020, dropping to 50 hectolitres per hectare for Bordeaux, compared with 54 hl/ha in 2019. Nevertheless, the idea of introducing collective stocks is being viewed as a complementary measure. In practice, volumes set aside are “calculated on the basis of 2020 appellation applications: above 45 hl/ha for AOC Bordeaux and 43 hl/ha for AOC Bordeaux Supérieur, both within the limits of authorized annual yields”. This represents a 10% reduction in the immediate marketing potential of the two AOCs.

BARON PHILIPPE DE ROTHSCHILD APPOINTS ARIANE KHAIDA TO MANAGE ITS CHÂTEAUX WINES DIVISION

The Board of Directors of Baron Philippe de Rothschild SA has recently appointed Ariane Khaida to the position of Executive Director, Châteaux Wines – this includes: Château Mouton Rothschild, Château Clerc Milon, Château d’Armailhac, and Domaine de Baronarques. Effective July 1, 2020. Ms Khaida will also sit on the Board of Directors of Opus One, Chile’s Almaviva and Domaine de Baronarques in the Languedoc.

Born into a non-winemaking family in the Champagne village of Rilly la Montagne, Khaida spent five years working for luxury goods giant LVMH, two of them as the buyer of Louis Vuitton leathers, a role that saw her select skins all over the world.

In 2014 she was the first woman to be made the head of a major Bordeaux négociant house, running Duclot, owned by the Moueix family.

As the manager of leading Bordeaux merchant houses, Ms Khaida demonstrated her energy, her decision-making ability, her capacity for forward-thinking and her excellent knowledge of the world of fine wines.

She will succeed Philippe Dhalluin, who has decided to retire after more than 15 years as manager of the company’s estates and will relinquish his position as Executive

Director, Châteaux Wines on 1 July 2020.  In order to ensure the smooth handover of responsibilities within the Châteaux Wines division, he will continue to serve as Adviser to the Chairman until 1 December 2020, at which date he will leave the company.

“My family and I express our deepest thanks to Philippe Dhalluin for all his wonderful work. Over the last 15 years, he has taken Mouton Rothschild and our other family châteaux to an unprecedented level of excellence and reputation. He has also been successful in attracting and training the necessary talents to continue our unceasing quest for excellence”, said Philippe Sereys de Rothschild, Chairman and CEO of Baron Philippe de Rothschild SA.

Wine Technology:  Bordeaux’s first wine with augmented reality label revealed

Château Laffitte Carcasset has just released a new wine which, when viewed through an app on a smartphone, appears in augmented reality.

The wine, a classic 60% Cabernet Sauvignon 40% Merlot blend, is destined for the export market and pays tribute to a key figure in the region’s history.

Jean Lafitte bought a wine estate in ‘Carcasset’ in 1781, naming the estate after himself and passing it down to his children.

The 35-hectare estate has partnered with the SnapPress app and POSQA, a start-up that supports augmented reality projects, on the initiative.

The producer hopes it brings “young, connected consumers” to the brand, and also to Bordeaux.

Made from grapes sourced from the 2016 vintage, the wine was fermented in stainless steel vats before being matured in oak for 12 months, creating a wine that is approachable and “easy-to-drink in its youth”.

Eden Villages, owned by French businessman Pierre Rousseau, acquired a majority stake in estate in 2017. Since 1958 it had been owned by members of the Padirac family.

Upon acquiring Laffitte Carcasset, his first winery, Rousseaux said he would implement a renovation and restructuring project, drawing on his experience gained through running his company, which specializes in mobile homes and motorhomes and already deals in the wine tourism sector.