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Increasing demand could spell end for bargains in Burgundy
Increasing demand for top Burgundy in the Far East could put an end to good value fine wines from the region, according to Goedhuis & Co.
“There’s a genuine feeling that 2009 could be the last reasonably priced Burgundy vintage,” said Johnny Goedhuis, company chairman, speaking to the drinks business this week ahead of the merchant’s sell-out Rhône en primeur tasting.
“We’ve certainly seen a large increase in demand for Burgundy from Hong Kong,” he added, citing Pinot Noir’s “pleasurable” nature when youthful as one reason for the region’s success in the Far East.
He also said that the merchant is “extremely well placed” to benefit from this increased demand, not only because Goedhuis & Co is a specialist in Burgundy with an office in Hong Kong, but also because of its expanded supply base in the region following its acquisition of David Roberts Domaines in March this year.
Managing director at Goedhuis, Tom Stopford Sackville, reiterated the views of Johnny Goedhuis. “We’re now being asked more about Burgundy than Bordeaux among those we sell to in Hong Kong, and we’re already getting a lot of emails about the ’09 Burgundy offer and what they can get.”
He added that “the focus is on the top wines,” with interest centred on Domaine de la Romanée-Conti and Domaine Leroy.
Interestingly however, Nick Pegna, Berry Bros & Rudd’s managing director in Hong Kong, believes the Rhône could benefit before Burgundy from broadening demand in the Far East.
“I think Burgundy will have a part to play but I think it’s more logical for buyers to progress from Bordeaux to the Rhône because it has attributes that are more closely aligned to Bordeaux such as power, the use of oak and Parker’s appreciation of the wines. And the Rhône looks underpriced, it’s not that complicated to understand, and in the southern Rhône, you’ve got big volumes.”
Pegna also believes that Italy will become increasingly demanded in the Far East due to its association with fine dining in Hong Kong and China, which is centred on Italian food.
However, ahead of these developments will be further diversification in the wines that are demanded from Bordeaux.
December’s drinks business will contain a full update on the price performance of the world’s leading fine wine labels as part of the annual Liv-ex Power 100 survey, including a detailed look at the rise of Burgundy and the Rhône’s top producers.
Patrick Schmitt, 18.11.2010