Lower prices needed to revive demand for top Bordeaux

London

TOP Bordeaux growers need to price 2014 wines so they're cheaper than mature vintages to revive demand, according to Simon Berry, chairman of London merchant Berry Bros & Rudd.

Vintners set prices for wines such as the 2013 vintage too high, hurting the market, Mr Berry said. If Bordeaux first-growth producers don't price 2014 wines below levels at which vintages including 2005 and 2006 are trading, "then what is going to be the incentive for people to get excited?" he said. "The great news on the horizon is that there's a very good vintage en route." Wine merchants have struggled to find buyers for the past three Bordeaux vintages as prices for leading wines have slumped 40 per cent from their June 2011 peak. While investors and collectors use Bordeaux futures to buy wines in barrel in anticipation of later price increases and possible shortages, market volatility and surplus stocks have started to undermine that system.