On supply and demand...
The demand for Burgundy has never been higher. Not just the Blue-Chip wines from DRC, deVogüé, Rousseau and the like. Not only the exalted Grand Crus. Across the board, the world-wide demand for anything Burgundian is at a historical peak, and continues surging upward – in spite of the fact that prices continue to rise as well.
A succession of small crops in 2010-2015 has limited the supply, and of course the prices have gone up. However, the price increases do not even begin to cover the losses to the domaines who’ve had so little wine to sell in recent years. Even with a return to “normal” crop levels there will be a significant number of producers unable to stay afloat in the near future. We will unfortunately see more fine vineyard parcels ending up in the hands of luxury-goods conglomerates, which to me is a sad thing.
What’s interesting is that as the prices have increased, the demand continues to outstrip the supply. There must be some price level at which demand will taper off, but I guess we haven’t seen it yet.
Here at Caveau our business is designed to keep prices as reasonable as possible. By dealing only direct with all of our producers, there are no middle-men and no extra mark-ups anywhere in our model. We’ve set our operation up to be streamlined, with very low overhead, and strive to deliver excellent service with a focused and efficient operation. We are not a “discounter” – we’re not trying to undersell anyone else that may be importing the same wines in other markets, though our prices will often be on the low end if same wines are available from other sources.
All this to say that our pre-arrival offerings have been selling out at a remarkably quick pace this year – both in Burgundy and Champagne. Some days my head has been spinning with the flurry of orders coming in! More than ever, if you see an offer on something you like, grab it! We are always greatly appreciative of your support.
Please shoot me an email anytime you have a question or would like to chat -