The 2023 Bordeaux En Primeur has concluded with notable price reductions across several top estates, averaging drops of over 20% from last year’s vintage, including premier labels like Lafite, Léoville, and Angélus.
Despite these steep declines, the reaction among Chinese buyers—who were largely absent during the tasting week—remains wary. This begs the question: Will the price cuts sway their purchasing strategies moving forward?
Lafite Rothschild, leading the first growths, set its ex-négociant price at €396 per bottle, a 31.7% decrease from €580 in 2022.
Château Mouton Rothschild listed at €324 per bottle, down 37.2% from €516, while Léoville Las Cases offered its wine at €138 per bottle, a 40% drop.
Château Angélus set its price at €260 per bottle, reflecting a 25.7% decrease from the previous year.
Other estates like Château Pontet-Canet, Château La Lagune, and Château Chasse-Spleen also recorded price reductions of 20% to 30%.
Caution Reins
Li Yajun, formerly a representative for a Bordeaux wine merchant in China and currently a distributor for multiple brands of the DBR Lafite Group, as well as the General Manager of fine wine importer Merveille Business in Shanghai, provided an analysis of this year’s price adjustments.
“Futures pricing has always been governed by the principles of supply and demand. In recent years, favorable economic conditions, coupled with reduced production and high ratings, led to relatively higher prices. However, this year, the demand within the Chinese market, a significant consumer of Bordeaux’s premium wines, has weakened. Consequently, this shift necessitates a reconsideration of futures pricing strategies,” he explained.
Xie Jianjiang, General Manager of Ningbo Free Trade Zone Yongyu Import Wine Co., Ltd., who has been selling fine wines for years and now focuses on cross-border e-commerce channels for estate wines, remarked the release prices for 2023 futures are mostly similar to those of 2019, suggesting a market correction.
However, he remains pessimistic about the economic outlook and the downward trend in wine consumption in China, opting not to purchase 2023 futures.
“Furthermore, the price of the 2023 Angélus release price is the same as other older vintages currently on the market. The pricing for classified Bordeaux is open and increasingly transparent, which means that merchants are only making thin profits. With the current prices of futures, there is no compelling reason to tie up cash [to purchase this year],” Xie explained.
“Furthermore, the price of the 2023 Angélus release price is the same as other older vintages currently on the market. The pricing for classified Bordeaux is open and increasingly transparent, which means that merchants are only making thin profits. With the current prices of futures, there is no compelling reason to tie up cash [to purchase this year].”
Xie Jianjiang, General Manager of Ningbo Free Trade Zone Yongyu Import Wine Co., Ltd.
Liu Gan, General Manager of a Beijing-based wine importer Liselotte International Trade (Beijing) Co., Ltd., expressed a similar view, saying, “Two or three years ago, we bought En Primeur, but in recent two years we haven’t placed any orders, and this year we are not planning to either. There’s no reason to tie up capital, and more importantly, demand is weak and turnover rate is slow.”
Top Brands and Value Wines
Despite overwhelming lack of enthusiasm among wine merchants, some importers indicated that they will not rule out purchases going forward.
Li Yajun pointed out that he currently has no plans to purchase futures, preferring to focus on available wines on the market, due to huge price discrepancy between many classified estates’ current market prices and release prices. However, he might consider purchases if market conditions improve later in the year after October.
He emphasized that the focus would remain on top brands, which continue to perform well despite slight price declines.
Regarding potential purchases once market conditions improve, Li emphasized the continued focus on leading Bordeaux brands. He noted, the sales performance of top brands like Lafite, Latour, Haut-Brion, Margaux, Léoville, and Pavie remains strong. Despite a slight drop in prices, demand persists.
Wu Xianghua, CEO of Chengdu Fine West International Trade Co., Ltd, one of the country’s top wine importers, also addressed the situation, noting, “We anticipate that the 2023 futures prices will establish pricing benchmarks for the upcoming years. Thus, our purchases of the 2023 vintage will be conditional, not merely motivated by the significant reductions in price.”
Explaining the criteria for conditional purchasing, Wu specified that priority would be given to well-established brands and competitively priced wines, with consideration also given to the terms of payment.
Discover more from Vino Joy News
Subscribe to get the latest posts sent to your email.
