Bordeaux faced significant challenges this year, marked by a difficult market environment and waning engagement among En Primeur regulars.
With market performance down 13.4% since the release of the 2022 vintage and overall sentiment cautious, the 2023 En Primeur campaign had a tough backdrop to contend with.
Variable Vintage Quality
The 2023 vintage in Bordeaux is widely considered middling in quality. Commentators, including Neal Martin, Antonio Galloni, Lisa Perrotti-Brown MW, and Jane Anson, have generally positioned it in the middle of recent vintages. Martin notably dubbed 2023 "The Dalmatian Vintage" due to its inconsistent quality across the region. Despite some spots of outstanding quality, the overall vintage cannot be considered among the greats like 2016, 2020, and 2022.
Price Adjustments
In response to the challenging market, release prices for the 2023 vintage were, on average, 22.5% lower than the previous year. This drop ranged from significant decreases of up to 41.1% to minimal reductions of around 6%. Despite these adjustments, many wines remained less attractively priced compared to back vintages available in the market, leading collectors to opt for older, more established wines instead.
A Buyer’s Market
The En Primeur system has been struggling with self-inflicted wounds, including unsustainably high release prices in recent years. This has led to a loss of confidence and interest among buyers, as many wines entered the physical market at prices equal to or lower than their En Primeur release prices. This year, the campaign became a buyer's market, with negociants offering discounts of up to 10% to move cases, further illustrating the tepid demand.
Specific Chateaux Strategies
Some Chateaux, such as Pichon Lalande, Palmer, and Montrose, released 20-30% less wine to avoid flooding the market. Others, like Figeac, saw price drops as significant as 41.1%, while Pape Clement's prices fell by only 6%. Leoville Las Cases led with a large early price drop, but the overall strategy seemed inconsistent, contributing to a mixed reception from buyers.
Sales Performance
Despite the price adjustments, sales remained slow. The Bordeaux 500 Index, tracking the prices of 50 leading Chateaux, is down 13.4% since May 2023, indicating broader market struggles. Even well-regarded releases like Pontet-Canet, priced at GBP 790 (EUR 936) per 12×75, saw mixed results, with some merchants selling twice as many cases as the previous year, yet still falling short of generating widespread excitement.
The Future of En Primeur
The 2023 campaign highlighted the ongoing challenges within the En Primeur system. Traditional buyers are disengaging, and new collectors, often younger and more tech-savvy, are less inclined to invest in Bordeaux due to better value propositions elsewhere. The fine wine market's slow growth and high inflation have exacerbated these issues, making it clear that for En Primeur to remain viable, a significant price reset and renewed commitment from producers are essential.
Conclusion
Bordeaux's 2023 En Primeur campaign underscored the need for significant changes within the market. While price cuts were a step in the right direction, they did not go far enough to reinvigorate buyer interest. As traditional Bordeaux collectors age and new collectors seek value elsewhere, the future of the En Primeur system depends on more attractive pricing and a stronger commitment to delivering value. All eyes now turn to Bordeaux 2024, where further adjustments will be crucial for sustaining the En Primeur tradition.
Source: Liv-ex