Written by Jenna | February 2024
Over the past couple of years, Burgundy wine saw an increase in popularity – among drinkers and investors alike. The dramatic increase in demand left many winelovers asking why and what this could mean for other regions and varietals in the future. We sat down with Wine Expert, Daniel Elswood, to talk about the Burgundy boom and what’s on the horizon for wine.
Burgundy is a region in east central France, known for producing some of the finest wine in the world with roots in winemaking going back over 500 years.
The region is split into 5 main sub-regions: Chablis, Côte de Nuits, Côte de Beaune, Côte Chalonnaise and Mâconnais.
What’s the Burgundy boom? What sparked it? And how long did it last?
To explain the Burgundy boom, there are many factors to consider. First, more traditional markets were losing ground, prices were rising and interest in the en primeur system – in which wines are sold while still in production, typically up to two years prior to the wine being released – was stumbling.
As an alternative, Burgundy was a treasure trove of smaller, more interesting and unique producers. They were the hardcore, passionate viticulturalists and oenologist – more interested in extracting the true terroir of their often minute parcel, than in how large and shiny their barrel hall may be. Amongst these esteemed producers are many well known names, often commanding the highest prices in the world for their bottles.
The boom entailed a dramatic rise in pricing sparked by several producers – including Arnoux-Lachaux, Bizot and Leroy – climbing the ranks very quickly. Prices for Lachaux, for instance, went from under €100 to more than €1000 per bottle. But the rising winemaker was already gaining an excellent reputation. It was inevitable that pricing was set to rise.
During this same period, we also saw low-production vintages and rising demand. With many of the commonly sought out brands becoming increasingly hard to come by, buyers turned to other producers often found next door to the big names. Suddenly buyers who once sought out Bordeaux producers were now flocking to the auctions for Burgundy.
And how is the Burgundy market doing now? Still booming?
Even though the dramatic climb in prices has cooled, Burgundy has managed to retain much of its value. Bottles of approachable and young, entry level wines that shot through the roof, have come back down – though still at a much higher price than they once were.
Recent harvests have also been plentiful, so the supply restraint has eased.
Who would you say are the Burgundy lovers that sparked this phenomenon? On whose tables can we expect to see more of this wine?
Wine lovers from all walks can enjoy great Burgundy.
I don’t think we can define Burgundy lovers with any one type of consumer. Burgundy is constantly evolving with many winemakers exploring new ways of producing. Additionally, the increase in producers making very high quality, Bourgogne labelled (entry level) wines is expanding the appeal to all wine lovers.
So what’s next? Are wine lovers looking elsewhere?
We cannot avoid the obvious: prices have risen and this will lead some to look elsewhere.
With high recent release pricing (not just in Burgundy), older vintages are now maturing perfectly for drinking. Iconic vintages, that have great future potential, will also start to look increasingly good in value.
Bordeaux interest has waned a little in past years, but it still stands as an excellent and understood market. Also wines that were once considered of lower standing in the Grand Cru Classe will look very attractive.
Anything in particular that you’re excited about? Any regions we should have our eyes on?
We are seeing some great stuff coming out of the Loire and Jura. These wines, which can sometimes be more challenging, are interesting for wine lovers. Of course, Champagne is always fun (and a serious investment) and certain smaller producers from Bolgheri I think offer a great bang for your buck.
However, the long standing and well established regions of Burgundy and Bordeaux will continue to do well.
Let’s drink to that. Thanks, Daniel!
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