{"id":23876,"date":"2024-09-27T00:00:00","date_gmt":"2024-09-27T00:00:00","guid":{"rendered":"https:\/\/insidelaplace.rcassocies.com\/2024\/09\/27\/inside-la-place-no-peaks-without-the-base-entry-level-bordeaux-wines-are-essential-to-grand-crus\/"},"modified":"2024-09-27T00:00:00","modified_gmt":"2024-09-27T00:00:00","slug":"inside-la-place-no-peaks-without-the-base-entry-level-bordeaux-wines-are-essential-to-grand-crus","status":"publish","type":"post","link":"https:\/\/insidelaplace.rcassocies.com\/en\/2024\/09\/27\/inside-la-place-no-peaks-without-the-base-entry-level-bordeaux-wines-are-essential-to-grand-crus\/","title":{"rendered":"Inside LA PLACE – ” No Peaks Without the Base: Entry-Level Bordeaux Wines Are Essential to Grand Crus ”\u00a0"},"content":{"rendered":"

Jean Merlaut<\/strong><\/h2>\n

Owner of Ch\u00e2teau Gruaud Larose & Ch\u00e2teau Dudon<\/span><\/strong><\/h2>\n

Founder and President of Maison Jean Merlaut<\/strong><\/h2>\n
\n

Presentation\u00a0<\/strong><\/h2>\n

Gerda:\u00a0You are both an owner and a negociant. What are the main challenges vineyard owners and negociants face?<\/strong><\/em><\/p>\n

Jean Merlaut:\u00a0<\/strong>The challenges for vineyard owners and negociants are not the same. For vineyard owners, climate change is a major challenge. Although this phenomenon is not new, it has become increasingly extreme. We\u2019ve gone from periods of excessive heat to intense cold, frost, and now prolonged periods of drought and humidity. Owners must adapt to produce consistent wines, which is their primary concern.<\/p>\n

The second challenge is marketing. Currently, Bordeaux is going through a difficult time, but it\u2019s not just Bordeaux. Globally, there has been an overproduction of wine that has been reduced due to uprooting in various regions. In recent years, production has decreased. Overproduction has become more limited, but unlike products such as wheat or corn, wine can be stored, creating a difference between stock levels and market trends.<\/p>\n

Additionally, consumption habits are changing. Countries that were traditionally heavy wine consumers are drinking less and less. Behaviors are evolving; people are more inclined to live in the moment. Reducing stocks will take time, though hopefully one day we might even face a wine shortage (laughs)<\/em>. In France, wine consumption was often tied to enjoying a good meal, like a steak with red wine. However, this is gradually being lost, partly due to regulations that prohibit driving after drinking several glasses. There is now a trend toward drinking wine outside of meals, as an aperitif, which leads to lower consumption.<\/p>\n

\n

\u00a0Terroirs, Vines, and Cellars\u00a0<\/strong><\/h2>\n

G:\u00a0Why did you choose organic farming at Ch\u00e2teau Gruaud Larose?<\/em><\/strong><\/p>\n

JM:<\/strong> Organic farming is absolutely not mandatory. It\u2019s a choice we made. First and foremost, it is crucial to have goals, and whether it\u2019s at Gruaud or in my properties in the C\u00f4tes de Bordeaux, it\u2019s essential to adapt to your environment, your climate, and the surrounding biodiversity. In medicine, we talk about a person’s “constitution.” Similarly, it’s often said that vines must suffer, but I believe vines should not suffer. Rather, they should endure like an Olympic athlete, who endures to achieve excellence.<\/p>\n

Our job is to integrate all the biodiversity with the vine and strengthen its natural defenses, and that\u2019s where organic farming truly makes sense. At Gruaud, we have the means to choose organic, and we applied for certification, but we don\u2019t display it on the label unless our clients request it. Labeling regulations vary from country to country. However, at Ch\u00e2teau Dudon, we no longer use herbicides and stopped using insecticides in the early 1990s, except to fight flavescence dor\u00e9e, because it\u2019s mandatory, and I comply with those requirements.<\/p>\n

<\/p>\n

\n

Properties and Brands<\/strong><\/h2>\n

G: You own a Second Growth classified ch\u00e2teau in Saint-Julien, Ch\u00e2teau Gruaud Larose, and we are currently at Ch\u00e2teau Dudon, but do small estates still have a future in Bordeaux?<\/strong><\/em><\/p>\n

JM:<\/strong> I firmly believe they do. With changing consumption habits, many people who drink 2 to 3 bottles a month may not have a deep knowledge of wine and cannot always afford the budget for a Grand Cru Class\u00e9. Wine education happens step by step. I always say that Bordeaux’s affordable wines are essential to the Grands Crus because it\u2019s through these smaller wines that the younger generation will one day appreciate the Grands Crus.<\/p>\n

<\/p>\n

I own Ch\u00e2teau Dudon, but also Ch\u00e2teaux Malagar and Sainte Catherine. Wines like Ch\u00e2teau Dudon and Ch\u00e2teau Malagar have remarkable potential. Ch\u00e2teau Dudon benefits from renovated facilities that enhance its intrinsic quality, and we\u2019ve also equipped Malagar, the former estate of Fran\u00e7ois Mauriac, with a modern cellar, giving it significant qualitative potential. On the other hand, Ch\u00e2teau Sainte Catherine, though organically cultivated, has not yet found great success in this price range, where attention to organic practices is still limited. Unfortunately, many owners abandon this practice. These hillside vineyards produce fruity wines with nice freshness while also having significant aging potential. Their accessibility in terms of both taste and price makes them attractive, and they can find their place in very promising markets, as Roland has demonstrated with Ch\u00e2teau Dudon.<\/p>\n

In the northern M\u00e9doc, where climate change is affecting the ripeness of the cabernet grapes, there are magnificent terroirs with immense potential for producing exceptional wines. This climate change opens up new perspectives for making great wines in the region. It’s there that we\u2019ve acquired 250 hectares of vines over five years, and we produce Ch\u00e2teau Taffard de Blaignan and Ch\u00e2teau Saint Bonnet.<\/p>\n

\n

Distribution Today and Tomorrow<\/strong><\/h2>\n

G:\u00a0The wine market is currently going through a crisis. What do you see as the main factors?<\/strong><\/em><\/p>\n

JM:\u00a0<\/strong>For mid-range wines, it\u2019s primarily the decline in consumption. For fine wines, it\u2019s their main markets, which have always been essential to Bordeaux, that are struggling. China has imposed severe restrictive measures, the situation in Russia is complicated due to the war, and in the United States, everyone fears the return of Trump and the introduction of new tariffs. Thus, the main export markets are disrupted, including in Europe and France. However, Bordeaux has weathered crises before. The last major crisis occurred between 1990 and 1994, and it was the arrival of Japan as a buyer that saved us. I believe another country will eventually take over. The wine market is so tight that it only takes a little to tip it in one direction or the other.<\/p>\n

<\/p>\n

G:\u00a0\u00a0Is this crisis cyclical or structural, in your opinion?<\/em><\/strong><\/p>\n

JM:<\/strong>\u00a0To me, this crisis is primarily cyclical regarding the Grand Crus. It could be resolved with the emergence of new markets, such as those in India or South America, and with the strong return of China, for example. Chinese consumers have developed a fine appreciation for wines and are eager to rediscover the Grand Crus. It\u2019s also essential to find new consumers, and for that, it is vital to focus on mid-range wines. I remember my first trip to the United States. At that time, few people really knew about wine there. They initially enjoyed sweet and white wines, then started producing great wines in California before buying our Grand Crus. This process occurred in stages, always starting with affordable products. Gradually, a true wine culture established itself.<\/p>\n

G:\u00a0In Bordeaux, we have an open distribution system, La Place. Do you think this is an advantage for importers and distributors who are the negociant’s clients?<\/strong><\/em><\/p>\n

JM:\u00a0<\/strong>The system may seem archaic and absurd from the outside, but it is essential for an importer to have a varied range of products, from ordinary wine to grand crus. The n\u00e9gociant facilitates this diversity without requiring the purchase of entire containers of a single brand. The ability to offer bottles from different ch\u00e2teaux is crucial.<\/p>\n

Negociants taste, know the products, and provide informed advice to their clients. For owners, this system offers a significant advantage. It allows for a sufficient sales force to distribute wines in various countries, even in small quantities, like 3 cases in Istanbul, 2 cases in Ankara, and 1 case in Vietnam. It would be commercially impossible to manage this logistics without the n\u00e9gociant.<\/p>\n

Some properties try to do without the n\u00e9gociant, but this rarely succeeds or only in limited areas. Creating an international brand without the support of the n\u00e9gociant is difficult. However, there is an anomaly in the distribution margins of Bordeaux wines. Unlike other luxury products where margins are significant, those of wines are reduced. This issue can be resolved if the brand becomes popular with customers, which depends on the strength of the brand. Properties must support the negociant by generating demand through targeted actions toward end consumers. This will create an aspirational effect, facilitating sales by the n\u00e9gociants and their clients. While some properties wish to control distribution, they usually do not do so effectively. By maintaining a good relationship with the n\u00e9gociant and having some knowledge of the secondary market, it is possible to know where the wines are going. The market is relatively transparent, especially with social media where people share their experiences.<\/p>\n

I firmly believe in the Bordeaux Place system, despite the current difficulties largely related to the sudden rise in interest rates. Rates close to zero were also not healthy for the market, as they too influenced behaviors. The best advertisement for a wine is an empty bottle on the table. When interest rates are too low, too much speculation enters the market; the bottles remain in warehouses, but they must be sold eventually.<\/p>\n

G:\u00a0How do you see the distribution of wines outside Bordeaux through the Place de Bordeaux?<\/em><\/strong><\/p>\n

JM:\u00a0<\/strong> The negociants of the Place de Bordeaux can be excellent prescribers because they know the products well. However, for wines outside Bordeaux, the task is more complex. The n\u00e9gociants become more like sales representatives than true prescribers because it is important to recognize that they cannot have an in-depth knowledge of all the wines in the world due to their geographical distance from the vineyards.<\/p>\n

<\/strong><\/em><\/p>\n

G:\u00a0Can you explain to clients the criteria on which you established the price of Gruaud Larose for this primeur release?<\/strong><\/em><\/p>\n

JM:\u00a0<\/strong>Gruaud Larose was the finest property in Saint-Julien. It previously belonged to the Cordier family, who were also powerful n\u00e9gociants. At that time, there were no comparative tastings between the Crus, which is what allows owners to track the evolution of their wines compared to others. Gruaud Larose was one of the first properties to harvest ripe grapes. Undeniably, Gruaud Larose was the best\u00a0 in Saint-Julien from the 1920s until 1940. However, with climate change, planting practices have evolved. In the past, cabernets were planted in cooler areas for a later bud break to avoid frost, while merlots were reserved for warmer areas.<\/p>\n

This reconfiguration of vineyards in Saint-Julien was initiated by pioneers like Jean-Hubert Delon\u2019s grandfather (owner of Ch\u00e2teau L\u00e9oville Las Cases), as well as Anthony Barton’s uncle, and more recently Didier Cuvelier at Ch\u00e2teau L\u00e9oville Poyferr\u00e9. All chateaux in Saint-Julien have gradually adopted this approach. Unlike its peers, Gruaud Larose did not carry out this conversion because there were no comparative tastings at the time. It had the reputation of a great wine, but a shift towards a new planting strategy, especially with cabernet sauvignon, was necessary.<\/p>\n

When I arrived in 1997, I knew very well that it was necessary to uproot and replant cabernet sauvignon in the right locations. This grape variety is what makes great M\u00e9docs. But this conversion takes a lot of time. I set myself a 30-year timeline to accomplish this, and gradually, there is more and more cabernet sauvignon in Gruaud Larose. As a result, there has been a noticeable improvement in the quality of Gruaud; we have made enormous efforts in vineyard management by adopting biodynamic practices.<\/p>\n

Regarding the price, the policy for Gruaud is to never make abrupt adjustments, whether up or down. If you are used to buying shoes from a brand for \u20ac150, and then the next year they cost \u20ac170, you will continue to buy them. If they suddenly jump to \u20ac300, you will look at other brands. If they drop to \u20ac80, you feel cheated. As a producer, I have to taste wines from different origins; I know a bit about Burgundy vintages, but much less about those from Italy or California, and not at all about Argentina or New Zealand. If I buy a Vega Sicilia, it\u2019s for the trust I have in the brand, not for the vintage.\u00a0The consumer on the other side of the world buys Gruaud or Barton, not a 2002 or a 2004. It is up to us to be more or less selective based on quality to release a product that aligns with the price, even if it means not producing a first wine.<\/p>\n

In 2023, I am aware that our decision to reduce the price of Gruaud Larose less sharply than others may have surprised the market, even though the decrease remains significant. However, I am convinced that the importance of the vintage is less critical today. We prioritize a rigorous selection centered on quality. It is possible to appreciate vintages sometimes considered more modest, like 2017, which turns out to be delightful. In the current market, the success of sales does not solely depend on the price set by the owners. I prefer to stay true to the pricing policy established over several years.<\/p>\n

It is also important to remember that the negociant plays a key role, but the end consumer is more important. Maintaining consumer trust in the brand is essential; consumers would not understand seeing Gruaud Larose bottles with vastly different prices. I am convinced that, except for a few great connoisseurs, the vintage effect does not play a crucial role. Regardless, the pleasure that the consumer feels when opening a bottle of Gruaud Larose is our top priority.<\/p>\n

<\/h2>\n

Gerda BEZIADE<\/span><\/span><\/em> has an incredible passion for wine, and possesses a perfect knowledge of Bordeaux acquired within prestigious wine merchants for 25 years.\u00a0\u00a0<\/em>Gerda joins\u00a0Roland Coiffe & Associ\u00e9s<\/span>\u00a0<\/a>in order to bring you, through “Inside La PLACE”\u00a0more information about the estate we sell.<\/em>\u00a0 \u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Inside La Place reveals the vital role of Bordeaux’s traditional distribution system, where n\u00e9gociants offer diverse wines, from entry-level bottles to Grand Crus, ensuring accessibility and quality. A cornerstone for importers, distributors, and collectors alike.<\/p>\n","protected":false},"author":3,"featured_media":16644,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[450],"tags":[],"appellation":[1051],"profession":[],"propriete":[1156],"personnalite":[],"class_list":["post-23876","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property","appellation-saint-julien-en","propriete-chateau-gruaud-larose-en"],"yoast_head":"\nInside La Place - The Vital Role of Entry-Level Bordeaux Wines<\/title>\n<meta name=\"description\" content=\"Discover the essential role of entry-level Bordeaux wines in the grand scheme of the Bordeaux wine market. 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