Ratings prompt fears over wine price increases

Fear is spreading among the UK's biggest wine sellers after Robert Parker, the American critic whose ratings have dictated the market in wine futures for 20 years, declared the much-maligned 2008 Bordeaux vintage to be "excellent".

The year was supposed to be one of the worst vintages of the decade after a summer of rain and little sunshine. So bad that some of the UK's leading wine traders did not go to Bordeaux this year to taste the new wines in the increasingly important "primeur campaign", when new vintages are released in the market for the first time.

But last week expectations in the wine market were abruptly lifted after Mr Parker'srating, which gave some of the wines near-perfect marks.

Some wine merchants are concerned that Mr Parker is overrating some wines and that this will encourage the winemakers to increase their prices. Many winemakers will release their 2008 wines to the market today.

After last year's 2007 vintage, which critics say was overpriced, merchants have been putting considerable pressure on winemakers to lower the prices of en primeur wine - new wine sold before it has been bottled and two years before delivery - to reflect the current environment.

Demand was expected to be muted due to the economic recession, the drop in the value of sterling against the euro and forecasts of an ordinary vintage.

Until this week, the Bordeaux wine trade had dropped prices by some 30-40 per cent for the 2008 vintages that had been released.

Now, however, after Mr Parker has issued such generous ratings, British wine traders are expecting that prices of wines such as Château Petrus and Château Ducru Beaucaillou, will soar.

"All the Châteaux that haven't released will put their prices up," said Simon Staples, sales director at Berry Bros & Rudd, arguing that Mr Parker's ratings would make the wines "unbearably expensive".

Stephen Browett, the purchasing director of Farr Vintners, said: "Parker is more upbeat than anyone else. A lot of people think it's a good vintage but he thinks it's a fantastic one . . . he's really put his head on the chopping block."

Prices for a case of Château Lafite Rothschild were trading at £3,200 by the end of the week after Mr Parker gave it a score in a range of 98-100 out of 100, up from £2,000 at the start of the week, according to Liv-ex, an index of the top 100 investable wines that is 90 per cent weighted to Bordeaux. Meanwhile, cases of Château Latour (rated 96-98) rose to £2,500 from £2,100 a case and Château Margaux (rated 95-97) rose to £1,900 from £1,600.

Justin Gibbs, a director of Liv-ex, said the jump in prices showed that people do have money to invest in wine. "Suddenly economic concerns are out the window . . . the investment wine market is showing a hint of confidence."

Liv-ex's wine index was up 2.8 per cent in March compared to the previous month. The index is up 4.1 per cent in the year to date, but down 17 per cent year on year.