Burgundy: Price of land and heat soar in tandem

It looks like the heat is on in Burgundy both in the vineyard and the winery. Vineyard prices have been soaring to such an extent that one young producer has compared it to buying the Eiffel Tower ! He said that demand was crazy and that there were rumours that buyers were prepared to pay 48 million Euros per hectare. Interest is worldwide, particularly from China, Japan and the USA and has been driven up by soaring land prices in Bordeaux. French luxury goods giant, LVMH, recently bought the Clos des Lambrays vineyard for 100 million Euros and it is rumoured that Francois Pinault, owner of Chateau Latour, is also looking at land in Burgundy. The average price of grand cru Burgundy in 2013 was 4 million Euros compared to only 2 million Euros in Pauillac in Bordeaux.

Meanwhile in Burgundian wineries it finally looks like they are going to vinify a larger crop than in the previous 4 years. Despite the devastating hailstorms earlier in the summer hot September sunshine and little rain look like they will rescue the 2014 vintage from disaster. They are expecting to finish the harvest next week and one producer is predicting that it will be a classic Burgundy vintage and good for ageing. The only problem it would seem is a variation in quantity between areas and upwards pressure on prices due to demand.