N°23 February 2011 the Newsletter Hospices De Beaune Wine Auction Makes History

N°23 February 2011 The newsletter The newsletter “Bourgognes International” is the information bulletin on Burgundy wines, intended for the trade (importers, retailers, wine shops owners, etc.). Issued 5 times per year, it enables you to keep up with the latest news from the Burgundy wines sector, companies, and the Wine Board. In order to help us meet your needs as closely as possible, do not hesitate to send us your comments or suggestions, to the following address: [email protected]. Hospices de Beaune wine auction makes history On 21 November, Burgundy* celebrated the 150th Hospices de Beaune Wine Auction. The entire vineyard enjoyed the most prestigious charity auction in the world. In fitting with the occasion, the event even witnessed the most amazing bidding in its history, beating the record price paid for the special “Pièce des Présidents” wine barrel (see the section ‘Performance of Burgundy Wines in their Markets’). Everyone involved in this internationally renowned event all played their part in its success, from its president, a delighted Fabrice Luchini (famous French actor), to the Burgundy wine merchants who represent the main purchasers, to the organisers: Hospices Civils de Beaune, Christie's, and the Burgundy Wine Board (BIVB), among others. In this upbeat atmosphere, the final increase for all 2010 vintage cuvées put up for sale (643 barrels) was 12.55% for reds and 15.7% for whites. This is a positive sign for the markets, at a time when they are regaining some momentum, as well as a clear vote of confidence in the 2010 vintage, which has been suffering slightly due to comparisons with its 2009 predecessor. But the proof of the pudding is in the eating, and the tastings enjoyed before the auction will certainly have demonstrated the unquestionable qualities of this new vintage, which has a delightfully frank, refreshing fruitiness coupled with a distinctively Burgundian elegance, explaining in part the final increase. In total, the 150th Hospices de Beaune Wine Auction will bring in around 5 million euros. More generally, Burgundy wines are gradually finding their feet again in the export market, after two difficult years dominated by the financial crisis. Foreign exports increased by 15% in both volume and value in the course of the first eight months of 2010, compared to the same period in 2009. The French market, for its part, remains stable (see Economy, page 3). The 150th auction also highlighted the application for inclusion of Burgundy vineyard “Climats” as a UNESCO world heritage site. Aubert de Villaine, president of the association and co-manager of the Domaine de la Romanée-Conti, recalled the importance of the project for the entire region. All the big names in Burgundy wine were in attendance together in the Halle de Beaune. *Burgundy is the English translation of the French word Bourgogne 400,000 euros The highlight of the 150th Hospices de Beaune Wine Auction was undoubtedly the smashing of the record price paid for the special “Pièce des Présidents” barrel. Set at 200,000 euros in 2006, it was no less than doubled this year! Jacques Boisseaux and the Maison Patriarche (Beaune) bought the barrel (500 litres of Beaune Premier Cru, cuvée Nicolas Rolin) for 400,000 euros. It was therefore a Burgundy wine merchant, the son of André Boisseaux, a major organiser of the auction for several decades, who won the crowd’s congratulations. The 400,000 euros paid will be split equally between two organisations: cancer charity AVEC (Association pour la Vie, Espoir contre le Cancer) and the French Red Cross, for its work in Haiti. Indicators Winery sales: +4% by volume (total for 12 months of campaign: July 2010 - Aug 2009) French supermarket sales: -0.6% by volume +1.6% by value (total for 12 months (mid-August 2010 / mid-August 2009) Export: +15.3% by volume +16.8% by value (total for 9 months 2010/2009) Total for 9 months 2010 / 2009 VOLUME VALUE World 15.3% 16.8% United Kingdom 23% 16% USA 20% 22% Belgium 6% 1% Japan 6% 7% Germany -6% -8% Netherlands 2% -1% Canada 15% 25% Denmark 22% 25% Sweden 12% 12% Switzerland 0% 22% Ireland 6% -1% Australia 56% 38% Hong Kong 68% 43% Italy 29% 19% Norway 59% 66% China 52% 69% Recovery time for Burgundy wines Sales of Burgundy wines, after two difficult years due to the international financial crisis, are back on course. The latest Burgundy wines marketing campaign (August 2009-July 2010) saw a modest but undeniable rise, in a global and national economic context which remains sluggish. The total increase is + 2.5%. This improvement is largely based on exports (+ 5%), which continue to represent a vital element for the Burgundy vineyard, with half of all bottles of Burgundy wine being exported, to some 150 countries. Over a total of 12 months to the end of July 2010, the vineyard marketed the equivalent of more than 182.5 million 75 cl bottles. Winegrowers’ stocks at the end of the campaign were up 10% compared to July 2009, totalling around 196 million bottles, barely representing the equivalent of one year’s production in stock. This is a normal level in Burgundy, especially when we consider the significant harvest volume in 2009 (1.585 million hectolitres) and the average maturing times. Thanks to its quality, the 2009 vintage, which has just begun to go on sale, should be quickly snapped up and support trade in the coming months. The 2010 harvest will not greatly increase stocks, since it is lower in volume than the average Burgundy output (less than the equivalent of 200 million bottles, according to initial estimates). There is every sign, then, that 2011 will be a good year for Burgundy. Modest pick-up in burgundy exports Burgundy wine exports are gradually returning to full health, after two difficult years related to the financial crisis. Exports of Burgundy wines outside France increased by 15% in both volume and value in the course of the first eight months of 2010, compared to the same period in 2009 (52.8 million bottles, amounting to 336.5 million euros). This rise is essentially thanks to white wines (Chablis in particular), exports of which are up by 21%, while red wine exports increased by 3%. Both colours saw a similar increase in terms of value, of around 15%. A significant lag nonetheless remains in comparison to the excellent first eight months of 2008 (-13%). The reputation of the 2009 vintage should support recovery in the coming months. If the trend continues, 2010 may mark a return to normal levels. The vast majority of our export markets are therefore back in positive territory, beginning with our two largest markets, the United Kingdom and the United States. In the USA, the lag has been halved (up 20% for the January-August 2010 period compared to 2009, but still 20% lower than the same period in 2008). In parallel, export growth saw a marked recovery in developing markets during the first 8 months of 2010: +15 to 25% in Scandinavia, +70 to 90% in Asian markets other than Japan (China, Hong Kong, Taiwan, Singapore, etc.), Brazil and the United Arab Emirates, and +7% in Australia. This upturn can be explained in part by the gradual emergence of many countries from the crisis. The pick-up in shop purchases has led to distributors replenishing their stocks. Another favourable factor has been the positive effect of exchange rates. Within the European Union, it is non-euro zone countries which are contributing to the growth in Burgundy wine exports, above all the United Kingdom, followed by Nordic markets. Sales of Burgundy wines in France remaining stable In France, household consumption is still fragile. There is some good news however: households are no longer automatically seeking out the cheapest brands and are treating themselves more. A survey conducted by FranceAgriMer in 2010 confirms the decline in wine consumption in France, but now explains this decline by the fact that most French people consume wine on an occasional basis (45% of them). Wine is increasingly associated with celebrations. This development is in fact quite favourable to Burgundy (which remains positioned as a benchmark in terms of festive wines) and explains why the vineyard is stands out as an exception in its ability to maintain performance in the French market. The volume of Burgundy wine sales in supermarkets remains stable (+ 0.1 % by volume), with 33.7 million bottles sold (source: IRI). Although at a slower pace than in the previous campaign, they have continued to increase in value, up 0.6 %, with a turnover of 208.4 million euros. Restaurants: sales are picking up after a very bad year. Activity appears gradually to be resuming in the restaurant sector, which is the distribution network most affected by the financial crisis. A hint of optimism was confirmed by the initial results of the 2010 national survey conducted among French restaurant owners. It reportedly shows that Burgundy has sold around 19.5 million bottles in this network (source: CHD), representing an increase of around 18% year-on-year, which at least serves to compensate for the loss of 13% registered in 2009. In wine shops, on the other hand, the situation is more delicate everywhere, and Burgundy has not been spared: 7.2 million bottles were sold in this circuit in 2009, a volume down by more than 20% year-on-year. Regional AOCs, faced with a highly competitive market, were more badly affected than appellations higher up the range. Wine tourism in Burgundy: two useful publications to help you discovery the region The 2011 editions of two practical publications, which will make perfect pocket references during your visits to Burgundy, have just been issued: “Bourgognes en Fête” and the “Roadmap to the Wines of Burgundy”.

Load more