Rival Bordeaux winegrowers Chateau Latour and Chateau Lafite unveiled conflicting new market strategies, with one pulling out of the futures market and the other slashing prices.

Latour’s decision could trigger a wider exodus

Chateau Latour warned traders it is to move out of the “en primeur” or futures market, a key part of the region’s commercial strategy, and many fear the label will try to sell directly to customers rather than through “negociants” or traders.

Some traders expressed dismay at the decision, which they fear could herald a shake-up of the sales side of the business that could cut intermediaries out of the market and undermine Bordeaux’s popular annual tasting season.

But by contrast, Chateau Lafite, signalled strong support for the primeur system, steeply cutting prices for the 2011 vintage, which is still in barrels, in order to boost sales in a market that some see as overpriced.

Lafite released its wine en primeur for €350 per bottle ex-cellar, a 50 per cent drop from the average price of the 2010 vintage, brokers confirmed. The price for consumers should be €420 to €450 per bottle.

“It’s great, they came out early, which was essential this year and the price shows they are making an effort,” said negociant Lilian Barton-Sartorius of Les Vins Fins Anthony Barton.

“There’s already been a huge demand with people calling to make sure they get their allocations. It’s basically sold,” she added.

France’s wine capital traditionally sells its top wines as futures commodities – “en primeur” – following the barrel tastings held each spring.

Traders had called for lower prices this year to woo back American and European customers who’d fled after prices skyrocketed and to reassure Chinese investors that money can be made on Bordeaux.

Although China is Bordeaux’s key trading partner, China has been a tough market for en primeur sales. Mainland Chinese only began buying en force last year, hoping for quick profits and felt burned when prices dropped.

A strong signal from a leading chateau was particularly important. The first growth chateaux – Lafite, Margaux, Haut Brion, Mouton, Latour – set the tone, pace and pricing structure during the sales campaign.

But this year Latour dropped a bombshell, it was pulling out of the primeur market altogether, and the the 2011 vintage will be the last sold as a future commodity, according to a letter to brokers from director Frederic Engerer.

Engerer said that he wanted the commercial life of the wine to coincide better with its technical life, arguing his wines are often drunk too young, because consumers increasingly demand wines which are ready to drink.

Chateau Latour is part of the stable of luxury brands owned by French billionaire Francois Pinault, who also controls Christie’s auction house, Gucci, Samsonite luggage and the Vail ski resort in America.

Bordeaux wine brokers earn two per cent on every transaction and negociants typically earn 12 to 15 per cent. One negociant quickly calculated that brokers would suffer losses of at least two million euros.

Paying for wine while it is still ageing in the barrel in the chateau’s cellar is long-held tradition in Bordeaux, but this did not take on its contemporary form until the 1970s, when chateaux were strapped for cash.

Today it is a vital source of financing for many merchants, brokers, retailers and chateaux.

With this year’s sales campaign poised to begin, traders worry that Latour’s defection could dampen enthusiasm.

There are also concerns that Latour’s decision could trigger a wider exodus.

Latour appears to have prepared this move for some time and the decision to is seen as a step towards leaving the negociant system entirely.