China turning its back on top Bordeaux

While the 2012 vintage in Bordeaux has been hailed a “pleasant surprise”, there is expected to be low demand for the wines from Chinese consumers this year.

A broken relationship? China is turning its back on the first growths

A broken relationship? China is turning its back on the Bordeaux first growths

Part of the reason the Chinese are pulling away from Bordeaux is due to the losses they suffered on the 2010 vintage.

Many snapped up wines from the top châteaux when prices skyrocketed and were left reeling when the prices slumped soon after the wines were sold.

China is currently Bordeaux’s biggest market in terms of volume and second in value, but Chinese buyers are expected to steer clear of the 2012 campaign.

“They might come and visit us during primeurs week to taste the wines, but they won’t buy anything,” Bernard de Laage de Meux, commercial director for Châteaux Palmer told the drinks business.

Gary Boom, managing director of Bordeaux Index, agrees: “They won’t touch it. They’ve learned that the price can go down as well as up,” he told AFP.

Chinese interest is shifting away from the Médoc and towards the Right Bank

Chinese interest is shifting away from the Médoc and towards the Right Bank. Image c/o The Wine Cellar Insider

But it’s not only the memory of the 2010 losses that is driving Chinese away from Bordeaux.

According to the Wine Spectator, Chinese President Xi Jinping has told the government to cut back on its entertainment spend, leading to a drop in demand for the first growths, which are commonly gifted among the Chinese elite.

“Ostentatiousness is politically frowned on in China now,” Hong Kong-based Simon Staples of Berry Bros & Rudd told the WS.

Wines over £500 have been the most affected by the new austerity measure, and in the last year, the majority of the wine shipped to China sells in the country for under £35 ex-château.

As the Chinese market matures and becomes more value conscious and less brand driven, consumers are no longer willing to spend the amounts the top châteaux are charging for their wines, which is forcing the region’s top producers to rethink their pricing strategies.

According to the WS, Chinese consumers are shifting their interest away from the Médoc and towards St Emilion, Pomerol and Lalande de Pomerol.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Awards Wine Checker

Decanter
Paddock Wood, Kent, GB

Customer Service Advisor

Amathus Drinks
Park Royal, London, UK

Sales Manager

James Eadie Ltd
London, UK

Wine Ambassador Role

Ramón Bilbao UK
London, UK

Fine Wine Logistics Coordinator

IG Wines
London, UK

Sales Manager

Top Selection
London, UK

Assistant Retail Manager

The Whisky Exchange
London, UK

Marketing Manager

Ellis Wines
Hanworth, Middx, GB

Commercial Analyst

ATOM Group
Tunbridge Wells, UK

Customer Service Executive

Marussia Beverages
Marylebone, London, UK

The World Bulk Wine Exhibition

Amsterdam,Netherlands
20th Nov 2017

The Global Spirits Masters Lunch

London,United Kingdom
1st Dec 2017

International Bulk Wine and Spirits Show

London,United Kingdom
26th Feb 2018
Click to view more

Champagne Masters 2017

The only Champagne blind tasting in the UK, the competition will reward the best wines in the following categories:

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

Click to view more