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Thursday, 23 April 2015

Wine Lovers Pay Premium For French Wine

The average price of a liter of French wine is more than double the global average

Drinkers might have access to more different wines from more countries than ever before, but they're prepared to pay a shell out for a taste of France.
A report carried out for private bank BNP Paribas shows that when it comes to French wine – and vineyards – customers are willing to dig deeper, especially at the top end of the market. The world average price per liter for exported wine is €2.62 ($2.81), while French wine commands an average of €7 per liter, or $7.50.
When it comes to the more prestigious appellations, those prices go even higher. Bordeaux's average export price is €9.70 a liter; Burgundy sells for an average of €10.60; and Champagne sits comfortably on top of the heap at €15 a liter. Overall, France is by far the world's top wine exporter when measured by value, despite being only third by volume, behind Italy and Spain.
The value of French wine is also reflected in vineyard prices. The better areas in Bordeaux can sell for as much as €2.6 million per hectare ($1.13m an acre), while the top sites in the legendary vineyards of Burgundy can reach €10m per hectare ($4.04m an acre). Champagne is relatively affordable by comparison, at €1.2m ($486,000 an acre), while a hectare in the Rhône can fetch €414,000 ($167,500 an acre).
The bank's head of agribusiness, Benoît Léchenault, said: "While the vineyard real estate market is still the province of an experienced clientele, it remains a highly attractive refuge value, both for French and foreign investors."

Vineyard values across France

Beyond French borders, vineyard prices can be high but not do not reach the heights of Bordeaux, Burgundy and Champagne. In Piedmont, a hectare can fetch up to €1m, according to a 2014 Knight Frank report, as collectors look beyond Bordeaux to other fine wine regions. Further south, Chianti vineyards can range from €100,000 to €150,000 per hectare depending on the site's official classification (DOC/DOCG) and €300,000 to €500,000 in Montalcino.
The New World is significantly cheaper with Mendoza vineyards attracting prices of $30,000 to $100,000 per hectare and New Zealand's Hawke's Bay fetching $130,000 to $170,000, Knight Frank reported. It will be no surprise to wine lovers that the Napa Valley commands some of the highest prices in the New World for its vineyards – $135,000 to $588,000.
Taking a wider view, the report emphasizes how Europe has managed to hold off the challenge of New World producers to maintain its grip on world wine production. While newer wine-producing countries have increased total export volume by 48 percent on average over the past 20 years – with Chile, Australia and New Zealand growing by 100 to 300 percent – Europe still produces 59 percent of the world's wine.
Europe also consumes most of the world's wine, drinking more than half the global supply, even though consumption worldwide has fallen by 13.8 percent in the past 35 years. The US, however, is the biggest single consumer of wine, having taken over from France last year.

Source: http://www.wine-searcher.com/