French Bordeaux 2008 wines a bargain buy
August 15, 2009
Traditionally expensive Bordeaux yields high quality at lower prices during economic downturn
During a recession, even the longest-held traditions get re-examined. That’s what happened in Spring of 2009, when the French 2008 Bordeaux wines were released for sale to commercial buyers. Long traded as a futures commodity, Bordeaux wines from the Southwest region of France have been historically some of the highest-priced in the world, a darling of the ultra-rich, connoisseurs and wine speculators more interested in investing than in enjoying this crowning product of France.
But this year was different as a number of the most famous producers and wine traders slashed their prices by as much as 40%, hoping to breathe some life back into a staggering market. The global recession has hit all luxury good hard, but fine wines suffered terrible blows, since lower priced yet reasonable quality alternatives have always been available, not only from France but around the globe, including the US, Australia, Spain and Chile. This year’s Bordeaux wine producers priced their 2008 wines to compete in the global marketplace, something they have not concerned themselves with before. They did this as a survival tactic, but in doing so they took a great risk with their brand.
The spring futures sales relates only to a small percentage of the 800 million bottles the Bordeaux region produces every year, but the prices of the top 20 wines help determine the public perception of the quality of the vintage. And therein lay the fear inehrent in reducing prices. The more expensive the top 20 are, the better that year’s vintage is considered to be, even for the hundreds of more moderately priced Bordeaux wines, and even among those who have never tasted a drop of any of the wines. In 2005, these top 20 famously doubled and even even tripled their prices, making the wines exclusive and attracting affluent buyers. If the producers brought down the price, would the public perception of Bordeaux wines be damaged? If so, the short-term solution of making the wine more affordable could have long-term disastrous consequences.
But the wine gods smiled on Bordeaux wines this year, and help came from an unlikely source. Robert Parker, the American wine expert whose ratings system is both resented and feared by every winemaker in the world, unexpectedly gave his benediction to the relatively bargain-basement 2008 Bordeaux vintage. Fearing Parker’s reaction, many of the chateaux put their wines up for sale before his reviews came out, hoping that the lower prices would attract buyers ahead of any derogatory statement by “Million Dollar Nose” Parker. Business was promising but tentative. However, his review was positive, and apparently immune to any drop in quality others might impute to the 2008 vintage’s lower price tag. Then sales went through the roof as buyers scrambled to lay their hands on bottles with Parker’s stamp of approval selling at half off previous prices. Previously lukewarm importers came out of the woodwork to buy on futures.
But the real winner may be the consumer. Unable to afford fine Bordeaux wines for the past few years, this year’s fire sale on what turned out to be a very good year of Bordeaux wine will eventually make it to the tables of more people in France, across Europe and around the world. Now that people other than the super-rich will have a chance to actually enjoy the wines for themselves, producers are hoping that what started as an economic emergency strategy will build awareness and demand for Bordeaux wines among the average consumer.
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