BORDEAUX : A NEW-WORLD WINERY IN THE HEART OF TRADITIONAL EUROPE

THE INITIAL PURCHASE OF CARSIN AND ITS BUSINESS IMPLICATIONS

New Owners, New Methods


Château Carsin was purchased by Finnish wine enthusiasts in early 1990. At the time, we did not have much experience either in making wine or selling it. We felt that copying the local approach would not have been very successful in the midst of 20,000 other Bordeaux producers ... Since then the number of Bordeaux producers has fallen to about 11,000. As in so many other European wine regions, the Bordelais put great emphasis on tradition. Wine is an integral part of their culture. The importance of "typicity" and "terroir" (soil + microclimate) are very evident in Bordeaux.

We had to find a different approach. When we purchased Château Carsin, New World wines (from Australia, New Zealand, California etc.) were becoming strong in the markets we were targeting. We established contacts with Australian winery engineers, which opened up a whole range of possibilities. For the 1991 vintage, a totally modern winery was ordered from A & G Engineering, a leading Australian supplier. It was designed to employ the modern winemaking techniques of Brian Croser at Petaluma Winery near Adelaide.

Money Talks


The price of land in Bordeaux varies considerably, depending on where it is situated. On the one hand there is an image question - wine with the appellation "Margaux" can fetch a higher price than just "Bordeaux". The main criterion in valuing vineyard land is the quality of grapes it produces as well as the image of the appellation. This depends greatly on the history of the winemaking area besides many other things. In each vineyard, the different soils and microclimates influence the way the grapes ripen. In plots where grapes ripen early, there is less risk of autumn rains adversely affecting quality. Certain soils produce more intense aromas. In the well-known Médoc, Graves and Saint-Emilion appellations, land can easily cost between 30,000 and several million euros per hectare.

Average yields in Bordeaux can be estimated at 7,000 bottles per hectare. At a sales price of 3 € a bottle, income per hectare would be 21,000 €. At 8 €, it would amount to 56,000 €, etc.
The turnover is relatively low in terms of investment. We decided that the land producing the grapes should be cheaper, and that the added value should come from production methods. At the moment, land around Château Carsin costs between 15,000 and 25,000 € per hectare. We calculate one hectare of vineyard to generate a turnover between 20,000 and 50,000 € depending on the quality of the vineyards and the resulting wine.

White Wine is Made in the Winery


As a generalisation we could argue that producing white wines is more technical than producing red wines and producing white wines could be regarded more as an exercise in winemaking. We should not generalise too much, but it could be said that by using modern techniques in the winery, a perfectly acceptable wine can be made even from average-quality grapes. White wine can also be made more in the style the winemaker wishes, and taking modern consumer trends into account.


Commercial Approach


New World winemaking philosophy also puts more emphasis on the commercial approach from the very start. This filters down to affect the types of wines that are produced. Even though adapting the style of red wines is not as easy as for whites, in both cases commercial factors play a very important part in defining the finished product.

During the 1990's we laid down detailed specifications for each type of wine that we produce, including such matters as style and grape composition, yields per hectare and the quality and the maturity of the fruit, main markets besides other things.