Comments on: Our man at VinExpo http://bbrblog.com/2009/07/10/our-man-at-vinexpo/ The closest link between the people that make wine and the people that drink it Wed, 01 Feb 2012 09:15:12 +0000 hourly 1 http://wordpress.org/?v=3.0.3 By: Max Lalondrelle http://bbrblog.com/2009/07/10/our-man-at-vinexpo/comment-page-1/#comment-2482 Max Lalondrelle Mon, 13 Jul 2009 13:10:28 +0000 http://bbrblog.com/?p=1335#comment-2482 Dear Robert, Many thanks for you comments. Most of the top property owners and managers are very well travelled people. They are therefore very aware of the difficult times we are facing but they seem to think that they are above it, mainly because of their very ancestral but super efficient distribution system. It is basically a game of pass the parcel which will help them bridge across to better times. As you said their business model is very good and will probably see them thought though times. Asia is definitely a strong market for Bordeaux wines and will help the market and properties to sustain current pricing level. Unfortunately this will be to the detriment of the European customers for whom these wines do not represent good value for money anymore. I would probably do the same if I was them but I am always a bit annoyed that they forgot about faithful market like the UK so rapidly to profiteer from less experienced markets who have never known most of their wines being cheaper. 2009 is looking very good (again!) so far and if our economy recovers a little in the next 18 months then 2008 is going to be the best value vintage around!! Dear Robert,

Many thanks for you comments. Most of the top property owners and managers are very well travelled people. They are therefore very aware of the difficult times we are facing but they seem to think that they are above it, mainly because of their very ancestral but super efficient distribution system. It is basically a game of pass the parcel which will help them bridge across to better times. As you said their business model is very good and will probably see them thought though times. Asia is definitely a strong market for Bordeaux wines and will help the market and properties to sustain current pricing level. Unfortunately this will be to the detriment of the European customers for whom these wines do not represent good value for money anymore. I would probably do the same if I was them but I am always a bit annoyed that they forgot about faithful market like the UK so rapidly to profiteer from less experienced markets who have never known most of their wines being cheaper. 2009 is looking very good (again!) so far and if our economy recovers a little in the next 18 months then 2008 is going to be the best value vintage around!!

]]> By: robert http://bbrblog.com/2009/07/10/our-man-at-vinexpo/comment-page-1/#comment-2481 robert Mon, 13 Jul 2009 11:51:58 +0000 http://bbrblog.com/?p=1335#comment-2481 But are they in denial? or rather, is their business model sufficiently good (perhaps by chance) that they don't have to worry. If there's a big theme in world economics, it's that the West (America, Europe) have gorged on cheap Chinese imports, but neither the Chinese nor the West have been able to reciprocate i.e. there isn't enough for the West to sell that the Chinese want to buy. The West is therefore in massive debt and the Chinese are sitting on loads of capital. Isn't wine, specifically Bordeaux wine, a rare example of things going the other way? I guess Berry's own sales figures may be a good guide here, but unlike the vast majority of businesses e.g. clothes, cars, computers..., Bordeaux wine is actually in exactly the right place at the right time: i.e. it is desired by the only people in the world who still have the capital to spend. The downturn may never really hit Bordeaux. Or is this head-in-the-clouds thinking? But are they in denial?
or rather, is their business model sufficiently good (perhaps by chance) that they don’t have to worry.
If there’s a big theme in world economics, it’s that the West (America, Europe) have gorged on cheap Chinese imports, but neither the Chinese nor the West have been able to reciprocate i.e. there isn’t enough for the West to sell that the Chinese want to buy. The West is therefore in massive debt and the Chinese are sitting on loads of capital.
Isn’t wine, specifically Bordeaux wine, a rare example of things going the other way?
I guess Berry’s own sales figures may be a good guide here, but unlike the vast majority of businesses e.g. clothes, cars, computers…, Bordeaux wine is actually in exactly the right place at the right time: i.e. it is desired by the only people in the world who still have the capital to spend.
The downturn may never really hit Bordeaux.
Or is this head-in-the-clouds thinking?

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