Posted: Monday, 27 April 2015 10:54

Champagne Fetches Highest Averages Prices

According to a report published by the French BNP Paribas Bank, the French wines command an average price of €7 per liter while the world average is only €2.62 a liter (1 std. Bottle= .75 liters). Burgundy sells higher than Bordeaux at € 9.70 a liter, at an average of € 10.60. The higher prices fetched by French wines make France still the top wine exporter in the world by value though it is behind Italy and Spain in volume.      

Although the value of French wine is reflected in vineyard prices, Champagne vineyards are available relatively cheaper at € 1.2 million/hA compared to what the better areas in Bordeaux can sell- for as much as €2.6 million per hectare. The top sites of the legendry vineyards of Burgundy can cost as high as €10m/ hA although cheaper vineyards are also available.  Rhône can be available at a third of the price in Champagne though, at around €0.4 million. Here are the prices according to Valeurs Vénales (Market Price):

Outside France, vineyard prices can be high but not as high as in Burgundy, Bordeaux or Champagne. Here are some of the prices as reported in the Knight Frank Report and published news report compiled by Wine-Searcher.

New World vineyards are much cheaper although Napa Valley commands the highest average prices in the New World, a fact already well-known:

Although Indian vineyards have hit the roof at Rs.12.5-63 lakhs/hA ($20-100,000), they are still cheap compared to the other New World countries but compare with the Argentine vineyards.

According to the, Benoît Léchenault- head of agribusiness for the bank, says, ‘While the vineyard real estate market is still the province of an experienced clientele, it remains a highly attractive refuge value, both for French and foreign investors.’

Old World rules Supreme

Taking a wider view, the report emphasizes that Europe has managed to maintain its grip on world wine production and warded off the challenge of New World producers.  While newer wine-producing countries have increased total export volume by 48 percent on average over the past 20 years with Chile, Australia and New Zealand growing by 100 to 300 percent. However, Europe still produces 59 percent of the total wine produced in the world.

Europe is also the biggest consumer of wine, drinking more than half the global supply. This is despite that fact that consumption worldwide has fallen by 13.8 percent in the past 35 years.

The US, however, remains the biggest single consumer of wine by volume, having taken over from France last year.

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