Upside down - 2006 Burgundy

[David M. Bueker]

So I saw my first 2006 Burgs at retail today. I must say that they bear a striking resemblance to the mortgage market. The prices are just upside down, more than the wines are worth, and a lot more than the 2005s!

Now I have only run across a few on the shelves, and I will restrict my comments to CT/MA availability, but when a top producer's 2006 Bourgogne is $29.99 on the shelf versus the 2005 being $23.99 I know where my money would go. Granted they are both high, but at least the 2005 came with the advantage of a tip-top vintage. 2006, bought mostly with the weakest dollar in history, is not a superior vintage, and yet is now on the market at a "vintage of the century" premium.

I really feel for the distributors and shops that brought in this inventory. They are eventually going to need to dump it, and it's going to be ugly.

Yes, I've been consistently puzzled by the high cost of 06 burgs, when they should cost as much as the 04s, adjusted for the exchange rate. Perhaps they will be lying all over the floor in a few months, at a loss to importers, for those of us not on probation or with less than 2,700 million bottles in the cellar.

I think when 2005 sold out despite big price increases, some (whether producers, importers, distributors), though "why lower prices if we can sell" but then the dollar dive continued. I do think that 2006 has some very strong wines, but so far I've bought three bottles (1 Drouhin Grand Cru at a sale price and 2 $22 Bourgognes).

I actually thought when I saw your title it was going to be about consumers who bought early being upside down. I'm expecting the dump sales to start soon.

I think when 2005 sold out despite big price increases

But not all 2005s sold out. There were the big names that flew but the sales recently show that there may have been too much supply of 'mid-range' wines to meet demand.

[David M. Bueker]

I'm still seeing a lot of 2005 wine from Lignier, Arnoux, etc. on the shelf. Prices are high though.

But not all 2005s sold out. There were the big names that flew but the sales recently show that there may have been too much supply of 'mid-range' wines to meet demand.

I was talking about at producer/importer/distributor level, my impression is there wasn't much left, at least from the producers I buy. I know there are retailers with plenty, and we've seen some sales, but almost all seem to be of in-stock, not middle-tier closeouts.

[David M. Bueker]

New stuff keeps popping up around my area (the Lignier and some Fourrier appeared early this fall/late summer).

I was talking about at producer/importer/distributor level, my impression is there wasn't much left, at least from the producers I buy. I know there are retailers with plenty, and we've seen some sales, but almost all seem to be of in-stock, not middle-tier closeouts.

Ok, I don't follow this market very closely. I just know that Bassins had a 20% off 2005 Burgundy sale last week and they still have assorted stuff remaining. And I've seen a smattering of 05s at other stores. But not that this a national trend makes.