“There is no hiding the fact that prices will be high for consumers” of Burgundy wines

urgundy wines broke marketing records in 2021, but uncertainties are mounting for 2022, according to Laurent Delaunay, the deputy chairman of the Burgundy wine bureau (BIVB), speaking at a press conference on 23 March for the Grands Jours de Bourgogne. The issue is the combination of a small harvest in 2021 (with a record dip in supplies due to the April frosts); an all-time high in market demand (from exports to supermarkets); and soaring costs (which began during the pandemic and worsened after Russia's invasion of Ukraine). “This is where our concern lies: we have been seeing an upward trend [in prices] for 20 years, and there is an automatic knock-on effect of the small 2021 harvest that will expedite this increase for the next 18 months (the marketing season). On top of this is an increase in dry goods, energy, etc.”, explained Delaunay.

Although the war in Ukraine does not directly affect Burgundy exports, the Burgundy wine industry is “relatively concerned about the indirect impacts on disposable income (as in Germany, which is very dependent on Russian gas)”. However in the immediate future, “what we see emerging are warning signs over raw materials and energy with more important consequences than we could have anticipated”, claimed Delaunay. Citing a 15 to 40% increase in the price of bottles, cardboard and labels, the Burgundy shipper also pointed to the rise in the cost of energy on the price of transport: “This will increase the price of our wines for our consumers. The retail prices of Burgundy wines raise questions. There is no hiding the fact that prices will be high for our consumers”, he summarised.