Revitalizing Bordeaux: A Region's Quest for Resilience and Reconnection

Understanding the Current Climate for Bordeaux Wine in the UK Market

What is the prevailing sentiment in the UK trade regarding Bordeaux wine at this moment? Is there a sense of regret over its current economic predicament, or perhaps a hint of satisfaction that a region, once seemingly indifferent to its clientele, is now facing its own trials? There's also the question of whether its struggles signify a broader existential crisis for the wine industry, or if there's an underlying optimism for a resurgence. Robert Mathias MW pondered this during the launch of Hallgarten's new Cellar Series, noting the nuanced nature of the situation. He concluded that the attitude is largely ambivalent, acknowledging that Bordeaux no longer holds the same esteemed position it once did.

Historical Practices and Their Impact on Bordeaux's Market Standing

Bordeaux has long been known for its somewhat audacious approach to both pricing and customer relations. However, a thriving Bordeaux is crucial for a healthy global wine trade. When this region falters, many businesses feel the ripple effect. It's important to recognize that not all of Bordeaux's current issues are self-inflicted. Approximately 60% of its sales occur within France, where domestic wine consumption has been in a sustained decline, particularly affecting red wines, which constitute 80% of Bordeaux's production. Furthermore, producing tannic, oak-aged wines when market demand favors fruit-forward, medium-bodied, and terroir-expressive varieties presents a significant disadvantage. One hotel group buyer cynically remarked that Burgundy offers greater nuance, with its emphasis on terroir and delicate winemaking, contrasting with Bordeaux's more commercial focus.

The Evolving Palate of Wine Consumers and Bordeaux's Challenges

The traditional claret drinkers, who once purchased wine by the case, are a dwindling demographic. The newer generation of consumers exhibits less commitment. Martin Tickle, fine wine buyer for Jeroboams, observes that these new buyers tend to acquire smaller quantities once or twice before exploring other options. This combination of factors has led to a bleak outlook. Red Bordeaux sales in France have plummeted by 44% over the last decade, with export markets failing to compensate. Last year, export volumes decreased by 4% and value by 8%. While the US became the top market in 2024, this could be a short-lived victory given the political landscape.

Addressing the Oversupply: Vineyard Reduction and Market Dynamics

It is clear that Bordeaux produces an excessive amount of wine. To address this, the region initiated a grub-up program in 2023, removing over 12,000 hectares of vineyards. The total vineyard area now stands at 94,000 hectares, with plans to remove an additional 4,000. In 2024, for the first time in a long while, production generally aligned with sales. However, this comes with two significant caveats: 2024 saw an unusually small vintage, and with no spring frost damage, 2025 is expected to yield a much larger harvest. Secondly, a substantial portion of the wines sold this year went at exceptionally low prices. Bulk prices dropped below €900/barrel earlier this year, falling below the cost of production as calculated by the Gironde Chamber of Agriculture. Gavin Quinney, a producer and respected commentator on the region's wine scene, suggests that up to 30% of Bordeaux's remaining vineyards may not be financially viable.

En Primeur Struggles and the Road to Rebuilding Trust

A robust en primeur campaign often offers some respite for the region, but 2024's campaign has been disappointing. Despite price reductions of around 30% from 2023, Bordeaux prices remain high compared to a decade ago, leading buyers to hesitate. Livex reports that Bordeaux's trade value is 32% lower than in 2015. Producers are in a difficult position: 2024 was a small and costly vintage, yet prices are falling. The historical disconnect between vintage size/quality and pricing, which largely favored the châteaux for two decades, is no longer the case. Sophia Gilmour, a market analyst at Liv-ex, praised the efforts of smaller châteaux like Carmes Haut-Brion, who released their 2021 vintage at the same price, likely below their production costs. She emphasized that rebuilding trust across the supply chain will take time. Private collectors, having incurred losses on recent purchases, will require significant persuasion to re-engage. Matteo Furlan, head of wines at the Dorchester London, noted that many collectors are offloading their stock, presenting an opportunity for businesses like his to acquire older Bordeaux wines at competitive prices, making en primeur purchases less appealing.

Glimmers of Hope: Sparkling Wines and Strategic Market Approaches

Martin Tickle of Jeroboams views this period as a "reset year," anticipating a return to more realistic release prices, which would be welcome news for merchants who have become increasingly vocal about pricing. Despite the generally somber outlook, some areas show promise. Sales of Crémant de Bordeaux have risen by 20% in the domestic market, indicating potential in the sparkling wine category. However, some point out that sparkling Sauvignon is a tougher sell than Crémant de Bourgogne, which uses Champagne grapes. Despite a significant increase in production, Crémant still constitutes less than 5% of Bordeaux's total output. A similar situation exists for white wines. Production is up, with vineyards in Entre-Deux-Mers that were previously replanted with Merlot now returning to white grape varieties. Yet, white wine production remains only 10% of the total. While highly regarded within the trade, there's little consumer demand for it. Martin Tickle notes that Bordeaux whites offer good value in a fine wine context, with growing interest, but this isn't yet reflected in consumer purchases. This lack of interest is often attributed to Bordeaux's historical reluctance to directly engage with consumers, a void that other wine regions have readily filled. Tickle adds that it's rare to find an exciting Bordeaux list in restaurants these days. To succeed now, producers need to actively promote their wines year-round.

Direct to Market: A New Strategy for Engaging Consumers

Hallgarten's new Cellar Series aims to address this challenge. The merchant has partnered with négociant Compagnie Médocaine des Grands Crus to offer older bottles directly from the cellars of 30 châteaux. Robert Mathias MW, who previously managed a similar initiative, believes this timing is even more critical now. He asserts that the quality of Bordeaux wines has never been better, with incredible excitement and consistency, but there's an oversupply, necessitating efforts to encourage consumption. The Cellar Series allows restaurants to purchase older bottles in small quantities with guaranteed provenance, without paying a premium, which is highly attractive to the hospitality sector. For the châteaux, this offers an opportunity to re-engage with the market and mend strained relationships. Although they may earn less than they would have five years ago, the wines are being sold and consumed. Mathias emphasizes that many châteaux recognize the project's value, acknowledging that while it won't lead to overnight riches, it significantly increases visibility for their properties.

Looking Ahead: Quality, Innovation, and Cautious Optimism

The crucial factor, perhaps, is "visibility." Everyone interviewed for this article praised the quality of wines currently being produced in Bordeaux, encompassing both traditional styles and a niche but growing movement towards lighter, fresher, lower-alcohol wines, often utilizing amphorae instead of oak. Sommeliers are aware that high-end establishments require classified growths, and they are genuinely impressed by the quality available at the £70–£100 price point. Few, if any, wine regions can offer good volumes of quality, eight- to ten-year-old wines at affordable prices. While the trade generally supports Bordeaux's success, the main hurdle is consumer disinterest. Re-engaging consumers will demand significant effort and time, which many châteaux may not have. However, let's end on a positive note. The 2025 growing season has been free from spring frost, and early indicators are promising. Martin Tickle suggests that this year's pricing creates an opportunity for next year. It will be challenging for prices to increase by 30%, and there should be greater volume. He believes the situation could look very different by this time next year. Here's hoping for a positive turnaround.