French wine regions: Bordeaux versus Burgundy
France has the fortune of possessing numerous winegrowing regions on its territory, each with their own unique characteristics. Two regions in particular hold great prestige internationally: Bordeaux and Burgundy. While they bear similarities, there are also a great many distinguishing hallmarks.
The similarities
Both Bordeaux and Burgundy vineyards have a long history. As early as Roman times, grapevines were being cultivated in Libourne and Saint Emilion near Bordeaux. In Burgundy, winemaking has its roots in the second century AD (although there are some archaeological records of viticulture dating back to the Roman conquest in 51 BC).
And both regions are famous the world over. The finest wines of Bordeaux and Burgundy are served at some of the most prestigious tables in the world, and will feature in any decent private collection. Thanks to the hard labours of winegrowers over the centuries, from choosing the plots to cultivating the vines, Burgundy and Bordeaux have conserved their status as premium winemaking regions.
Both regions produce white and red wine, though not in the same proportions.
Both regions produce fine wines that cellar rather well over time: 20 to 30 years —sometimes for certain Grands Cru and Sauterne wines, for instance.
What about the differences?
Their size, for starters! With over 110,000 hectares — 20% of France’s vineyard surface area — Bordeaux is the country’s second biggest winemaking region in size after Languedoc. Burgundy, however, has no more than 30,000 yet offers more appellations (84) than Bordeaux (64). The characteristically fragmented parcelling of Burgundy plots will not be lost on visitors to the region!
Their distribution system too diverge. Established in the 18th century, the primeur system in Bordeaux is the only one of its kind. Under this scheme, wine estates sell virtually all their wine to négociants (or wholesalers) in the spring after harvesting, allowing them to generate cash flow. There are also négociants in Burgundy, but most of them are also wine growers. Given their limited growing capacity due to parcel size, operating this way allows wine growers to buy grapes with which to produce wine and top up their own sales volumes.
The wine colours: 80% red wine in Bordeaux (60% Merlot + 20% Cabernet Sauvignon) versus 40% red wine in Burgundy (Pinot Noir) and 60% white wine (Chardonnay and Aligoté, to a lesser extent).
The grape variety (cépage) is another important distinguishing feature. Burgundy wine is qualified as single-variety (mono-cépage — Pinot Noir for red wine and Chardonnay for white wine); Bordeaux is known as a multiple-variety region, with six varieties for red wines (dominated by Merlot and Cabernet Sauvignon) and two for white wine (Sémillon and Sauvignon Blanc). Interestingly, this single-variety characteristic in Burgundy originates from the Great French White Wine Blight, when the Phylloxera aphid devastated French vineyards in 1874. Burgundy winegrowers adapted by only replanting the best terroirs and by concentrating on varietal wines.
The landscapes themselves are also very different. While parcels in Bordeaux often adjoin estates and can span several dozen hectares, in Burgundy winegrowers very early on classified their crus by micro-terroirs known as climats, numbering 1,463 today. Each plot is often farmed by several winegrowers, unless it is a monopole, controlled by just one wine company.
And finally, what trends do you see emerging for these two bastions of winemaking?
Both Bordeaux and Burgundy wines present major disparities. A fraction of their vineyards constitutes some of the most prestigious appellations and belongs to different local classifications. These fine wines, whose prices have ballooned over recent years, are what give the Bordeaux and Burgundy appellations their international eminence. Yet, while Burgundy winemakers on the whole benefit from this development, most Bordeaux winemakers, not included in these prestigious appellations, are more affected by the current global context. The Place de Bordeaux has lost substantial international market share in recent years with the emergence of quality wines from other regions in France and the rest of the world, but also because of new consumer habits, less in favour of age-worthy wines(2), for example.
Would you like to learn more or find our about our Wine Banking expertise? Speak to your Private Banker.
(1) Sources of data provided in the article: Vitisphère, Land Use and Rural Settlement Corporation (SAFER - Société d'Aménagement Foncier Et Rural), French Ministry of Land and Food.
(2) Age-worthy wine: wines that are worth cellaring for several years before being consumed as they improve with age.
Would you like to discuss this subject further with us?
GENERAL DISCLAIMER :
Societe Generale Private Banking is the business line of the Societe Generale Group operating through its headquarters within Societe Generale S.A. and through departments, branches or subsidiaries, located in the territories mentioned below, acting under the brand name "Societe Generale Private Banking" and distributing this document.
This document, which is of an advertising nature, has no contractual value. Its content is not intended to provide an investment service, nor does it constitute investment advice or a personalized recommendation on a financial product, nor insurance advice or a personalized recommendation, nor a solicitation of any kind, nor legal, accounting or tax advice from any entity under the responsibility of Société Générale Private Banking.
The information contained herein is provided for information purposes only, is subject to change without notice, and is intended to provide information that may be useful in making a decision. The information on past performance that may be reproduced in no way guarantees future performance.
The private bankers of Société Générale Private Banking entities are at the disposal of potential investors to provide them with further information on the variations, within the Société Générale Private Banking entity concerned, of the themes presented in this document.
This document is confidential, intended exclusively for the person consulting it, and may not be communicated or brought to the attention of third parties, nor may it be reproduced in whole or in part, without the prior written consent of the Société Générale Private Banking entity concerned.
No Société Générale Private Banking entity may be held liable for any decision taken by an investor solely on the basis of the information contained in this document.
Société Générale Group maintains an effective administrative organization that takes all necessary measures to identify, control and manage conflicts of interest. To this end, Societe Generale Private Banking entities have put in place a conflict of interest policy to manage and prevent conflicts of interest. For more details, Societe Generale Private Banking clients can refer to the conflict of interest policy available on request from their private banker.
Societe Generale Private Banking has also implemented a client complaint handling policy, which is available on request from their private banker or on the Societe Generale Private Banking website (www.privatebanking.societegenerale.com).
SPECIFIC WARNINGS BY JURISDICTION
France: Unless expressly stated otherwise, this document is published and distributed by Société Générale, a French bank authorized and supervised by the Autorité de Contrôle Prudentiel et de Résolution, located at 4, place de Budapest, CS 92459, 75436 Paris Cedex 09, under the prudential supervision of the European Central Bank ("ECB") and registered with the ORIAS as an insurance intermediary under the number 07 022 493 orias.fr Societe Generale is a French société anonyme with a capital of EUR 1,010,261,206.25 as of February 1, 2023, whose registered office is located at 29, boulevard Haussmann, 75009 Paris, and whose unique identification number is 552 120 222 R.C.S. Paris. Further details are available on request or at www.privatebanking.societegenerale.com.
Luxembourg: This document is distributed in Luxembourg by Société Générale Luxembourg, a société anonyme registered with the Luxembourg Trade and Companies Register under number B 6061 and a credit institution authorized and regulated by the Commission de Surveillance du Secteur Financier ("CSSF"), under the prudential supervision of the European Central Bank ("ECB"), and having its registered office at 11, avenue Emile Reuter - L 2420 Luxembourg Further details are available on request or at www.societegenerale.lu. No investment decision whatsoever should be made solely on the basis of this document. Société Générale Luxembourg accepts no responsibility for the accuracy or otherwise of the information contained in this document. Societe Generale Luxembourg accepts no responsibility for any actions taken by the recipient of this document solely on the basis of this document, and Societe Generale Luxembourg does not represent itself as providing any advice, in particular with respect to investment services. The opinions, views and forecasts expressed in this document (including its annexes) reflect the personal views of the author(s) and do not reflect the views of any other person or Société Générale Luxembourg, unless otherwise stated. This document has been prepared by Société Générale. The CSSF has not carried out any analysis, verification or control on the content of this document.
Monaco: This document is distributed in Monaco by Société Générale Private Banking (Monaco) S.A.M., located at 11 avenue de Grande Bretagne, 98000 Monaco, Principality of Monaco, regulated by the Autorité de Contrôle Prudentiel et de Résolution and the Commission de Contrôle des Activités Financières. Financial products marketed in Monaco may be reserved for qualified investors in accordance with the provisions of Law n° 1.339 of 07/09/2007 and Sovereign Order n° 1.285 of 10/09/2007. Further details are available on request or on www.privatebanking.societegenerale.com.
Switzerland: This document may constitute advertising within the meaning of the Law on Financial Services ("LSFin"). It is distributed in Switzerland by SOCIETE GENERALE Private Banking (Suisse) SA ("SGPBS" or the "Bank"), whose registered office is at rue du Rhône 8, CH-1204 Geneva. SGPBS is a bank authorized by the Swiss Financial Market Supervisory Authority (FINMA). This document may in no way be considered as an investment advice or recommendation by SGPBS. The Bank recommends obtaining professional advice before acting or not acting on the basis of this document and does not accept any liability in connection with the content of this document. Financial instruments, including in particular units in collective investments and structured products, may only be offered in accordance with the LSFin. Further information is available on request from SGPBS or at www.privatebanking.societegenerale.com.
This document is not distributed by SG Kleinwort Hambros Bank Limited in the United Kingdom, nor by its branches in Jersey, Guernsey and Gibraltar, which together operate under the brand name "Kleinwort Hambros". Accordingly, the information provided and any offers, activities and financial and asset information presented do not relate to these entities and may not be authorized by these entities or appropriate in these jurisdictions. Further information on the activities of Societe Generale's private banking entities located in the United Kingdom, the Channel Islands and Gibraltar, including additional legal and regulatory information, is available at www.kleinworthambros.com
A new take on travel
A subtle blend of cultures
Interview by Laurent Issaurat, Head of Art Banking Services at Societe Generale Private Banking, with Sabrina Dolla,...
