Wednesday, July 20, 2022

Confusion Arbitrage - New Appellation Just Below Village, Priced Like Bourgogne Rouge

 The State of Confusion - Bourgogne Côte d'Or

 - New Appellation Just Below Village in Quality

 - Should Cost Between $40-$65 for an Average Producer

 - But Everyone Is Confused and Thinks Bourgogne Côte d'Or Is Bourgogne Rouge

 - So It Costs the Same As Bourgogne Rouge

 - Which Really Stinks for the Winemakers

 - But Is a Huge Opportunity for Us


2019 Vintage

 - Amazing from Top to Bottom

 - The Lower End Wines Are Drinking Out of Their Minds

 - Once in a Decade Vintage for Lower End Burgundy

 - Down 45% from 2018. I Have what I Have. Which is Less than 2018. 


2019 Domaine Rebourgeon Bourgogne Côte d'Or

 - I Gave This a 9.2

 - For a $26.99 Wine ($24.99 on a Case), That Is Absurd

 - Heaven's Every Day Drinking Wine

 - Awesome Nose

 - Pure, Layered and Tangy Cherry Fruit

 - Terrific Spice 

 - Very Refined

 - Juicy and Clean Palate 

 - Ample, Luscious Dense Fruit 

 - Incredibly Refined Tannins

 - Terrific Fruit Purity, Energy and Sap


The Bourgogne Côte d'Or Confusion Arbitrage

Classic arbitrage as practiced by the wizards on Wall Street is simultaneously buyingan asset in one market and selling it in another market a higher price. So if a stock trades in New York and Europe, you buy it in New York for $42.00 and sell it in Europe at $42.10 at the same time. It's easy money. This is not to be confused with risk arbitrage where one bets on a takeover or other event happening and if the event doesn't happen, you lose lots of money.


Confusion arbitrage is where you pay less for an asset than it should cost because people are confused as to what it is. Don't bother Googling it, I just made it up. Basically, the French were jealous of the Germans constantly creating new classifications to confuse consumers and wanted to get in on the action so they invented Bourgogne Côte d'Or. But don't worry - confusion arbitrage is your friend!


So we are getting ready to pick up the wines for the spring 2022 shipment and I wanted to give you all a shot to stock up on a ridiculous every day drinking wine value. As you can see from the boxes to the right, everyone is confused about Bourgogne Côte d'Or and it's just a tad below village wines in quality. And it costs a heck of a lot less because of all the confusion.  


This is thrifty millionaire party wine. It's heaven's every day drinking wine for the rest of us. William Whitehead is killing it but he's still like 20 and does not have much of a name yet so this wine is crazy, crazy inexpensive.  


What Is Bourgogne Côte d'Or?

Today's wine is from a new appellation called Bourgogne Côte d'Or. It's basically a sub denomination of Bourgogne Rouge that are produced within 40 designated villages in the Côte de Beaune and the Côte de Nuits. This appellation sits between the regional and village appellations. This should be seen as right below the village level.


 - Haute Cotes de Beaune will cost around $40 for an average producer including tariffs.

 - Village Pommard Should Cost $65 or more for an average producer

 - Bourgogne Côte d'Or should cost between $40-$65 (for an average producer)

 - This wine costs $25.99 (on a 4 pack purchase)

 - This price is roughly what Bourgogne Rouge costs (which is inferior to Haute Cotes de Beaune).


William Whitehead is a brilliant producer of wine but his wines have been affected by the tarrifs and weakening dollar more than other producers because we only introduced him with the 2017 vintage and then had to increase the prices by 30% or so for 2018. That's a tough deal for William who is just a kid. And for us as it killed the momentum we had with his wines. 


The Wine

In 2018 he debuted a Bourgogne Côte d'Or and I swear this only a tiny bit behind Pierre Brisset's Bourgogne Rouge. I gave that a 9.3 on Delectable and this a 9.2. In 2019 this wine is also wide open and glorious young as the littler wines in 2019 are superstars. See below. 


The 2019 Domaine Rebourgeon Bourgogne Côte d'Or can be had for the silly price of $25.99 a bottle on a 4-pack and $23.99 on a 12 bottle case. This wine is stunning for what it is and that's why it gets its own email. It's brilliant and doesn't transcend the category in that it's a Volnay or a Pommard clone, what it is is the best Bourgogne Côte d'Or I've tasted so far and the value proposition is remarkable. 


One of the best values in Burgundy. Producer and estate. Such a gorgeous nose. Big sappy red fruits, elegant spices and cooling minerals. Huge cherry explosion. Real depth here and such vivid aromatic details. So pretty. Wow, 19 is the bomb!


After much air this is super floral and just lovely. Stunning fruit. So pretty. Still keeping at 9.2. My initial assessment was correct. 


Such a gorgeous nose. Big sappy red fruitselegant spices and cooling minerals. Huge cherry explosion. Real depth here and such vivid aromatic details. So pretty. Wow, 19 is the bomb! With air it gets better. Such an awesome nose. Such pure, layered and tangy cherry fruit. Soil tones. Stoniness. So clean. Terrific spice as well and very refined. The fruit is so pure and vivid. 


Palate is so juicy and so pure. Okay, my man has taken the leap. The balance here is extraordinary. So clean and balanced. This has with ample, luscious fruit and incredibly refined tannins. Great length Startling purity. This is blowing my mind. Such supple texture. So silken and sweet. Crystalline levels of purity here. As it airs nose becomes more mineral and the palate gets imbued with stoniness. This is super impressive. Really dense fruit and so refined and long for the level. So so pure. A treat at $24.99. Even a luxury. 


Didn’t let up on day 2. Gorgeous spice. Smells like a mini Volnay. Haunting and ethereal. Gorgeous lipstick like intense mid season cherry fruit. Awesome minerality. Juicy, so delicate and just Uber delicious. Ripe and very fine tannins. Just terrific. Cooling red fruits on the nose. Minerals. Spice. Palate is super juicy and stonyTerrific fruit purity, energy and sap. Drink with aplomb now and over the next 10 years. It's amazing to mr how a young winemaker like William Whitehead can craft such a beautiful wine. It takes a long time to master the smaller wines. 


2019 Domaine Rebourgeon Bourgogne Cote d'Or - $27.99 ($103.96 4-pack, $287.88 12 Bottle Case {$23.99!})

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