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How much wine is sold in Burgundy each year?
- 17.5 million cases
- $1.8 billion
- 50% export sales (largest % of any region in France)
Which countries import the most Burgundy wine?
- By volume: UK, USA, Belgium, Japan, Netherlands
- By value: UK, USA, Japan, Belgium, Canada
Name the 3 types of producers comprising the Burgundy wine industry
- 3800 Domaines (Estates)
- 250 Negociants
- 23 Cooperatives
- (also 70 brokers)
Have Domaines consolidated?
- Yes... 19% fewer but 56% larger average size
- 2000: 4678 @ 12.35 acres
- 2007: 3787 @ 19.27 acres
How much wine in each department is sold by Domaines?
- Cote d'Or: 60%
- Yonne: 50%
- Saone et Loire: 35%
- Beaujolais: 17%
Describe the role of the negociant
- Blend parcels into more economical units for sales
- Enhance distribution via benefits of scale
- Provide an outlet for lower end wines
Describe Negociant trends
- Sold over 8 million cases
- Commercializing 55% of every Burgundy harvest
- Expanding vineyard ownership
- Buying more grapes and musts rather than young wines
How much wine is sold by Cooperatives?
- 2008: 3 million cases
- Saone et Loire: 60% (13 of 17 coops)
- Yonne: 33% (3 of 17 coops)
- Cote d'Or: 7% (1 of 17 coops)
Describe the role of the broker (courtier)
- Brokers maintain close relationships with growers and negociants
- Growers (e.g., Domaine LaPierre) use brokers (e.g., Loron) to negotiate with negotiants (e.g., Château des Jacques)
- Brokers receive a percentage of the purchase price
What is a Petit Negociant?
- Growing trend where established Domaines add wines to their portfolio that they make from purchased grapes
- Leverages their reputation
- Examples: Etienne Sauzet, Pierre Morey, Vincent Girardin
Describe wine distribution in the U.S.
- 3 tiers: Supplier, Distributor, Retailer
- Exclusivity (e.g., Kobrand is only importer of Louis Jadot wine)
- State Laws
- Pre-sells and allocations
- Shipment and care of goods
Describe wine distribution in France
- 2 tiers: Supplier to Retailer
- Negociants employ 3500 Sales Reps
What does the Bureau Interprofessional des Vins de Bourgone (BIVB) trade association do?
- Establised in 1989, privately governed, Funded by member dues
- Conducts research, seminars, conferences, market analylsis
- Since 2000, operates a quality control program
Describe the Auction of the Hospice de Beaune
- Began in 1859
- All proceeds to to charity
- Generated $7M in 2009
- Estate vineyards in Mazis-Chambertin, Clos de la Roche, Cote de Beaune, Pouilly-Fuisse
What is "Trois Glorieuses"?
- 3 wine events held annually
- The Chapter of the Confrerie des Chevalier du Tastevin: Dinner at Clos du Vougeot on Saturday
- Hospices de Beaune auction: held third Sunday of November in Beaune
- La Paulee de Meursault: Lunch on Monday
Name some other wine events in Bourgogne
- Hospices de Nuite-Saint-Georges auction
- Saint Vincent Festivals: held in different village each January; patron saint of the vigneron
- Le Tastevinage: twice a year blind tasting; winners can use it in marketing
- Salon des vins a Macon et Concours national des grands vins de France: wine competition every April
- Grand Jours de Bourgogne: every other March, started by BIVB for the trade
What is the role of the media?
- The media is important for commerce
- Share knowledge
- Report without bias
- Taste appropriately, i.e., in June for whites, in November for reds)
Name some persons in the media for Burgundy
- Clive Coates
- Sylvain Pitiot
- Remington Norman (merchant)
- Alan Meadows (Burghound)
What is the most reliable indicator of quality in Bourgogne wine?