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TNWG Wine Times: Episode 47: Wines of Bordeaux

Welcome back to another episode of the TNWG Wine Times!


This time I am looking at a very well known region of Bordeaux, giving my assessment on recent developments in the region and what I found out that surprised me or not when being in the region for two weeks.


ANNOUNCEMENTS/EVENTS


💥 LAST CALL! 💥Wine and Cheese Tasting Event at Pad 12 Wine and Gin Bar in Kelham, Sheffield


Tickets are now finished from being on sale.


💥 WINE WADDLE 💥Friday 8th August - what is it?

Simple. You just need to let me know you are coming. There is no expectations, no cost (other than you buying your own drinks) and a way to network whilst having a walk around the city.


Starting at 3.30pm at Gills and Co.

Second stop: Barks Wine in Leah's Yard.

Third stop: Old Shoe in Leopold Sq (with a surprise twist)

Fourth Stop: Pad 12 Wine and Gin Bar in Kelham

Just let me know if you are coming and you will be added to the numbers already planning on joining. 


💥 The Wine and Cheese Network is back in SEPT 💥


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That's right, it is back!


We are looking to finalise keynote speakers for the Sept to December run as well as help as many local charities as possible. So if you are keen to make an impact with a collective audience, then let me know about keynote speaker opportunities. 



FOCUS: Wines of Bordeaux


There is a lot written about Bordeaux in the press with regards to the wine scene. It is the 'capital' of the wine world and when you head into the city, you can see the sheer amount of places with extensive wine lists and the Cite du Vin on the west side of the city along the Garonne as a shining light.


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I went there, having been before to the region but having not been to the museum with excitement and I wasn't disappointed. A legendary place to many wine experts already, I can only reconfirm this assumption. What though was extra special was paying for the 'sensory experience'. Now as a wine expert, we often blind taste, write tasting notes etc but this was a great way of tasting a fresh. With ignoring colour in the glass, literally tasting with our senses. Well worth it if you are in the region!


If you want to know more on where to stay, what to do and my thoughts on the rest of Bordeaux as a city, subscribe to @The Northern Travel Guy .


Bordeaux Basics: Left Bank vs Right Bank


Here is the basics for those unaware of the difference in wines in Bordeaux. For red wine drinkers, this may well already been known but for many, it many not too so forgive me for trying to explain for all.


Bordeaux is an 80% red wine region. Most Red Bordeaux wines are blends, it is NOT the same as Burgundy which is a single varietal. 


The Left and Right Bank refers to the separation by the Gironde Estuary and the Dordogne and Garonne rivers. The Left Bank is known for Cabernet Sauvignon dominant blends based on gravelly soils and tannic structured wines - key appellations like Margaux and Pauillac, the Right Bank is known for Merlot dominant blends based on clay and limestone soils - key appellations like Pomerol and St Emilion.


Top Left Bank wines also come from the appellations of Saint-Julien, Saint-Estephe, and Pessac-Leognan - the areas were first classified back in 1855. Wines from the Left Bank can quite typically, whilst be Cabernet Sauvignon based, have Merlot, Petit Verdot, Malbec (Cot) and Cabernet Franc blended within them.


Top Right Bank wines are said to be more 'plummy' which is linked with Merlot. Typically a little softer than the Left Bank wines and a little more rounded - whilst Merlot dominant, typically is blended with Cabernet Franc and Cabernet Sauvignon. In some instances, such as Chateau Cheval Blanc, it is Cabernet Franc led. 


What is En Primeur?


My honest answer here - it's an outdated mess! Let me explain.

En Primeur is typically the process by which consumers (or more usually brokers/negociants) buy wine from the leading producers the following spring after grapes have been harvest but 12-18 months prior to being delivered. In effect, you are buying wine in the future.


Why do you buy a wine for the future?

1) To target an investment. By the time the wine comes to being delivered, the price of it may have risen, in which case you have locked in a price you are buying it at early. You can also as an investor argue that if you own a 'vertical' so a number of different vintages of the same producer in a row, that the package is worth more as an investment for a future buyer.

2) To ensure that you will have a bottle of a limited supply, highly sought after wine from a specific producer which maybe scarce in the future.

3) Of course it can just be because you love a certain producer and want to have it to be able to drink it in the future.


Sounds ok so far, so why is it a system that is failing now?

Here is my two pennies worth (and you can find a more in-depth look at it from posts I've sent previously and publications in press too), it is a system that was derived way back when, and was to ensure a delivery route for leading producers in Bordeaux who wanted to access world demand without having to arrange trading relationships with hundreds of distributors. Essentially an ease of marketplace, it also helps of course with cash flow, understanding and selling en primeur means you have upfront funds to support your wine production and wine ageing.


The reality is stark from this - there is no longer HUGE surpluses of demand for the wine. The fine wine market has suffered over the last couple of years and has led pricing for en primeur (set by the leading Chateau's in the region) to fall dramatically, which has had a knock on effect of investors, like myself, holding back vintages. As a result and having been to some of the vineyards to discuss this just a couple of weeks ago - it is clear that the system isn't working, especially for those that are the medium sized Chateau's and who will now need to search for distribution links. This could make the wine shows - such as Wine Paris and Prowein even more important for the future of the wine industry!


Which Bordeaux wines should I look at when buying?

Ok this is where it gets a little messy too. There are in fact FIVE levels of wine in Bordeaux, not made easier because of some of the setup of regionals.

Here is the basics behind it:


  • 1855 classification (also known as Grand Cru Classé en 1855)

  • Graves classification of 1959.

  • Saint-Emilion classification.

  • Cru Bourgeois classification.

  • Cru Artisan classification.


What does this mean though?

Well, it means that the 1855 classification splits into Premier Cru (which is the highest level and includes Chateau Lafite Rothschild, Chateau Margaux and Chateau Haut-Brion - also termed 'First Growths'). Then Deuxieme Cru (Second Growth) etc down to 5th growths. TNWG TIP: 4th and 5th Growth wines are exceptional and have a lesser price tag to consume!


In Graves, you have 16 chateau's that are deemed Grand Cru Classe - so the highest rated.


In St Emilion - there are two tiers, Premier Grand Cru Classe A and B which are the top chateau's in this region. Currently 64 wineries at Grand Cru Classe with 18 at Premier Grand Cru Classe level, with 4 at 'A' level. 


More likely, you are going to see the regional Bordeaux labelling as most of the wine bottles in the shops for you to buy. These will be labelled simply 'Bordeaux' - basic level and obviously grapes can come from a wider range of locations. 


TNWG TIP: Look out for the next level up which is 'Bordeaux Superieur' - which is a step up in quality requirements to be fulfilled.



🗞️ LATEST DRINKS INDUSTRY ARTICLES 🗞️

This is one of the most exciting bits of news. If you are an avid listener of 'The Andy and Olly' Podcast show (find on all social media and podcast locations), then you will know that head winemaker, Jose, gave us a heads up on this development at Vagabonds and now we are seeing it announced! Exciting!




📈 MARKETS IN BRIEF 📉

On the week (as at 28th July 09:45am) changes:

EQUITIES: ⬆️ FTSE 100 up 1.54%; DAX flat; ⬆️ S&P 500 up 1.28%; ⬆️ Nikkei 225 up 3.1%; ⬆️ Dow Jones up 1.26% (yet to open today).

COMMODITIES: ⬇️ Brent Oil down 1.5% ; ⬇️ Crude Oil down 0.54% ; ⬆️ Gold up 0.05%; ⬇️ Silver down 1.5%; ⬆️ Copper up 2.5%

BONDS (in yield terms): ⬇️ UK 2yrs lower 0.004%; ⬇️ UK 10yrs lower 0.028%; ⬆️ German 10yrs higher 0.041%, ⬆️ US 2yrs higher 0.065%; ⬇️ US 10yrs lower 0.008.


Will he, won't he? Will Trump 'fire' Fed Chair Powell...to me unlikely, but you never know with this US government. Undoubtedly, Powell doesn't have the best seat in the house, when any action or non-action from the Fed on interest rates will be a reason to blame him. However, my expectation is that later this week, we do not get any change in interest rates, despite there being a bit more discussion and difference in opinion from the members. 

We have a bit of a bumper week this week in terms of key points of note and market moving events, not just with the Fed meeting but also the Non-Farm Payrolls report coming out on Friday for US jobs too. There is also the little matter of GDP and PCE data too from the US - all market moving data potential. 


We get inflation prints from Europe and GDP too please on Wednesday we have the ECB Wage tracker announced, so a lot to digest but this is all near term, and our focus is more medium term so whilst this is worth mentioning, it is not changing my exposure to risk or asset class.


Actually my portfolio stands the same. If anything I have added a little more to US S&P500 trackers as a result of the better performance from the US sectors than expected and so far, good overall projections for growth despite the tariff situation. The pushing of some of those to a later date will mean near term price stabilisation in most areas.


UK rates - I am still of the belief that there will be more cuts to interest rates, which does mean maximising these rates and even looking at multi year options on accounts to try and lock in some of the portfolio in longer dated savings/bonds to ensure it is not going to lose significantly from year to year.


That's all from me this week - have a good one!


Best Regards


Andy a.k.a. The Northern Wine Guy

 
 
 

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