The press and trade that were invited to have a preview at the tastings organised between March 31 and April 4 have generally rated the wines better than predicted. But the negociants who really matter are the direct customers, who face a piquant situation as they are still stuck with the inventory of 2007 vintage which was difficult to sell last year when the global economy was in a better shape than today, the unfavourable currency exchange rates notwithstanding.
Most of them may have to take a loss on the 2007 inventory in order to buy the 2008 vintage; otherwise the bank financing may become very difficult too.
The option seems to be clear- either there has to be a substantial price drop for 2008 or the Chateaux can stick with higher prices-close to 2007 and sit out the sale till the economy gets better. Negociants generally would like to see a drop of around 30% on the much coveted first growths and up to 10% on the rest of the Bordeaux wines sold En Primeur.
Ronan Tremelot, export director of Cordier Mestrezat Grands Crus has reportedly said, ‘‘our customers won't buy if there's only a small drop in prices. The market is expecting a big drop in prices, down to 2004 prices, or even 2002. For chateaux which had preserved a reasonable pricing structure in the intervening years, without huge hikes, such a drop would not be an issue, he said. 'This will be the first time in a long time that some negociants refuse their allocations,' he added.
For the first time in a long time, the topmost chateaux including Margaux, Haut-Brion, Lafite, Mouton- Rothschild and Latour are expected to announce prices within two weeks, though there is no indication of the extent of fall in prices as of now. However an optimist chord was struck by Pierre Lurton, President of Château d’Yquem and Château Cheval Blanc who said, "We just have to be reasonable. We are going to be offering high quality wines at a low price. It will be our response to the crisis."
The 2008 vintage has turned out to be a pleasant surprise package-even for the producers. The timely September sun not only saved the crops but blessed them. The range and depth of quality has been impressive. There is depth in the tannins as well which means the wines will age better and last longer too. But the vintage is meant for self drinking and not speculation. Coupled with the fact that many of the firms selling En Primeur may go bust during the recessionary period, stalwarts like Philippe Castéja, President of the Conseil des Grands Crus Classés, and MD of Borie-Manoux, a family Négociant house since 1882, says matter-of-factly, ’the reason to buy wine is to drink it.’
"The quality of the wines is très bon. In 2008, the older the vines were, the lower the yield was. Never before have I experienced a late vintage which has produced such good quality wines, “ said Castéja.
Clarifying that the Conseil isn't involved in the pricing policy of its members he said, ”The market is always right. You can make a mistake in pricing your wines once, maybe twice but definitely not three times or more."
While one awaits the prices declared by the chateaux, one would be well advised to be selective in buying 2008 if the prices drop by 20-30%, but only for self drinking after a decade or more. Otherwise marketing of 2009 is going to be even more difficult for the Bordeaux producers.
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