Investment Tips - Burgundy - 22. April 2022

Robert Groffier: Paradox, Price Increases And Expansion Of The Burgundy Market

Low supply & massive demand are sending prices up in Burgundy. That is why wine lovers are looking for new alternatives in Burgundy, and Robert Groffier is a strong candidate

Burgundy Paradox Sets The Scene

The harder it becomes to find wines and the more the price rises, the greater the demand. The higher the price of some of the most prestigious wines, the fewer potential buyers there will be. Those who cannot afford the very expensive wines will look towards cheaper alternatives, thus driving up demand in the given segment.

In this way, the dynamics can push up the price of all the different segments. This scenario is called the Burgundy Paradox, and it beautifully sets the scene for the current investment tip, where Domaine Robert Groffier is available for investment.

Domaine Robert Groffier For Four Generations

In Burgundy, the competition is massive and the space for practising wine magic more than limited. In fact, a Burgundy parcel in the most coveted communes on the most coveted vineyards is among some of the most expensive land in the world, comparable to properties in the middle of the world's metropolises. It is therefore not for everyone, and those lucky enough to occupy a site have often enjoyed ownership for several generations.

Such is the case with Domaine Robert Groffier Père & Fils, which owns around eight hectares in various Burgundy vineyards. Frédéric Groffier founded the domain at the beginning of the 19th century, and already in the 1930s the majority of the parcels were handed over to his son Jules Groffier.

In 1950, Robert Groffier inherited the land from his father Jules. Robert was the first in the family to bottle the wines, and in 2005, his son Nicolas Groffier joined the family business. Since Nicolas has joined, the quality has changed to a more modern style, with fruit dominating more than dry barrel, as Robert Groffier was known for in his day. Nicolas Groffier is also more open to visits from the press, which has brought more publicity and demand.

Nicolas Groffier

Burgundy's Finest

Several vineyards in Burgundy sound exclusive and luxurious among the world's wine connoisseurs, and Domaine Robert Groffier operates at some of Burgundy's finest. They have eight hectares - mainly in Chambolle-Musigny and Gevrey-Chambertin on vineyards including the famous Premier Cru Les Amoureuses and Les Sentiers and the Grand Cru Bonnes-Mares and Chambertin Clos de Bèze.

2019 Bonnes-Mares

Robert Groffier owns almost a whole hectare at Bonnes-Mares Grand Cru. According to Nicolas Groffier, this wine is a "Vin de Garde", which means a wine with considerable ageing potential. The wine is fermented with stalks and then aged in brand new barrels. Vinous is still the only one to have awarded its points. Here, it is awarded 95-97 points and underlines that this is a wine that "should age with style"

2019 Les Amoureuses Chambolle-Musigny

This Premier Cru vineyard is considered to be in the top three of all Premier Cru vineyards in Burgundy. It stands at the top along with Cros Parantoux and Clos Saint-Jacques. Robert Groffier is the main landowner of this vineyard with 1.07 hectares divided between two parcels. This gives Nicolas Groffier the opportunity to combine the two parcels to perfection in the cellar.

Again, Vinous are the only ones to have awarded scores, giving 95-97 points acknowledged: "Excellent".

Classic Burgundy - Rich In Quality, Poor In Quantity

Domaine Robert Groffier owns almost a whole hectare at Bonnes-Mares and 1.07 hectares at Les Amoureuses Chambolle-Musigny. The 2019 vintage therefore produced around 5,0001 bottles of Bonnes-Mares from Robert Groffier and around 6,4002 bottles of Les Amoureuses Chambolle-Musigny. Add to this the fact that, according to Liv-ex, the harvest yield in 2019 was reduced by 15 % compared to the average of the last 10 years.

1: 38 hectolitres per hectare 2: 45 hectolitres per hectare

Groffier Amoureusses

The Burgundian Weather Gods Are Not Responsive

That climate change should also affect the world of wine can only surprise the few. And if there were a Burgundian weather God, he would be reviled by the world's wine lovers. Harvest yields were reduced in 2019, but the Burgundy harvest in 2021 is described as catastrophic. That means another vintage in Burgundy is suffering from reduced yields, and according to the UK wine exchange, Liv-ex, they are 37.5 % lower compared to the average of the past 10 years.

Summing up the above, the result is a greater competition for available wine from the earlier vintages - including the 2019 vintage, where yields are already scarce. Add to this that the big Burgundy producers have not released their 2019 vintage yet. It is to be expected that these will include wines that will set a whole new standard for what a bottle of wine can cost. This will undeniably contribute further to price increases on existing vintages.

This is a great opportunity to secure some of the prestigious and precious wine from the 2019 vintage.

Low Supply + High Demand = Rising Prices

Decanter refers to a Liv-ex report on Burgundy, which speaks of an "insatiable global demand". Liv-ex also answers no to whether prices in Burgundy have a ceiling. There is a market for both older and new releases, and Burgundy in particular has been the most traded region by value since the start of 2022 (28.8 % of the total).

The Expansion Of The Burgundy Market Confirms The Paradox

According to Liv-ex, Burgundy's secondary market has undergone massive expansion in recent years, as a result of price-conscious buyers seeking alternative value within the region's appellations. This also means that more wines from Burgundy are traded than any other region, as well as nine Burgundian wines making it into the Liv-ex 100 index in 2021. These include the 2018 Robert Groffier Chambolle-Musigny Premier Cru Les Amoureuses, which scored 94-96 by Vinous (by comparison, the 2019 vintage scored 95-97).

The Burgundy paradox is thus actual. Robert Groffier has not only proven its worth based on Vinous scores, but demand from wine lovers underscores the quality.

RareWine Invest's Opinion

This is neither the first nor the last time you will hear about the Burgundy paradox and the expansion of the Burgundy market through RareWine Invest. The same goes for the 2021 harvest disaster in Burgundy. Domaine Robert Groffier is highly relevant in this scenario, as they deliver high quality wines from some of the very best parcels in Burgundy.

The fact that their Les Amoureuses from 2018 have entered the Liv-ex 100 index in 2021 shows that price and quality conscious buyers are starting to look for the domain.

Increased interest, limited supply and expected price increases are the essence of this case. Our eyes are still fixed on quality from Burgundy, and therefore you now have the opportunity to do like the rest of the price-conscious - Invest in two interesting wines from a recognized Burgundy domain and get a share in the coveted Burgundy.

These wines receive the same points from Vinous, which places them on the same high level in terms of quality. The most significant difference lies in the classification of the two.

Despite its status as a Premier Cru compared to Bonnes-Mares' Grand Cru, Amoureuses is more expensive. Interest is generally slightly higher for Amoureuses over Bonnes-Mares, which is reflected in the price difference. This is not only the case at Groffier, but among the top producers Mugnier and Roumier as well.

We do not recommend one over the other, and it is really a question of temperament and whether you prefer Premier Cru or Grand Cru or Les Amoureuses or Bonnes-Mares.

Invest in 2019 Robert Groffier

Contact us via the contact form at the bottom of the page if you want to know more about your investment options or order the wines directly through the form.

2019Robert Groffier (Pere et Fils) Bonnes-Mares 750OC1260€ 650
2019Robert Groffier (Pere et Fils) Chambolle Musigny Amoureuses 750OC1248€ 675
*All prices are in EUR ex. customs duty, tax, and VAT for delivery to a bonded warehouse. Prices including customs duty, tax and VAT can be sent on request. The wines are only sold in whole cases unless otherwise specified and the price is per bottle. Minimum order size € 2,500. Assumes a total minimum investment of € 10,000. Prices may have changed since release of this article. Reservations are made for errors.

Get in touch with RareWine Invest

Fill in the form and we will get back to you as soon as possible