Category: Bordeaux

67 Pall Mall to open wine club in Bordeaux

67 Pall Mall, a private members club for professionals and collectors has officially secured the rights to a building in central Bordeaux, with the aim of opening up in 2025. They signed a lease on a property in the Triangle d’Or, 21 Cours de l’Intendance.

Grant Ashton, Founder and CEO of 67 Pall Mall said, ‘Bordeaux is at the very heart of the world of wine and the new club provides an amazing location for members and visitors to enjoy a fantastic range of Bordeaux’s wines. The club will offer a breadth of unique local wines alongside well-known favourites for both members and non-members to enjoy.’

The club will offer the most extensive wine list in the region which will feature 5,000 by the bottle, of which 2,000 bottles will be selected from local chateaux, 1,000 from the rest of France, and 2,000 wines from the rest of the world. They will also have a selection of 500+ wines by-the-glass.

There will also be a public “Bar à Vin” on the main floor, and the first and second floors will be for members only, with access to a clubroom, bar and several private dining rooms. The fourth floor will offer a rooftop terrace with a sweeping view across the historic city.

 

Bordeaux 2022 vintage produces ‘high-quality grapes’

The Conseil Interprofessionnel du Vin de Bordeaux (CIVB) has just released its 2022 vintage report, which mentions difficult climate conditions, and 2022 being one the earliest harvests on record.

Despite these challenges, amongst others,  ‘high-quality grapes’ were still produced. Pruning was delayed to limit the risk of a late frost and customized leaf removal and trellising was deployed to protect bunches from the sun.

The 2022 report also highlights the “deep roots of Bordeaux vines” and their natural resistance to water stress as contributing factors to the good health of the grapes.

Due to the scorching summer and autumn temperatures, the harvest began 15-20 days ahead of the 10-year average.

Rain started in mid-August, which brought new life to the vines, slightly increasing the volume of the berries. Stimulated in parallel by the alternation of hot days and cool nights, the grapes were able to reach optimum ripeness, according to the report.

Ideal conditions at the end of September favoured the development of botrytis on the grapes. The weather conditions allowed for four to five successive passes through the vineyard up to the end of October.

For the third year in a row, the volume of the harvest in Bordeaux is below the 10-year average, in large part due to the drought, which had a major impact on the overall yield of the 2022 vintage.

Extreme climate events also hit the vineyards in 2022, leading to significant losses in some cases. As a result, the volume of AOC wine produced in 2022 is 4.11 million ha, 11% below the 10-year average.

The early harvest had no adverse effect on the quality of the 2022 vintage in Bordeaux. The weather conditions from the end of August to the end of October were, “ideal for picking without haste and at perfect ripeness, despite the dates being earlier than usual”, according to the report.

The dry white wines are said to possess the characteristics of a good quality vintage, maintaining freshness and acidity despite the drought.

For the rosé wines, “the juices are just the right colour and full of flavour”, the report also states.

The juices from the red grapes are “exceptional, with perfectly ripe tannins and yet without excessive alcohol levels. The wines have a unique fruitiness, silky and concentrated without being heavy”.

The early-drinking red wines of Bordeaux, “have all the qualities of well-balanced wines with very nice freshness”.

And for those destined to remain longer in bottle, their aging potential seems “particularly promising”, the report also finds.

 

Old World Wines Gaining Share Across US On-Premise

CGA by NIQ’s latest On-Premise Measurement Research explores the share of total wine, with a focus on domestic white and red wine categories across the US, to highlight the opportunities for suppliers as old-world wines continue to gain share.

Using insights from the latest 52-week period of CGA’s OPM data to 12/31/2022, it is apparent that domestic wines account for the largest share of total wine across the US On-Premise (66.4%), but opportunities emerging for suppliers and operators to capture changing consumer preferences as they explore and consume old-world origin varietals.

At a total US level, domestic wines still hold the largest share of the market, however, old-world wines have continued to gain share. While domestic share has largely been maintained (-0.8pp), recent share changes demonstrate that US consumers are increasingly opting for old-world wines, specifically of regions including Italy (+0.5pp), New Zealand (+0.3pp) and France (+0.2pp).

Within red, domestic wine continues to hold a significant proportion (72.8%) of the share of red wine, up 0.8pp vs YA – continuing to increase its importance in comparison to all other major origins. Within the category, international origin wines tracked are losing share, including Italy (-0.1pp), Argentina (-0.4pp) and Spain (-0.1pp).

Whereas, white domestic wine has lost share (-1.6pp) and holds 61% of total share of white wine. Consumers are increasing looking to old world regions for white varietals in the US On-Premise. Most notably, from Italy (+0.9pp) has seen the largest increase in share gain, followed by New Zealand (+0.5pp) and France (+0.3pp).

Andrew Hummel, Client Solutions Director for North America, states: “Category and varietal insights are so important to help shape effective strategies for the On-Premise. Consumer preferences are changing, and being armed with the knowledge and insight to adapt offerings will enable success in 2023. While domestic wines still hold the largest share of the market across the US, increasing competition and innovation is gaining traction with consumers. OPM data tracking over time gives a comprehensive view of how the channel is evolving and helps identify opportunities for growth.”

Here is the research link: https://cgastrategy.com/unlock-the-potential-of-opm/

 

 

New Index “WB Stock Index (WBIX)” Tracks Performance of Public Wine Companies

A new tool rooted in publicly traded wine companies and offering insights into the health of the wine sector has launched on winebusiness.com.

The WB Stock Index (WBIX) is a composite metric representing a portfolio of 13 publicly traded wine companies, weighted by each company’s annual wine revenue. The index reflects the daily percentage change in stock price at the end of the previous business day according to the significance of each producer in the marketplace.

The baseline for the index is Jan. 1, 2020, a time of strong performance by other indices and well before the onset of pandemic disruptions. The index stood at 119.02 as of March 1, indicating that publicly traded vintners have seen fortunes strengthen during the pandemic. The market’s confidence in the sector as a whole remains high. The index is intended to provide a snapshot in time and help benchmark a company’s performance against its peers. Performance can vary depending on the interval chosen, meaning a comparison across several intervals can be helpful.

Some of the strongest performers have been the luxury wine companies LVMH and Pernod Ricard, which have both performed well as aspirational and discretionary spending remained strong over the past year. LVMH’s share price has increased 28% over the past year to $170.45 while Pernod Ricard’s increased 3% to $42.22. The gains continued in the latest three months, with LVMH up 14% and Pernod Ricard up 7%, underscoring the long-term momentum underpinning each company.

The least fortunate company among those tracked by the index has been Vintage Wine Estates, which has seen its share price fall 83% versus a year ago to $1.39, with much of the slide registered in the past three months after the company restated earnings for the first quarter of fiscal 2023, released preliminary numbers for the second quarter that projected lower than expected revenue and gross margins for the year, and withdrew guidance on expectations for the remainder of the fiscal year, which ends June 30. The company also made a change at CEO with founding partner Pat Roney moving to the role of executive chairman and Director Jon Moramarco assuming the role of interim CEO. Moramarco is also the editor of the Gomberg Fredrikson Report and founder of bw166. On March 10, the company announced it had sold a 42-acre vineyard in Napa Valley for $11 million to reduce its overall debt. Following the sale, Vintage reported it owns approximately 1,600 acres of vineyards and leases an additional 800 acres.

Vintage is significant enough to influence the index but not sway it. Two of the largest components are instead LVMH and domestic vintner Constellation Brands, which has increased 2% over the past year but fallen 11% in the latest three months as its most recent earnings report underwhelmed the investment community. This is in line with the challenges other public companies have seen.

While a value decline can indicate a lack of confidence by the markets, it also creates a buying opportunity for long-term investors. The Duckhorn Portfolio, for example, has underperformed the index with a 19% drop in its share price over the past year. Currently trading in the range of $14.99, its shares have ranged between $12.64 and $22.29 over the past 52 weeks. Despite a lower price, several analysts have maintained a buy rating on the stock, an expectation that its share price will increase and reward investors. Bank of America analysts are among them, while Barclays upgraded its rating on the stock because of its latest earnings report.

This is in contrast with response to shifts in Vintage’s stock price, where sentiment has shifted in favor of “sell” from a uniform “buy” rating a year ago. Canaccord Genuity Group is among the bears, noting that it had more questions than answers about the company’s financials and future.

When it comes to public perception, however, the market is largely in favor of the wine sector. WBIX has outperformed the S&P 500, rising nearly 4% over the past year as the S&P 500 fell nearly 7%. The latest three months have seen it increase 2%, or twice the growth posted by the S&P 500.

Link to Index:  https://www.winebusiness.com/finance/wbix

Source:  Wine Business

 

Sandrine Chamfrault appointed Director of the Wine Syndicate of Graves Wines

Sandrine Chamfrault has recently been appointed Director of the Wine Syndicate of Graves Wines. Originally from Bordeaux, Sandrine and began her career in communication agencies, before joining the French Rugby Federation as part of the World Cup in 2007. In 2008, she became a consultant partner in an audit firm, then joined Château Marquis de Terme in 2013 with the mission of developing the tourism, communication and marketing division.

As Director of the Syndicat Viticole des Graves, Sandrine Chamfrault aims to support the marketing of Graves wines and to increase its visibility in France and internationally, as well as its brand’s digital presence.

“I want to premiumize the perception of Graves, which are quality wines, well rated, and which offer a wide variety of choices. I will continue the substantive work-initiated years ago to create a strong identity for the wines of Graves. The Syndicate has a role of network animation, it is an entity which must become essential, which federates the local ecosystem, must be a driving force and an example for the members. I have always had this desire to carry out a collective project, which is why I am delighted to join the Syndicat Viticole des Graves” explains Sandrine Chamfrault.

“The Syndicate has a role of network animation, it is an entity which must become essential, which federates the local ecosystem, must be a driving force and an example for the members. I have always had this desire to carry out a collective project, which is why I am delighted to join the Syndicat Viticole des Graves  ”  Sandrine adds.