Wine Business

Question 1

How many estates often referred to as chateaux exist in Bordeaux?

Is this number shirking or rising? Why?

Answer 1

7,000

Shrinking, very small properties are being taken over by larger neighbours to create volumes of wine that are more viable commercially

Question 2

Why would the average estate size be rising?

What is the average estate size today?

Answer 2

larger estates are buying our smaller estates

19 hectares

Question 3

The annual production fluctuates but is generally over ____ ______ bottles.

What quality and price would the vast majority of these wines be?

Answer 3

800 million bottles

the vast majority of wines are inexpensive or mid-priced and this is
reflected in the areas of vineyards planted in the appellations.

Question 4

Co-operatives continue to play an important role in Bordeaux. In 2018, they were responsible for a quarter of production from 40 per cent of grape growers.

Does this suggest that the larger growers go to Co-ops for production or vice versa?

Answer 4

This infers that many of the smaller growers go to Co-op’s with their fruit. most likely because producing the wine themselves is a costly and cumbersome commitment to take on.

Question 5

Production costs for Bordeaux AOC, a Médoc estate and a classed growth are significantly different:
€___, €____ and €___ per bottle

What external factors not included in production costs would change this number?

Answer 5

€0.57, €2.35 and €16 per bottle

These figures do not include interest on bank loans or land costs, which would increase the costs significantly

Question 6

Regarding Classed growths:

What factors would change the production cost per bottle so dramatically for these wines?

Answer 6

increased vine density,

harvest costs,

hugely higher viticultural costs,

lower yield,

rigorous grape selection

barrel ageing
(both the cost of a higher proportion of new barrels and extended time in barrel).