Domaine des Lambrays

LVMH Acquires First Burgundy Vineyard Clos des Lambrays

LVMH Moet Hennessy Louis Vuitton SA, the world’s largest luxury goods company, bought the Clos des Lambrays vineyard to expand into Burgundy, adding to its holdings in Bordeaux, Champagne and the New World.

The acquisition, for which no price was disclosed, is for an 8.66 hectare (21.4 acre) vineyard which produces Clos des Lambrays Grand Cru red wine, a ranking classifying it among the top wines of Burgundy, as well as Morey-Saint-Denis Premier Cru and white wines Clos du Cailleret and Les Folatieres from Puligny-Montrachet, LVMH said in an e-mailed statement.

The purchase comes after first-quarter sales of wines and spirits at Paris-based LVMH fell 3 percent on an organic basis, partly reflecting lower Chinese demand for cognac due to a clampdown by President Xi Jinping’s government on spending on banqueting and gifts. LVMH’s founder and chief executive officer is Bernard Arnault, France’s richest person with a net worth of $34 billion, according to data compiled by Bloomberg.

“For a wine that has a sense of place and individuality, I’ve always really loved it,” said Joss Fowler, director of fine wines at London broker Fine+Rare, noting that Clos des Lambrays’ wines generally sell for a lower price than those of its neighbor Clos de Tart.

Fourteenth Century

The Clos des Lambrays vineyard, in Morey-Saint-Denis in Burgundy’s Cote de Nuits region between Dijon and Beaune, traces its winemaking history back to 1365, when it was cited in the deeds of Citeaux Abbey, according to the vineyard’s website. The property was broken up during the 1789 French revolution and put back together again in 1868.

LVMH has acquired it from Ruth Freund, who bought the vineyard with her German husband, Guenter, in 1996. Her decision to sell follows his death in 2010. LVMH will retain Thierry Brouin, the estate’s chief winemaker, who has produced its past 35 vintages.

The estate makes about 35,000 bottles a year with an average retail price of 120 euros ($165) each, according to LVMH.

Fine+Rare lists the 2012 Clos des Lambrays at 1,550 pounds ($2,590) a case and the 2010 vintage at 1,453 pounds a case, according to its website. That compares with 3,186 pounds a case for the Clos de Tart 2012 and 2,845 pounds for its 2010.

Bordeaux Estates

Outside Burgundy, LVMH already has a stake in Chateau Cheval Blanc, one of the top four wine estates in Bordeaux’s Saint-Emilion region, according to its 2012 classification, and owns top-ranked Sauternes estate Chateau d’Yquem, a producer of sweet white wines.

LVMH also controls Champagne brands including Moet & Chandon, Dom Perignon, Veuve Clicquot Ponsardin, Krug, Ruinart and Mercier, and through its Estates & Wines division owns vineyards across the New World.

Principal holdings include Cloudy Bay in New Zealand’s Marlborough region, Cape Mentelle in the Margaret River area of Western Australia, Newton Vineyard in California’s Napa Valley, Terrazas de los Andes in Argentina and Numanthia in Spain’s Toro region, as well as Chandon sparkling-wine estates in Argentina, Brazil, California and Australia.

LVMH wine and spirits sales fell 8 percent to 888 million euros in the first quarter of this year, according to an e-mailed statement April 9. While the decline reflected pressure on cognac sales in China amid destocking by retailers, the company said Champagne had a good start to the year, with prestige vintages posting strong growth.

As early as 1365, we find the vineyard referred to under the name of CLOUX DES LAMBREY in the deeds of Citeaux Abbey. In 1789, at the time of the French Revolution, the property was sold and divided between 74 owners and reunited in 1868.

Louis Joly made improvements to this handsome residence built in 1630 and restored the unity of the property DOMAINE DES LAMBRAYS. In 1866 these works are finished by the new owner Albert-Sebastien Rodier (Maison Henri de Bahèzre from Nuits-Saint-Georges) with his grandsons Camille and Albert. Camille has founded the Confrérie des Chevaliers du Tastevin and Albert managed the family estate in Burgundy. The Rodier family ensured an efficient promotion of their Clos des Lambrays.

In 1938 Albert sold the estate to his friend Renée Cosson. Since this moment the estate is “falling in a sleep” like “sleeping beauty” according to Jean-François Bazin.

In 1979, shortly after the death of Renée Cosson, the estate was acquired by Roland de Chambure and the brothers Fabien and Louis Saier. They managed to wake up this “sleeping beauty” by important investments and with the support of the oenologist Thierry Brouin. Still today Thierry Brouin is due to his competencies and passion the guarantor for the quality of the wines from the estate. 

On April 27th, 1981 the Clos des Lambrays was promoted by decree to GRAND CRU.

In the end of 1996 Günter and Ruth Freund, a couple of contractors from Coblence in Germany, knowing and appreciating Burgundy since a long time, became the new owners. At that time Günter Freund was already Chevalier du Tastevin over 20 years. In 2002 his wife Ruth became also Chevalier du Tastevin and he was inducted Commandeur.

They have invested heavily in the estate, and are very much ‘hands on’ owners. Thierry Brouin knows the Clos intimately, and they have encouraged him to pursue his work. Günter passed away in 2010.

The village Morey-Saint-Denis is situated in the centre of the Côte de Nuits between Dijon, former capital of the Duke of Burgundy, and Beaune, world famous because the wine auctions in the Hospices.

This area is situated along the "Route des Grands Crus" and closed to the villages of Gevrey-Chambertin, Vougeot, Vosne Romanée and Nuits-Saint-Georges. This narrow strip of land consists in vineyards already existing at times of Charlemagne and the dukes of Burgundy.

Pinot Noir is the only varietal used for the production of red wines in Morey-Saint-Denis, and the commune counts 5 vineyards of Grands Crus: Clos Saint-Denis, Clos de la Roche, Clos de Tart, a little part of Bonnes Mares and CLOS DES LAMBRAYS.

Clos des Lambrays profit from an exceptional geographical and geological position. Situated at an ideal average altitude of 250 m the Clos des Lambrays vineyards have a surface area of 8,70 hectars entirely enclosed. Clos des Lambrays is made with Burgundy’s great black variety Pinot Noir. The average age of the vines is an impressive 40 years, and the vines are planted at the optimum density of 10,000-12,000 plants per hectare.

The harvest finds place normally around the 15 September. The grape picking is entirely manual and takes place in the space of a few days.

Vinification

After the whole harvest which was rigorous sorted by hand, mostly not destemmed, the traditional Burgundian vinification begins. A pneumatic press produces juices from high quality.The estate has 10 open stainless steel vats with regular "pumping over" and "treading grapes" (pigeage).

• fermentation between 15 and 18 days with daily treading
• ageing and maturing during 18 months in oak barrels (50% renewed each year)

• two rackings without fining and a light filtration (5-10%).

The bottling takes place at the Domaine.

The other properties receive the same careful attention:

•  Morey-St-Denis
•  Morey-St-Denis Premier Cru
•  Puligny-Montrachet Premier Cru Clos du Cailleret
•  Puligny-Montrachet Premier Cru Les Folatières.