Chateau Latour's decision to abandon the futures market

The Wine Berserkers Special Wine Guests program continues with Thomas Duroux of Chateau Palmer, October 22-27, 2012
Post Reply
Message
Author
User avatar
Todd F r e n c h
Site Admin
<dfn>Site Admin</dfn>
Posts: 39328
Joined: January 27th, 2009, 8:46 am
Location: San Clemente, CA

Chateau Latour's decision to abandon the futures market

#1 Post by Todd F r e n c h » October 22nd, 2012, 8:42 am

Mssr. Duroux - what is the feedback and opinion of other great Bordeaux houses on the rather significant decision made by Chateau Latour in abandoning the futures market, and further, to sell only 'ready to drink' wines? Do you feel this will affect the en primeur market in a significant way? Do you support their decision?
Apparently I'm lazy, have a narrow agenda, and offer little in the way of content and substance (RMP) (and have a "penchant for gossip" -KBI)

thomas duroux
Posts: 41
Joined: October 22nd, 2012, 8:26 am

Re: Chateau Latour's decision to abandon the futures market

#2 Post by thomas duroux » October 22nd, 2012, 8:56 am

We hear all kind of comments in Bordeaux but generally speaking I would say that the majority is skeptical.
I personnaly think this is an interesting move. It does exist elsewhere (Vega Sicilia Unico) and if I am not wrong this was the way Chateau Latour used to sell Les Forts de Latour in the 80's. This is not a bad think on a consumer point a view. But I don't think a lot of properties can afford such a move. That is why I don't see a lot of effect on the en primeur market....unless wine buyers and wine lovers decide this must be the new rule!!

User avatar
Todd F r e n c h
Site Admin
<dfn>Site Admin</dfn>
Posts: 39328
Joined: January 27th, 2009, 8:46 am
Location: San Clemente, CA

Re: Chateau Latour's decision to abandon the futures market

#3 Post by Todd F r e n c h » October 22nd, 2012, 9:18 am

thomas duroux wrote:We hear all kind of comments in Bordeaux but generally speaking I would say that the majority is skeptical.
I personnaly think this is an interesting move. It does exist elsewhere (Vega Sicilia Unico) and if I am not wrong this was the way Chateau Latour used to sell Les Forts de Latour in the 80's. This is not a bad think on a consumer point a view. But I don't think a lot of properties can afford such a move. That is why I don't see a lot of effect on the en primeur market....unless wine buyers and wine lovers decide this must be the new rule!!
Do you think Latour hopes, or is counting on, other major houses to follow suit? The cost of holding many vintages without revenue seems to be a massive economic burden
Apparently I'm lazy, have a narrow agenda, and offer little in the way of content and substance (RMP) (and have a "penchant for gossip" -KBI)

thomas duroux
Posts: 41
Joined: October 22nd, 2012, 8:26 am

Re: Chateau Latour's decision to abandon the futures market

#4 Post by thomas duroux » October 22nd, 2012, 9:37 am

I don't think Latour is counting on. And yes the cost of this politic is high and not everybody could afford it. But an other hand if this becomes a new standard for top wines in Bordeaux it will be followed for sure...

User avatar
Marc Frontario
Posts: 2435
Joined: May 6th, 2010, 4:00 am

Re: Chateau Latour's decision to abandon the futures market

#5 Post by Marc Frontario » October 23rd, 2012, 2:04 pm

Thomas, what would be the motivation to make such a move?
Find something you love....and let it kill u....Charles Bukowski
I cannot escape the ravages of this man....R.Alfert

thomas duroux
Posts: 41
Joined: October 22nd, 2012, 8:26 am

Re: Chateau Latour's decision to abandon the futures market

#6 Post by thomas duroux » October 24th, 2012, 12:41 am

Motivations could be:
- please the customers
- make sure that the bottle are open when the wine is ready
- make sure that the bottle aging process is made in perfect conditions

User avatar
Marc Frontario
Posts: 2435
Joined: May 6th, 2010, 4:00 am

Re: Chateau Latour's decision to abandon the futures market

#7 Post by Marc Frontario » October 24th, 2012, 6:25 am

Thank you
Find something you love....and let it kill u....Charles Bukowski
I cannot escape the ravages of this man....R.Alfert

User avatar
Robert.A.Jr.
GCC Member
GCC Member
Posts: 22284
Joined: January 28th, 2010, 5:03 am
Location: Orlando, Florida

Re: Chateau Latour's decision to abandon the futures market

#8 Post by Robert.A.Jr. » October 27th, 2012, 9:44 am

thomas duroux wrote:Motivations could be:
- please the customers
- make sure that the bottle are open when the wine is ready
- make sure that the bottle aging process is made in perfect conditions

Profit as well?

Seems to me, once Latour absorbs the initial cost of carrying the first vintages of wines until ready, the releases could command a higher price as the marketplace is getting a more mature Bdx with great provenance. The value increase would accrue directly to Latour rather than downstream middlemen, retailers and consumers.

As you note, like Vega Sicilia Unica.

Great concept.

"@lf3rt was clearly raised in an outhouse in the Loire. . . ."

Kenny H (circa 2015)

User avatar
Marc Frontario
Posts: 2435
Joined: May 6th, 2010, 4:00 am

Re: Chateau Latour's decision to abandon the futures market

#9 Post by Marc Frontario » October 28th, 2012, 7:03 pm

agree roberto, intially they may take the hit but a big pay day in the long run.
Find something you love....and let it kill u....Charles Bukowski
I cannot escape the ravages of this man....R.Alfert

Post Reply

Return to “Special Wine Guests - Thomas Duroux (Oct 22-27, 2012)”