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pricing in Bordeaux - Printable Version

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- Annette - 01-29-2001

Hi,
I know I have posted here before and have not gotten responses, probably because my question has been pretty vague. But, I am still in need of information for a senior project/paper that i am doing on pricing and how it is determined in Bordeaux. I have narrowed down the wines I am looking at from all of Bordeaux to Chateaux: Lafite-Rothschild, Latour, Leoville, Pichon, Ducru-Beaucaillou, Palmer,Petrus, Figeac, Lynch-Bages and Yquem. If anyone here can offer me advise on where to find data on opening prices and/or variables contributing to how a wine was priced in a certain year (back as far as late 1960s), I would really appreciate it.
Thank you from a desparate student,
Annette


- Drew - 01-29-2001

Annette, welcome again. There's no easy answer that would not require each and everyone of us to do extensive research in order to answer your question. Wines are priced by Chateau reputation, competition pricing, quantity available and world wide demand. Ratings of released wines by noted critics also influence pricing. Most of the Chateaus have web sites and there are numerous reference books that list release prices. Chateaus also offer futures, which in essence is speculative commodity investing on future vintages. Have fun with your project.

Drew


- barnesy - 01-29-2001

Another factor you may wish to look at is the rate at which the dollar is trading versus the French franc. Lately, french wine has been pretty resonably priced since the dollar is strong against the franc. Yeah for us french wine drinkers. My wine guy has told me of several price drops due to this reason. I guess I'm putting my economics degree to work.

Barnesy


- hotwine - 01-29-2001

Pricing always comes down to supply and demand. First, keep in mind that a Bordeaux spends about four years in the making, after the grapes have been picked. After the crush, the wine will be stored for a time in vats, then in barrels, and finally bottled, but will not be released for some time after bottling. So some questions that enter into a determination of price at the chateau include:

- What was the price upon release last year?

- How was last year's release rated first in barrel tastings and later on release by knowledgeable people in the trade?

- How has the post-release market developed for the wine? Is it much in demand, with escalating prices, or has its price remained
flat?

- What were the growing conditions during the earlier release? What was the yield per hectacre?

- How does this year's harvest compare with earlier years, in terms of growing conditions, crop yield, and market expectations?

- How is the futures market reflecting expectations for the wine?

- What personnel changes have occurred at the winery that could impact expectations for the wine?

All of those questions are complex in themselves, and it's the sum of all of them that finally gets reflected in the price. And I'm on the outside looking into the wine trade; others can respond more knowledgeably than I.


[This message has been edited by hotwine (edited 01-29-2001).]


- pickadley - 01-30-2001

Annette, Bordeaux wines are the WORLDS BEST the names of the wines that you are intersted in are beautiful wine let me tell you and dont let anyone tell you diffrent, when you have a product and its the worlds best and everyone wants it your going to pay, especialy when there is a limited amount of it. almost like supply and damand..
wino...