My Article: Is 2011 Lafite Price Still Too High?

Château Lafite Rothschild, the famous first growth in Bordeaux, should be applauded for dropping its price of the 2011 en primeur or futures yesterday, but I have to wonder if it means anything to even the richest wine consumer.

It’s going to be good for the wine trade, since the 2011 Lafite is close to the cheapest vintage of Lafite on the market. It’s about 10 percent below the 2004, according to Liv-ex, the fine wine-trading platform in London.

Of course, this is only the first tranche, or offer, of Lafite 2011 on the market. There is usually another offer, but word on the street in Bordeaux that this is the lion’s share of the 2011 Lafite. Most wine merchants who buy are going to want to average out the tranches before setting prices. Regardless, the price for the 2011 Lafite will probably be at or slightly above the 2004.

I think it makes no sense comparing 2011 prices to 2010. The latter was one of the most expensive young wines ever sold in the history of Bordeaux. And the quality of 2010 is superlative compared to the very good to outstanding 2011. Check out my tasting report with about 560 tasting notes.

The bottom line is that the wine trade needs to make money on futures or it is not going to exist anymore for the top names. The first growth Château Latour has already declared from 2012 onwards the end of en primeur for its wines including the gran vin, Les Forts de Latour, and Pauillac. I broke the story last Friday. Read it here if you missed it.

If the following tranche of 2011 Lafite are not exorbitant, the wine trade can make some money. I am sure that a consumer market exists for 2011 Lafite at just under £6,000 a case. I just checked Farr Vintners offering of Lafite and the cheapest was the 2002 at £5,950. The 2004 Lafite is probably a better comparison because the quality of the vintage is about the same as 2011. Farr sells that for £6,500.

The big question will be if the other first growths, and super seconds and the rest of the blue chips, can release their prices for 2011 below their lowest vintage in bottle on the market. Check out my blog on this from April 4.

I doubt they can, or they will.

In the meantime, not everyone is rejoicing over the release price of 2011 Lafite, even prominent wine merchants in China. “I just got offered my allocation of 2011 Lafite at 450 Euros,” said a key wine merchant in Hong Kong in an email to me today. “It was nine bottles. Crazy.”

I couldn’t tell if he wanted more or less bottles.