US drowns in cheap Bordeaux as Diageo pull out
UK drinks giant Diageo has dealt a blow to the US market for Bordeaux wine by pulling out its subsidiary Chateau & Estate Wines (DC&E), the biggest US buyer of Bordeaux fine wine. The move ends a 35-year relationship and has left a huge inventory of stock which is now being sold off at 40 to 60 per cent discounts. Some vintners have taken the unprecedented step of buying back their own wine rather than let it be discounted.
Two Bordeaux merchants, La Compagnie Medocaine and Joanne Bordeaux, will start trading in the US to fill the distribution gap DC&E will leave behind, purchasing large quantities of DC&E stock to launch their businesses.