Understanding the Price Variability of Fourth and Fifth Growth Bordeaux Wines in the US Market
The price of a bottle of Bordeaux 4th or 5th growth wine in the US can fluctuate significantly based on several factors, including the reputation of the winery, the quality of the vintage, market demand, and the en primeur sale. Understanding these factors can help wine enthusiasts and collectors make informed decisions when purchasing these fine wines.
The Impact of Vintage Quality
The quality of the vintage plays a crucial role in determining the price of Bordeaux wines. In a year when the grapes are exceptionally ripe and the harvest is bountiful, the quality of the wine tends to be higher, leading to a higher price. Conversely, a difficult or poor vintage may result in wines that are less desirable, potentially lowering the price. For example, the very good 2006 vintage saw prices lower than expected due to the excellent 2005 vintage, which prompted large buyers to make significant purchases, leaving them with a surplus of 2005 stock and limited capital for the 2006 vintage.
The Role of The En Primeur Sale
The en primeur sale, which typically occurs in April, involves wineries allowing large buyers, wine shops, restaurants, and hotel chains to purchase the upcoming wine vintage before it is produced and bottled. The prices during this period are generally lower compared to later, as the wine is not yet completed. However, buyers are taking a risk that the wine may not meet expectations. Despite this risk, buyers can lock in their prices and often resell these futures with a modest markup. The en primeur sale can resemble a game of chicken, where buyers must decide on the optimal pricing to secure their allocations before competitors.
The Historical and Current Classification of Bordeaux Wines
The Classification of 1855 is a historic document that has influenced the market but may not fully reflect current market values due to changes in ownership, winemaking techniques, and replanting of vineyards. This classification, created for Napoleon III, covered only the Medoc region and omitted the Right Bank areas like Pomerol and St. Emilion. These areas and wineries, such as Petrus, Ausone, Cheval Blanc, Le Pin, and Le Dome, are not included in the 1855 classification, despite their high quality and reputation.
Examples of Price Variability
To illustrate the price variability, let's consider two examples from my local wine store. The Ch. Grand Puy Lacoste, a 5th growth, has a price range from $150 for the 2000 vintage to $55 for the 2012 vintage. The 2012 vintage, being from a mediocre year, is naturally priced lower. Meanwhile, the Ch. Lynch Bages, also a 5th growth, exhibits a wide price range, from $130 for the 2014 vintage to $300 for the 2009 vintage. The 2010 Lynch Bages costs $190, more than double the price of the 2010 Grand Puy Lacoste, despite the same growth and vintage. These examples demonstrate that even within the same growth and vintage, the prices of the same wine can vary significantly depending on the specific vintage and other market factors.
Conclusion
The market for Bordeaux 4th and 5th growth wines is inherently unstable, with prices varying widely from chateau to chateau and from year to year. Factors such as vintage quality, en primeur sales, and the historical and current Classification of 1855 contribute to this variability. While these wines offer excellent quality and long-term investment potential, buyers must carefully consider these factors to make informed purchase decisions.
Frequently Asked Questions
Q: How do large buyers participate in the en primeur sale?
A: Large buyers can purchase the upcoming vintage at the en primeur sale, which generally offers lower prices as the wine is not yet completed. However, buyers are taking a risk that the wine may not meet expectations.
Q: Why are some vintages from a good year less expensive than expected?
A: Good vintages can lead to producers making larger quantities of wine, potentially leading to a surplus in the market. This surplus can lower prices as producers attempt to sell their stock.
Q: What role does the Classification of 1855 play in today's market?
A: While the Classification of 1855 is a historical document and can serve as a reference, it may not accurately reflect current market values due to changes in ownership, replanting, and winemaking techniques.