Trouble In Saint-Emilion: Are Grand Cru Classifications in Trouble?

Is the facade starting to crack on France’s traditions?

News broke last week that Chateau Cheval Blanc and Chateau Ausone would no longer be participating in the long coveted Grand Cru Classe ‘A’ classification system, used in Saint-Emilion. This system of ranking wine producers has been around since the 1950’s. By choosing to leave the format, these two chateaux are trying to rock the boat for how producers in Saint-Emilion gather critical acclaim.

Chateaux submit applications once a decade to be reclassified within the system, with the next turn scheduled for 2022. One might ask why this is so important. To the typical person, it’s not. But in the land of first world wine problems, this shakeup is similar to Jeff Bezos leaving Amazon, or if Tesla chose to stop making electric cars. It could have major ramifications for how wines are perceived in Saint-Emilion. 

Cheval Blanc, and Ausone were the first wine producers to receive the Grand Cru Classe A classification. They are by many accounts, the benchmark for the area’s wine industry. One thing is certain, the chateaux are not happy with the current status quo. 

So what could happen here?

A Staring Contest For The Ages

In France, wine is BIG business. We’re talking about billions of dollars, and thousands of jobs. It seems likely that this move by arguably the two most powerful chateaux in the region, is strategic and political.

In this scenario, we’re looking at two giants of the wine world attempting to stretch their muscles to get what they want. The word is that the producers are displeased with the way in which chateau are being rated and considered for Grand Cru Classe “A” status. The main area of outrage? Not enough emphasis on the wine itself. Things like marketing, tourism, the appearance of the properties themselves, are all getting incorporated into the classification system, and these two time honored wine producers want more focus on the thing that matters. The wine.

The current system is made up of Premier Grand Cru Classé A (comprised of 4 châteaux), Premier Grand Cru Classé B (comprised of 14 châteaux), Grand Cru Classé, and Grand Cru. 

This all began in 1954, with updates in 1969, 1986, and 1996 with relatively little change. The fifth classification of St.-Émilion, announced in September 2006, and composed of 15 Premiers Grands Crus Classés, with 46 Grands Crus Classés, was challenged by four dissatisfied producers that had been demoted. The legal dispute centered on the fact that several members of the panel involved in assessing the wines had vested interests, and thus could be suspected of not being impartial. 

Overall, the peaceful process ended with the 2006 classification, which was declared invalid following a series of legal actions, and the 1996 version of the classification was reinstated for the 2006 to 2009 vintages. Going into 2012, the process was altered in an attempt to avoid the previous misgivings. In particular, tastings and inspections were outsourced to avoid any accusations of bias. There is no longer a fixed number of châteaux which can be classified, and the new rankings elevated Chateau Pavie and Chateau Angelus to Premier Classe A joining Cheval Blanc and Ausone. On the flip side, three chateaux unsuccessfully challenged their demotion in January 2013 claiming there were procedural errors in the selection process.

It would hardly be surprising if the entire 2022 reclassification fell into delays, while the big boys spent time at the table arguing their points on the matter.

Do Classifications Still Matter?

It’s no secret that garnering a Grand Cru status of any kind, has done wonders for a winemaker's brand. Since their promotion in 2012, Chateau Pavie and Chateau Angelus have enjoyed major increases in valuations, as well as reputation. A bottle of 2008 Chateau Pavie currently runs you around $245 a bottle, whereas a 2015, after being promoted, is selling 18% higher at just below $300 a bottle. Are Cheval Blanc and Ausone ruining the fun for everyone else? 

Perhaps this whole stunt really takes hold. Perhaps we’re starting to see the facade of the organizations involved in rankings and scores begin to shatter. Are we looking at the beginnings of a new era for French wine? For a country so passionately steeped in tradition, speculation on this front is relatively impossible. 

Outside of these long established regions of France, winemakers have a very different terrain to traverse. In the U.S. we are relatively lax on any form of classification system. Wines rise in notoriety based on quality, and the ability of their producers to master the game of marketing. California’s Screaming Eagle has no classification. It receives scores and commentary from critics, but as a whole answers only to consumer tastes, and the power of capitalism.

France is still steeped in something old and coveted. It is likely something we’d never successfully create in the new world. It’s a system that has helped its wine industry draw critical acclaim and consumer interest that virtually no one can match. It’s understandable that the producers within it continue to challenge and demand improvements. A bottle of Chateau Ausone can push $1,000 in pricing. These producers don’t want to see increased Classe ‘A’ competition based on how entertaining their vineyard is, and how much tourism they draw.

For those Oenophiles out there heavily invested in what’s going down, this ten year tradition almost always turns into chaos, as producers jockey for position. This is business more than anything else. Perhaps the most comparable scenario is that of Sassicia. Arguably one of the best wines that Italy has to offer, Sassicaia changed history when its owners pulled out of the Chianti Classico designation in Italy, and eventually led to an entirely new classification known today as Bolgheri. 

Will things go down that road? It’s hard to say. France’s system is much more entrenched than that of Italy, and politics will undoubtedly decide how this gets resolved. 

Will Prices Shift?

Again, speculation on this front would be tantamount to panicked guessing. 

For Château Cheval Blanc and Château Ausone, the most likely answer is no. Part of the drive for producers to attain a Grand Cru Classe ‘A’ status, is to garner top end name recognition. For Cheval Blanc and Ausone, that objective has already been met. These are two of the most expensive, and sought after Bordeaux in the world. For those interested in drinking, collecting, and investing, these are well known wines. Leaving the Grand Cru system will not diminish their notoriety. If anything, the two Chateaux just created a great deal of buzz for themselves.

What could be heavily impacted, is how upcoming vineyards are viewed, based on the Classification system. This is where a great deal of uncertainty lies for the future. Has the classification system become too political? Was it always too political? Will chateaux like Figeac or Canon start putting less emphasis on attaining this designation? Will international producers stop paying such credence to the current system of rankings and scores?

Economically and competitively, this is something that France may have to face someday. We’re seeing high quality Pinot Noir coming out of Oregon, incredible wines from California that command the same powerful pricing/demand, and a sudden move from time honored chateaux that is diluting the meaning of the Saint-Emilion classification system. The sheer fact that two producers who benefit from the system, have pointed out that there is a gimmick of marketing and tourism involved in the rankings, has huge implications for what “Grand Cru Classe A” really means. 

This classification is supposed to signal that these wines are some of the best on the planet. If a piece of that title is based on variables outside of the wine bottle, this could all be very damaging to aspiring producers attempting to make their mark with the Classe ‘A’ status. 

When the dust finally settles, only one thing is certain. Cheval Blanc and Ausone will stand command prices that few of us can pay. Our Wine Trader, Liz Dowty Mitchell’s view is even more bullish on the current vintages still carrying a grand cru designation. “I think that this is a great time to buy all of the Premier Grand Cru Classé A Chateaux, but especially the Cheval Blanc and Ausone, because I believe the vintages labeled with this classification will appreciate in value; especially if they are anticipated to be the last.”