WSET Assignment - Past, present and future of the trade in Bordeaux fine wine

8/10/2019 WSET Assignment - Past, present and future of the trade in Bordeaux fine wine

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THE PAST PRESENT AND FUTURE OF THE

TRADE IN BORDEAUX FINE WINE

Bordeaux has a long-standing reputation of producing some of the finest wines in theworld, which was accompanied over the years by the creation and evolution of a uniquetrade structure. Some are praise it, some criticize it: it is undeniable that La Place deBordeaux, as it is often called, has been critical to the success, global recognition,quality and longevity of Bordeaux Cru Class wines.

In order to study this unique system, I will start by presenting and explaining this tradestructure and the distribution circuit of Bordeaux fine wines; a look into the past willthen give a thorough understanding of its evolution over the decades, which will help inanalysing and criticizing it in the third part of this report.


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1. The owners

By definition, Cru Class Bordeaux wine is produced by a vineyard, estate or chteau

included in a wine classification 1 . Three classifications have been published andremain of importance: the Official Classification of 18552 (both red and sweet whitewines from the Left Bank of the Gironde), the Official Classification of Saint-Emilion of19553(last revised in 2012), and the Official Classification of Graves of 19594. A CruClass is different from a cru in other parts of France (Champagne, Alsace,Burgundy), where it refers to a specific vineyard. In Bordeaux, it is an estate, a brand,whose name is frozen in a classification, independently of the vineyard plots attached toit.

Many wines are concerned by Bordeauxs unique trade structure, but the wines

produced at these estates are unique: their names have been known in Europe and theworld for centuries, and over time their owners have developed special relationshipswith all actors of La Place. These wines have become luxury products, selling atprices above 1,000 euros a bottle for some. They represent a small percentage of thetotal volume of Bordeaux wine, but are very important in terms of value and of theglobal image of the region.

In Bordeaux, unlike anywhere else, owners of fine wine producing estates areessentially production-oriented and do not have their own sales force, relying insteadon merchants to market their wines.

2. The merchants

The central actors of La Place are the merchants (ngociants), 400 companies incharge of bringing Bordeaux wine to market. They effectively market 70% of allBordeaux AOC wines, represent 80% of Bordeaux exports5, and have always had aprominent role in the trade.

Merchants are the salespersons of Bordeaux wines, selling to thousands of buyersspread all over the world wines from hundreds of estates on both sides of the Gironde.They also trade wines with one another according to stock capacities, contracts andspecific needs, forming an actual Place market on which wine changes ownership(while often remaining in a single storage place) before reaching its final consumer.

1Robinson, J. (2006) The Oxford Companion to Wine.Oxford, third edition2See Appendix 13

See Appendix 24See Appendix 35Cocks, Ch. and Fret (2007) Bordeaux and its wines.Editions Fret, eighteenth edition


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3. The brokers

The brokers (courtiers) are of historical importance as middlemen. A 1949 law 6defines these 100 professionals legal status and fixes the commission they take onevery sale (usually 2%, paid by the buyer). They cant buy wine for themselves, as theyare the most knowledgeable persons in the region, acting as advisors and passing oninformation between owners and merchants.

4. The buyers

Although Bordeaux has a history and reputation based upon foreign trade (with theUnited Kingdom, the Netherlands, and now China), France is the biggest consumer ofBordeaux wines, purchasing 58% of the total volume, half of which is distributedthrough medium and large grocery stores (supermarkets)7.

Table 1: Repartition of Bordeaux wines sold in 2012 (in volume)8

Exports represent in 2012 2,3 million hectolitres, for a total value of 2,3 billion euros9.Recent sales towards the European Union have decreased in volume, but have kept

steady in value, while consumption in the rest of the world has picked up at a fast ratesince 200910The top markets for fine wines are the United Kingdom and China, followed by HongKong, Switzerland and Germany, with important discrepancies between countries:China exports are defined by their volume while Swiss exports show a record average

6See Appendix 47CIVB (2013) Bordeaux wines 2013 press report Vintage 20128

Ibid.9Ibid.10See Appendix 5


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bottle price of 20!, and a colossal volume of fine wines in comparison to the small sizeof the country11.

5. The typical journey of a wine

It classically starts in the vineyard then proceeds to harvest, vinification and maturationin oak barrels (typically for 12 months). The best lots are selected at any stage of thisprocess to make the grand vin, while the lesser quality wines will be assembled into asecond or even third wine.

In April of the following year, the en primeur campaign begins. During one week,merchants, buyers, journalists and critics are invited to the chteaux to taste the latestvintage, still in barrels. At that stage, the showcased blend can be final or provisional,with the final blending made just prior to bottling.

Following the tastings, each owner gradually releases their wines over a few weeks ormonths: the owner announces a price and a volume (all or part of the vintage, called atranche), communicated to the merchants via brokers. Each merchant is given anallocation or allowance (a specific volume they are entitled to purchase), anddecides if and how much they buy. Further tranches are later released, possibly atdifferent prices, until the total available volume has been sold.

Merchants sell to buyers (distributers, retailers), who in turn offer the primeurwinesto the consumers, making the wines available to end consumers as early as thesummer following the harvest. However, the wine remains at the estate until the end ofmaturation and bottling, wherefrom it is shipped either to an intermediary or to the finalpurchaser. In the meantime, only virtual ownership of the wine changes hands, ascash flows go from one buyer to the other.

11See Appendix 6


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1. The birth of Bordeaux

Bordeaux fine wine history dates back from the English ownership of Aquitaine, from

the marriage of Alienor dAquitaine to the future King Henry II in 1152, until the year1453. Its unique position and free trade with England made Bordeaux the biggest portin Europe.For decades, exports of Bordeaux wines benefited from a monopoly: no shipment couldleave the Gironde further down the estuary, and inland shipments were blocked untilNovember 11 each year, preventing them from reaching England in time for Christmaspeak season.In the 17thcentury, demand for fine wines led to quality improvements and the birth ofsuperior claret, which sold up to 4 times the price of ordinary wine12.

Englands taste for Bordeaux claret guaranteed steady demand and gave birth to aunique trade structure, where foreign merchants stored, sold and shipped the winesbought trough brokers. The brokers were of particular importance: they had extensiveknowledge of both production and demand, giving each party thorough information andaccurate advice the whole year long, and guarantying honesty and respect of contracts.First appointed by local lords (seigneurs) to act as interpreters and guide negotiation,their role was reinforced in 1680, when a royal decree compelled owners andmerchants to trade exclusively via them13.

2.

La Place: the crucial role of merchants

Yet for centuries, the merchants have been the real masters of Bordeaux. Bothngociantsand leveurs, they had various roles:

- Selling and shipping of wine to wherever it was wanted and drunk (fromEngland to the United States);

- Storing the wine in their warehouses, since cellars at the chteaux were nearlyimpossible to build in the Mdocs rocky soil;

- Blending and adjusting the wines to the customers taste (Travail lAnglaiseinvolved blending with stronger wines from Spain);

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Bottling thus labelling the wines.They were mostly foreign merchants, with strong relationships with customers abroad,located Quai des Chartrons, just outside of Bordeaux, hence their nickname: theChartronnais. Part of Bordeauxs aristocracy, they gained more power after the FrenchRevolution and the Napoleonic wars: while the chteau owners had lost their propertiesduring the revolution, the merchants were able to lease the vineyards or take long term

12Faith, N. (2005) The Winemasters of Bordeaux The Inside Story of the Worlds Greatest Wines.

Carlton Books Limited, second revised edition13Anson, J. (2013) Bordeaux Legends The 1855 first growth wines Chteaux Haut-Brion, LafiteRothschild, Latour, Margaux and Mouton Rothschild. Stewart, Tabori & Chang


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contracts to keep their wine supply. Moreover, thanks to their business relationships,they quickly recovered from the war against England and gained back this market.The middle of the 19thcentury saw merchants becoming of greater importance: in 1847,Herman Cruse speculated on one vintage, buying all of it and making considerablegains which allowed him to purchase chteaux on his own. Merchants like Guestier andBarton later followed him by buying respectively Beychevelle and Langoa14. In 1855,along with the Chamber of Commerce, merchants drew the official hierarchy of winesthat we still know today: based exclusively on price, without any tasting orconsideration for vineyards and villages.

Bordeauxs history is cyclical: periods of prosperity (1855 to 1875 for example)followed by times of crisis and recession. Yet La Placeguaranteed economic balanceand overall prosperity. When markets were closing (US Prohibition, Russianrevolution), the Chartronnaisfound new openings (in the 1920s, Cordier was the firstin focusing on the French market15). When production was in peril (oidium, mildew,phylloxera), they survived thanks to their stocks and ability to quickly react to theeconomic environment.

3. A shift in power from merchants to owners

It started in the early 20th century, when fraudulent wines appeared (Mdocs fromCalifornia at the 1900 Paris exhibition) and a way to control the quality and honesty ofwines was sought. The first answer was the appellation system aimed at ensuringquality, along with the formation of Fraud Prevention Squads. The second was thereinforcement of brands and chteau-bottling, in order for owners to regain controlover their own wines (the 5 Premiers Crus Classs agreed on chteau-bottling in192616).

Bordeauxs history remained cyclical: the 1930s economic crisis was followed byprosperity and more power to the owners after 1955. Demand for fine wines increased,with the United States importing more in value that the UK in 195917, while productionlevels were still low after the winter freeze in 1956. 1961 was another tricky vintage:owners had sold sur souche (before grapes were harvested) to merchants, and a latefrost meant that orders could not be fulfilled.

The definite power shift started in 1969: chteau-bottling became compulsory, theChartronnaishad to find a new role and they gradually went from ngociants-leveursto mere salesmen. Owners became increasingly greedy; the 1970 and 1971 vintagessaw a quick escalation in prices. 1973 marked a shortage of AOC wines whilemerchants had sold already at inflated prices: when the time came to ship, they had no

14Faith, N. (2005) The Winemasters of Bordeaux The Inside Story of the Worlds Greatest Wines.Carlton Books Limited, second revised edition15

Ibid.16Ibid.17Ibid.


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other solutions than to buy at loss and deliver, or fail to deliver entirely. This periodculminated with the WineGate, one of the biggest wine frauds France has known. Thebusinessman Pierre Bert used the merchants need for claret to make 4,7 million francsprofit in only 4 months, passing ordinary red wine as AOC with false coupons via thecompany Balan et Cie. Close to 30,000 hectolitres of fraudulent wine was sold (morethan the total fraudulent volume uncovered in all of 1972 in France18). This scandal ledto a highly mediatised trial19that ended in the condemnation of Bert and the merchantCruse, and a purge of the trade.

However, the region went back to shape in 1975, with a newfound prevalence of thedomestic market (exports had hit a low after the Winegate and the global oil crisis).These years are said to mark the end of the old system20: the formerly rigid tradestructure transformed into a more complex and flexible network of relationships.

4.

The new deal

Since 1978, Bordeaux fine wines have known another period of prosperity, combinedwith speculation, which transformed La Place into a stock market. The Chartronnaishave lost their grip on the market; merchants now need a critical financial strength tobe major players. As a result, only 30 companies make 70% of the trade 21.

En primeuris at the heart of the system, with annual campaigns leading to speculationand considerable price differences from one vintage and one estate to another. Recordprice levels were hit with the 2005 vintage, with some chteaux doubling their pricesand an average increase by 68%22. However, in poor vintages like 1997, no-one iswilling to lower their prices.According to Stephen Brook23, these price variations benefit either the owner or themerchant, often both, but are never in the interest of the consumer.

18Ibid.19Bordeaux: whats behind the Winegate trial.International Herald Tribune, October 241974#)Faith, N. (2005) The Winemasters of Bordeaux The Inside Story of the Worlds Greatest Wines.Carlton Books Limited, second revised edition#"Cocks, Ch. and Fret (2007) Bordeaux and its wines.Editions Fret, eighteenth edition22

Anson, J. (2008) Thoughts on en primeur pricing. Wine Pages#$Faith, N. (2005) The Winemasters of Bordeaux The Inside Story of the Worlds Greatest Wines.Carlton Books Limited, second revised edition


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1. A unique environment

History demonstrates that Bordeaux is unlike any other wine region in the world. The

English, the Dutch and foreign merchants shaped its trade structure over the centuries,through times of recession but also great periods of prosperity.Bordeaux fine wines are unique: they combine large volumes with worldwiderecognition and sales. Contrary to AOC wines, they are not consumer goods, but luxuryproducts, compelled to the highest quality standards, considered by many as aninvestment, prone to heavy speculation and fraud. As such, they require a unique tradestructure, closer to a stock exchange than to a classic vertical distribution network.

2. The perfect stock market?

La Place is an extremely reactive structure that has survived centuries of ups anddowns. It is a wine stock exchange, with the ability to deal with whichever economicsituation may arise, thanks to internal movements and self-regulation. The networks ofmerchants, brokers and owners are flexible enough to create a padding protecting thetrade from external shocks (vintage variations, market fluctuations, booms andcrises).In finance, the portfolio diversification theory states that diversifying assets is essentialon a stock market: when a stock price is falling, another one is bound to be increasing.In order to make an overall profit, one needs to invest in as many different andunrelated stocks as possible. Relating to Bordeaux fine wines, it can be achieved withseveral chteaux, several appellations, along several vintages, for an optimal result.

For owners, selling through La Place is similar to having 400 sales representatives allover the world, always listening to each and every potential customer. It can cater to thelong tail of customers in need of small quantities, which could never buy directly froma producer, but also to the long tail of producers, who find a clear and easy road tomarket.

Technically, one could argue that big luxury brands dont need this trade structure:should they want to leave it, they only need a few commercial assistants to record andkeep track of the incoming orders and allocations (similarly to luxury-like houses inChampagne). Still, equilibrium remains. Relationships in Bordeaux are the result ofdecades, even centuries of trade, exchanges and family ties. Deranging the status quomay prove more harmful than profitable.

Finally, while owners and merchants both dream of increasing their share of the cake,brokers are compelled by law to remain neutral. As such, they act as guarantors ofgood and fair trade.


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3. En primeur

While the trade structure looks strong and well-adjusted, en primeur is morequestionable. The campaign is the start of a heavy speculation cycle, with winesdoubling their value or even multiplying it by 6 within a mere 4 years (on the 2005vintage, the average return on investment during the first 4 years was superior to 10%per year)24.

Buying en primeur is based upon unreliable evaluations of the wines: tasting samplesare prepared in March, when the malolactic fermentations are barely done and winesare far from being ready for consumption. According to each owners ethics, the finalblending will have been done, or may be postponed to just before bottling while analmost final blending is showcased (Pavie reckons that the sample is 95% true to thefinal blending)25. Other chteaux may blend just the quantity needed for the tastings,showing a distorted view of the vintages quality.

A few decades earlier, en primeurwas useful to attract incoming cash flows and financeowners and merchants. Wealthy buyers incurred the cost of storage for a year or moreby paying for the wine in advance, in exchange for a return on investment (when enprimeur prices are below market value). Today this need for early money hasdisappeared. Moreover, market speculation means that, since 2006, it is no longerfinancially interesting to invest in Bordeaux primeurwines: out of the last 7 vintages,only by purchasing 2008primeurswould one have made a profit26. Eventually, ChteauLatour announced its leaving en primeur(but staying in the trade structure) in 201227,arguing that they should wait until the wines are ready to drink, proving furthermorethey dont need the early cash flow.Reason suggests that the buying frenzy should stop and en primeur end, since datashows that the investment isnt profitable anymore. So why does it go on?In good vintages, buyers all hope to make a profit on their investment, be it within 3, 5,10 or 20 years. They are confirmed in this intuition by the press and the largemediatisation of the event, resembling an annual region-wide months-long show. Butthe 2013 vintage is the worst Bordeaux has known in 15 years: it was a challengingharvest, now it may be an even more challenging en primeurcampaign.

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24See Appendix 725

Anson, J. (2014)2013: The vintage that nearly wasnt. New Bordeaux, February 6 201426See Appendix 827Anson, J. (2012) Chteau Latour to leave en primeur system. Decanter, April 16 2012


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Nicholas Faith sides with Churchills vision28: the worst form of [government], exceptfor all those other forms that have been tried from time to time 29. In my opinion,Bordeaux trade structure is first and foremost very astute and ingenious, and a

necessary evil, protecting its players both from the greed of each other and fromexternal threats. However, sensible economic and financial reasoning leads to seriouslyquestioning en primeurand its on-going appeal to buyers all over the world: the 2013campaign will definitely be one to follow very closely.

28

Faith, N. (2005) The Winemasters of Bordeaux The Inside Story of the Worlds Greatest Wines.Carlton Books Limited, second revised edition29Winston Churchill, House of Commons speech on November 11, 1947


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BIBLIOGR PHY

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Anson, J. (2013)Bordeaux Legends The 1855 first growth wines Chteaux Haut-Brion, Lafite

Rothschild, Latour, Margaux and Mouton Rothschild. Stewart, Tabori & Chang

Baraou, L. and Septime, M. (2010)The hidden side of wine.Franois Bourin EditeurOriginal title: La Face Cache du VinConsulted in its French original version

Cocks, Ch. and Fret (2007)

Bordeaux and its wines.Editions Fret, eighteenth editionConsulted in its French version

Markham, D. Jr. (1997)1855, A history of the Bordeaux classification.Editions FretConsulted in its French version

Faith, N. (2005)The Winemasters of Bordeaux The Inside Story of the Worlds Greatest Wines. CarltonBooks Limited, second revised edition

Ferrand, F., Markham, D. Jr., Van Leeuwen, C., Sarramon, C. (2005)Bordeaux Chateaux: A History of the Grands Crus Classes since 1855.FlammarionConsulted in its French version

Mothe, F. (1992)Beyond all shame One century of wine and trade in Bordeaux.Albin MichelOriginal title: Toutes hontes bues Un sicle de vin et de ngoce BordeauxConsulted in its French original version

Robinson, J (2006)The Oxford Companion to Wine.

Oxford, third edition.Online version and updated articles: http://www.jancisrobinson.com/ocw/Articles: Adulteration and fraud, Bartons, Bordeaux, Bordeaux trade, British influence onthe wine trade, Brokers, Classification, Cru, Cruse, En primeur, First growth, Investment inwine, Lurtons, Merchants, Moueix, Ngociant, Politics and wine, Sichel


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Agence France Presse (2011)China now the top export market for Bordeaux. South China Morning Post, August 1 2011http://www.crownwinecellars.com/doc/SCMP_08_01_2011.pdf

Anson, J. (2007)The Place de Bordeaux. Wine Business International, June 2007

Anson, J. (2008)Thoughts on en primeur pricing. Wine Pageshttp://www.wine-pages.com/guests/contrib/ja-en-primeur.htm

Anson, J. (2012)Chteau Latour to leave en primeur system. Decanter, April 16 2012

Anson, J. (2013)Millesima boycotts Latour for undermining en primeur. Decanter, March 21 2013

Anson, J. (2014)2013: The vintage that nearly wasnt. New Bordeaux, February 6 2014http://www.newbordeaux.com/documents/43.html#!en-primeur-2013/c197w

Bauduc, G. (2010)Bordeaux 2009 v 2008 v 2005: Comparing Points and Prices. Bauduc Bloghttp://blog.bauduc.com/2010/06/28/bordeaux-2009-v-2008-v-2005-comparing-points-and-prices/

Burtschy, B. (2012)En Primeur: the prices of the 2011 vintage. Le Figaro, May 7 2012Original title: Primeurs: Les prix du millsime 2011http://avis-vin.lefigaro.fr/primeurs/o30581-primeurs-les-prix-du-millesime-2011

Crochet, P.-Y. and Poussard, R. (2014)Classification of Bordeaux Wines: the guide that puts everything upside down. Sud-Ouest,March 7 2014Original title: Classement des Vins de Bodeaux: le guide qui met tout sens dessus dessoushttp://www.sudouest.fr/2014/03/06/classement-des-vins-de-bordeaux-le-guide-qui-met-tout-sens-dessus-dessous-1482714-713.php

Lawther, J. (2008)Bordeaux: Calling Time on Garage Wine. Decanter, April 11 2008

Unknown (1974)Bordeaux: whats behind the Winegate trial.International Herald Tribune, October 24 1974

Unknown (2013)Buying En Primeur: does it pay? The Liv-Ex Blog, December 5 2013http://www.blog.liv-ex.com/2013/12/buying-en-primeur-does-it-pay.html


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Prial, F.J. (1979)Wine Merchant Sichel Gives Vintage Wine Report.The Dispatch, Lexington, NC, May 231979, as found on Google Newshttp://news.google.com/newspapers?id=w5kbAAAAIBAJ&sjid=mlEEAAAAIBAJ&hl=fr&pg=7113%2C904303

Vizioz, B. (2013)Lavinia.fr booms en primeur sales. Press release, May 2013Original title: Lavinia.fr explose les ventes de primeurshttp://www.bvizioz.com/iso_album/communique_de_presse_lavinia_-_resultats_des_primeurs.pdf

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Official website Grands Crus Classs en 1855 Bordeaux, Mdoc & Sauterneshttp://www.crus-classes.com/Last accessed March 31 2014

Syndicat Rgional des Courtiers de Vins et Spiritueux de Bordeaux, de la Gironde et duSud-Ouesthttp://www.vins-bordeaux-courtiers.com/Last accessed March 31 2014

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CIVB - Conseil Interprofessionnel du Vin de Bordeaux (2013)Bordeaux wines 2013 press report Vintage 2012


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PPENDICES

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MDOC

PREMIERS CRUS (first growths)Chteau LAFITE-ROTHSCHILD - Pauillac. Chteau LATOUR - Pauillac. Chteau MARGAUX - Margaux

Chteau MOUTON ROTHSCHILD - Pauillac. Chteau HAUT-BRION Pessac

SECONDS CRUS (second growths)Chteau RAUZAN-SGLA - Margaux. Chteau RAUZAN-GASSIES - Margaux. Chteau LOVILLE LAS

CASES - Saint-Julien Chteau LOVILLE-POYFERR - Saint-Julien. Chteau LOVILLE BARTON - Saint-Julien. Chteau DURFORT-VIVENS - Margaux Chteau GRUAUD LAROSE - Saint-Julien. Chteau

LASCOMBES - Margaux. Chteau BRANE-CANTENAC - Margaux Chteau PICHON-LONGUEVILLE -Pauillac. Chteau PICHON LONGUEVILLE COMTESSE de LALANDE - Pauillac Chteau DUCRU-

BEAUCAILLOU - Saint-Julien. Chteau COS d'ESTOURNEL - Saint-Estphe. Chteau MONTROSE - Saint-Estphe

TROISIMES CRUS (third growths)Chteau KIRWAN - Margaux. Chteau d'ISSAN - Margaux. Chteau LAGRANGE - Saint-Julien. Chteau

LANGOA BARTON - Saint-Julien Chteau GISCOURS - Margaux. Chteau MALESCOT SAINT-EXUPRY -Margaux. Chteau BOYD-CANTENAC - Margaux Chteau CANTENAC BROWN - Margaux. ChteauPALMER - Margaux. Chteau LA LAGUNE - Haut-Mdoc. Chteau DESMIRAIL - Margaux Chteau

CALON-SGUR - Saint-Estphe. Chteau FERRIRE - Margaux. Chteau MARQUIS d'ALESME Margaux

QUATRIMES CRUS (fourth growths)

Chteau SAINT-PIERRE - Saint-Julien. Chteau TALBOT - Saint-Julien. Chteau BRANAIRE-DUCRU -Saint-Julien Chteau DUHART-MILON - Pauillac. Chteau POUGET - Margaux. Chteau LA TOUR

CARNET - Haut-Mdoc. Chteau LAFON-ROCHET - Saint-Estphe Chteau BEYCHEVELLE - Saint-Julien.Chteau PRIEUR-LICHINE - Margaux. Chteau MARQUIS de TERME Margaux

CINQUIMES CRUS (fifth growths)Chteau PONTET-CANET - Pauillac. Chteau BATAILLEY - Pauillac. Chteau HAUT-BATAILLEY - Pauillac.Chteau GRAND-PUY-LACOSTE - Pauillac Chteau GRAND-PUY DUCASSE - Pauillac. Chteau LYNCH-

BAGES - Pauillac. Chteau LYNCH-MOUSSAS - Pauillac. Chteau DAUZAC - Margaux Chteaud'ARMAILHAC - Pauillac. Chteau du TERTRE - Margaux. Chteau HAUT-BAGES LIBRAL - Pauillac.Chteau PDESCLAUX Pauillac. Chteau BELGRAVE - Haut-Mdoc. Chteau de CAMENSAC - Haut-Mdoc. Chteau COS LABORY - Saint-Estphe. Chteau CLERC MILON - Pauillac Chteau CROIZET-

BAGES - Pauillac. Chteau CANTEMERLE - Haut-Mdoc

SAUTERNES

PREMIER CRU SUPRIEUR (superior first growth)Chteau dYQUEM Sauternes

PREMIERS CRUS (first growths)Chteau LA TOUR BLANCHE - Sauternes. Chteau LAFAURIE-PEYRAGUEY - Sauternes. Clos HAUT-

PEYRAGUEY - Sauternes Chteau de RAYNE VIGNEAU - Sauternes. Chteau SUDUIRAUT - Sauternes.Chteau COUTET - Barsac. Chteau CLIMENS Barsac. Chteau GUIRAUD - Sauternes. Chteau

RIEUSSEC - Sauternes. Chteau RABAUD-PROMIS - Sauternes. Chteau SIGALAS RABAUD Sauternes


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SECONDS CRUSChteau de MYRAT - Barsac. Chteau DOISY DANE - Barsac. Chteau DOISY-DUBROCA - Barsac.

Chteau DOISY-VDRINES - Barsac Chteau dARCHE - Sauternes. Chteau FILHOT - Sauternes. ChteauBROUSTET - Barsac. Chteau NAIRAC - Barsac. Chteau CAILLOU - Barsac Chteau SUAU - Barsac.

Chteau de MALLE - Sauternes. Chteau ROMER du HAYOT - Sauternes. Chteau ROMER - SauternesChteau LAMOTHE - Sauternes. Chteau LAMOTHE-GUIGNARD Sauternes

Source: www.crus-classes.com - Conseil des Grands Crus Classs en 1855

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Source: Syndicat Rgional des Courtiers de Vins et Spiritueux de Bordeaux, de la Gironde et du Sud-Ouest http://www.vins-bordeaux-courtiers.com/

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Evolution of Bordeaux wine exports 2000-2012Total in volume (year to year volume in thousands of hectoliters)Distinction between global volume (in grey), volume for the European Union (in red) and for othercountries (in blue)

Evolution of Bordeaux wine exports 2000-2012

Total in value (year to year value in millions of euros)Distinction between global value (in grey), value for the European Union (in red) and for other countries(in blue)

Source: CIVB (2013) Bordeaux wines 2013 press report Vintage 2012


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Top appellations is the sum of all the following AOCs: villages of the Mdoc (Saint-Estphe, Pauillac,Margaux, Saint-Julien), Graves and Pessac-Lognan (both red and white), Saint-Emilion and Saint-Emilion Grand Cru, Sauternes and Barsac

Source: CIVB (2013) Bordeaux wines 2013 press report Vintage 2012

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Yearly increase rate has been calculated over 4 years, from 2006 to 2010(2005 enprimeurcampaign took place in 2006)

Average yearly increase rate 10,97 %Average 4 year increase 57 %

1 year FTSE 100 index 3,22 %3 year FTSE 100 index 3,83 %5 year FTSE 100 index 10,97%

Source: Bauduc, G. (2010)Bordeaux 2009 v 2008 v 2005: Comparing Points and Prices.http://blog.bauduc.com/2010/06/28/bordeaux-2009-v-2008-v-2005-comparing-points-and-prices/

Source of FTSE 100 index scores: Morningstar Index Performance indicatorshttp://news.morningstar.com/index/indexReturn.html


23/23

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In red: Average return vs London en primeurrelease price of each vintage from 1995 to 2012

In blue: Average release price of each vintage from 1995 to 2012, indexed on the 1995 vintage

Source: Unknown (2013)Buying En Primeur: does it pay? The Liv-Ex Blog, December 5 2013http://www.blog.liv-ex.com/2013/12/buying-en-primeur-does-it-pay.html

Documents

WSET Assignment - Past, present and future of the trade in Bordeaux fine wine