Forget 2011 Bordeaux Futures, Buy Wine in Bottles Now – Bloomberg

Château Ducru-BeaucaillouDelete. Delete. Delete. Of the 578 offers of 2011 Bordeaux futures that flooded Jamie Ritchie’s inbox one morning, most ended up in his trash file.

In mid-May, after doing practically nothing in the weeks that followed Chateau Lafite’s release of its en primeur price at 420 euros $519 a bottle on April 16, a 30 percent dip from 2010, thumb-sucking chateaux suddenly rushed en masse with their own offerings. Major players, like Ducru-Beaucaillou, still haven’t.

“All the merchants wanted a fast and well-priced campaign and we didn’t get one,” says Ritchie, president and chief executive officer of Sotheby’s Wine in New York, including its retail shop.

But didn’t the chateaux, including the famous first growths, reduce their prices this year? Yes, but discounts averaged just 15.81 percent off expensive 2010, according to U.K.-based Farr Vintners’ May 25 final Bordeaux report.

Most offers weren’t nearly enticing enough to kick start demand for a vintage that is very good but certainly not great like the 2010 and 2009.

Considering you can find older, ready-to-drink comparable vintages already in the bottle for similar prices, there’s little reason to buy now.

Consumer Apathy

“Customers are walking away in complete apathy,” says Gary Boom, head of London merchant Bordeaux Index, who expects to move only 10 to 15 percent of the wine he sold last year.Still, with the 2011 Lafite cheaper than any of its previous vintages on the market, he’s managed to sell more than 100 cases at 5,500 pounds each in Asia.

via Forget 2011 Bordeaux Futures, Buy Wine in Bottles Now – Bloomberg.

Strange Random Wine Quote:

… the odour of Burgundy, and the smell of French sauces, and the sight of clean napkins and long loaves, knocked as a very welcome visitor at the door of our inner man. – Jerome K. Jerome, Three Men in a Boat

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Posted on June 4, 2012, in Article and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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