Will Chinese cash into Bordeaux 2010?

Wine merchants warned Friday demand could be high for another excellent Bordeaux vintage after buyers from around the world descended on southwest France for the annual market.

China and Hong Kong have become the biggest customers for the world renowned Bordeaux wines but some traders are warning against neglecting the more traditional markets in Europe and the United States.

Most expect sales and prices to match last year's or to increase through the three month sales period, leading up to June's annual Vinexpo sales fair.

While China and Hong Kong have quickly become Bordeaux's biggest export market, the question is whether they will put cash into a product that will not actually arrive in their warehouses for another two years?

"I definitely think so," said Philippe Laqueche, general manager of Yvon Mau, one of Bordeaux's largest wine merchants.

"The key players in Hong Kong and Mainland China are confident of the quality and the future ratings and they want to follow what they did in '09."

But Chinese importers new to the trade may find it hard to get allocated the most coveted brands of such an exceptional vintage.

"We get allocations because of our longstanding relationships," said Bandy Choi, an importer-retailer trading in Macau, Hong Kong and China. "The new importers won't get allocations - just a case or two to say 'hello'."

Chinese demand is expected to remain limited to established labels.

"We expect Asia to still only want the top 10 or 20 names and can't see that changing," said Gary Boom, managing director of Bordeaux Index, which has offices in Hong Kong and London.

"They won't buy unknown brands," confirmed Hong Kong trader Dennis Lok. "These will be sold to mature markets."