News Digest April 2024

by Valeria Tenison

April turned out to be rather quiet as the chateaux prepared their blends to present during the En Primeur tastings. Critics, buyers, merchants, and experts from all over the globe flew to Bordeaux to taste and rate the wines of the 2023 vintage.

Despite the industry focus on the coming campaign, some important things were happening in April.

The long-awaited round table discussion among Bordeaux winegrowers, merchants, and supermarkets was held on April 8. It marked a promising step towards establishing fair pricing frameworks. Winegrowers and distributors have agreed to work towards an “industry contract” aimed at ensuring fair prices for wine production. They aim to develop recognised indicators to determine fair pricing, addressing concerns about excessively low prices in the market. Discussions focused on legislative structuring to ensure ‘living wage’ prices for winegrowers. However, plummeting bulk wine prices and conflicting interests between winegrowers and merchants means that finding solutions remains elusive, although the need to elevate all AOCs and address the struggling supermarket model was acknowledged, emphasising the importance of restoring balance. Additionally, concerns over ensuring winegrowers receive a decent income persist, with transactions often falling below production costs. Despite discussions, concrete measures to establish fair pricing mechanisms, as envisioned by potential changes to the Egalim law, are yet to materialise.

At the same time, the wine industry is actively engaging with the Egalim law, seeking to address issues such as remuneration for struggling winegrowers and setting minimum prices for bulk wine. Representatives from Bordeaux and the Rhône Valley recently met with Minister Delegate for Agriculture Agnès Pannier-Runacher to discuss the law’s development. Challenges include clarifying cost indicators and defining “abusively low prices.” The industry emphasises the need for flexibility in applying the law, recognising the diverse needs of different vineyards, and the need for concrete actions to enhance the valuation of wine products.

In light of the current negotiations, the Bordeaux wine trade body CIVB has resumed the bi-weekly publication of bulk wine prices to counter rumours of rock-bottom prices. This decision follows requests from industry organisations and aims to address concerns about very low prices in the Bordeaux wine-growing region. Prices for various Bordeaux wines were reported, with efforts made to stabilise prices amid calls to prevent further declines. The average price for the reported period reached €946 per tonneau (800l).

In the middle of all of this, AOC Bordeaux is now simplifying its specifications to streamline processes and enhance clarity. At the recent General Meeting of the Bordeaux and Bordeaux Supérieur AOCs, 11 simplification measures were adopted, including revisions to pruning rules, target yields, blending regulations for rosé wines, and volatile acidity limits. These changes aim to reduce complexity and align specifications with industry needs. The proposed modifications are expected to be implemented by the 2025 harvest season. Additionally, ongoing discussions focus on further modernising product profiles and segmentation to strengthen Bordeaux wines’ market presence.

This wouldn’t of course be a new digest without a lawsuit…! The wine giant Castel has taken legal action against the Viti33 winegrower collective and agricultural unions FDSEA and Jeunes Agriculteurs after a demonstration blocked its Blanquefort site in February. Castel is claiming €100,000 in damages, citing obstruction and property damage. The unions expressed surprise and disappointment, noting ongoing constructive efforts to address industry challenges. Despite the recent agreement on a sector contract to determine fair prices, tensions persist, with the Viti33 president, Didier Cousiney, feeling personally targeted and calling the complaint “petty and unwelcome.” Winegrowers emphasised the importance of demonstrations in driving progress, while Castel refrained from commenting, stating they will let the legal process unfold.

Excellent news for Sauternes appellation: former directors of Château Guiraud, Luc Planty and his wife Clémence, have acquired Château de Malle, an 1855 2ième Cru Classé, and its 40 hectares in Preignac. The sale, a significant investment estimated at several million euros, aims to revitalise the property and its vineyards, which have been abandoned over the past few years. With plans to transition to organic farming and leverage the property’s historic and touristic appeal, the Planty family aims to restore Château de Malle to its former prominence in the Sauternes-Barsac appellation.

AOC Blaye winegrowers are awaiting European validation for their proposed name change to Blavia, aiming to distinguish it from another appellation – AOC Blaye Côtes de Bordeaux. This change, already approved nationally, emphasises the inclusion of Malbec among the primary grape varieties. The goal is to enhance the attractiveness and identity of AOC Blaye with updated specifications focusing on agro-ecological measures.

In recent research published by Sowine, Bordeaux remains the top wine region preferred by French consumers, with 48% favouring it over other areas like Burgundy and Champagne. And finally, Domaine Clarence Dillon, the owners of Château Haut-Brion and La Mission Haut-Brion, has opened a new wine shop in downtown Bordeaux. Called La Cave du Château, it is located at 3 Place Tourny in Bordeaux, and contains a range of brilliant wines from across France. A small wine bar is due to open in the next few months.

Sources: Vitisphere, Sud-Ouest, RVF, Sowine