The Great Burgundian Conundrium

2019-02-04

As a couple of recent posts have alluded to, we think some of the really top end Burgundy has reached heights that might not be sustainable in the short to medium term. Over the last decade or so the Burgundy market has been the star performer:

But in the last year it has gone into interstellar overdrive:

Obviously Burgundy, and particularly the greatest names, are in short supply and the desire to have a slice of the action has had a dramatic impact on prices. But can this continue - THAT is the question!? This commentator has already sold some of the spectacularly performing big names and is reallocating the assets lower down the ladder, especially where prices are yet to move.

Last week we compared values of Clos de Beze 2010 from the Domaines of Rousseau, (Bruno) Clair and Drouhin-Laroze, all very closely rated, to find their respective price ratios to be 1 Rousseau for 13 Clair for 28 Drouhin-Laroze. This highlights the incredible disparity between certain growers and of course there will always be premia for certain names. However, the gaps have widened and some of the differentials are unjustified - opportunities abound, inter Burgundy and elsewhere. This quick comparison of a few random names suggests the currently less fashionable 1st Growth Bordeaux and even serious Rhone could be worth a look: