The wine community was left completely unsurprised this week, as once
again, French wine prices soared. Considering that this seems to be an on-going
trend, what does this say about the trajectory of the world’s most valued wine
market?
French wine has always been expensive, and people have always expected
it to be. The country’s excellence for wine is well established, and it’s
penchant for superior, quality products such as Champagne, Chateau Latour and
Cognac, has made it arguably the most famous wine producing region in the
world.
However, prices are rising dramatically, even for France. This month the
French government confirmed what the industry has long suspected. This is that
wine prices in the continental nation have risen by a staggering 32% between
2012 and 2013.
Yes, that’s right, the price of French wine, on average, has risen by
32% on in the space of a single year. The government has said that this is down
to small grape harvests in the country’s key viticulture centres, and that may
be, but that doesn’t mean that higher prices won’t have a knock on effect on
the world’s most popular wine market.
Specifically, this was detailed in a report that was issued last month
by Agreste, a department of the French Ministry of Agriculture. The report
further revealed that the average price of wine from an appellation saw an 18%
year-on-year increase in the six month period before January 2014. Compared to
2008 – 2012, this is a 25% rise in the price of French wine.
When it comes to specific regions, we get similar results in the ones
that have traditionally been most popular with drinkers. Burgundy saw wine
prices shoot up 32% in the first half of the year. On a five year average, this
represents a 51% rise. Agreste noted that in the Burgundy region, “limited
availability” had driven prices up.
The story was similar in perhaps the most famous French wine region
(barring Champagne), Bordeaux, home of the world famous Chateau Latour. In
Bordeaux, wine prices soared one fifth (20%) on the back of 2013’s notoriously
challenging vintage. This was brought about by poor weather, essential in
viticulture, and a freak hailstorm in the
region’s Entre-deux-Mers appellation.
So
it’s clear that circumstances such as changing weather patterns are altering
the face of the French wine market. This doesn’t mean that you still can’t get
quality luxury French wines for decent prices; we have plenty on the Ideal Wine
Company product list!
