Burgundy - Wine Business 2/2

Both the name of the domaine and of the appellation, including the single vineyard names, are very important drivers of price in Burgundy. Very well regarded domaines can fetch high prices for their village wines, for example, a super-premium price for Domaine Armand Rousseau Gevrey-Chambertin AOC, and can easily out-price premiers crus from the same village by different, lesser-known producers.

Village names also act as indicators of subtle style differences in both red and white wines. Thus, both those who sell the wines and consumers will talk about the elegance and intensely perfumed nature of the red wines from Volnay or the more robust, tannic wines of Pommard. 

Similarly, premier and grand cru single-vineyard wines are sold on the reputation for a particular stylistic feature. For example, a comparison might be drawn between two of the premiers crus in Meursault, the steely concentration of Perrières and the full body and approachable style of Charmes.

The wines may be sold en primeur, in specialist wine shops and in fine dining and, at generic and village level, more generally in supermarkets and in the hospitality sector.

Land prices in Burgundy have been increasing over recent years driven in part by the relative scarcity of supply, particularly of the more highly sought-after vineyard names. As in other regions, foreign buyers of wine businesses have added to pressure on land prices. 

High land prices, along with increasing worldwide demand for a relatively small production and the dramatic differences in volumes produced due to weather hazards has meant that prices have increased substantially since the mid-2000s. 

Total production is approximately one quarter of that in Bordeaux. Similarly, Domaine de la Romanée-Conti, the producer of Burgundy’s most sought-after red wines, produces roughly a quarter of the volume of Château Lafite Rothschild’s Grand Vin in Bordeaux. Increased interest in the most expensive Burgundy has led to steeply increased prices in wines being traded on the secondary market.