17 Burgundy Commerce

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  1. 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)
  2. Which countries import the most Burgundy wine?
    • By volume: UK, USA, Belgium, Japan, Netherlands
    • By value: UK, USA, Japan, Belgium, Canada
  3. Name the 3 types of producers comprising the Burgundy wine industry
    • 3800 Domaines (Estates)
    • 250 Negociants
    • 23 Cooperatives
    • (also 70 brokers)
  4. Have Domaines consolidated?
    • Yes... 19% fewer but 56% larger average size
    • 2000: 4678 @ 12.35 acres
    • 2007: 3787 @ 19.27 acres
  5. How much wine in each department is sold by Domaines?
    • Cote d'Or: 60%
    • Yonne: 50%
    • Saone et Loire: 35%
    • Beaujolais: 17%
  6. 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
  7. 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
  8. 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)
  9. 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., Ch√Ęteau des Jacques)
    • Brokers receive a percentage of the purchase price
  10. 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
  11. 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
  12. Describe wine distribution in France
    • 2 tiers: Supplier to Retailer
    • Negociants employ 3500 Sales Reps
  13. 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
  14. 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
  15. 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
  16. 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
  17. What is the role of the media?
    • The media is important for commerce
    • Share knowledge
    • Educate
    • Report without bias
    • Taste appropriately, i.e., in June for whites, in November for reds)
  18. Name some persons in the media for Burgundy
    • Clive Coates
    • Sylvain Pitiot
    • Remington Norman (merchant)
    • Alan Meadows (Burghound)
  19. What is the most reliable indicator of quality in Bourgogne wine?
    Producer

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Author:
mikedutch
ID:
321193
Filename:
17 Burgundy Commerce
Updated:
2016-06-20 02:13:24
Tags:
WSG FWS Bourgogne Burgundy
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Description:
Wine Scholar Guild Bourgogne Master Level Program
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