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The crisis that Bordeaux's wineries are facing at present seems to have become structural instead of just transitory in nature. Wine markets have undergone major changes in terms of volumes and consumer behaviour. One example is the UK market, one of the most dynamic and demanding in the world, whose democratisation between 1979-1984 was analysed by [5] Gluckman (1986) as resulting from two trends: an influx of new consumers; and a diversification of consumption opportunities. More recently, [1] Castaing and Mora (2005) have explained the almost diametrical opposition between markets in the 1970s and in the 1990s as follows (Table I [Figure omitted. See Article Image.]):
Should we consider, as [11] Spawton (1991) does in other circumstances, that Bordeaux wineries' current fate stems from a poor adaptation of supply to market developments, and from excessive product orientation? Or to the contrary, maybe appellations do not need to adapt to market, and should try instead to pursue a new strategy based on attracting those customers who are most likely to adapt to their current output? All in all, this is a very current debate, with a few clear trends that can be amplified thus in the Bordeaux region:
(1)] Many producers are making operating losses, seeing as Bordeaux Rouge (Red) Appellation d'Origine Contrôlée (certified region of production) per-barrel return cost often exceed [euro]1,000 vs. yearend 2005 retail prices of less than [euro]800.
(2)] A whole slew of growers who have for many years produced a verifiably high-quality wine are being forced into liquidation.
(3)] Certain winemakers are starting to take up government incentives in the form of vine destruction grants (receiving [euro]15,000 for each hectare they destroy).
(4)] Some stocks are being distilled to diminish available supplies.
(5)] Many wineries' vats are still saturated with their 2004 vintage and have no room for their 2005 harvest.
(6)] Initial price estimates for the 2005 vintage are very disappointing, despite the recent harvest's universally recognised exceptional quality.
Faced with this extremely worrying situation, the profession has been trying to find success stories that might apply to a wine district split into a tapestry of small plantations (nearly 12,000 across the Bordeaux vineyard). The present article aims to use a series of case studies to demonstrate that several...