En primeur: Château Gazin's €1 drop 'insufficient'

By Sophie Kevany in Bordeaux

Published: 03 April, 2014

Bordeaux's Château Gazin released its en primeur price early Thursday, at €38 per bottle from the estate to wholesale merchants, a drop of €1 on the 2012 vintage.

Gazin's announcement is the second shock to Bordeaux's conservative "en primeur" wine sales system, which normally sees samples from the latest wine harvest presented to buyers and journalists during tasting week - this year from March 31 to April 4 - with prices following.

The move by the Pomerol chateau is likely to further annoy both the organisers of the tastings, the Union des Grands Crus de Bordeaux, and the trade. A letter sent last week by Union des Grands Crus de Bordeaux president, Olivier Bernard, stipulated that prices should be released between April 7 and May 23, while one wholesale buyer described Gazin's one euro drop as "symbolic and insufficient."

The en primeur system was first knocked into disarray last week by Chateau Pontet-Canet, which released its price on March 26, well before the majority of buyers had a change to sample the wine. Pontet Canet compounded its maverick attitude by maintaining the same €60 per bottle price for 2012 and 2013. The move outraged wholesale buyers who know they will find 2013, a weak red vintage that was dogged by extremely bad weather, a hard sell to consumers.

At a tasting event Wednesday evening, one Hong Kong buyer said he would only buy if prices fell 25% to 30% on last year. "I still have a lot of stock from the last few vintages. Everything depends on the price," said the owner of wine importer and distributor Vintasia Limited, Kenneth Ren.

Ren, who bought about €2 million worth of Bordeaux in 2010, added that although he felt the 2013 vintage's quality was better than expected, he would only be interested in first growths at under €200. "That's the magic number for me," he said.

Hong Kong and China have become Bordeaux's number one buyers, but a combination of the softer economic outlook, a political clampdown in China on conspicuous consumption and perceived overpricing of the 2011 and 2012 vintages, are all slowing sales.

Slower international demand is also reflected in the number of badges issued to overseas buyers and journalists for this year's en primeur tastings. Provisional figures from the UGCB show a drop of 4%, from 24% of total badges last year, to 20% of total badges this year. Overall the number of badges issued has fallen by 10%.

Further en primeur price releases are expected over the next few days.

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