An editorial by Guillaume Jourdan

Rumours in Burgundy say three properties, including the reputed negociant name Vincent Girardin, are up for sale. By "rumours", I mean that sales have not been yet officially declared but it may be just a matter of time. Would chinese companies be interested in acquiring these names? After Bordeaux, Chinese Companies on new Acquisition Spree centered on Burgundy Wine Estates ? It would make sense as Burgundy wines are now playing a more important role in China than a few years ago.

Today, wine lovers in China are discovering the pleasure of having a glass of wine from this region.Having a glass of Burgundy is not only about drinking wine, it is also about drinking History. Chinese investors are discovering this and may certainly have now a closer look to what happens in this region, looking more particularly for acquisition opportunities. Three wine estates up for sale at the same time may be a unique opportunity in fact. But these three wine estates bring different prospects for potential acquirers. First a Negociant name, Vincent Girardin, a medium-sized business that won some recognition in Hong Kong. Then, two other properties that look very nice but are quite different: one looks nice and has been renovated. The second also looks nice but needs renovation (I should say a large renovation project is required). In fact, the prestige of the last two offers may attract more chinese eyeballs than the medium-sized negociant business.

The success of an investment strategy is partly due to the momentum. Visiting China since 1994, I have to admit that we feel since 2010 a stronger interest in Burgundy wines. Of course, Romanee Conti comes to chinese minds when it is about investing in Burgundy wines. But other wines such as those from Henry Jayer or Domaine Rousseau are attracting chinese wine lovers. After wine auctions recorded top sales of Bordeaux First Growths over the last few years, the next wave may come. Burgundy, the next Bordeaux ? Maybe for wine auctions but what about wine properties?

What did happen (and still continue) during the "Bordeaux wave" ? Chinese investors bought prestigious first growth wines during auctions over the last few years. And at the same time, chinese companies bought less prestigious chateaux in Bordeaux. Recent acquisitions showed that the beauty of the property was finally quite important in the decision making process. Could this happen in Burgundy ? Of course but the first acquisitions will certainly be more focused on the prestige of a place, the beauty of a chateau located in the vineyards, rather than on the business a medium-sized negociant name could actually make.

But what type of properties could a chinese company buy in Burgundy ? Big renovations are always complicated. Buying a nicely renovated chateau is much more attractive. At this point, any wine lover would add : what about the history of the property and those old vintages that make dream wine lovers from all over the world? Tasting old vintages from these 2 chateaux may be disappointing in fact. But when it is about enjoying a nice dinner with a 2008 red Burgundy in front of a nice cheminee, in a beautiful chateau, overlooking a historic estate vineyard...who really cares about those old wines in the cellar ? For the first chinese investors in Burgundy, the magical part may certainly be of greater importance than anything else.