2012 Hospices de Beaune Wine Auction. BIVB Press Kit

Transcription

1 2012 Hospices de Beaune Wine Auction BIVB Press Kit

2 Bourgogne Wine Board Representatives Pierre Henry GAGEY Chairman Bourgogne Wine Board (BIVB) Michel BALDASSINI Acting Chairman Bourgogne Wine Board (BIVB) Louis Fabrice LATOUR Chairman Union des Maisons de Vins de Bourgogne (UMVB) Jean Michel AUBINEL Chairman Confédération des Appellations et des Vignerons de Bourgogne (CAVB) Press contacts: Cécile Mathiaud Mathilde Paturaud Press Manager Press Attached Phone +33 (0) Phone +33 (0) Photos credits: BIVB / NARBEBURU S. / JOLY M. / IBANEZ A. / GADENNE D. / MONNIER H. / GAUDILLERE T. / CLEMENCET D. / ATELIER DES CHEFS / DR 1/35

3 2012: a rare and precious vintage in Bourgogne... P. 3 The climate in 2012 in Bourgogne: the whims of the weather affected quantity not quality... P. 5 The 2011 Vintage in Bourgogne: pleasure is the watchword... P. 9 The economic situation of Bourgogne wines: return to the highest summits... P. 12 Regional market: growth despite low stocks... P. 12 France: Drink less, but drink better : the current trend boosts the attractiveness of Bourgogne wines... P. 13 Export: traditional markets sustain growth, Asia powers ahead... P. 20 Key figures for Bourgogne wine... P. 28 Wine tourism: experience all the emotions of the Bourgogne winegrowing region... P. 29 En Route vers les Bourgognes : an encounter with producers and their treasures... P. 30 S u m m a r y The De Vignes en Caves hospitality charter: a commitment to quality... P. 31 Vignobles & Découvertes : the Auxerrois the fifth Bourgogne winegrowing region seeks national certification... P. 32 The Vins et Tourisme en Bourgogne app: now available in English... P. 33 The Climats and Lieux dits of Bourgogne: a cultural exception constructed over millennia!. P. 34 Climats and lieux dits a taste of something special!... P. 34 A reality that is translated into a name... P. 35 Tools to help you understand... P. 35 Annexes: The traditionnal Saint Vincent Tournante bursts into life in Chatillon sur Seine The Climats of the Burgundy vineyard : a candidacy with 50,000 supporters Groupement des Jeunes Professionnels de la Vigne (Association of the young wine makers) 2/35

4 a rare and precious vintage in Bourgogne 12 November 2012 A first! That is what Bourgogne s winegrowers are saying about this year s weather. Given Mother Nature s whims, they had to redouble their efforts to ensure the very best results from their vines. And the first tastings confirm that all their hard work was worthwhile. From the north of Bourgogne to the south, the industry is unanimous the quality of this year s nascent wines is excellent, surpassing all expectations given the weather. The only downside is the quantity which is below average, down as much as 20% according to some estimates. (Definitive figures will be available in early 2013). A mild winter, a chilly spring with frosts, a warm May, a cool and rainy June, an unstable summer, a heat wave, hail and storms weather like this could not fail but affect the vines. The cold and rain in spring caused shatter, where some flowers fail to turn into fruit; millerandage where incomplete fertilization of the flower giving rise to small berries; and a big threat from both downy and powdery mildew. The brief hot periods in summer brought some very high temperatures that burned the fruit. These phenomena, which occurred before the grapes ripened, meant yields were significantly lower this year, but had no impact on the quality of the grapes. On the contrary, aerated bunches of smaller berries guarantee concentration and intensity. Having had to manage the elements and struggle on a daily basis, both man and materials have emerged from this vintage worn out, yet victorious. During the harvest, which took place under sunny skies, the grapes being welcomed into the wineries were healthy and showed no signs of disease or rot. The scarcity of the 2012 vintage will only serve to make the wines even more precious! 3/35

5 White wines These expressive wines reveal notes of fresh fruits and citrus. Forthright, they are already demonstration very good balance on the tongue. The whites from northern Bourgogne are powerful, and translate the unique characteristics of their terroir: minerality with notes of flint and chalk. This is a classic vintage, illustrated by the wines sophistication and good concentration. Red wines The wines are deep red in color, dense, and some are almost black. They release rich and intense aromas of red berries. The tannins are ripe and silky, offering a lovely harmony on the tongue. The 2012 vintage looks like a safe bet. The red wines reflect the diversity of each winegrowing region and offer a happy ending to this unusual year. Crémant de Bourgogne The low yields also concern the grapes for Crémant de Bourgogne wines, and the Gamay grape in particular. The Aligoté turned out to be more generous. Overall, production volumes could be down as much as 30%. The grapes harvested were perfectly mature, combining the richness of optimum sugar content with good acidity. The Chardonnay and Pinot Noir base wines are fruity, with lovely balance. This press release presents general characteristics. As each wine and each winemaker is unique, each wine must be tasted before it can be characterized 4/35

6 The climate in in Bourgogne The whims of the weather affected quantity not quality A particularly dry start to the year The end of 2011 and the start of 2012 showed temperatures well above the norms for the season, with a slight dip in rainfall. February was marked by a period of intense cold with an average temperature of 0 C. Rainfall was practically non existent. In March, the cold gradually gave way to some unusually mild weather and the rain stayed away for the most part. Overall, rainfall was down by close to 40%. These conditions led the vines to embark upon their vegetative cycle earlier than usual. In late March/early April, a large number of plots were already mid budburst. By this point, 2012 was looking like an early year. A wet spring A bout of chilly weather descended on Bourgogne for several days in April, which slowed down the growth of any late developing plots. By this point, 2012 was still looking like an early year. Only in the Yonne was budburst late, in comparison to the average for the past 10 years, especially for the Pinot Noir. Although the temperatures were average for the season, a late period of cold weather caused some spring frosts, in particular on the night of April. These caused some local damage on the more exposed plots. Drought was no longer a problem, with monthly rainfall exceeding the average. April was the wettest month of the year with over 93mm, as opposed to 58mm average rainfall for the month between May and June were also wet with temperatures around average. The acute humidity in spring meant powdery and downy mildew were a significant threat, right from the start of the season. This required a great deal of vigilance. For the earliest plots, flowering began at the end of May, prompted by some very summery temperatures during the period. After that, the weather was somewhat chaotic with storms, some of which were very violent and often accompanied by hail. On 30 May, and 2, 3 and 7 June, this caused significant damage in Saône et Loire and Côte d Or. Certain appellations were particularly hard hit. The Côte Chalonnaise, which suffered hard in 2011, was spared. All this served to upset the flowering process and meant the vines lost any advantages of an early budburst. 5/35

7 A fine end to summer for optimum ripening July followed in the same vein as the previous months, with average temperatures and high rainfall. These tricky weather conditions led to an increase in millerandage and shatter. The grapes were few and small in size, in loose, aerated bunches (see graph comparing the weight of 100 grapes). A heat wave occurred during the last ten days of July, leading to some sunburn damage. All these phenomena had a significant impact on yield but had no effect on quality. August was fine, hot and dry (especially in the Yonne). September s temperatures were normal and the rainfall slightly higher than usual at the end of the month. The fine weather enjoyed while the grapes were ripening meant the fruit attained a very good level of aromatic maturity and a very elegant balance of sweetness and acidity. A northerly wind combined with the heat and absence of rain meant the grapes were perfectly healthy, with no rot at harvest time. Apart from the Crémant de Bourgogne, for which the harvests started earlier, the first bunches were harvested in mid September. 6/35

8 Average monthly temperatures Bourgogne 2012 Températures ( C) Températures ( C) Rainfall (mm) Average monthly rainfall Bourgogne 2012 Source: Météo France Source: Météo France 7/35

9 Berry weight generally below average Weight comparison for 100 berries (in grams) for Chardonnay Comparison to the average from (samples taken in week 37) Reference plots from the BIVB network Source: Observatoire du millésime du BIVB Weight comparison for 100 berries (in grams) for Pinot Noir and Gamay Comparison to the average from (samples taken in week 37) Reference plots from the BIVB network Berry weight (grams) Berry weight (grams) Source: Observatoire du millésime du BIVB 8/35

10 The 2011 Vintage in Bourgogne Pleasure is the watchword September 2012 Thanks to some unusual weather conditions which could be becoming the norm, given what happened in 2012 the 2011 vintage is characterized by some delicious aromas and flavors. These are wines to be enjoyed relatively young. The weather for the 2011 vintage began spectacularly with a particularly warm and early spring, before giving way to a cool and rainy summer with periodic heavy storms. As is often the case, a sunny end to August a fait le moût or made the juice, as they say. For the third time in a decade, the harvests began in the last 10 days of August, with some very tricky logistics. Each plot had to be harvested as it reached perfect maturity, and the sunshine in early September and low rainfall meant patience was required. The grapes had to be painstakingly sorted but the high discard resulted in fruity, silky reds and whites that were bursting with energy. White wines Chablis and Auxerrois Summer 2011 was changeable. June and August were particularly wet, and July and September saw little sunshine. Given these tricky conditions, winemakers had to be determined and extremely rigorous in order to produce such high quality, seductive wines. They are very aromatic wines with good minerality and offer balanced acidity on the tongue, a quality essential to Chablis. This acidity has a classic lemon twist without being tart. A touch of citrus and fresh, fruity notes of pear and apricot make these wines expressive and forthright. They will be ripe for drinking fairly quickly. Some of the wines from these regions, which have a wonderful complexity and perfect structure, can wait a few years. Côte de Beaune Small yields resulting from the capricious spring weather meant the harvesting could wait until the grapes were perfectly ripe. With a more clement month of September and some strict sorting, the winemakers were graced with top quality grapes. Overall, the wines are very aromatic, dominated by notes of both ripe and dried fruits. In the mouth, they are lively with perfect structure and offer breadth with consistency. After a few months in the bottle, they will quickly soften up to reach a perfect balance. They offer very good keeping potential. 9/35

11 Côte Chalonnaise For the Côte Chalonnaise, 2011 will remain a gloomy year. The vines in the Montagny and Rully appellations were hit hard by hail. A few vines were, however, spared and went on to produce wines that are aromatic, smooth and fat, with perfect mouthfeel. The same goes for other appellations like Mercurey, Bouzeron and Givry, which were less hard hit and produced their usual yields. These whites offer a fine balance between sugars and acidity which indicates good balance and liveliness on the nose. The aromas are expressive, with hints of almond, pear and toasted bread. The acidity is present but never unpleasant. Mâconnais The Mâconnais enjoyed a mild winter and a hot, dry spring. Many storms during the summer and a heat wave during the second half of August meant the grapes matured very early. The winemakers, who used their skills to manage yields and preserve the balance of sugar and acidity, saw their efforts rewarded. The wines have the smoothness of early vintages with that extra minerality of cool summers, a combination that guarantees excellence and good keeping potential. This is most certainly an excellent vintage! The best terroirs offer an intense golden color, notes of flint, vanilla and ripe grape and peach, topped off by an attractively exotic hint of ripe mango and pineapple. The palate treads a line between elegance and sophistication with a forthright, sometimes austere finish. These wines will age very well, but they can also be enjoyed now as an aperitif or with food. Red wines Auxerrois The reds, mainly from Irancy, offer lovely notes of morello cherry and redcurrant. Fresh and delicious, they should be enjoyed in their youth. Côte de Beaune Hard work paid off in 2011 on the Côte de Beaune. Despite rather tricky weather at the beginning of summer, the grape harvest took place in optimum conditions. The grapes were perfectly mature and healthy in the main, ensuring some quality wines. The reds from the Côte de Beaune are very aromatic, dominated by elegant fruity notes, and are dense, full bodied in the mouth with smooth, velvety tannins. They are flavorful and delicate, and are among the best of the region. 10/35

12 Côte Chalonnaise With such tricky weather, careful yield management was key to ensuring the maturity of the grapes. In the end, the red grapes offered thick skins which translated into forthright tannins and raspberry red colors with hints of violet. Despite being hit by hail, Rully profited from the fine weather during the tail end of the season and the reds caught up with the rest, offering some desirable concentration. The wines are aromatic with good structure. With a framework of smooth and silky tannins, they are perfect for enjoying in their youth. Côte de Nuits The Côte de Nuits grapes were harvested in tip top condition. Despite the dismal weather earlier in the summer, the grapes were ripe by the beginning of September. Although there was a lot of discard from the harvest, the resulting wines were elegant and silky, with wonderful concentration. They have a moderate degree of alcohol which makes them mouthwateringly appealing without heaviness. Rich ruby in color, these wines explore all the nuances of a classic, fruity year, between raspberry, blueberry and warm spices. They are remarkably fresh in the mouth and are perfectly balanced. They offer good structure, underpinned by tannins that are both closed yet silky. Photo: BIVB / MONNIER H. Complex and full bodied, the 2011 wines of the Côte de Nuits offer good keeping potential, but as with the 2007 vintage, they are also accessible in their youth, and are already generous and appealing. Crémant de Bourgogne The 2011 Crémant de Bourgogne wines are smooth and expressive with a rounded mouthfeel. The Chardonnay offer pure aromas of white peach and grapefruit. The Aligoté release light and discreet acidulated notes. Despite low yields, the Pinot Noir have good structure and strong color. The Gamay are bursting with intense aromas of red berries. 11/35

13 The economic situation of Bourgogne wines Return to the highest summits Bourgogne wines this year set new export records, despite the global economy continuing to flag. Sales have been buoyed by the continual efforts of professionals in the Bourgogne wine sector, by the consistent quality of successive vintages, by new consumer trends (drinking less, but better quality), and by the soaring purchasing power of wine lovers in Asia and other wealthy countries. In France, the new retail networks have performed well, also showing record sales and good value creation. The traditional markets require more investment to achieve the same results. Bourgogne has maintained its position in the restaurant sector, broadening its offer and being boosted by sales by the glass. Wine tourism and direct sales are attracting many, while developments on the circuit of specialist wine stockists are looking promising. The overall figures do not, however, reflect the disparities which exist across the wine region. Certain companies are experiencing profitability problems. Faced with the prospect of limiting availability due in part to the low 2012 harvest Bourgogne wine producers want to preserve their markets by controlling price rises and avoiding external speculation. Regional market: growth despite low stocks With the equivalent of million bottles put on the market and with growth of 1.5% compared to the previous vintage, the volumes leaving properties in 2011/2012 (bulk and in bottles) were healthy. Volume in Hl Graphic n 1 Volumes of wines sold by producers by wine year (August of year N to July of year N+1) Stocks at the end of the year, volumes leaving the property and harvets (Source: BIVB Cotisation Customs) YEAR 1999/2000 YEAR 2000/2001 YEAR 2001/2002 YEAR 2002/2003 YEAR 2003/2004 YEAR 2004/05 YEAR 2005/06 YEAR 2006/07 YEAR 2007/08 YEAR 2008/09 YEAR 2009/10 YEAR 2010/11 YEAR 2011/12 Stocks at the end of the year Volumes leaving the property Harvests 12/35

14 Volumes of wine leaving the property were boosted, in part, by the still dynamic levels of acquisition by bulk wine merchants (875,000 hl). This grew again and was more than 1% higher than in the previous year. The stocks of wine remaining with producers at the end of the 2011/2012 year were stable but low (1.35 million hl), after a drop of 9% for the 2010/2011 year. Equivalent to less than 11 months of an average harvest, this is a low level, especially since the volume of the 2012 vintage will certainly be below average. The forecasts for 2012/2013 cannot be compared to the period 2003/2004. Although the 2003 harvest was small, the economic situation bore no comparison: stocks on estates were higher and the volumes sold considerably lower (graphic n 2). Today, although recession continues to impact on the global economy, stocks on estates are lower and sales of Bourgogne wines are higher. Bourgogne wine professionals would like to limit the effects of this low harvest on ever growing demand. While a price increase is inevitable, it will be controlled, in order not to put off consumers in either traditional or new markets. This is a crucial factor in an ever more competitive sector. France: Drink less, but drink better The current trend boosts the attractiveness of Bourgogne wines Bourgogne, in step with certain other French wine regions, is maintaining its market share in France. It is benefitting from consumer choices that are increasingly qualitative, as a consequence of the economic downturn. The context is difficult. With a 0.6% drop in purchasing power, consumers quite reasonably do not want to sacrifice their spending, but rather to control it. Wine is benefitting from this trend, which is accompanied by another movement, so called slow drinking. In 2012, purchases of AOC wines therefore increased. Those in the market are refocusing on a demographic of wine consumers, which may well be shrinking, but which has strong potential. The average annual budget per household has increased from 312 euros in 2011, compared to 301 euros in 2008 (source: Kantar Worldpanel). Given their positioning in the mid/high end, Bourgogne wines naturally benefit from this structural change, with a 2% increase in sales in France (107 million bottles), mainly thanks to the supermarket sector. 13/35

15 Bourgogne wines popular in gastronomic restaurants Bourgogne wine is still very well positioned in the French restaurant trade, benefiting from a decrease in frequentation of fast food outlets in favor of higher value outlets (source: NPD Crest) was a year of contrasts, with a notable drop in restaurant going in the first four months, a gloomy hotel sector, and activity in the seminar sector flagging. In 2011, Bourgogne wines were available on the wine lists of as many restaurants as those of other French wine regions producing larger volumes (graphic n 2). The number of references on wine lists is growing: out of 874 gastronomic restaurants surveyed in 2011, each establishment offered on average 14 Bourgogne wine references, a 4% increase over Graphic n 2 Number of product references by French winegrowing region offered on the wine list of 874 high end restaurants (Source CHD 2011) %of high end restaurants offering wines from French winegrowing regions q p p g ç 120,00% 100,00% 80,00% Beaujolais Champagne Alsace Loire Languedoc Vallée du Rhône Bordeaux Bourgogne 60,00% 40,00% Vins étrangers 20,00% Nombre de références sur carte en ,00% 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 Number of references on the winelist for 14/35

16 The eight most popular Bourgogne appellations were available in 50% of these restaurants (see graphic below). Average winelist prices in ,0 80,0 60,0 40,0 20,0 Graphic n 3 Number of bottles sold and their sale price in 2011 in 874 high end French restaurants, % of responses by AOC offered (Source CHD 2011) Puligny Montrachet 52,8% Bourgogne Aligoté 50,2% Chassagne Montrachet 55,7 % Meursault 62,2% Mâcon Villages 47,6% Bourgogne Pinot Noir 66,3% Chablis 89,2% Bourgogne Chardonnay 60,7% Number of bottles sold per month in 2011 (average) 0,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 How to read the graph: The size of the bubbles is proportional to the % of responses given, by 814 French gastronomic restaurants, to the question: Which Bourgogne AOC wines do you offer in your establishment? Bourgogne: a significant share of annual sales for specialist wine stores Between 7 and 10 million bottles of Bourgogne are sold on this circuit annually. Bourgogne wines represent on average 13.4% of total sales (including Champagne and spirits) of the 91.7% of wine specialists who stock it, accounting for 16.7% for the total volume of wine sales. Between 20 and 25% of wine specialists consider that sales of Bourgogne wines are going to increase, for both whites and reds. This high value market has room for further growth. The number of stockists climbed again in 2012: +3.5%, with 176 additional sales outlets. The average basket went from 35.8 to 36.6 euros including taxes per client. Overall sales were up +2.9% (source: EQUONOX 2012 survey of 200 specialist wine stores). 15/35

17 Wine tourism and sales on the estate: sectors with strong potential Close to one million tourists come each year to Bourgogne, which is ideally located on a major route for vacationers. The influx of clients and wine tourists is mainly made up of French and other European visitors (graphic n 4). The clientele from beyond Europe remains more of a rarity, accounting for less than 25% of sales direct from the property. Tourists from other countries are nonetheless starting to emerge, coming from Brazil, Ukraine, Asia and Russia, for example Graphic n 4 Study: Wine tourism and the opportunities it presents Where your main foreign customers come from? (data from 135 estates and producers interested in wine tourism) Where French tourists come from? (excluding Bourgogne) (data from 149 estates and producers interested in wine tourism) 16/35

18 This activity is becoming more professionalized. The Bourgogne Wine Board (BIVB) carried out a survey during the summer of 2012 amongst 149 businesses involved in wine tourism. 50% are signatories of the De Vignes en Caves hospitality charter set up by the BIVB (guaranteeing a high level, individual welcome for visitors) 21% adhere to the national Vignobles & Découvertes label 96% have tasting premises available 86% have at least one person who speaks a foreign language 25% offer tasting packages offering either accommodation, on site catering or sale of other local products Wine tourism, a source of revenue: 26% of these businesses have attracted a new clientele 29% have increased their sales 23% have gained in notoriety However, the constraints on growth are numerous for these businesses (lack of time, difficulties in adapting infrastructure, major investments involved). On a global level, more than 40% of luxury purchases (including wines) are made whilst traveling, by tourists from emerging countries, in particular the Chinese. Bain & Company anticipates continued growth in this market of around 4 to 6% per year. With the economic stakes high, international competition is fierce. Bourgogne can depend on its natural and human advantages to stand out: authenticity, atypical terroir, conviviality, and the unrivaled broad range of its wines. 17/35

19 Bourgogne beats records in the supermarket retail sector In the last year, to the end of August 2012, sales of Bourgogne wines continued to grow on the hypermarket and supermarket circuit, and set a new record with 230 million euros in revenue and 36 million bottles sold, despite a generally unfavorable overall economic context. In the still wine segment, Bourgogne, with record sales of 194 million euros (+4.7%), is the only wine region (excluding rosé wines) which showed both: significant growth in sales by volume: more than 29.5 million bottles sold (+2.7% year on year) a measured increase in the average price of its wines (+2%) This jump in sales is attributable to both red wines (+3.4%) and white wines (+5.8%), and covers all Bourgogne appellations. Graphic n 5 Development of sales of still wines over 1 year by region, in volume and value, as of end August 2012 (Source IRI) % Change of sales in value terms +10,0% Growth zone Shrinkage zone +8,0% PROVENCE LOIRE +6,0% BOURGOGNE +4,0% BEAUJOLAIS AUTRES ALSACE LANGUEDOC +2,0% AQUITAINE +0,0% 4,0% RHONE 2,0% +0,0% +2,0% +4,0% +6,0% +8,0% +10,0% BORDEAUX % Evolution des ventes volume 2,0% How to read the graphic: The size of the bubbles is proportional to the share of the region s AOC still wines by volume. To this can be added the extraordinary growth of Crémant de Bourgogne, in the otherwise stagnant market for sparkling wines. The record sales reached 6.4 million bottles (+8.4 % year on year), for revenue of 36.6 million euros (+9%). The appellation has become the second best selling AOC sparkling wine, and the one with the highest price point after Champagne. Crémant de Bourgogne is positioned as the preferred choice for the consumer seeking a little luxury at a reasonable price. 18/35

20 Sales of Bourgogne wines in modern retail outlets (including small supermarkets, convenience stores, discount stores, and driveins) account for 48 million bottles, or 45% of the French market. Bourgogne is positioned as the most attractive region in the French AOC wines segment in the retail market: it is the main contributor to growth in value. It occupies an unusual position, because relatively little Bourgogne is sold in special offers (23% of the volume sold compared to 25% for the average of all AOCs). Bourgogne wines are perfectly in step with demand on this circuit, despite their weak presence in certain profitable niches (rosé and Bag In Box ). With a large and diversified offer selling for between 4.2 and 17.9 euros/bottle, the region s wines are attracting more and more consumers who are reorienting their purchases towards enjoyable quality wines. The implementation of in store promotional days by the Bourgogne Wine Board (BIVB), run by staff specially trained in Bourgogne wines, allowed for increased sales in one of the key periods for the region: between the fall wine promotional events and the end of year festive season. 19/35

21 Export: traditional markets sustain growth, Asia powers ahead Bourgogne wines have a strong presence on the international market. Having been hit by the global economic downturn, the region has succeeded in profiting from the renewed vigor in global wine sales, notably in the new consumer markets. During the first eight months of 2012, sales of Bourgogne wines on the export market were up strongly: +15% (for a total of 457 million euros). This trend confirms the excellent results of the full year from August 2011/July This period also showed a +15% increase (with total sales worth 719 million euros), an all time record for Bourgogne (source: Customs and BIVB M&D). X MONTHS MONTHS MONTHS 2002 Graphic n 6 Bourgogne exports Total from January August (Source Customs) 8 MONTHS MONTHS MONTHS MONTHS MONTHS EUR 8 MONTHS MONTHS MONTHS MONTHS MONTHS 2012 Bourgogne wines have sold for good prices on the export market, given that the increase in volume is more limited (+1%), or 90 million bottles, according to statistics from customs. One should however also add to this figure a volume not included in the official statistics since the implementation by customs authorities of a simplified declaration scheme. Including this additional volume, estimated from various sources of information, it is reasonable to consider that closer to million bottles of Bourgogne were exported during the period. 20/35

22 Millions of bottles Graphique n 7 Exports of Bourgogne wines per wine year (Source Customs BIVB M&D) Millions of euros Additional volume estimated to correct incomplete statistical data Bourgogne has succeeded in preserving, or even strengthening its three main traditional markets: the United States, the United Kingdom and Japan. On top of these historical outlets, it has also expanded into Asia and some emerging markets. The traditional markets, whether mature or restructuring (UK, USA, Japan), remain the bedrock outlets for Bourgogne. Over the first eight months of 2012, they accounted for half the region s wine exports, with close to 28 million bottles (45 million for the full year), for revenue of 237 million euros. China and Hong Kong nowadays represent a significant share of exports of Bourgogne (6% of sales in the first eight months of 2012, compared to less than 1% over the same period in 2007). 21/35

23 Graphic n 8 Change (volume value) of Bourgogne exports by country Totals January August 2012 compared to 2011 calendar year 50% Change in value terms at 8 months 2012/11 HONG KONG & CHINA 40% JAPAN 30% SWEDEN GERMANY 20% UK IRELAND CANADA 10% USA SWITZERLAND SINGAPORE DENMARK NORWAY 0% 30% 20% AUSTRALIA 10% 0% 10% 20% 30% 40% TAIWAN Change in volume terms BELGIUM 10% at 8 months 2012/11 NETHERLANDS How to read the graphic: 20% The size of the bubbles is proportional to sales of Bourgogne by country. The main markets for Bourgogne can be broken down into three groups (graphic n 8): Markets undergoing strong growth: Japan, China/Hong Kong and Sweden Growing markets undergoing reconstruction: United States, United Kingdom, Canada, Switzerland and Germany Declining markets due to the economic downturn: Belgium, Netherlands, Denmark and Australia. Remaining true to its historical clientele and also present on new markets, Bourgogne manages to preserve its wide range of outlets in Europe, the Americas and Asia a key factor for continued growth. 22/35

24 Three markets with strong growth table n 1 Bourgogne Exports Year (August year N to July N+1) 8 months (January August) Year months 2012 Var. 8 months 2012 / 2011 vol x 1000 bottles value in 1000 vol x 1000 bottles value in 1000 vol x 1000 bottles value in 1000 JAPAN % 34% HONG KONG & CHINA % 44% SWEDEN % 32% Japan The 3 rd biggest market for Bourgogne in terms of value (table 1) In 2012, this long standing market continued to show the healthy growth started in During the first eight months of the year, sales totaled 70.4 million euros, up 34% over the same period in 2011, itself a record year. Bourgogne is the only French wine region whose market share is regularly growing. It accounted for 35% of the revenue from French AOC wines exported to Japan in Bourgogne wines benefited from the upturn in sales in the restaurant sector and in specialist wine stores. They thus succeeded in setting new sales records with price positioning at the high end, whereas overall sales in Japan mainly refocused on wines at less than 2,000 yens (supermarkets and discount stores). China and Hong Kong The 5 th biggest market for Bourgogne in terms of value (table 1) Taken together, the Chinese and Hong Kong markets are showing strong growth, driven by demand for high end wines. Despite, or rather because of its relatively small scale output (0.4% of global wine production), Bourgogne is seen as particularly attractive for its signatures with their evocative names, whether for appellations or companies. During the first eight months of the year, sales of Bourgogne wines climbed to million euros (+44% compared to the same period in 2011). The interior of mainland China (excluding coastal zones) has benefited from major state investments since The big metropolitan areas that have grown up offer fresh outlets for Bourgogne. Chengdu, one of these metropolises, is the fourth biggest city by population, and wage increases there are running at 13% (source: Alternatives Economiques). The principal threat to growth in exports of Bourgogne is the nascent protectionism in mainland China. The Chinese alcoholic drinks industry has called on the government to investigate imports of European wines, arguing that European subsidies give an unfair advantage over local production. This situation could lead to an increase in import taxes in China, which are already set at 48%, including 14% in duty. By contrast, the government of Hong Kong wants to see the territory become a hub of the wine trade in Asia, and imposes practically zero duty or levies. 23/35

25 A representative for Bourgogne wines in China Given the increasing popularity of Bourgogne wines in China, the Bourgogne Wine Board (BIVB) has decided to strengthen its position in this dynamic market. In September 2012, it appointed Lucie Bourgeois within the framework of France s VIE program to encourage young people to gain valuable work experience abroad. After a few weeks of training at the BIVB offices in Beaune to immerse herself in the culture of Bourgogne wines, Lucie will head for Shanghai in November. Key missions: To provide a link between the BIVB, training organizations and official Bourgogne wines trainers in that part of the world, to help set up specific training seminars with key trade influencers and wine lovers alike. To establish and maintain a network of key trade influencers who are committed to promoting Bourgogne wines, and to report back to the BIVB on their needs in terms of economic information and materials needed to present Bourgogne wines (brochures and training aids, etc.). To monitor the Chinese market for fraudulent use of Bourgogne appellations and report back where necessary. Lucie Bourgeois speaks Chinese and is passionate about the country s culture. Her international profile is a real strength. She has already lived in China for two years as well as spending a year in Australia and Canada. During her education in international business studies, she specialized in Asian markets and Mainland China in particular. She has a wide range of experience in the world of wine, from working in the vines to promoting French wines for export, and even spent a few months learning about becoming a sommelier. I am honored to be able to represent Bourgogne wines, which are a global reference for great wines, in a county that is so important and so multicultural as China, she says. Detailed market figures are available on demand. Sweden The 12 th biggest market for Bourgogne in terms of value (table 1) Sweden is a healthy, sustained market. Since 2008, recessions have had little impact on the economy of this country: national debt was 37.5% of GDP in 2011, compared to 86% in France. GDP per capita is among the highest in the European Union and global imports have been buoyed by a strong currency. Bourgogne, with a 32% increase in sales in the first eight months of 2012, benefited from the success of high end food and drink products, and an increase in wine consumption. The market is controlled by the Systembolaget monopoly for retail distribution, but direct imports are possible for the restaurant sector. The catering circuit covering cafés, hotels and restaurants, circuit offers good opportunities for Bourgogne wines, given strong interest in its wines on the part of top local chefs. The white wines are especially adapted to Nordic cuisine, with Chardonnay particularly appreciated, as is Crémant de Bourgogne, for which Sweden in the leading export market. This trend is likely to continue thanks to a cut in sales tax in the restaurant sector in 2012, from 25 to 12%. 24/35

26 Growing markets undergoing reconstruction Tableau n 2 Export Bourgogne Camp (août année N à juillet N+1) 8 mois (Janvier Août) Camp mois 2012 Var 8 mois 2012 / 2011 vol x 1000 bouteilles valeur en 1000 vol x 1000 bouteilles valeur en 1000 vol x 1000 bouteilles valeur en 1000 ÉTATS UNIS % 13% ROYAUME UNI % 17% CANADA % 10% SUISSE % 4% ALLEMAGNE % 19% IRLANDE % 14% United States The leading market for Bourgogne in terms of value (table 2) The USA has become the leading export market for Bourgogne wines in terms of value, ahead of the UK (+13% in terms of value over the first eight months 2012/2011). The country s economy is once more growing (almost 2% in the second quarter of 2012), driven by household consumption and exports (+40% in five years). Wine consumption is following the same curve, with a 5% increase for still wines, and 13% for sparkling wines (source: Wine Institute). However, the US market is increasingly leaning towards bulk wine imports, which more than doubled in the first half of 2012 year onyear, to the detriment of bottled wines (source: International customs). Bourgogne is exported almost exclusively in bottles. The fine wine segment is dominated by French wines, led by Bordeaux and Bourgogne (16% of the segment by value). Bourgogne is one of the three most soughtafter French wine regions, for which demand will increase, along with Bordeaux and Côtes du Rhône (competition survey, FranceAgriMer). It is a highly competitive market, one where local producers are wooing wealthy and traditional consumers. Wine consumption is developing away from the dining table, which is boosting the catering circuit, direct sales and online sales. The upsurge in exports of Bourgogne wines, especially for Regional and Villages appellations and Crémant de Bourgogne, can in part be explained by this situation. Bourgogne wines sign up for the Declaration to Protect Wine Place and Origin Through the Bourgogne Wine Board (BIVB), Bourgogne has joined the 15 other winegrowing regions that have subscribed to this declaration since it was created in 2005, namely Champagne, Chianti, Jerez, Long Island, Napa Valley, Oregon, Paso Robles, Porto, Rioja, Sonoma County, Tokaj, Victoria, Walla Walla Valley, Washington and Western Australia. Chablis winemaker Christian Moreau will represent Bourgogne. The declaration states that: We, as some of the world s leading wine regions, join together in supporting efforts to maintain and protect the integrity of these place names, which are fundamental tools for consumer identification of great winegrowing regions and the wines they produce. Signatories are hoping to create a united force within the wine producing world regarding the issue of accurate labeling and the importance of location to winemaking. The aim of the declaration is to inform consumers, key decision makers and the world s media regarding the importance of origins in the production of wine. Some of these names are indeed considered as semi generics and as a result are used as a brand or to qualify types of product, such as Bourgogne or Chablis for example. Within the framework of this declaration, winegrowing regions are coming together to raise awareness about the need to protect the integrity of these places and origins, which are vital references for consumers to identify key winegrowing areas and their wines. 25/35

27 United Kingdom 2 nd biggest market for Bourgogne in terms of value (table n 2) This market remains the leading export destination in terms of volume for Bourgogne. Imports of Bourgogne wines to the UK have been on the rise since With a good selling price, UK sales were up 17% by value during the first eight months of The market is built around the off trade (carry out sales), which accounts for 83% of wine volumes. This tendency is boosted by ambitious strategies of certain retail groups (Accolade Wines, Waitrose, etc.). At the opposite end to this continually renewed and cut price segment, mid to high range wines, such as Bourgognes, are once again showing an increase in sale price, driven up by higher taxes. This could accelerate changes in consumer habits and lead to higher quality consumption. The return of French regions with prestigious appellations confirms this trend. Bourgogne is managing to sell Villages appellations and Grand Crus at good prices. Canada 4 th biggest market for Bourgogne in terms of value (table n 2) Canada showed an overall drop in wine consumption ( 3%, source: Statistics Canada statcan.gc.ca). The country is moving towards a strategy of less, but better : each state monopoly makes selections based more on quality than quantity. Bourgogne benefits directly from this strategy which tends to enhance the value of its appellations. Average prices have risen across all appellations. Nonetheless, the internal policy aimed at making local wines more attractive could intensify competitive pressure. The movement in sales of Bourgogne by volume is very variable between the three monopolies in 2011: strong growth in Quebec (+15%), stability in British Colombia (+1%), but a significant drop in Ontario ( 11%). 26/35

28 Switzerland and Germany The 7 th and 9 th biggest markets for Bourgogne in terms of value (table n 2) These are very competitive markets: the purchasing power of wine lovers is quite high, but they are demanding. In Switzerland, two French regions clearly dominate the export market for still AOC wines: Bordeaux and Bourgogne together account for between 65 and 75% of exports, depending on the year. The share of Bourgogne wines varies from 12 to 15%. Over the period 2005/2011, the average annual rate of growth of Bourgogne exports was approaching 9%. It accounts for an average of 5 7% of exports of French AOC wines by volume. This trend accelerated over the first eight months of 2012, with growth of 15% by volume. The Grand Crus, Premier Crus and Villages appellations of Côte de Nuits reds enjoyed the best market positioning in terms of price over the first eight months of In the high end and premium segments, favored by restaurants, Bourgogne offers the advantage of lower prices than other prestigious French regions. The appellations of the Côte de Nuit and Côte de Beaune are available in all Swiss gastronomic restaurants. Although the German market is still suffering the effects of recession, Bourgogne has recovered its market share (+5% by volume over the first eight months of 2012) with wines selling for good prices (+15% in terms of value). It is the main wine region to show significant growth in the German modern distribution sector (source: IRI 2012). Economic report compiled with the help of the BIVB s Pôle Marchés et Développement November /35

29 Key figures for Bourgogne wine (Sources: Customs/IRI Symphony/BIVB/DRAF/CHD Expert/GTA) Average production November million hectoliters of which 61% white wines 31% red wines (and rosés) 8% Crémant de Bourgogne and representing 1.5 % Grand Cru Appellations 47.5 % Village and Premier Cru Appellations 51 % Regional Appellations 6.5% of French VQPRD production 3% of wine production in France 0.4 % of worldwide wine production 28,320 hectares in production (3% of France s area under vine) 2 main varietals: Chardonnay (56% of all production): the varietal for nearly all the region s white wines Pinot Noir (31% de la production): produces nearly all the red wines Other varietals with significant production: Aligoté (white, 7.5 %), Gamay (red, for Coteaux Bourguignons, Bourgogne Passetoutgrain and Mâcon, 5%), Sauvignon (for Saint Bris, 0.5%) Averages over five years (2006/2010) 100 different appellations of which 33 Grands Crus Appellations (22 % des AOC françaises) 44 Villages and Premiers Crus Appellations 23 Regional Appellations The businesses 3,800 Wine estates (of which 1,300 bottle and sell more than 10,000 bottles annually) 250 Wine merchants 23 Cooperatives Breakdown of sales of Bourgogne wines (October 2012) The market 200 million bottles sold (average) 47% exported 1.46 billion euros estimated revenue Export 44% Bourgogne accounts for: 3% of the global wine trade, in terms of value 18% of French AOC still wine export sales in 2012 (and 6.5% of the production of these wines) The regional importance of the sector 2% of the agricultural area exploited in Bourgogne 3% of the GDP of Bourgogne 45,000 jobs (direct and indirect), accounting for 7% of total jobs in Bourgogne Traditional outlets (wine stores/caterin g/direct sales) 29% Additional unofficial exports (estimated) 3% Major retailers + hard discount + local stores 24% Sources : BIVB/French Customs/IRI/CHD/Equonoxe 28/35

30 Wine tourism: Experience all the emotions of the Bourgogne winegrowing region Bourgogne offers a range of wine tourism activities that is as diverse as its wines. Few winegrowing regions around the world are able to combine gourmet and cultural activities to such an extent. The Bourgogne Wine Board (BIVB) is constantly working to improve how we promote this resource, and year after year, the offer is taking shape. To further encourage this, the BIVB has introduced some key initiatives including the De Vignes en Caves hospitality charter and, more recently, has signed up with other partners to the French nationwide Vignobles & Découvertes scheme. The En Route vers les Bourgognes brochure is packed full of everything you need to know about winerelated tourism in Bourgogne and the 2013 version will be published in December. The BIVB is behind many projects to promote wine tourism in Bourgogne and is actively networking, seeking to expand into new areas. As such, it will be participating in the fourth annual Rencontres de l Oenotourisme wine tourism trade show which will be held in Chalon sur Saône on 11 December The event is dedicated to the regional development of wine tourism in the Bourgogne winegrowing area and helps to foster links between professionals from the tourism industry through a range of communal projects. In the mid term, the BIVB is seeking to unite the five Bourgogne Wine Routes into a single circuit. This route, running from Chablis to Mâcon, would become the main axis for wine tourism in Bourgogne, and the backbone of the sector. Preserving the cultural specificities of each winegrowing region it goes through, it would clarify the offer for tourists whilst immersing them in an unforgettable wine related experience. Talks are currently underway. 29/35

31 En Route vers les Bourgognes : an encounter with producers and their treasures A unique and practical guide to the Bourgogne winegrowing region for those who are looking for gourmet, cultural or festive adventures. Divided into regions, it covers: some 336 Domaines, Négociants and Cave Cooperatives, all of whom adhere to the De Vignes en Caves hospitality charter, which guarantees a warm and individual welcome, as well as a wealth of useful information including languages spoken, opening hours, price indicators, accommodation and dining details where offered and cultivation practices around 100 wine related events and celebrations that are held in Bourgogne throughout the year a large selection of itineraries to be discovered by car, by bicycle, or even on foot, many interesting sites, and the five Bourgogne Wine Routes: the Mâconnais Beaujolais Wine Route, the Grands Crus Wine Route, the Grands Vins Wine Route, the Crémant de Bourgogne Wine Route and the Tourist Route of the Yonne Winegrowing Region The latest edition of the guide includes a pullout map of Bourgogne featuring a detailed exploration of the five winegrowing regions on the reverse. Available in French and English and with a print run of almost 110,000, the 2013 edition will be available free: in December upon request from the BIVB and tourism professionals including around 100 tourist offices in Bourgogne, regional and departmental tourist boards, hotels, campsites, gîtes, and the airports of Lyon and Dijon in early 2013, via the dedicated tourism search engine at wines.fr. 30/35

32 The De Vignes en Caves hospitality charter: a commitment to quality The five Bourgogne Wine Routes take in 336 Domaines, Négociants and Caves Coopératives that have signed up to the De Vignes en Caves charter, created 21 years ago by the BIVB. The number of adherents is growing year on year, illustrating a common desire of wine producers and merchants to share their passion. Wine tourism is becoming a real driver of growth and, as such, is actively helping grow sales. Everyone who signs up to the De Vignes en Caves hospitality charter is committed to offering you a warm and individual welcome. Simply look out for the De Vignes en Caves sign at the entrance to the estate and open the door. Your host will offer you a free tasting of a minimum of one wine, and may introduce you to the secrets of the grape varieties, appellations, flavors and aromas of their Bourgogne wines. You will then have the opportunity to buy some wine direct from the producer so you can take a few good bottles home to share your with friends and family. Signatories of the charter commit to Receiving visitors at times specified by the signatory Clearly displaying the sign indicating their commitment to the principles of the charter Improving the welcome they can offer in foreign languages Offering free tastings of a minimum of one wine Providing a warm and individual reception Displaying a price list, where tasting a wide range of wines will be charged for Offering wines for sale (with a minimum purchase of three bottles) and a shipping service for 12 bottles and above Supplying information about Bourgogne and the estate 31/35

33 Vignobles & Découvertes : the Auxerrois the fifth Bourgogne winegrowing region seeks national certification The Auxerrois winegrowing region has submitted its application to the Conseil Supérieur de l Œnotourisme and Atout France for the Vignobles & Découvertes label in the hope of joining the four other Bourgogne winegrowing destinations that have already been awarded the certification by the end of The campaign began in April, when the Yonne Tourist Board, along with the BIVB, the Bourgogne Tourist Board, and local winemakers and tourism professionals presented their very thorough application. Some 58 parties came together to offer an optimal network and an extensive welcome for visitors to the region, including 21 wine cellars, 11 accommodation providers, four restaurants, two heritage sites, one tourist office, three venues, five leisure activities and 11 events. The four Bourgogne regions already certified with the Vignobles & Découvertes label bring together over 300 service providers including 73 wine cellars and estates. A reminder: Launched in 2009, the national Vignobles & Découvertes label aims to promote tourism destinations that offer a network of services and activities involving vineyards and wine. It is conferred by the ministries responsible for tourism and agriculture for a period of three years to a precise destination with a tourism and winegrowing vocation. The region must propose a wide range of complementary tourism offers that make it easy for visitors to organize their trip, and help guide them towards certified, highquality services. 32/35

34 The Vins et Tourisme en Bourgogne app: now available in English The Proxima Mobile Bourgogne Vins et Tourisme en Bourgogne app for smartphones is now available in English. It uses the phone s location to provide tourists with real time information about the winegrowing regions they are in and the producers they meet. To prepare your trip or simplify your stay, simply download the app for iphone from the App Store or through the wines tourism.fr site for the Android version. The app contains information on the following subjects: Appellations: precise maps and data for the 100 AOCs in Bourgogne Producers: full details including contact info, opening hours, wines produced, languages spoken for 624 winegrowers, cooperatives and merchants open to the public Hotels and Restaurants: across the whole of Bourgogne Events: with a full calendar of around 100 wine related events throughout the year A reminder: Created with the support of the Secretary of State for Prospective Development of the Digital Economy and the Conseil Régional de Bourgogne, this application is the product of a public private partnership that unites the Bourgogne Regional Chamber of Commerce and Industry, the NTIC agency, Bourgogne Tourisme, the BIVB, the Conseil Régional de Bourgogne and Réseau Concept.. 33/35

35 The Climats and Lieux dits of Bourgogne A cultural exception constructed over millennia! The Climats of the Bourgogne winegrowing region are applying for UNESCO world heritage status. Since the campaign was launch in 2008, the Bourgogne Wine Board (BIVB) has been supporting it to raise awareness of this exceptionally rich heritage that mankind has constructed over the past two thousand years. Bourgogne is the only winegrowing region in the world that can legitimately claim the notion of Climats and lieux dits, the Burgundian words used to define Terroir. Key to the reputation of the regions wines, they mark out the Bourgogne winegrowing territory and its appellations. They are at the source of the region s history, landscape and expertise, and are translated through the region s two legendary grape varieties Pinot Noir and Chardonnay. Climats and lieux dits a taste of something special! Far from simply a marketing notion, the Climats and lieux dits have a physical and sensorial reality, and their wines must be sampled in order to capture their taste. As you stroll through the vines, you will discover this intricate patchwork built up over centuries. Born from mankind s patience and observation, it reflects the nature of the soil, the orientation of the plot in the landscape, the history of the place, etc. A reality that is translated into a name Each Climat and lieu dit in the Bourgogne winegrowing region bears a name that owes nothing to chance. For example, Meursault Premier Cru Les Perrières evokes the nature of the stony soil upon which the vines grow. Pouilly Fuissé Le Clos reminds us that the plot was once surrounded by stone walls. Chablis Premier Cru Mont de Milieu recalls that the hill where this tiny patch of vineyard sits was once the boundary between the County of Champagne and the Duchy of Bourgogne. These names, which can be found on the labels adorning each appellation, tell the story of the Bourgogne winegrowing region. To help shed light on their mystery, the BIVB has developed a range of fun and informative tools. 34/35

36 Tools to help you understand Two publications are available to help you understand Bourgogne, From Terroir to Climats The printed booklet called From Terroir to Climats presents the definitions and elements that make up the founding principles of terroir in Bourgogne: the soil, the climate and also the men and women who, over the centuries, have brought the very best out of the region s two key grape varietals, Pinot Noir and Chardonnay. It is now accompanied by a web brochure, From Terroir to Climats: an in depth look. Through an encounter between two characters with whom the reader can easily identify (Romain, the newcomer, and Jacques, the passionate wine lover), all the secrets of the sophistication and complexity of Bourgogne wines will be revealed. This fully illustrated booklet will help immerse you in this winegrowing world which comes to life through tastings and encounters. A brochure and a website dedicated to the origins of names To deepen your understanding, the brochure The Climats and Lieux Dits of Bourgogne, explains the origins of the names of the Climats and lieux dits of the Bourgogne winegrowing region. It is available in a digital edition on the BIVB website at The Les Climats and Lieux Dits of Bourgogne: Discover their Origins website takes you back through 2,000 years of history: Those 4 documents are available in French or in English. 35/35