Calling it now: The market bubble for expensive red Burgundy is deflating. Whether it is Bourgogne Rouge or Musigny Grand Cru, prices largely are out of line with what they deliver. Only a few domaines have earned the right to breathe the rarefied air of such lofty altitudes. Between their quantities and qualities (still yet to be determined for this year’s crop), can the bountiful crop of high quality 2022s begin to reform the weary market? Four industry insiders weigh in.

The 2022 vintage is absolutely wonderful. More restrained after 2018, 2019, and 2020, which were hot and ripe. Of course, 2022 was a very hot season as well, but the wines have an easiness about them. Generally, there is not the heat that you find in the other vintages. 

It's a fragile market now. People are on edge with prices. In 2022 and 2023, so far, I haven't heard that producers are going up with prices.

As the wine director for Daniel, we get offered precious allocations along with village and Premier Cru wines. The offer for a bottle of Premier Cru at $175 wholesale that goes for $500-plus on a wine list? I'm like, don't buy that. It's not fair to the guests.

In any case, Burgundians are talking about a fear of 2024 being a big harvest. [Christy’s take: My head spins imagining Burgundy fearing a large harvest!] Plus, they are concerned about the overall reaction of consumers in the market. They mostly say that they make wines to be drunk—to be appreciated. But their wines are being priced exclusively. Some collectors are drinking, but some are speculating. Producers aren't happy with what is happening. People are always going to pay for the superstar domaines. But second and third tier producers at village level—they have costs, too, and a whole new generation is coming in who has to pay significant inheritance taxes on land values based on last sale. [They are also, bizarrely and complicatedly, based on future sales.] There is no way to valorize the land by selling their wines based on current prices. 

Even the Burgundians don't drink Burgundy in restaurants when they go out to eat. Do you order Burgundy when you eat out? [Christy’s take: I almost never do, unless I’m in Burgundy.]

A lot of collectors that come to La Paulée [an annual weekend in the U.S. of elite wine events focused on Burgundian wines] buy from as many different sources as they can. Usually, people have a lot of money and they know the wines. Their knowledge is deep. Sometimes, they really appreciate the wines. Of course, some of these wines are show-off pieces. 

Auctions have been soft. People feel that prices have reached their pinnacle. People who buy at auction for other people say it’s soft. Naturally, John Kapon [chairman, Acker Merrall] will find a way not to tell you it's soft. Jeff Zacharia [president, Zachys] will not tell you that either. The big buyers mostly go after a few winemakers—DRC, Rousseau, Roumier—and that is a problem. There are great wines that don't command the same interest—Tollot-Beaut and d'Angerville, for example. 

Like the stock market, like many things in life, there are ups and downs. There are people who have huge cellars and are cashing in on the market. There are plenty of producers who acknowledge that these are good times. They remember that their parents couldn't sell the wines. Burgundians used to have to grow other crops to make ends meet. If prices fall, is this the moment when collectors really say, "Okay, I definitely won't resell at that price, so I'll just drink up"?

The wines at the Burgundy Off the Grid tasting at La Paulée used to be bargains. Some still are. But many are moving into increasingly ambitious pricing. What happens to Bourgogne Rouge when they all cost at least $60? These are disproportionately over-priced versus wines from other regions. 

You and I aren't drinking Burgundy because it is a fashion. We drink it for the beauty and the history and the people. I started the Sommelier Scholarship Fund a few years ago to raise money to fund trips to take somms who have never been to Burgundy, Champagne, and the Northern Rhône to give them the opportunity to travel that I had 25 years ago. That emotional experience—it launched my career.

Burgundy has become more and more challenging to find, stock, and print on wine lists. 

Currently in the Southeast [where Rocket Farm is based], you don't find a wide variety of great producers. There is a small selection of fantastic, small growers. Then, you have your standby maison wines. In the last few vintages, it is harder and harder to be excited about Burgundy in this market.

However, quality is higher. Climate change and producers' evolving tastes mean the Burgundies are tastier and more drinkable earlier. Ten years ago, about half of Burgundies weren't ready to drink. You could see the potential, but you wanted to wait a decade. In these last several years, they are immediately delicious. Nine out of 10 red Burgundies—even 2021s—are this tasty now? Wow. I don't think that is a bad thing for the consumer. Not a lot of people are putting Burgundy away, because they don't have the budget to go big.

If you are the high-roller, the person who loves Grand Cru, the person excited to add to your vertical collection of iconic producers, don't skip the vintages out there now—if you have the money. Each is so unique in expression and has so much purity of fruit—2021, 20, 19, 18. They have different angles and lenses, different weights and purity of fruit, and different longevities in Premier and Grand Crus. 

If you are more value-oriented, especially in a restaurant, it is an extraordinary time for the satellite appellations. I'm a huge fan of small growers in Marsannay and the Côte Chalonnaise. The stuff that is lesser-known, I'm always looking to buy that—even Bourgogne Cote d'Or, Côte de Nuits-Villages, or Hautes-Côtes de Nuits. Everyone is embracing these areas. 

I've always been a fan of focusing as strongly on the unheralded appellations of a producer you trust as much as you do their better holdings. It's those wines that can be the most enchanting and charming. They don't hold the same prestige, but they probably are going to be more immediately pleasurable. Lately, I have been picking at 2019 red Burgundy. They are fresh and cheerful, and the lower price points really hit the spot. Let's throw in Gamay—Bourgogne Passe-tout-grains. I'll definitely order that from Lafarge. I just don't see it down here anymore.

Having been a wine professional for 20-plus years, I am programmed to look for value when I dine out. I don't want to feel like I am getting robbed. I'm looking not just in my ideal price point. I'm also looking at the mark-ups: is there a sweet spot of value?

Burgundy prices are not forgiving. I do feel that it's because things have changed. I'm not disparaging the great producers of 50 and 60 years ago, but the hit rates are higher [now]. My dad told me 15 to 20 years ago, "Expect to be disappointed in Burgundy." Then, it was a wonderful surprise when you got one of those magic bottles. Now, there is so much care and precision in the winemaking—so much integrity—that I can trust a purchase now more than ever. The producers that I want to drink are going to all lengths to be sure that the wine going into the bottle is beautiful. 

Style has also changed. Even just 10 years ago, producers like Lafarge, Gouges, Chevillon—these were producers that people referred to as kind of rustic. Today, there is no rusticity, even though there is still honesty in the wines. 

I'll throw out a caveat: I don't mean to come off as a snob, but I think there needs to be some baseline familiarity with the region before pulling the trigger on a big-ticket bottle. Burgundies are more restrained. They are quiet expressions—prettier, more elegant styles of wine. Three weeks ago, I was in one of our restaurants and saw a bottle of Chanterêves Nuits-Saint-Georges at a three-top. I was super excited! It's all whole-bunch [meaning entire clusters are used in the fermentation], heartbreakingly pure, and utterly delicious. I go to the table and they tell me, "I think this wine is off. My father-in-law thinks it tastes like vinegar." I pour them a Napa Cabernet we have by the glass and hear, "This is wine!" 

A lot of producers in Burgundy can be an acquired taste. If you are willing to explore and pay attention to what is in the glass, you're going to come to understand the expression of what is going on in the vineyard and winery. And with the personalities. It is art. And everyone has their own opinion about art. The most important part is to do your due diligence and be patient. Because the barrier to entry is so high now, you have to pay attention.

At Total, we are projecting a down year for wine sales, but we expect Burgundy to be up. It is interesting to expect Cabernet Sauvignon to fall but Burgundy to continue to rise. We are seeing interest in Burgundy from the top to the bottom of the quality chain. In marketing, we see customers responding very positively to words like "elegance" and "finesse," not "big," "bold," or "bombshell." The trend is toward cooler climate, softer wines.  

My Burgundy collectors strongly wish that prices don't increase. They are hoping prices stay stable, even if they don't come down. And, there doesn't seem to be an expectation that they are going down. But if they keep going up, everyone is wondering if that is sustainable. Frankly, it can only be sustainable for the top five percent, and that is fewer than a dozen domaines. The rest of the wines get hard to sell fast. Selling Auxey-Duresses is really tough, even when it is from a great producer. 

With 2022s, I think people are looking forward to a good vintage. A lot of people took what they had to in 2021s, but they weren't that interested in the product. I have customers hoovering every bottle of 2020 they can get because they didn't get much of 2021. 

The market is fractured. The consolidation of importers is really hurting smaller growers, especially in certain markets. Then, certain products transcend the three-tier distribution system. Louis-Michel Liger-Belair's wines now go through Grand Cru Selections or direct to auction. A very small subset of people have access. When I go to Burgundy, I share a family dinner with Louis-Michel. He knows I love to cook, and we drink great wine. But it is never about business. It is tough [for the trade] to get the wines. On the consumer side, it is much, much harder.

I have no doubt that my allocations of top domaines will increase. But the work we do to get those allocations is tremendous. We have 280 stores across 28 states, and for many top wines, I cannot get a national allocation. For Rousseau, Drouhin, and many others—even though I've been working with these wines and often with the same people who have been bringing them in for 20 years—I have to play at the local level. 

Once I get the wines, the allocations to customers are difficult. I get national allocations of DRC and Domaine Leflaive. But, I only got 30 boxes of DRC for the nation. We have more than 30 customers that spend $250,000-plus a year with us. What about people who show they buy elite products but maybe haven't spent like this yet because they haven't had the chance?

How does someone new to collecting start getting good allocations? There is no one answer. The wine industry is very much, "What have you done for me lately?" I have said for 20 years: pick your merchant and become important to that merchant. Develop a personal relationship.

You can signal that you are serious with what you buy. Buy great wines. Buy great wines that are the tier below—not in quality, but in demand—from the top half-dozen or dozen domaines. Buy Clos de Tart [the Grand Cru, not the Premier Cru or village wines], d'Angerville Clos des Ducs, de Montille Aux Malconsorts Cuvée Christiane. You want Faiveley Les Ouvrées Rodin? Buy the [other] Clos de Bèze! Buy what is unique, rare, and wonderful but more available. This shows real interest in the category. Chances are, if you want blue-chip wines, you'll end up in the secondary market. But you can buy all around the bullseye and find very pleasurable wines—fantastic wines! 

Keep in mind that merchants aren't able to be picky vintage to vintage. We have to buy every year. So, buy every year, not just the best years. I'm not saying take bad wine. Really bad wines hardly exist any more, even in Burgundy. And a good merchant isn't buying bad wine or a wine from a bad producer. Burgundians' level of know-how and technology is tremendous these days.

Lately, I've been into the 2020s. I bought probably 20 cases of 2020 Burgundy, and I can't keep my hands off them even though I know they'll age. Of the Hudelot-Noëllat Vosne-Romanée and Chambolle-Musigny I bought, I might even be down to my last six-packs of both!

Working in Vegas, you cannot get enough Grand and Premier Cru Burgundy. It is crazy. There is also a lot of competition. You have a lot of people selling Burgundy with lower margins. It's not a cake walk.

Vegas is very different from other markets where you don't sell Premier and Grand Crus. California, New York, Florida, and Las Vegas are the markets that sell the most Burgundies. Vegas is still fairly small, but it is high-ticket sales. Here, I can't talk to some of the high-end buyers without offering them. The competition for these bottles is as fierce as in New York. DRC, Ramonet, Roumier, Niellon—they fly off the shelf. The Michelin-starred restaurants love the crus for their wine pairings.

Prices today are wild. In just 10 to 20 years, they have exploded. No surprise given the limited quantities produced and the global demand continuing to increase. The 2022 vintage was a large harvest, and so it will be interesting to see what prices accompany the offers from producers. So far, I don't think anyone is not going to buy Burgundy because the prices are going up. Just look at d'Angerville. Coche prices are way up there. Roulot is expensive. Demand for certain producers has gone up exponentially. Those wines all sell here.

Mark-ups in Vegas are bigger than anywhere—especially the trophy wines—just because it is Vegas. Plus, we've just had the Super Bowl and Formula 1 here. People come to town to drink unicorn wines.

Then again, Harlo, which is off the Strip, has incredible Burgundies by the glass and bottle, and they are not heavily marked up. Also, Cristie Norman, lead sommelier at Delilah, sees the big wines go out on the floor. It's crazy what she goes through in one night. Her prices are great, even though it's very busy with people who don't care what they pay. But, if it is anything other than top villages and crus, like maybe Aligoté, that is harder to sell here. 

When you go into some restaurants and you see Burgundy by the glass, you have to check how long the bottle has been open. It's too expensive not to be sure it's fresh.

By the bottle, Meursault sells all day long. In Michelin-starred restaurants you see lots of Chassagne, Puligny, and Corton-Charlemagne go out. Bonneau du Martray, Coche, and Ramonet cannot be kept in stock. If I put out five cases of Niellon, it will be bought in half an hour. A place like Wynn can sell that in a couple of weeks. 

At steakhouses, there's less red Burgundy going out—even though it’s available. People tend to start with white Burg with seafood towers, then move to Cabernet and Super Tuscan reds. However, what is interesting is the shift away from Bordeaux and Super Tuscans elsewhere. When I ran wine programs at MGM, sales were mostly Bordeaux and primarily driven by Pétrus. That was what the gamblers wanted. We used to say there was more '82 Pétrus sold in Vegas in one year than was ever made. 

But people are finally getting to the holy grail of wines. Now you are seeing celebrities, NBA players and such talking about Roumier and Jayer. And they go to specific restaurants to drink it—Wynn Fontainebleau, the MGM Aria restaurants. Even Carbone has an extensive Burgundy list.

As a buyer, you often have to take a look at the gray market. Then you don't have to work on the margins the big distributors give. But somms know that if they buy from Southern, Terlato, Wildman, and others, the wines are authentic. They know the source. 

There used to be a handful of fraudulent wines. Now you see all sorts of things—fraudulent cognac, fraudulent tequila. You have to be savvy about what you buy and who you buy it from. Life is too short to drink fake wine.