Tag: bouchard pere et fils

Burgundy: A Basic Lesson in Economics

Supply-and-demand.svgGuess what? We’re not the only ones who think Burgundies are fabulous. To quote Michael Jackson, “you are not alone.”

It all comes down to the simple law of supply and demand. For good Burgundies, there is generally more demand than supply. French people like their wine, so there’s less to export to the non-Frenchies. Not everybody lives in Burgundy or is fortunate enough to have family to “visit” there, like me (muhahaha). By the time things are shipped out, we’re left with a smaller pool to choose from. Throw in the tariffs and shipping, and Burgundies can be pretty pricey. So, how do you get the best bang for your money?

I collected data from 5 highly regarded books on Burgundy, 8 websites where you can actually purchase wine from, 3 well respected wine tasting sites, my own experiences as well as those from some of my peers – whew… I then loaded it all into one massive spreadsheet. Voila… the beginnings of an optimization analysis. (I know, I am a complete freak show, but I can’t help it. It’s ingrained in me after all of those years in Investment Banking). You get to benefit from the fruits of my labor. Looking exclusively at wines that are either 100% Pinot Noir or 100% Chardonnay from the Côte d’Or, here are the questions I asked and then cross-referenced to produce the output below:

  • Who are some of the top producers – Maisons (grower and negociant) and then Domaines?
  • What terroirs allow me to find value?
  • Can I actually find these wines at a liquor store by my house?
  • Is the price of these wines between $20-40?

Drum roll please….

Top Producers:

Size Matters: Economies of scale… Take a look at a map of the Côte d’Or wine region. Now look at the following Maisons:

  • Maison Louis Jadot: Founded in 1859 with roots in the vineyards of Beaune dating back to 1826, this Maison is now owned by their previous US importer, the Rudy Kopf family. Their vineyards are scattered across 154 hectares (380.5 acres) in the Côte d’Or, Måconnais and Beaujolais.
  • Maison Bouchard Père et Fils: Their colorful history dates back to 1731. They are now owned by Henriot. With 129 hectares (321 acres) of vineyards (33 acres of Grands Crus and 183 acres of Premiers Crus), Bouchard is massive. I wrote an in depth article on Bouchard. To further illustrate my point above about the Frenchies keeping the goods for themselves, someone like Bouchard exports only 52% of their production. Bouchard produces between 3-3.5 million bottles per year. Um hello… that’s a little over 1.5 million bottles just for the Frenchies!
  • Maison Joseph Drouhin:In 1880, Joseph Drouhin founded his own wine company. Today, this domaine is comprised of 73 hectares (182.5 acres) of vineyards in Côte de Nuits, Côte de Beaune, Côte Chalonnaise and Chablis. The majority of these vineyards are classified as Premiers and Grands Crus. I originally met some of the family members on a trip to their vineyard in Oregon, Domaine Drouhin. They are the absolute loveliest people. I was able to catch up with Véronique Drouhin-Boss who is in charge of wine making at both Maison Joseph Drouhin and Domaine Drouhin while she was in New York yesterday and hope to follow-up with an article on their wine making philosophy in the near future. (If you trek out to the Willamette Valley, their Vineyard was one of my favorite ones.)

That’s 202 hectares (884 acres)! A Maison acts in both the negociant and grower capacity, so it makes wine from grapes grown on premises as well as grapes of other growers. They have it all… region (for example, Bourgogne Blanc, Bourgogne Rouge), district (for example, Côte de Beaune Villages, Côte de Nuits-Villages), commune (for example, Saint-Aubin, Marsannay) and single vineyard (for example, Les Ruchots). (Here is an overview of the classification system of Burgundy:). If the wines are made from their own grapes, it is noted on the label as Domaine. You can find some really nice values at the region, district and commune levels of wines for each one of these maisons. They have their footprint in almost every commune. Do the math on that. We all know that there are economies of scale here as production, shipping and marketing costs are all kept down. You benefit and you can actually find these wines in many locations.

Own it: Do what you do and do it well. Some winemakers have a foothold in one or two communes. They know their family’s terroir like nobody’s business. Instead of hearing “Good Night Moon” or “Dr. Seuss” when they were 5 years of age, they were probably hearing bedtime stories about the terroir from their grandparents. Take advantage of that. Here are the communes and smaller producers where I found quality and availability (so decent volume and aggressive importers) within our set price parameters. Use these communes as guidance for the 3 maisons I mentioned above.

REDS

(north to south)

  • Marsannay-la-Côte (Marsannay): This commune has no Grands Crus or Premiers Crus, but it’s relatively easy to get a tasty Marsannay for anywhere from $20-35. Typically, expect black fruits and possibly some licorice. Sometimes, these wines can be a little fruity and lighter in weight. Here are some domaines of note: Domaines Joseph Roty, Jean & Jean-Louis Trapet and Bruno Clair.
  • Morey-Saint-Denis: This region is nestled in between Chambolle-Musigny and Gevrey-Chambertin.  (Here’s an in depth look at Morey-Saint-Denis.) It’s tough having super famous neighbors, so some of the Premiers Crus (single vineyard) offer a value proposition. You’re going to have to search, but search you must. You can find some of these for under $40. Check out Domaines Hubert Lignier, Frederic Magnien, Pierre Amiot, Arlaud, Fourrier and Heresztyn.
  • Savigny-lès-Beaune: Roughly 85% of what they produce is red. There are no Grands Crus, BUT there are 22 Premiers Crus and many within a $23-45 price range. It’s relatively easy to find these with a $30 handle. LOOK for them. Expect to taste red fruits, mocha and/or coffee and possibly some dusty tannins. Domaines Joseph Roty, Bruno Clair and Lignier Michelet and Maison Nicolas Potel are names to track down for value and quality.
  • Santenay: Located at the base of Côte de Beaune, but one of the larger communes, Santenay is known for light bodied reds, many which can be found for between $16-40. Typically, their wines are considered to be rustic, gamey, possibly with some smoke on the palate. Look for the following producers: Domaines Joseph Roty, de la Pousse d’Or, Louis Latour and Vincent Girardin; Maisons Joseph Drouhin and Nicolas Potel.
  • Bonus Round: Here are a few other value propositions to look for in the Côte d’Or — Chorey-lès-Beaune, Ladoix, Nuits-Saint-Georges (loads of inexpensive 1er Crus here) and Monthelie. I know I said I would focus on wines from the Côte d’Or  this time around, but I can’t help but add Givry from Côte Chalonnaise to this list.

SIDEBAR: 1er cru vs. Premier Cru – When grapes from two or more Premiers Crus vineyards are blended, the label will will not state the specific Premiers Crus vineyards the grapes came from AND “1er Cru” will appear on the label in lieu of “Premier Cru.”

WHITES

(north to south)

  • Saint-Aubin: Nestled right by illustrious Meursault, Puligny-Montrachet and Montrachet, this commune offers outstanding values, with decent wines for $14-36. Roughly 2/3 of  their production is Pinot Noir, but I really enjoy their whites. One of the wine makers I met in Burgundy jokingly referred to Saint-Aubin as the “poor man’s Montrachet” (P.S. not derogatory in any regard as this wine maker ‘fessed up to Saint-Aubin being his daily, go-to wine). It’s fairly easy to track one down for $35. Expect citrus, white flowers, stone/flint and austerity on the palate. Look for Domaines Pierre-Yves Colin-Morey, Jean Marc Morey, Jean Chartron, Jean Rijckaert and Philippe Colin.
  • Chassagne-Montrachet: Right next to Saint-Aubin, but slightly southeast, Chassagne shares Le Montrachet and Båtard Montrachet with Puligny-Montrachet. Look for the Villages and Premiers Crus. You can find some for around $30. Expect floral tones, intermingling citrus, light yeasty notes and minerality. These wines tend to be more rich, rounded and succulent for the entry level. Search for Domaines Faiveley, Jean Marc Morey, Frederic Magnien, Bernard Morey, Chåteau de la Maltroye, Colin Deleger and Jean-Noel Gagnard.
  • Beaune: There’s lots of Pinot here and 3/4 are Premiers Crus, but there are some lovely whites. Be certain to look for Maisons Louis Jadot and Bouchard and Domaines Jean Marc Boillot and Chanson.
  • Bonus Round: Within the Côte d’Or, also check out Saint-Romain. Even though I am focusing on the Côte d’Or for this piece, I couldn’t help but include a few others, which are also in Burgundy. From Côte Chalonnaise – Rully, Montagny. From Måconnais – Måcon (and Villages – Comte Lafond makes a Macon Milly Larmantine that rivals any 1er Crus Puligny under $100; these sell for about $25-ish. And In between Måconnais and Beaujolais – Saint-Véran

ROSÉS

  • Marsannay Rosés: I love Pinot Noir. I enjoy Champagne made from Pinot Noir. I enjoy Burgundy made from Pinot Noir. And guess what… I enjoy rosés made from Pinot Noir. Marsannay rocks this genre out for $20-$30 (and sometimes under $20). Expect to taste strawberries with a bit of minerality. Some names to look for are Domaines Bruno Clair and Charles Audoin.

    • Source: Supply and Demand curve, Wikipedia. Used under the terms of their Creative Commons License.

    Burgundy – Côte de Nuits and Côte de Beaune

    September 2009
    burgundy
    “Every now and then, we are lucky enough to encounter Burgundy which sets our hearts afire.” Clive Coates, Master of Wine, Côte D’Or, A Celebration of the Great Wines of Burgundy,

    Vintages

    2007: “A unique year… 2007 was another extraordinary year of such advanced growth that we had to begin harvesting in August… At the moment… our red wines are… well structured, ample and rich. Barrel aging has enabled this fruity and balanced vintage to evolve well. Our white wines are expressing floral and fruity notes. They are ripe with good freshness and backbone. 2007 is a year in which the terroir overrides the expression of the grape variety. The barrel aging has permitted them to express the best of their typicity,” affirmed Bouchard Père & Fils. Jean-Michel Chartron, who runs Domaine Jean Chartron in Puligny-Montrachet commented, “2007 vintage is opposite to the rich, round and easy to drink young 2006 vintage indeed, but it looks more classic to me. Real lovers of white Burgundy might prefer the freshness and precision of 2007s.”

    2008: “A promising vintage… difficult weather conditions throughout the year which led to widespread outbreaks of mildew, odium and botrytis… The Pinots had reached good maturity and great concentration thanks to the excellent weather conditions, which returned on 15th September, giving plenty of sunshine and a beneficial drying North wind. (As for) the Chardonnays… the characteristics of the terrors will outweigh the varietal aspect of the wines,” noted Bouchard Père & Fils. Jean-Michel Chartron observed “2008, because of early blooming and rainy summer, is really a tough vintage. The key to the success was hard work in the vineyard to avoid any development of mildew and odium and waiting a long time for a good maturity as the sun shined only from late August on. Those who waited until early-mid October to harvest did very nice wines, thanks to the lovely Indian summer that we had then.”

    2009: Just coming off the most recent harvest, Jean-Michel Chartron pointed out “2009 looks much easier as the good weather during the whole summer enabled a perfect maturity and a great balance between sugar and acidity. The wines are now still fermenting and look very promising.”

    Terroir = Location + Climate + Varietals

    Location

    Burgundy is a wine region in France that includes Chablis, Côte de Nuits, Côte de Beaune, Chalonnaise, Mâconnais and Beaujolais. The majority of Burgundy is a narrow strip of land north of Lyon and south of Dijon, straddling Beaune. I recently visited this part of Burgundy (Côte de Beaune and Côte de Nuits), so this will be the focus. If I have my way, this will be a recurring trip, so Mémé Néna, Tata Michelle, Tata Jeanette and Tonton Jeannot, be careful what you wished for.

    In some regards, most of Burgundy is so much smaller than it seems on a map. The heart of Burgundy is only about 40km (25 miles) long. Inclusive of many stops along the way (mandatory for tastings), from base to tip, it is completely drivable within a few hours time. Most Burgundian wines are either 100% Pinot Noir or 100% Chardonnay, so that adds to the ease of understanding these wines. It’s the sheer number of individual vineyards that makes Burgundy so difficult and confusing.

    Lots and Lots of Small Plots
    Prior to the French Revolution, either the church or nobility owned most of the land in Burgundy. The French Revolution was both anti-church and anti-aristocracy (“let them eat cake” reverberates in the background), so properties of the church and nobility were seized and sold off. The Napoleonic Code revamped inheritance laws, forcing equal division of property as opposed to the prior law that left all property to the eldest son. From generation to generation, and heir to heir, the land became increasingly fragmented. As a result, much of Burgundy is a whole bunch of small vineyards, all with distinct names (“lieu-dit” or said place), registered at city hall.

    Classification

    Think of the classification system in Burgundy as a giant triangle, with the base of the triangle being the bottom of the hierarchy (and greatest volume by production) and the top consisting of the highest quality (and lowest volume by production). From top to bottom, this is how it would look:

    • Single Vineyard ACs – (1) Grands Crus or (2) Premiers Crus (ex. Corton and Puligny-Montrachet, Les Combettes, respectively)
    • Communal ACs (specific village, ex. Puligny-Montrachet)
    • District ACs (specific district, ex. Côte de Beaune Villages)
    • Regional ACs (ex. Bourgogne Rouge AC)

    France categorizes their wines by terroir – so, for higher quality wines (Grands Crus and Premiers Crus), each is an appellation in its own right, and the wines are categorized as such – so not by wine maker, not by Domaine, not by varietal, but rather, by the distinct parcel of land that the grapes come from. The names of the Premiers Crus are known by the name of the village first, with the name of the distinct site following, whereas Grands Crus are known exclusively by their distinct site and nothing else is required. It can get very confusing if old world classification is not the logic you are familiar with. Throw another language into the equation, along with the sheer magnitude of distinct plots (32 Grands Crus and 562 Premiers Crus), and it’s a mouthful.

    Let’s think of the Burgundy classification in a different context. If you were to reside in the United States, Regional AC wines would be wines coming from anywhere within the state you lived in. I live in New York, so for me, the wine could come from anywhere in the state of New York – maybe New York city, maybe Albany, maybe both. Maybe it’s good, maybe it’s not. All I know is that the wine is made in the State of New York and it would be classified as “State of New York.”

    At the District AC level, the wine could come from anywhere in New York County – the West Village, Chelsea, Tribeca, the Upper East side, etc.. The wine would be classified as “New York County.”

    At the Communal level, we know the wine could come from one or more distinct plots of land within the commune. Using our New York example, let’s say the wine came from one or more places in the West Village. The wine would be classified as “West Village.” Note: There are some instances where a Communal level wine could come from a single vineyard. In this instance, it would be noted on the label, but in smaller font size than the name of the village.

    Wine from Single Vineyard ACs comes from one distinct plot of land. The names of the Premiers Crus are known by the name of the village first, with the name of the distinct site following (ex. Beaune du Château Blanc –  Beaune is the village and the distinct plot of land is Château Blanc). There are distinct, but numerous (only 562) plots of land, at the Premiers Crus level. So, using our New York example, the wine would be classified as “West Village, Bleecker Street.”

    The Grands Crus are at the top of the triangle and are known exclusively by their geographical distinction. By law, nothing else is required since there are only 32 (ex. Clos de Vougeots – There is no mention of a village. That one specific plot of land is how it is classified). Since the Grands Crus are distinct entities, using our New York example, the wine would be classified as “Time Warner Center.” To add to the confusion, a Grand Cru, such as Clos de Vougeots, consists of about 124 acres with about 82 owners. The Time Warner Center has a ton of restaurants, bars and shops. In our example, how do we know which restaurants, bars and shops make the best wines? Even though the wines wouldn’t be classified by the names of the restaurants, bars and shops, the wines would still have that name on the label. In all examples mentioned, when examining how the wine is classified, maybe the wine is good, maybe it’s not. This is when we examine the label to see who the wine maker (or negociant) is. In each of the examples above, even though wines would not be classified by the estate or the wine maker, the name of the producer is listed on the label and aids with quality control, it’s just not how it’s classified.

    Most experts feel that 90% of the wine we consume has to do with the possibilities of the terroir – location, climate and varietal(s) – so the focus should be on the terroir. The location will always remain static. Don’t get frustrated. It just requires a different thought process. The wines are so yummy, so the payoff exists. On the flip side, if I asked most of my French family which varietals they liked, they’d shrug their shoulders. They know they like Burgundian wines. (They stick with these wines because it is what they know. Why fix something that isn’t broken?) However, they wouldn’t be able to tell you that they like Pinot Noir or Chardonnay. They know the wines they love by location exclusively. It’s not wrong or right; it’s just a different school of thought.

    Soil:
    Côte de Nuits and Côte de Beaune are separated into two parts around the town of Beaune,  Côte de Nuits to the north and Côte de Beaune to the south. Côte de Beaune produces about 57% red and 43% white wine* (but 7 of the 8 Grands Crus in Côte de Beaune produce white) and Côte de Nuits primarily consists of reds. Back in the days of the dinosaurs, most of Burgundy was under water, resulting in lots of small fossils that are omnipresent in the soil there today. As a result, the soil is well drained, and limestone rich. There is also some clay, and minerals such as iron, magnesium and lead.

    Climate

    Burgundy has a continental climate with four seasons. Winters are frigidly cold and summers are fairly warm.

    Varietals, that’s “Easy Breezy”

    Most Burgundian wines are comprised of either 100% Pinot Noir or 100% Chardonnay. From time to time, you might see Aligote or Muscadet, but Pinot Noir and Chardonnay rule the majestic Côte de Beaune and Côte de Nuits. Further south in Beaujolais, Gamay rules.

    • Chardonnay – Generally speaking, most of the Chardonnays in the Côte de Beaune go through malolactic fermentation (often referred to as secondary fermentation), which is the process of converting harsh malic acids into softer, milky acids. Wines are barrel rather than steel aged. This is why these Chardonnays have that buttery, creamy, hazelnut flavor rather than the steely (but still so lovely) wines of Chablis, which are also 100% Chardonnay, but aged in steel tanks. Chardonnay just can’t get enough of the limestone soils of the Côte de Beaune, which contributes to that fantastic lingering minerality. Chardonnay thrives when there is less clay, so toward the top of slope in the Côte de Beaune is optimal.
    • Pinot Noir – Think red fruits here – cherry, raspberry and strawberry. Over time, throw in the possibly of cedar, sandalwood, some cigar box, gamey and vegetal notes. These grapes are thin skinned and very sensitive to rot. This past year, we happened to be there during the harvest and it started to rain, so every possible warm body was out in the field frenetically working. Pinots are worshiped for their finesse and elegance. During fermentation, some use wild and natural yeasts often resulting in that barnyardy, old world funk (which I LOVE). Pinot thrives in the limy marl (clays, calcium and magnesium carbonates) present in this area.

    What’s Next?

    In Côte de Nuits and Côte de Beaune, vines are very densely planted. With a competitive root system, the plant digs deeper into the soil and gets those nice, minerally elements. Vines are trained along low wires and primarily use the single guyot pruning system (a single, horizontal cane from the trunk).

    In the feature articles to follow, I am going to profile:

    • Bouchard Père & Fils – a massive, historic and amazing domaine; 130 hectares (321 acres), with 12 hectares (30 acres) of Grand Crus and 74 hectares (183 acres) of Premiers Crus extending throughout Côte de Beaune and Côte de Nuits, so both white and red wines
    • Domaine Jean-Chartron – located in Puligny-Montrachet; 12 hectares (30 acres) of Grands Crus and Premiers Crus in Puligny, gorgeous white wines)
    • Wines from the I tasted from Côte de Nuits (reds) at a lovely wine bar in Morey Saint-Denis
    • What fabulous Burgundies can you pick up from your local wine store for under $40?

    As an aside, there’s a lot of material I’ve learned over time from books, tests, tasting, meeting with wine makers and others in the business, etc. which I have jammed in my head. I must reference Côte D’Or, A Celebration of the Great Wines of Burgundy, by Clive Coates, Master of Wine. His book is the most comprehensive one I’ve read on Burgundy. His “tell it like it is” style is refreshingly honest, without the gimmicks or obsequious comments many other wine writers make. If you have a passion for these wines, this is the book you should pick up.

    *source Certified Specialist of Wine Study Guide