News Digest: June 2024

June in Bordeaux was marked by rainy and changing weather, causing heavy mildew pressure all over the region. To make things worse, on June 18, the Médoc faced a storm with golf-ball-sized hailstones, particularly affecting areas near the Gironde Estuary. A hailstorm devastated vineyards in parts of St Emilion the following night, affecting areas including Fronsac, Lalande-de-Pomerol, and Lussac. Areas around La Réole and Saint-Félix-de-Foncaude in the southern Gironde also experienced significant hail damage, with some vineyards losing up to 90% of their crops. Damage assessments show a total of 1,900 hectares impacted and 134 operations affected.

Despite the climate challenges, Nouvelle-Aquitaine remains the second-largest organic farming region in France, according to Agence Bio’s June 13 report. The area saw a 1% increase in the number of organic producers, adding 638 new ones, but a 4% decrease in organically farmed land due to retirements and other cessations. Despite the net gain in producers, the reduction in organic acreage is attributed to smaller projects and reduced areas for large-scale crops, although increased grassland areas partly offset this. Consequently, the region’s organic agricultural land share slightly dropped from 9.4% to 9.2% but still covers 353,834ha. The number of certified organic businesses in processing and distribution fell from 3,095 in 2022 to 3,056 in 2023, a 1.2% decrease.

While the growers fight with mildew, merchants have to deal with the market slow-down. Despite lower prices at the moment of release to market, Bordeaux’s 2023 en primeur campaign faces significant challenges, with sluggish sales reflecting broader economic difficulties. Following Vinexpo Hong Kong and a month after the initial market releases, Bordeaux wine merchants report disappointing trends. Factors like international tensions, general economic uncertainty, and cautious spending post-COVID contribute to market hesitancy.

The vine pull-out programme moves forward. A new decree has granted an additional month to vineyard owners affected by the vine removal program. Initially set to end on May 31, the campaign has been extended to June 30 due to prolonged rainy weather. This extension, decided by the Prefect of Gironde and the President of the CIVB, offers more time for viticulturists to comply and meets a request from the Bordeaux Wine Council (CIVB). To date, approximately 1,300 applications have been submitted, covering over 8,000ha. Of these, around 700ha are for re-wilding (funded by the state) and just over 500ha for diversification (funded by the Bordeaux Wine Council).

At the same time, the French government has confirmed it will provide €38 million to fund the second phase of vine removal in Bordeaux. The funds, previously blocked by the French Ministry of Economics and Finance, are now available following the negotiations with Bernard Farges, vice-president of the Bordeaux Wine Council (CIVB). The government will match the CIVB’s €19 million contribution to support vineyards converting to woodland or natural areas over 20 years. The region of Entre-deux-Mers, which is most affected by these measures, will benefit significantly from this financial support.

The legal battle between Bordeaux wine institutions and Valérie Murat has reached a third round. The Bordeaux wine industry is seeking to annul the appeal by Valérie Murat’s anti-pesticide association for failing to comply with a 2021 defamation ruling. In a recent hearing, the court could shifted to the core issue: the conflict between Bordeaux wine institutions and Murat’s association, Alerte Aux Toxiques (AAT). Murat and AAT received significant public donations to appeal a 2021 judgement, which ordered them to pay €125,000 in damages for defaming the Bordeaux Wine Council (CIVB) and 25 Bordeaux operators after publishing a report on pesticide residues in HVE-certified wines. Jean-Daniel Bretzmer, representing CIVB, argued that Murat continued to make defamatory statements and failed to pay the damages, turning the issue into a potential criminal case. He highlighted that fundraising to pay legal damages constitutes a penal offence under French law. Despite these arguments, Murat’s defence, led by Bruno Bouyer, maintained that the funds were legally gathered and transferred. Bouyer countered that refusing to accept the payment was a tactic to silence Murat and AAT. He insisted that all court orders had been complied with, including removing controversial content and posting the judgement online. The court’s decision on this matter is expected on September 11.

More news from the courtroom. The Dutch Albada Jelgersma family, which has managed Château Giscours since 1995, believed they had finally acquired the estate for €144.7 million in December 2023. However, Nicole Tari-Heeter, an heir, has initiated legal action to annul the sale, claiming it occurred without her knowledge. Château Giscours has a long history of legal disputes. After the death of patriarch Nicolas Tari in 2002, a fierce inheritance battle ensued between his children, Nicole and Pierre. In 1995, Dutch billionaire Eric Albada Jelgersma took control of the estate’s operating company, but the land remained under the Tari family’s agricultural land group (GFA). The current conflict revolves around selling the GFA’s assets, including 90 hectares of vineyards. Nicole Tari-Heeter contends the sale violated her rights, while the Albada family and Pierre Tari support the transaction. Multiple lawsuits have complicated the situation, including accusations of mismanagement and disputes over ownership shares.

Additionally, a legal battle goes on between the Viti 33 collective and Castel Frères, France’s largest wine merchant, over alleged exploitation and dominance in the Bordeaux wine market. Castel’s lawsuit demands €100,528 in damages from agricultural unions and Viti 33 following protests. The collective plans to use the trial to highlight Castel’s business practices, accusing it of offering prices below production costs and harming the local viticulture.

On a brighter note, the 2009 Château Mouton Rothschild finished second-best red wine in the prestigious London wine-tasting event, pitting European wines against those from the rest of the world. The “Judgement of London” announced its results on Tuesday, May 21. Held at the London International Wine Fair, nearly fifty years after the famous “Judgement of Paris” in 1976, this event featured 32 wines (16 from Europe and 16 from elsewhere), judged over four hours by 20 experts, including Masters of Wine and Master Sommeliers. While European reds, mainly French, received the highest scores, southern hemisphere whites impressed the judges. The top-rated wine overall was the 2011 Pegasus Bay Riesling from New Zealand, followed by the 2012 Polish Hill Riesling from Grosset in Australia. Equally impressive was an auction held by Château Ducru Beaucaillou this month, of ex-cellar vintages dating right back to 1887. A barrel of the 2022 vintage reached €54,900, and another of 2023 was sold for €46,360 – both above the low estimate. In total the auction raised €1.8 million.

 

Sources: Vitisphere, Sud-Ouest, Agence Bio