Burgundy Business

Question 1

Outline the structure of wine production in Chablis (2)

Answer 1

Divide between merchants and estates is blurring - negociants buying land and domaines making some negociant wine

1/3 of production by co-op La Chablisienne - all levels of quality

Question 2

Name two important industry bodies in Chablis and describe what they do.

Answer 2

Le Syndicat de Défense de l’Appellation de Chablis (1993)

• Founded by William Fevre to tackle fraud and environmental issues

L’Union des Grands Crus de Chablis

• Promotion of GC with charter for sustainability and hand harvesting

Question 3

What prices do different levels of Chablis usually achieve?

Answer 3

Generally lower than Cote d’Or

Domaine and level of appellation key drivers

PC/Chablis - mid-priced, occasionally premium

PC/GC - premium/super-premium

Highly regarded producers are extremely £££ e.g. Francois Raveneau and Vincent Dauvissat

Question 4

Where is Chablis sold?

Answer 4

1/3 Domestic

2/3 Export - UK (largest by far), US, Japan, Sweden, Canada

Question 5

Describe recent trends in production structure in Burgundy (3)

Answer 5

Historically - negociants were largest producers - e.g. Albert Bichot, Joseph Drouhin, Faiveley, Louis Jadot and Bouchard Père et Fils.

1980s - move toward more domaine bottling

2000s - larger domaines acting as negociants e.g. Dujac

Question 6

Describe five key types of organisation involved in production in Burgundy

Answer 6

• growers – businesses that have vineyard holdings and sell their grapes or unfinished
wines to négociants. Several thousand growers and typically their holdings are
divided in parcels in different vineyards and villages.
• domaines – businesses that own vineyards and make wine from them, which they sell
under their own label
• négociants – typically large businesses that buy grapes and/or wines, finish them and
bottle them for sale under their own name
• micro-négociants – smaller businesses that buy grapes from very good to top quality
vineyards, make the wines and sell them under their own name, for example, Benjamin
Leroux
• co-operatives – these businesses are less important in the Côte d’Or but have a more
predominant role in Chablis (La Chablisienne), the Mâconnais (e.g. the Cave de Lugny),
and, to a lesser extent, in the Côte Chalonnaise

Question 7

Where is Burgundy wine sold? What roles does DTC play?

Answer 7

Domestic 50%

Export 25% in EU, 25% ex-EU

Largest export markets: US, UK, Japan

DTC and direct sale to retailer on the rise esp as en primeur has become more important

Premium-super-premium sold via specialist wine shops and fine dining

Generic and village via supermarkets and hospo

Question 8

Name factors that can determine the price of a Burgundy wine (3)

Answer 8

Producer’s reputation e.g. Domaine Armand Rousseau

Village name and stylistic difference e.g. perfumed Volnay vs tannic Pommard

Reputation of particular cru e.g. within Meursault Perrieres steeliness vs body of Charmes

Question 9

Describe the trends that have been responsible for price changes in Burgundy (4)

Answer 9

Prices for super-premium up 200% between 2003 - 16 on secondary market

• Increasing land prices - scarce + more demand from foreign firms
• Increased global demand for Burgundy
• Limited supply - volume 1/4 of Bordeaux
• Variable production due to weather hazards