FRENCH WINES SPLIT: IN BORDEAUX PLANS TO “CUT” WINERIES THAT PRODUCE LOW COST “BASIC BORDEAUX” WHILE IN BURGUNDY 2 NEW NAMES ARE TRYING TO LAUNCH “CHEAP” WINES

It appears to be a real split in the French wine world, as perhaps the two most important production areas; Bordeaux and Burgundy are taking completely opposite approaches. Most of the blame is the crisis, of course, but it looks like even our French cousins are no longer sure how to face the increasing challenges in the wine sector.

In Bordeaux, when the winemaker Alain Vironneau took over as President of the Interprofessionnel Conseil du Vin de Bordeaux (CIVB) from the Négociant Georges Haushalter, general manager of Compagnie des Grands Crus Medocain, a plan was launched to drastically reduce the number of chateaux producing low-cost basic Bordeaux. The goal is to increase total production 12% by reducing the current production of 1.1 million hectoliters of basic Bordeaux, sold in France at less than 2 euros a bottle. Financial support and other contributions will be used to uproot the vineyards or help winemakers retire from business. In “borderline” properties with respect to producing excellent quality, enologists will help them improve their quality. The proposed plan aims to reduce number of producers by 26% and the area of vineyards by 7%. At the same time, the production of wine in the most profitable areas of Bordeaux will be increased and a simplified system for labeling will help consumers identify which type of wine they are buying. The goal of this strategy is to increase current revenues of 3.5 billion euros to 4.5 billion by 2020.

In Burgundy, instead, the trend is exactly the opposite. In early July, the INAO (Institut National des Appellations d’Origine), the organism that governs French wine names, has approved the creation of two new AOC (controlled denomination of origin) for probably the most famous wine area in the world. The producers of Burgundy hope that the two new names will improve sales of low cost wines. The Appellation “Côteaux Bourguignons” would be situated at the base of the pyramid of the quality rating system, below the Bourgogne AOC labels and should include low cost wines in the area. The appellation “Bourgogne Côte d’Or” would instead be ranked among the names Côtes de Nuit and Côtes de Beaune and also would include more “affordable” products of these two major production areas of Burgundy, guaranteeing an excellent standard of quality at competitive prices.