The Cru Bourgeois Classification

Jane Anson (first published in a different form in Decanter magazine 2007, updated September 2008)

The last 12 months have seen the classifications of Saint Emilion and the Medoc’s Cru Bourgeois fall into complete chaos; with one annulled, and the reverting to its previous 1996 incarnation. Merchants and chateaux owners are nervously waiting to see what the fall out will be on the market, while buyers and consumers overseas are asking the unthinkable question: is the classification system finished in Bordeaux? And have the selfish interests of individual chateaux brought the whole system crashing around its ears?

Because both court judgements were made within a month of each other in February and March 2007, and because both involved questions over the composition of the jury, the problems with both classifications have been lumped together, but they are really very different cases. For the market, however, they just seem to underline the idea that Bordeaux is a complicated, politically-driven animal. And even worse, a divided house, which is not good for business.

Philippe Casteja, president of the Conseil des Grand Cru Classés 1855, comments on the immediate problems, ‘To date, the changes haven’t affected prices too much, as it’s all too new. But producers are having problems understanding what is allowed and what is forbidden.’

Thierry Gardinier, owner of Chateau Phelan Segur and president of the Alliance des Cru Bourgeois, is less optimistic, ‘The cancellation is already having a bad effect on the prices. There are rumours that some negociants have cancelled contracts with cru bourgeois, because they can now get the same ‘label’ from other properties more cheaply (that may not have made the cut in 2003). It’s not really a problem for the superieur and exceptionnel properties, as they have a brand and a market, but for the 150 simple cru bourgeois, they have no brand – cru bourgeois was their brand – and now it’s been diluted.’

The problems stemmed, in many ways, out of noble intentions. The reworking of the cru bourgeois classification began because the term dated back to 1932, but had never been formally approved by the Minister of Agriculture, and therefore was used all over the region without really meaning anything in terms of quality. Read about Saint Emilion here.

But perhaps it was also inevitable that property owners wouldn’t take the judgements lying down, as commercial pressures and the international sales environment has changed so much. The stakes, as Jean Christope Mau points out, owner of Chateau Preuillac and one of the 77 original complainants in the Medoc, have never been higher. ‘I can’t say that I’m happy that this has happened, but there is a commercial imperative at stake here that can not be ignored. I do feel sad for the classification, and for all the hard work of Thierry Gardinier and his team, but if he puts himself in my shoes for a moment he’ll see that I run a business and I have to put my wines out on the market. If I get less for my wines because of an incorrect and badly managed decision, then I’m afraid there are consequences. We can no longer ignore the effect on the wider market, because there is too much at stake.’

In both cases, the arguments centred around the final details of the judging panels; their composition, and the way they carried out the task.

According to critics, there was clear evidence of partiality as four members of the jury – The four chateau owners who were on the jury were Franck Mahler Besse (also negociant), Dominique Hessel (president at the time), Thierry Gardinier (president) and Jean Miailhe (ex president) – were also chateau owners in the classification. They say they were advised at the time to have chateaux owners on the jury, to ensure there were members who really knew and understood the wines. It seems that their presence was clearly known about in advance, and was stated in the Arrêté of 30 November 2000, which was then published in the ”Journal Officiel“ on the 31st of January 2001. This, argues the Alliance, made it absurd to accuse the jury of any wrong-doing afterwards.

But whatever the detaills, as of today, the cru bougeios has been formally annulled, and the use of the term 'cru bourgeis' has been formally made illegal. According to EU rules if a term is being used, it must  be regulated, so the Ministry of Agriculture and the Ministry of Finance (Repression des Fraudes) have approached the Supreme Court to make a decision.

Rather than drawing up a new classificaiton, the decision has been to intoduce a 'Cru Bourgeois' term that can be used on the label in much the same way as the 'Label Rouge' is used in food. So not a classification, but a kind of kite mark, a quality assurance. It will be applied for year-on-year by the chateau owners - and anyone can apply.

Gardinier speaks for them when he says, ‘Everyone on that jury behaved fairly and honourably, and they have not been rewarded for it. My position today is to work towards that second option, and to start again. I don’t know how right now, but we have lawyers working on it. I’m either brave or crazy, not sure which, but I don’t want to abandon the ship now, and I want to make peace with the people who brought the case and work together, within the Medoc, to make this work.

CRU BOURGEOIS JURY 2003

(it’s hard to get the exact names of these, as Thierry Gardinier says, ‘the jury members have been honest and fair, and not been rewarded for this, so feel hurt and don’t really want to talk about it any more.’)

President of Union of Wine and Spirits Brokers

President of the Union of Negociants

Dean of Oenological Institute Yves Glories

President of Syndicate of Medoc CB (Dominique Hessel at the time), and two other representatives of the organisation

Six 'qualified' people, notably oenologists (Jean-Claude Berrouet was one)

Regional president of INAO

President of Bordeaux Chamber of Commerce: Laurent Corbu

President of Gironde Chamber of Commerce

President of Federation of Great Bordeaux Wines.

What happened when

At Vinexpo 2003, the new cru bourgeios classification was announced and this time approved initially by the Ministry of Agriculture, giving the term to 247 properties in the Medoc (151 cur bourgeois, 87 cru bourgeois superierus and 9 cru bourgeois exceptionnel). The annulation of the 2003 classification was announced on 27 February 2007 by the Bordeaux Court of Appeal.

Just getting to the 2003 classification had been a long haul. The original classification, in 1932, was organized by the Bordeaux wine brokers (under authority of the local Chamber of Commerce and Chamber of Agriculture) and designated the 444 properties in the Medoc as CB, classing them into three categories. However, this list, registered on April 28 1932, was never official as it was not submitted for ministerial ratification.

It was not until 1962 that the efforts of Jean Miailhe resulted in the first organizational grouping. The Syndicated of Medoc Crus Bourgeois, which consisted of only 92 members from the 444 properties listed (survivors of years of war and economic crisis). The Syndicate created two internal rankings in 1966 and 1978, again with three categories. (66 had 101 growths, 18 exceptionnels, 45 grand, 38 cb, and in 1978 111 growths, 18 exceptionnels). By the 21st century, there were 315 members, comprising 90% of the potential production of CB, and 50% of entire Medoc vineyards. And for 20 years, the Syndicate had been trying to regulate its designation – because renown was growing, but there was no regulatory protection regarding its use.

In 1972, there was a regulatory decree calling for a classification, which led to partial revision in 1973, but it effectively just authorized the term for use, still without regulatory status. The European Community Labeling regulations of Feb 5, 1979 recognised the possibility of French appellations wines to use the term cru bourgeiois ‘provided that the conditions for its use are specified by the laws of the producing Member state.’ Since the conditions for use of CB were not specified, the Syndicate was powerless to contest the numerous cases of misappropriation of the term. Ten years later, they tried to seek trademark status to protect its use, but this was not successful (the Court of Appeal considered the term was not subject to trademark). Finally, the Synicate, led by its president Dominique Hessel, worked towards establishing an independent classification and directed its efforsts to obtain a specific ministerial decree. Then Minister of Agriculture on Nov 30, 2000 called for the establishment of a new classification, aimed at complying with EU labeling regulations and end abuse of term.

The classification was clearly unsound and in January 2007, a French Government official by the name of Jean-Pierre Valeins called for the annulment of the classification, and the legislation by which it was established.
 
In 2008, the idea for new Cru Bourgeois label was introduced, with a yearly-system of awarding the label. As of October 2008, checks for the introduction of this are going ahead, but there is not yet minister sign-off.

Bordeaux opinions

Jean Francois Quie, Chateau Croizet Bages ‘My wines were bottled under different names, but at the time they were actually the same wine in the bottles. But one passed, and one failed. You have to question that decision.’

Jean Luc Thunevin, ‘Don’t believe the classification problems will have any effect on prices – it’s still the market that sets the price.’

Philippe Casteja, president of Conseil des Grand Cru Classés 1855, ‘It hasn’t been a speciality of Europe to challenge official decisions. The idea of lawsuits and pursuing complaints through the courts is much more American, but now it seems to have spread to Europe as well. I’m always very sorry when I see things like this that affect the confidence of consumers. It can be very difficult for wine buyers – even in Bordeaux itself – not knowing what and who to trust.’

 

Nicolas Maestre, Cambon La Pelouse 'This year, we have put " Cru Bourgeois Supérieur " but for next year we don't know what to do. For Château Cambon La Pelouse it will not affect the price (what will affect the price is the medium general quality of the vintage 2006 after an exceptionnal 2005 ) but for some simple " Cru Bourgeois" estates in difficulties, they can be affected by medium quality vintage 2006 and the cancellation of the classification. However, we have really few customers asking questions.