OUTSTANDING VINTAGE ON THE WAY BUT ECONOMIC DEMAND COULD AFFECT PRICING

It’s looking to be the best wine harvest in Bordeaux since the fabled 2005 vintage, but according to leading fine wine merchants Bordeaux Index, the eventual release prices from the chateaux may be affected by the current economic climate and a lack of interest from the moribund American market.

Following a recent visit to Bordeaux, Oliver Sharp, associate director at Bordeaux Index, has little doubt that this year’s wine harvest will be one of the most successful in decades: “The weather conditions have been superb; hot days and cool nights in the run up to the récolte have delivered the perfect ingredients for gentle and extended ripening of the grapes, promising wines of fabulous aromatics and exquisite balance. Chateaux proprietors, negociants and critics alike are all looking forward to a fabulous vintage.”

However, as Sharp explains, the quality of the wines is one factor, the economic conditions in which the chateaux release their prix de sortie is quite another: “The pricing of the wines will very much depend on global interest in the vintage. Four years ago the build-up to the 2005 en primeur campaign was heavily hyped by Americans under favourable economic circumstances which, arguably, gave green light to the chateaux to release their wines into the market at unprecedented prices. However, today’s fine wine market has changed immeasurably; the current economic climate is much subdued and where the USA once ruled now the Far East is king. That, combined with Asia’s reluctance to buy into the en primeur culture, means high release prices even in a “miracle” vintage are not necessarily attainable.”

Sharp adds: “It is, therefore, very much in the interests of the chateaux to resuscitate interest from across the pond, something which, after bruising 2006 and 2007 campaigns and a punitive exchange rate, even the most optimistic merchant would agree is a challenge.

“Everything is pointing towards a wonderful vintage, but the real test will be the tastings in six months time. As for release prices, one can only speculate.”

For more information about wine for drinking and investment visit www.bordeauxindex.com or call the Bordeaux Index sales team on +44 (0) 20 7269 0703.