▻ Omnibus XXXVII
Episode Summary:-
The chaos of the political world has spilled over into the wine world, leaving producers, distributors and consumers looking at a very different vinous landscape. John Stimpfig reports on the latest tariffs set by the Trump administration and analyses their effect on the wine world. As we publish, the first tariffs announced have been rolled back for 90 days to 10 per cent on all imported wine (originally the EU were facing 29% and South Africa 30%).
US distributors are not sure where the tariffs will end up, so there is a reluctance to import – causing major issues for many European countries where the US is their number one export market, and there are no countries which can take up the volume that is not going to be shipped. John predicts it will inflate prices on the secondary market in the US as stocks run low. Another effect is on the 2024 Bordeaux En Primeur campaign. One of the leading Bordeaux distributors in the US, J. J. Buckley, is not buying an 2024 Bordeaux at En Primeur for their own stock, as they cannot predict the cost in two years’ time.
(John has searched hard for a good news story and has actually found one. Thailand eliminated its 54% import tariff and has seen 13% import increases since the abolition; a shame the business case is not being presented in the White House!)
The Bordeaux 2024 campaign is being launched in the worst market in En Primeur history. Several of the big names have released, with Lafite down by 30%, and other big names, such as Haut-Bailly and Angelus around 30% too. Stephen Browett of Farr Vintners and David Thomas of Bordeaux Index have told The Wine Conversation that despite the deep cuts, the wines aren’t flying out the doors; Lafite, for example, is bucking the trend and selling well, but still not totally sold out. Amanda Skinner of Lay and Wheeler believes customers are waiting to see all the offers, as it is a now buyers’ market.
John is also looking after the US news this month, as our US Editor Elin McCoy is out of action (we look forward to having her back next month). He reports on the news that Constellation Brands have sold some of their volume brands to The Wine Group, the US’s second-largest wine company. The big news in China is that Don St Pierre Jnr has bought back ASC Fine Wines from Suntory. Sarah believes this is very positive news for the fine-wine industry, as he has huge experience and contacts in the country. Over in the UK, Majestic have bought the distributor Enotria, which gives them more firepower in the on-trade area.
Further news comes from Moet Hennessy, which has announced that it is cutting its workforce by 10% – that’s 1200 global jobs – as revenues have fallen and operating costs have increased significantly. Our final business news is a name change. Accolade is now Vinarchy: Again, further changes are afoot; after buying Pernod Ricard’s wine brands they oversee 150 wine brands, but they have announced they’re reducing this to 100 in the next 18-24 months. Anarchy? Stay tuned.
John looks back on the life of Jim Laube, the American wine critic who reviewed California wine for The Wine Spectator and had a major influence on its style.
Meanwhile, incredible news: The world’s oldest wine has been discovered. It was harvested in the 1st century AD. It was found in a glass urn in a burial site near Seville. Analysis shows that it was originally a white wine from the Jerez region, but it has a very unusual ingredient – the cremated bone fragments from one of the individuals buried in the tomb. “It is amazing to think that this could have been harvested during the life of Christ,” says John.
Finally, John is off on his bike to raise funds for Hospitality Action. This year’s ride, organised by Louis Jadot, is in Bordeaux. John will be cycling 200km in two days. There is also a special dinner at the end of May with some exciting silent auction lots including wine from Gaja, Guigal and Pichon Baron. To find out more, go to www.hospitalityaction.org.uk.
Running Order:-
-
0.00 – 37.41
“I think anything less than a reduction of 25-30% is dead in the water.” – John Stimpfig on Bordeaux 2024
– The effect of US tariffs on the wine world – The En Primeur Bordeaux 2024 campaign- how it is going, what is selling, and what’s not.
– Constellation sells wine brands to The Wine Group.
– Don St Pierre Jnr buys back ASC Fine Wines in China.
– Majestic Wines buys Enotria. -
37.42 – 48.32
“ It is amazing to think this wine could have been harvested during the life of Christ.” – Sarah Kemp
– Moet Hennessy cuts 1200 jobs.
– Accolade changes its name to Vinarchy.
– Looking back on Jim Laube’s career.
– The world’s oldest surviving wine.
– John’s bike ride for Hospitality Action.
This month’s wine news and views and it is fast-moving news this month as the roller-coaster tariffs cause chaos in the wine industry; John Stimpfig reports on their effect.