BORDEAUX WINEMAKERS' FINANCIAL FUTURE AT RISK 

According to a survey initiated by local farming body, "La Chambre d’Agriculture de Gironde", in association with the Bordeaux wine trade federation, the "Conseil Interprofessionnel du Vin de Bordeaux (CIVB)", between 500 to 1,000 Bordeaux wine growers are said to be experiencing financial difficulties as poor market conditions continue to dog the sector. The CIVB says that while the upheaval in the sector could well lead to bankruptcies and the sale of properties, it is not possible to put a figure on how many businesses risk going to the wall. "One just has to see the current (low) level of bulk wine prices to recognise the financial plight that some growers must be in" according to a CIVB official. The two industry groups, along with other local partners, have set up a support framework for Bordeaux’s struggling wine-growers in the form of business advice 
and technical help. (Source: Stuart Todd - Just-drinks.com)

CHRISTIAN MOUEIX AGAINST EXCESSIVE OAK TASTE

Speaking at a recent dinner in London, Christian Moueix, owner of Château Petrus, and several other leading right-bank Bordeaux Châteaux, has spoken out against wine producers in Bordeaux and Spain who are taking crop-thinning to extremes and producing wines that are super-concentrated but ‘unbalanced’ and ‘undrinkable’.

Moueix said: ‘One of my big criticisms of modern wines is that they are very difficult to drink. There is a tendency now in Bordeaux and Spain towards extreme crop-thinning – leaving only three or four clusters on the vine. The result is wines that perform well in tastings but are undrinkable.’ He concluded by warning: ‘Don’t drink modern wines’. Moueix also hit out at the practice of excessive oak-ageing. ‘The public thinks that when wine tastes of new oak it is a better wine. Oak for me is an off-taste in the wine. 

When you taste a wine you should taste fruit’. He continued by saying that the crisis in oak barrel production is a good thing for wine production, as it will force many producers to curb their enthusiasm for new oak. ‘I am pleased about the crisis because it will make the wines better if producers are obliged to age their wine in barrels that are two or three years old instead of new oak. An excess of new oak is a very wrong approach’. 
Source: Josie Butchart - Harpers-wine

BORDEAUX POINTS OUT LOW PRICES 

By comparison with the very high prices for the much-hyped 2000s, and probable high prices for the 2003s, those from the two intervening years look increasingly attractive. Parker’s belated review of the 2002s has not greatly inflated prices, and the ‘elegant’ 2001s generally represent sound value. French negociants agree that 2001 was seriously underrated from the start, in the shadow of 2000, and that it still represents what Mr Seely from Barton & Seely calls ‘a serious buying opportunity’. Some tasters even expressed themselves more impressed by some of the 2001s than by the 2000s. Source: Neil Beckett -  Harpers-wine

FIVE WORLD RECORDS FOR CHRISTIE'S

Christie's in New York set five world auction records in a rousing Manhattan finale to a three-part sale of Château Latour wines consigned directly from the Bordeaux estate's cellar. Christie's made US$439,450 (including the 17.5% buyer's fee), selling 70 of the 77 Latour lots, all provided by François Pinault, who owns Latour  and Christie's. According to a spokeswoman, the house set the following records: 

“US$47,000, for a case of the 1928 vintage (a US$30,000 high estimate); US$41,125 for an impériale of the 1961 (US$25,000); US$35,250, for a case of the 1959 ($20,000); US$23,500 for an impériale of the 1924 ($8,500);US$19,975 for a case of the 1955 vintage ($10,000). The highest price of the Latour part of the auction was the US$54,050 paid for a dozen bottles of 1961 (US$30,000). ” Source: Howard G Goldberg - Decanter"

ANNIVERSARIES AT MOUTON

During the Vinexpo week, many of the top châteaux throw extravagant dinner parties for 
favored clients, friends and the press. The climax of the week is always the Fête de la Fleur, put on by the Commanderie du Bontemps, an association of estates from the Medoc, Pessac-Leognan Graves, Sauternes and Barsac. This year's Fête was held at Château Mouton Rothschild in Pauillac, and also celebrated the 150th anniversary of the winery's acquisition by Nathaniel de Rothschild, and the 30th anniversary of its elevation to official status as a First-Growth estate. Baroness Philippine de Rothschild invited nearly 2,000 guests to the estate; they included Bordeaux Mayor Alain Juppe, actress Catherine Deneuve and opera star Placido Domingo, who sang a tribute composed for the occasion. They enjoyed 1999 Château Haut-Brion blanc, 1996 Margaux and 1982 Mouton, extravagant fireworks and dancing far into the night. ( Source: by Bruce Sanderson - Winespectator)

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BORDEAUX WINES: THE FUTURE PASSES BY THE MAKING OF INDUSTRIAL WINES! 

President of Maison Sichel, a negociant's family Company created in the 19th Century and owner of 34% of Château Palmer, Mr Allan Sichel is a also President of the Union of the Négociants of Bordeaux. In an interview published in "Sud-Ouest", the most read local newspaper, Allan Sichel reviews the current hard times for Bordeaux producers and proposes some ideas for the future. "Five years ago, everything was going fine; at least, one thought so. No one only imagined there would be a lack of interest for our wines. But appealing alternatives with relatively cheap wines imported from the New World appeared on the market. And a number of other negative factors added to this situation: poor economic environment, tensions between France and the USA. Wrong marketing decisions have been taken in the past few years. With for result a serious drop in returns for almost all the appellations." Sichel also pointed that "in France, wine consumption at restaurants has dropped considerably... ". Questioned for the reason of this lack of interest, Allan Sichel thinks that: "The consumer wants to fulfill his dreams by purchasing Bordeaux wines. But, when he’s disappointed, the consumer will turn out to Australian syrah. This customer will probably not return to Bordeaux for a long while. It is true that our wines are in some cases of insufficient quality in all the regions, even in the greatest, and we have clearly lost significant market share. Everyone here is anxious; this is a major crisis for the industry." Talking about the surpluses of production: "We Have a potential of production of 7 million of hectolitres, and we have been selling on average only 6 million of hectolitres in the past few years. Therefore there's a one million hectolitres / year surplus we can't manage to sell! Our organisation has to find long-term solutions to this crisis. One possibility is to market a portion of our production without publicising the name of “Bordeaux” on the labels. We want to produce wines with the same wine growing processes that are used in several New World countries. In short, we want to be allowed to compete with foreign products in a fair manner by making industrialised wines!" But Allan Sichel also pleads for an improvement of quality: "more frequent audits of the properties, random visits from officials in the wineries, changes in harvest techniques etc. "There are plenty of new ideas coming out, but the industry still misses for a long-term plan." His forecasts for 2004 are pretty dull: "The market for Bordeaux wines will continue to drop in 2004. One should not expect a quick recovery from the difficult current situation. It will be necessary to fight to gain back some market share to other local wines (Languedoc, Rhône..). Rigorous quality control has to be implemented. Today, we feel ready to fight for having things changed. We need badly to reorganise the industry's structures otherwise it will just be getting worse in the future." Source: Didier Ters - Sud-Ouest

PERSE PULLS OUT OF PETIT-VILLAGE DEAL

Gerard Perse will not buy the Pomerol Chateau Petit-Village because of the moribund state of the en primeur market. The controversial entrepreneur – owner of Saint Emilion Châteaux Pavie, Monbousquet, Pavie-Decesse, Bellevue-Mondotte, Clos l'Eglise and another property in Cotes de Castillon – was set to buy the property for Euros 45m (£29m) in March last year. Source: 
BordeauxCentral

Vinexpo 2003: WINE EVENT FACES OBSTACLES

Vinexpo, the international wine and spirits trade fair held every other June in Bordeaux, generally seems as much a weeklong party as a business convention, with plenty of fine wine and fancy dinners. This year's edition felt more like an obstacle course. A global economic slowdown, exacerbated by a weak dollar, depressed attendance by 11 percent, compared with the 2001 edition. Those who did attend last week were battered by extreme weather; temperatures soared above 100 degrees Fahrenheit on Sunday, driving some exhibitors from their stands, while a freak tempest on Tuesday blew down a tent in Saint Emilion and sabotaged a black-tie dinner. Nevertheless, Vinexpo organizers reported that nearly 48,000 visitors attended the event, where they could sample products from 2,500 exhibitors from 44 countries around the world. Though the long halls were noticeably less crowded this year than in 2001, many exhibitors claimed they were satisfied with the results. Source: by Bruce Sanderson - Winespectator

BORDEAUX: A FEW STATISTICAL FIGURES..

* Proportion of revenues coming from the wine industry compared to the local farming activities: 83.4%

* Proportion of revenues coming from the wine industry compared to France's farming 
activities: 18.3% 

* Age of the vines based on total surface:
>30 years old: 27%
20 to 29 years old: 20%
10 to 19 years old: 28%

* Only 28% of the wine estates are larger than 20 ha

* Private wine growers represent 77% of the total production volume

* Out of 118000 ha of A.O.C appellation:
Merlot = 60000 ha (51%) 
Cabernet Sauvignon = 30000 ha (25%)
Cabernet Franc = 14000 ha (11%)
Semillon = 9000 ha (8%)
Sauvignon = 5000 ha (4%)
Petit Verdot (less than 1% of the total volume) is used by major Châteaux who use a significant proportion (3-5%) of Petit-Verdot in the final blend as a yardstick to the quality of their production. Recently, Haut-Brion has just planted some Petit-Verdot whereas historically they have had none. But only the most prestigious names can afford to lose part of the crop if it fails to ripen properly. 
Carmenère, Muscadelle, or Malbec varietals have almost disappeared from the upfront scenery during the second part of the 20th Century. Source: Direction départementale de l'agriculture et de la forêt en Gironde

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