Fine wine news
16 July 2013 Chateau Angelus suggests price rise gamble paid off
Putting your prices up when all around you are dropping theirs is usually a sure fire way to lose out in a competitive market, but one vineyard has stood by its strategy and it's paid off.
Chateau Angelus, an estate in St Emilion, north-east of Bordeaux, offered its customers 2012 en primeur wine at 30 per cent above its usual pricing. This was despite the fact that the majority of producers were selling their products at cut price.
Hubert de Bouard of Chateau Angelus admitted that he had his doubts initially, but they proved to be unfounded.
The Drink Business quoted Mr Angelus as saying: "At the beginning, for the first 15 days to one month, I was a little unsure."
Mr Angelus suggested that he was wrong to be fearful. "Now we have a lot of demand – we have sold 110 per cent of what we expected. We produced 95,000 bottles and have sold 80,000," he said.
He suggested that interest had come primarily from outside of Asia and demand had arisen from the UK, US, Switzerland, France and Belgium.
In June 2012, figures released by Tastet Lawton revealed that, on average, estates dropped their en primeur prices by 7.6 per cent. Despite these cuts, the campaign revealed a lack of interest.
Speaking in an interview with Decanter.com, Erik Samazeuilh, said: "The two big problems for the 2012 campaign were insufficient price cuts and too many wines on the market."
Bordeaux's five premier-cru wines were priced 33 per cent lower than the previous year and sold well, but the same cannot be said for the rest of the market.
According to Sotheby's wine retail, Chateau Mouton Rothschild came out on top from the Bordeaux en primeur campaign.
Jamie Ritchie, wine president and CEO of Sotheby's, said that Mouton Rothschild had been a winner "by a significantly large margin".
"Congratulations to Baroness Philippine [de Rothschild], [winemaking director] Philippe Dhalluin and the whole Mouton team for making a terrific wine and pricing it very sensibly," he said.
Category: Wine investment