Investing in Burgundy

Burgundy is a terribly complex wine-growing region. It starts in the North in the Tonnerrois and the Chablisien, then goes down to the borders of Lyon with the Mâconnais. In its heart, the Cote d'Or, as it is appropriately named, possessed some joys of the world wine heritage, both in terms of red and white wines, within its Grands Crus.

Overall, Burgundy, is less than 5% of French appellation contrôlée vineyards, or some 25,000 hectares. Regional appellations represent some 54.5% of the surface area, the communals 34%, the premiers crus 10% and the grands crus, numbering 32, only 1.5%. In total, on average, this is approximately 180 million of bottles produced. It should be noted that the proportion of wines sold for export is rising at the same time as the range increases, with more than three quarters of the Grands Crus being exported.

The vineyard of some of the best appellations in Cote d'Or (the premiers and grands crus) is unbelievable fragmented – it is a real jigsaw. It s not rare that, as the result of succession a prestigious vineyard, already small (half a hectare, for example) is divided in two or three, with none of the heirs wishing to part with the famous cru. Given its rarity, the price is also high.

As a result, the Burgundy vineyard, and particularly in Cote d'Or, is particularly propitious for property investors, who will only buy the land, without being burdened with the operation buildings, a source of maintenance and expenditure. The operator’s risk will be totally covered by the winegrower who will, come what may, pay his rent every year, in other words his “fermage”. This will be done mainly in kind (ie, in bottles)





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