The production for Chablis and Petit Chablis in 2004 shows a significant increase of 13.6% over the average production for 5 years (2000-2004). Production took a couple of vintages to recover from the low of 2000. The serious fall in production in 2003 conceals the real increase in production in 2004, which is substantially larger than the generous crop of 2002. This follows a trend of increasing production, largely due to a substantial expansion in planting.

It is positive to see those markets increasing both in volume and value. While Sweden gained steadily, Russia increased impressively by a third. (Although the value of these markets is relatively small at 3,635,000 and 2,099,000 Euros respectively). Perhaps most interesting is where the value of the market has increased significantly more than volume. Japan and Canada lead the field here, showing a distinctive increase in spend per bottle with Ireland (market worth 4,454,000 Euros) and Italy (995,000 Euros) showing a similar trend.

The UK represents the lion's share of the export market for Chablis. I asked UK agent Charles Taylor to comment on the healthy increase in the value of this market over recent years (notable features include the rapid increase in sales value in 2000), and on the current market.

Taylor comments that the generous crop in 1999 resulted in plenty of wine available in the latter part of 2000. At this time he recalls the supermarkets got behind Chablis in a 'major way' in preference to the more difficult to sell lesser villages. Also at around that time Taylor recalls that Pouilly-Fumé and Sancerre crossed over in price with the latter becoming more expensive than Chablis (probably in part a knock on effect of the increased plantings, evident in the first table). In terms of volume and value this gave a boost to the market as it became easier for the retail chains and supermarkets to promote Chablis.

On the pricing theme Taylor is certain that, "the success of Chablis over the past ten years is because prices have remained relatively stable in Stirling terms."

This is a small, but expanding market. It is most important for the top domaines.

Tashjian has a wine shop called The Burgundy Wine Company in New York, focuses on French wine and Burgundy in particular.

The US Buyer comments: Paul Wasserman

Until recently Wasserman was a wine buyer for Woodland Hills Wine Company in Los Angeles, which is well known for its Burgundy list. He is currently launching his own retail shop in Hollywood.

"Among non 'geek' consumers Chablis is suffering from a general problem that is not specific to Chablis. The French AOC system has lost much of its 'brand' power in the US." Wasserman considers that Mâcon for example has been badly hit, others areas including Beaujolais are still surviving, but Chablis is "barely hanging in there." He believes that people who have been drinking domestic or new world varietal wines have no idea what Chablis is.

In terms of collectors' Chablis, Wasserman considers this has been overlooked in the US partly because the US press (he cites Parker, Tanzer and The Wine Spectator) haven't really considered it worthy enough. The situation was revived somewhat with the 2002 vintage when all the press conspired to make it attention worthy. However this does not seem to have been beneficial. Together with the strong Euro the result is that Domaines Raveneau and Dauvissat's top wines have "sky rocketed to insanity - $150 for Les Clos from Raveneau." In the States he considers that Chablis will only sell with "huge scores." He also comments that the parallel market is driving up prices for wine from these producers and the lesser wines will not sell at these inflated prices. Wasserman comments that only Dauvissat, Raveneau and Fèvre (the latter he includes because is it still reasonably priced), have truly benefited from the recent press. "Fèvre," says Wasserman "has come out as a winner across the board: good press, fair pricing, chased by both press-following collectors and cost conscious savvy Burgundy collectors."

As for Wasserman's Burgundy 'geeks', he observes that the 2002 reminded them that Chablis should not be forgotten. "Chablis desperately needed it," but by then "the demand from the score chasers had priced the better appellations from Raveneau and Dauvissat out of the realm of reality for them." This is regrettable Wasserman points out, as these consumers could have been a loyal market for Chablis, but they have been somewhat alienated. He also makes the point that score chasers are fickle, so relying on this customer base, "is a double-edged blade".

The situation seems rather bleak, but Wasserman makes a similar point to Tashjian. If you are a serious retailer you will always have people to whom you hand sell, who trust you. The 'better' you are the more important this group is to you. "These customers are the ones that are happy with the great generic or premier cru Chablis up to about $25 a bottle." Also on a brighter note he points out that the hype of the 2002 may have some minor benefit in creating a following of new customers who like the style and price point of the less sort after producers' regional and premier cru wine.

Ultimately however if Chablis is to make big improvements in sales Wasserman is convinced that, "as a region it will have to put money and thought into making their AOC a brand again."

The negoce comments : Frédérick Drouhin

Frédérick Drouhin, Managing Director of Maison Joseph Drouhin, shares his opinions on the world market.

At the upper end, while the price of grand cru Chablis has increased to Meursault levels, Douhin reports that the consumer has not yet been persuaded to pay the premium. (Drouhin refers to the 30% price increase from the growers from the 2002 vintage to 2003, on top of the rise of 20% from 2001 to 2002. At the domaine they felt the quality didn't justify the price hike and squeezed their margins, rather than passing on the full 30%).

Drouhin is putting his faith in the region's generic quality at the top end of production to secure the market and the company joined the Union des Grands Crus de Chablis (UGCC) formed in 2000), now that machine harvesting has been made mandatory by the group as part of its Charter of Quality. He hopes this group will maintain quality and build the image of Chablis.

As for the UK market, Drouhin is worried for the medium term, "when I see 40% of Chablis sold under the supermarket name. It does not do any good for the appellation." If anything he considers things are worse in Germany, where the market is dominated by hard discounters, including Aldi, who also sell under their own label and the quality..well Drohin cannot bring himself to describe it. In the Netherlands he observes that generic Chablis may be popular, but premier and grand cru are very difficult to sell. In Scandinavia, he remarks on the huge development of bag in box, which he believes is equally responsible for reducing the appellation to 'just a commodity'.

Drouhin is much more optimistic about Japan where, "Chablis has always been appreciated." There are many reasons including the name being easy to pronounce, the popularity of French products and its affinity with Japanese food. He points out that in Japan wine is bought by women who are attracted to clean and classic labelling.

To return to the US market on a positive note. Drouhin has observed an encouraging change in the past eight years. He feels the consumer is no longer confused between US Chablis and French Chablis. "I think the potential for growth is huge in this market and for all the appellations in Chablis from village to grand cru."

Louis-Fabrice Latour of Maison Latour also sees potential in the currently small market in the States, and two years ago the company invested in Chablis purchasing the business and vineyards of Simonnet-Febvre. Latour tells me there is a big future for the fine, minerally style of Chablis. Currently Latour produce more Côte de Beaune style with lower acidity and have plans to change. Alexander Nall from the London office considers that Chablis' strength is in its name, but sees it weakness in the UK market in the continual price rises which "make the price/quality ratio difficult to justify at times."

Japan is the second most important export market for Chablis. While other Asian countries are currently of minor significant in terms of overall sales, they should not be overlooked, as Mark Walford comments.

Mark Walford is a partner in the UK agency Richards Walford which specialises in top end domaine wine, with a bias towards Burgundy. They sell exclusively into the trade.

"Chablis is one of the staples of the smart hotels in Hong Kong," says Walford. He observes that Chablis is in demand across the AC hierarchy from grand cru by the top restaurants down to petit chablis.

Walford does not consider Asia as price sensitive, so last year's Burgundy price increases made no impression. "The Asian market is very astute. They want to develop their knowledge of wine and are choosing the cleaner, purer style of Chablis." (Richards Walford are agents for Domaine Droin which is now pulling back from its oak dominated style of Chablis). Walford points out that the people working as food and beverage managers in the five star, international hotel chains are often European, French, Swiss or English and even though there is now a trend for more home grown staff they tend to have received training in Europe and have more European tastes. Walford cites India as a burgeoning market for high quality white wine, with Chablis very much in ascendancy.