BURGUNDY PRICES FALL AT NUITS

[Craig Camp]

BURGUNDY PRICES FALL AT NUITS

By Conal Gregory MW

Burgundy prices tumbled at the well-attended Hospices de Nuits auction on Sunday

23 March.

Nuits is France’s second most famous wine sale, after Beaune, held each

November. Traditionally, the Nuits auction has allowed the trade to assess the most

recent Burgundy vintage after its first winter of development. All proceeds go to

charity.

The red Burgundies made e439,800 for the 141 pièces, a fall of 11.94%, reflecting

both a disappointing year and anti-French sentiment over Iraq. The average price

was e3,119 per pièce. Only three white pièces were offered, realising e9,000,

a dramatic 31.82% fall.

The auction’s buyers came from Belgium, Germany, Japan, the Netherlands,

Switzerland, the UK and United States.

The Nuits auction also included an ‘exceptional’ parcel (Gevrey-Chambertin, Les

Champs-Chenys, Cuvée Irene-Noblet), which sold for e30,000 per pièce.

Eaux-de-vie to a value of e4,112 were also sold.

From Harpers

[britcook]

To help with the calculation a pièce is around 300 bottles of wine and at current rates 1 euro is about $1.06. The price drop might be good news assuming some decent stuff was made, certainly for our wine group as Conal sources the wine for it.

[Steve Plotnicki]

Okay so what does this mean to the price of Roumier Bonnes Mares?

[Claude Kolm/The Fine Wine Review]

Okay so what does this mean to the price of Roumier Bonnes Mares?

Auction prices have become increasingly disconnected from the market for individual producers. I suspect that for pruducers such as Roumier, Rouget, Rousseau, Meo, Dujac, de Vogue, DRC, and maybe even Leroy you are going to see price increases, likely even substantial ones unless there is a severe worldwide recession. The 2002 vintage is already much awaited and many importers talked their producers into keeping prices stable for 2001 with the promise that they would accept higher prices for the 2002s. And on top of that, you've got a dollar that's depreciated 20-23% against the Euro since the 1999 vintage was bought.

Where you are most likely to see some softening of the prices (and I'm not predicting it by any means) is with the large producers -- Jadot, Drouhin, Faivleley, and Bouchard P&F -- they have so much wine to move that cash flow is more important to them than it is for small producers.

Best regards,

Claude Kolm

The Fine Wine Review

[Florida Jim]

Okay so what does this mean to the price of Roumier Bonnes Mares?

Not a damn thing!

Steve, what is going to be interesting is the price of the '01's when the '02's start hitting the market - I make that the fall 2004, if I am figuring it right. I should say that a bargain or two might be spotted - but I doubt a Roumier grand cru will be in sight. :)

Best, Jim

[dlc]

I am aware of at least 3 major importers of Burgundy that are offering deals already on 2000 & 2001 vintages in stock in order to get cashflow to purchase 2002 because they feel the quality is superb and there will be a great clamoring (sp?) for the 2002 vintage

edited for stupid spelling errors

Edited April 11, 2003 by dlc (log)

[Claude Kolm/The Fine Wine Review]

I am aware of at least 3 major importers of Burgundy that are offering deals already on 2000 & 2001 vintages in stock in order to get cashflow to purchase 2002 because they feel the quality is superb and there will be a great clamoring (sp?) for the 2002 vintage

edited for stupid spelling errors

Yes, exactly what I have predicted in print. Wait 6-12 months, and retailers will be giving gthe 2000s and 2001s away (and some are already giving the 2000s and some 1999s (!) away).

Best regards,

Claude Kolm

The Fine Wine Review