Collectors and traders of Bordeaux wines have noticed an unusual trend this spring. Prices for the 2022 vintage, sold before bottling, have sharply increased. On average, châteaux producing these top wines have raised their prices by 20% compared to the previous vintage, and sometimes even more. However, this price increase has discouraged collectors from making purchases, negatively impacting the sales of fine wine merchants who cannot afford to hold extra inventory at this time.
During May and June, wine merchants inundate their clients’ inboxes with emails about the latest releases from Bordeaux’s top producers, marking the en primeur season. During this season, châteaux sell their wines from the previous year, which have not yet been bottled, through selected distributors called négociants. These releases come after reviews by top wine critics.
A little over a decade ago, buyers would scramble to secure allocations of these precious bottles before prices increased. However, that is no longer the case. Many have acclaimed the 2022 vintage as one of the greatest in this millennium. Jancis Robinson of the FT describes the wines as having “amazing freshness” despite the hot summer. Nevertheless, buyers are hesitant to pay the increased prices. This reluctance comes at a time when interest rates have surged, making it costly for those further down the sales chain, beyond the négociants, to finance any inventory.
The en primeur sale has always been an unconventional business. Once reviews from top critics become available, négociants begin offering the wines in a steady stream of releases over six to eight weeks. Wine merchants then collect orders from their retail or trade clients. Allocations for some wines sell out quickly, while others take longer. Négociants may hold onto bottles, having already paid for their stock, with hopes of future sales, just like merchants.
The 2022 wines, mostly reds, have received exceptional reviews from many wine critics. Positive reviews play a crucial role in driving sales of specific wines, making merchants heavily reliant on them. Focusing on scores from esteemed critic Neal Martin of Vinous, these wines have achieved similar ratings to highly successful recent vintages like 2016, 2018, and 2019, according to data from wine exchange Liv-ex. Most châteaux owners have chosen to increase prices by an average of 20% compared to last year, with some wines experiencing even larger increases. Given the uncertain state of global economies and asset markets, both merchants and their customers are understandably cautious.
Château Haut-Bailly, previously considered a “good value” among the region’s top wines, is no longer seen as such. Critics have consistently raised their scores for this château over the past decade. This year, Martin gave it a score of 96-98 points, in line with the 2019 vintage. However, it now costs £1,440 per 12-bottle case, nearly 70% more than last year. Justin Gibb, co-founder of Liv-ex, points out that one can buy the top vintages of this wine from 2000 and 2010 for less. Château Pavie in Saint-Émilion provides another example. Martin scored it at 93-95 points, but based on his past ratings, buyers could find better options among the 2016, 2018, or 2020 vintages. This year’s release price of £3,576 per case is 40% higher than the 2020 release.
No one in Bordeaux wants a repeat of what happened after the 2010 en primeur season. Prices initially surged but then crashed. The Liv-ex Bordeaux 500 price index dropped by approximately 22% three years later. Asian buyers, who were affected by that experience, have not forgotten.
Paulo Pong, founder of merchant Altaya Wines in Hong Kong, recently traveled to Bordeaux to taste the very young wines from the 2022 vintage. He exclaimed, “I loved them, thought them fantastic. I really wanted this en primeur to work.” Unfortunately, high prices, shifting interest towards Burgundy wines among Hong Kong and mainland Chinese buyers, and high interest rates for financing inventory have made him cautious.
Despite the relatively lower cost compared to Burgundy’s top clarets, Pong has not seen Asian buyers return to Bordeaux. Even UK merchants, usually enthusiastic, have only managed to put a modest spin on this year’s campaign. Matthew O’Connell, head of investment at Bordeaux Index, explains that while some collectors have shown interest in purchasing these excellent wines, it has been less obvious for those who prioritize price, including both collectors and investors.
Others maintain a more philosophical perspective. Charles Sichel, part of Maison Sichel négociant, believes that this year’s vintage tastings went extremely well, as expected. Sichel’s business also owns the highly reputable winery, Château Palmer, which also significantly raised its prices.
Across Bordeaux, this year’s wines are considered on par with the exceptional 2010 vintage and even better than the outstanding 2016 vintage. Sichel argues that the higher prices are justified. While high financing costs pose a challenge for négociants this year, first growth châteaux like Mouton Rothschild and Château Margaux can afford to hold onto any unsold wine inventory themselves due to their stronger financial positions.
Not all critics share the unanimous acclaim for last year’s crop. Wine critic Jane Anson had some reservations about this vintage but acknowledges the frustration with release prices.
For Gibb at Liv-ex, this year’s release resembles the 2010 vintage. He and others sense uncertainty among buyers. He asserts, “Ultimately, the consumer is the one supplying the capital, not merchants and négociants who are hesitant to increase their stock. Lower returns will adversely affect them.” If he is correct, bottles from this highly regarded vintage will be available for sale for years to come.
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