Bordeaux: the biggest joke in the wine world?

 
Norman Wisdom Laughing

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Something about the 2011 campaign told me that the Mea Culpas would come out this year – and I have a feeling I might be right. ‘We were arrogant,’ says Chateau Lafite MD Christophe Salin of last year’s wine pricing (and ‘timing’ – for which read ‘handling’).

And I think we can expect more of this in the run-up to the 2011 barrel tastings. Lots of hand-wringing and apologies and staunch, almost stoic, approaches to the current release. Yes, we behaved like greedy pigs, we’re sorry, we were shown the errors of our ways, now we can all look at the 2011 vintage with clean, clear, tear-dried eyes and tell the world that it needs to buy it. Fine, life as usual – only a little bit cheaper and with a bit more sober reflection.

But to those Chinese (I keep being told it was them that snapped up all the Bordeaux over the last few years but I’ll happily accept they weren’t the only dupes) and let’s also include all those billionaires, bankers and moneyed social pariahs from all continents, will you indulge me while I stick your noses in the H-word and rub you around in it?

The H-word is, of course, History. It’s out of fashion these days – and vastly underrated – but think about some of what the past now tells us:

1 - All this talk about Bordeaux En Primeur pricing reflecting the market is nonsense. If this year’s En Primeur campaign has already started with apologies, it isn’t because the Bordelais think that people will be less willing to part with stupid money for a bottle of wine, it’s because previous pricing has got them into a sticky and delayed situation. If – as lots of people used to claim – Bordeaux pricing (through the tranche system, etc.) simply adjusted to the market at the time of release, no one would be apologising and so publically self-flagellating in Bordeaux right now (see also John Kolasa’s bizarre ‘I have to follow the line’ statement – was that really passed by his bosses or was this a cry from the depths of the Bordeaux beast’s bowels?). No, this is happening because something from the past (ie. pricing policy) has come back to haunt them. Bordeaux pricing bears no reality to the real world – otherwise how could they be ‘arrogant’? And even if, in your tiny little mind, you think Bordeaux pricing reflects the market and is a perfect system, you surely must admit it’s quite clearly a very delayed system.

2 - Also think back to this time (and quite before) last year. Remember the Bordelais were already talking up the 2010 vintage. Not so this year. If one was exceptionally cynical, one might draw the conclusion that perhaps all this talk of past arrogance and inflated prices is only a ruse to sell a less-than-stellar vintage to an already bored/saturated market. But who would be so ungracious as to believe that?

3 - But it’s not just those in Bordeaux whose history we shouldn’t ignore. Look at the journalists and wine writers. They too are likely to re-hash a lot of this château-owner apologise-to-sell stuff. In fact I wouldn’t be surprised if a lot of stringent opinions about past Bordeaux pricing policy come out of the woodwork over the next few weeks (to be fair to some writers, concerns were already being voiced last year). At this rate, my past writings and rants on wine-life.co.uk will soon take on what can only be called the blandness of the self-evident. But attacking Bordeaux pricing policy a few years ago felt like the occupation of a lonely and disenfranchised minority. Sure, a lot of wine writers weren’t happy with the prices many châteaux were charging, but they weren’t doing anything about it. Some were even encouraging you to buy this over-priced plonk. If these Mea Culpas from the châteaux continue, expect it to sound like wine critics were on the side of the consumer all along – that they always thought Bordeaux pricing was greedy and were doing everything in their power to tell the consumer, to let him or her know, and to fight the good fight. As I have illustrated many times on my blog before, they weren’t – and if they start to make such pronouncements, they should be held to account. At the very least, many were complicit in their silence. And if, on the back of their previous huge points and ravings, you bought several cases of greedily over-priced claret from them, pray ask yourself what you think their job is and whether you should be following them.

I don’t think we should forget this notion of using the past to inform the present (and even the future) – and I’m not talking about this kind of glossy “we were greedy last year but let’s move on and try the sensibly priced 2011″. I’m talking about actually taking some lessons from it.

Paul Pontallier said Margaux 2011 was ‘excellent’. Which is fine – he can say that and mean it at the time – (so can journalists…Parker can distribute 100 points to wines a case of which is more than many peoples’ salaries and then later – or in some cases even at the same time – tell people it’s overpriced).

But if, say, these qualifications somehow change over time, you then have to ask how much importance is to be attributed to their words in the future. I, for instance, doubt Pontallier means 2011 is ‘excellent’ like 2010 was ‘excellent’ but that’s not really the point; the point is that while we would probably forgive him if he changed his mind over the next few months, we have to then ask why we are giving his pronouncements (if they turn out to be untrue) any credence now and in the future.

Bordeaux is now basically a joke – not funny ha-ha – but a travesty of the wine world. It’s a joke that everyone bar the person who buys the wine is in on. And all it takes to realise this is a half-decent memory, a questioning nature and a look at the facts. In fact, a longer-term memory tells you that this kind of thing happens in Bordeaux in almost perfect 10 year cycles. Some more regular cycles have taken on the regularity of tradition, namely that of wine merchants ask for a reduction in Bordeaux prices in the run up to En Primeur. Strangely, though, they still put the stuff up for sale.

A final point: I can be attacked (quite fairly and justly) along the lines of not understanding that in today’s ‘western’ society what something is worth is up to the consumer (a sort of ‘if they’re rich enough and stupid enough to buy it, let them’). I have a great deal of sympathy for this line of thought. However, if you want to stop speculation (as, apparently, lots of wine lovers do) you don’t do it by thinking (or even saying) these wines are too expensive while at the same time adding to their cachet by covering them in drooling press, gushing video interviews and slapping a huge score on them. No one has the excuse to be so short-sighted anymore.

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  • Sedimentblog

    Er…isn’t there still a quantity of 2010 unsold? How will the 2011 pricing affect THAT?

  • WineLush

    Boreaux is a market system, always have been since it never traded to Paris but always outside of France. While this run of prices the past 15 years is unprecedented, the market in Bordeaux will fall again as it has in the past. Their market swings every 20-30 years but China plans 100 years in advance unlike the western world, so as long as Bordeaux keeps their wine fashionable they won’t have any hard crashes like the Japanese where it nearly took Burgundy with it & caused the split of the house of DRC.

    • Dids

      The split in DRC with madam Leroy was an entirely different story in an entirely different passage of wine history between two very strong personalities. It does not compare at all with the Chinese appetite for Claret.

      At the end of the day one has to separate passion from business. We all have a passion for wine, but wine is a business, and when demand is high price is high. One has to accept market forces.

      I would stop short at calling Bordeaux a joke though. At the end of the day and what matters to us all is that the craft of winemaking goes on and gets better. Whilst is is correct in stating that the prices for wines at the top are perverse. This Chinese obsession for Claret has helped the Bordelaise. For instance wines like Batailley, though we’ve seen a 250% increase in it’s price from 2000 (£120IB) to 2010 (£295IB), we have also seen better wine being made, to the point where it has turned critics heads like Neal Martin.

      2011, will be an interesting EP campaign, a challenging vintage, low yields. But good wines will still come out of the vintage. Because at the end of the day, the Bordelaise do not have to throw the s**t into the fermentation vat and try and make as much wine as possible to pay the bills. Look at 2007, us cannot compare it to the likes of dilute vintages like 1992. Decent wine came out of the vintage (not earth shattering I grant you), but we won’t be returning to the days when we’ll turn our back on a whole vintage.

      Lets get back to being critical about the juice rather than the price. At the end of the day there will always be something that will fit the wallet. If you want to hanker after super seconds or the lesser names, then go in search of back vintages, there are plenty of bargains out there.

      On a final note and after the recent debacles of the Spectrum auction and the astounding prices reached in the Jayer auction in Hong Kong, how long before you’ll be deriding Burgundy for their pricing policies, which I think to be perfectly honest are comparable to current Claret pricing presently.

      • http://wineconversation.com Robert

        I do believe that Burgundy is, by its (volume) nature, a completely different story, and prices WILL rise if they become even more fashionable, but I doubt they will ever be quite as ‘speculative’ – markets require liquidity (strange word in this context) and there simply aren’t enough of these wines to make markets. They are expensive because they are hard to find, not luxury “brands”.

        I applaud wineries and regions that manage to create value added around their products that allow them to make money, including profits that keep businesses running and people employed … and marketers working … but there is something rotten at the core of this particular model which could discredit wine in general. We need to say something about that, not because of Bordeaux, but for other wineries and the market for wine in general.

  • http://www.simonwoods.com/ Simon

    “At the very least, many were complicit in their silence.”

    Or they were silent because they adhered to the ‘no publicity is bad publicity’ theory. As long as someone keeps churning out stuff like this, Bordeaux will remain in the limelight.

    • http://wineconversation.com Robert

      A good point Simon, but I am not sure this falls under that banner – I can’t imagine this will make the Bordeaux coffers ring. As you know, this blog has been very silent on Bordeaux as I personally did not feel I could add much on the debate, but Oliver is very passionate on this point and has a good track record of pointing out inconsistencies. I’m very glad to have him on board for occasional posts, and think that this view, in combination with other ideas that we like to explore normally on where ELSE to look, or how to engage, will add value to the wine business

  • AC

    lots of anger in this post – I am kind of baffled by that…

  • http://twitter.com/SauternesSteve Steve Webb

    The profits at some Bordeaux properties in the last 2 years are unbelievable and the profits made by some speculators in recent times have been spectacular. Unless you get rid of capitalism and a market system, however, this is not going to change, nor indeed will the inevitable boom and bust periods that come hand in hand with any investment commodity (which red Bordeaux wine now is).  Even scrapping the En Primeur system will not help.

    If we accept that market forces will continue to mean high prices for top red Bordeaux then I for one would like to see as much of these profits ploughed back into the region as possible.  This, I think, is where the real debate should be – how to best continue the improvement of wine making, support growers in up and coming areas and develop markets for more unfashionable styles like Sauternes.

    I would rather therefore see the chateaux owners profiting from their products than the speculators, provided they can use those profits responsibly.

  • Alastair

    Good post. For once in my life I was ahead of the curve. 
    http://www.alastairbathgate.com/2007/06/05/why-im-giving-bordeaux-2006-a-miss/