French wine trade structure

Its important to understand the structure of the wine trade in France. One of the most important links in the chain are the merchants, called négociants in French, who buy from the grape growers or wine estates. In the past, they had a bad reputation as they were thought to be profiteering from the hard work of the grape farmers. While this may have been true, the industry couldn’t function without them. The négociants operate in three ways. They can buy the grapes from the farmer and make the wine, bottle it and sell it. Or, they may buy newly made young wines to blend with wines from other producers before ageing, bottling and selling. The final way a négociants may operate is by buying the finished and aged wine to sell on. The négociant will have a mixture of potential markets including export, retail and to other small or independent merchants. Historically, Bordeaux operated with the addition of ‘courtiers’ who acted on behalf of the wealthy or noble chateaux owners who thought it was beneath them to deal with a mere merchant. During the French revolution, the nobility had their property seized so the need for courtiers should have disappeared, however, they were allowed to continue to represent the estates until the new wealthy nobility emerged in the following decades. In modern times, while a handful of courtiers still exist, businesses now owns many of the top estates in Bordeaux, so their role has virtually vanished. The négociant may also sell wines as ‘en primeur’. This is a way of improving cash flow by selling wines that are not ready to drink at a reduced price. This has become controversial in the last few years as estates are bypassing the négociants to take full advantage of this important revenue. Some estates are even preventing en primeur wines from being sold to maximise their profit and brand value.