These chateaux have fixed the price for negociants at €200, with no recommended retail price. Most negociants are selling first growths with a mark up of 20%, at €240 a bottle.
Earlier, Chateaux Margaux and Latour had released their initial tranche at €240 both with a drop of 27% on last year's price.
But the Third Growth Chateau Palmer Estate from Margaux released their chateau wine at €114, down only 9% from its 2006 price.
Some of the other big guns announcing a drop have been: the Second Growths Chateau Pichon Comtesse de Lalande which dropped its price by 18% to €57.50 and Cos d'Estournel which was down but steady at €65- a drop of only 10%.
On the right bank, Valandraud declared last Friday, a resale price of €115; this is 17% below the 2006 price. Premier Grand Cru Classe Á', Ausone and Cheval Blanc have yet to announce their prices but delWine estimates a drop of 10-15% from 2006.
Says Jean Luc Thunevin of Valandraud, 'I told everyone else to lower their prices so I had to lower mine,' adding that there is demand for the first growths, but not huge as there is no speculation on them this year.'
He described the 26% drop as being adaptive to the market, adding that the prices were still very high. Reflecting on the unprecedented price increase of 2005 and '06 vintages he said, 'you have to remember that for an en primeur first growth of the 2004 vintage the price was €80. We are now at €200.'
Chateau Figeac, a Premier Grand Cru Classe from St. Emilion stood its ground and dropped only 7% to €49.30. However, the Pomerol property, Chateau Nenin had a free fall of 30% at €23.90
According to the report by Decanter, a Bordeaux merchant Jeffrey Davies, said an importer on the American west coast had told him he had never before seen such resistance to first growths from buyers and that the prices were still too high.
The best pricing example of this year's en primeur has been Ducru-Beaucaillou which was down 36%. Says Thunevin, 'I wish the rest had followed.' Incidentally Steven Spurrier, the famous wine critic and writer from Decanter has rated this wine 5 stars and it may be worth the investment.
Out of the first growths, Chateau d'Yquem has yet to make an announcement. Pierre Lurton was polite and firm when he told me during my encounter with him at the Chateau during the en primeur tastings that despite people not believing it, the 2007 vintage would age better than 2006 and even 2005. We expect that the prices for 2007 will remain hard and at the same level as 2006 or perhaps even slightly higher.'
The white wines of Graves are also expected to hold their prices steady.
It must be noted however, that due to a 15% devaluation of the dollar since last year, a drop of up to 15% will not result in a drop for the US consumer.
Subhash Arora
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