What Makes Burgundy Wine Worth the Price?

The wines of Burgundy are some of the most highly regarded and expensive wines in the world. The historic wine region is not only considered the birthplace of Chardonnay and Pinot Noir grape varieties but the wine produced there is also viewed as the benchmark of the varieties’ style and production.

“Burgundy offers some of the best, longest-lived, and most nuanced wines in the world,” says June Rodil, master sommelier for Goodnight Hospitality, who will be hosting a panel on Insider Finds from Burgundy at this year's Food & Wine Classic in Aspen. “The wines were coveted by dukes and aristocracy.”

What is Burgundy?

The wine region of Burgundy is situated in the east-central area of France, where the primary grapes are Chardonnay and Pinot Noir. Burgundian winemakers believe their unique terroir reflects the best expression of these native varieties.

“These two grape varieties have a very specific capacity to reveal the diversity of our terroirs, bringing a unique balance to our wines,” says Frédéric Barnier, chief winemaker at Maison Louis Jadot. “This balance and lightness is part of what makes Burgundy wines so special.”

Though Chardonnay and Pinot Noir are the primary focus, there is a very small production of Aligoté, Pinot Gris, and Gamay grape varieties.

“The grapes in Burgundy are delicate but remain powerful at the same time, vulnerable but also resilient,” says Rodil.

The region’s designated classifications are geographically focused with five primary growing areas, which include Côtes de Nuits, Côtes de Beaune, Chablis, and Mâconnais, and over 80 sub-appellations.

How did Burgundy become one of the most coveted wines in the world?

Eric Foret, general manager and wine buyer at Le French Wine Shop in New York City, believes the region’s elite and expensive reputation is well-earned mainly because “the focus of the region has always been to prioritize quality over quantity.”

However, its elite trajectory is a bit more nuanced.

“Think about it like the real estate market,” says Rodil. “When it comes to Burgundy wine it’s about the land and vineyards and how that land is cultivated and cared for.”

Pamela Walton, wine director at Manhatta restaurant in New York City echoes that sentiment. “Burgundy is the first wine-growing region that recognized the concept of terroir. Each small plot of land creates a very different wine,” she says.

Although it’s one of the most famous, Burgundy is also one of the smallest wine regions in the world. This results in a considerably smaller amount of wine produced, compared to other prestige French wine regions.

“Even with a good vintage, with an average yield, we produce less than 0.5% of the total volume of wines produced worldwide, which creates a greater demand, so each wine produced is only available in small quantities,” says Barnier. “The demand for Burgundies has never been so high.”

Amy Racine, beverage director for New York-based JF Restaurants, believes it’s not all about the terroir, land, and yields. Accolades in wine competitions were a big catalyst for its cult-like status.

“Famous events have showcased how highly regarded the wines are globally,” says Racine. The Judgment of Paris held Burgundy wines as the most iconic Chardonnay and Pinot Noir in the world. It became a status symbol, even a collector's item.”

“Pop culture played a factor, too. Popular movies like Sideways contributed to making Pinot Noir much more popular in the U.S.,” says Barnier.

Although Burgundy wines have always been a luxury purchase, other factors, in recent years, have raised the prices to unprecedented levels, essentially making them unattainable.

“The recent demand for Burgundies across the world has skyrocketed. Its production has been severely down due to repetitive climate crises, such as frost, hail, and mildew,” says Foret. “In 2021, Burgundy wine yields were cut in half because of devastating frost in April that affected the budding season. As a result, Burgundy prices averaged a 25% increase for retailers.”

Is there still high-quality, affordable Burgundy wine?

Racine believes finding value means familiarizing yourself with the appellation system.

“There are some great regions located right next door to highly priced regions. Saint-Bris as an alternative to Chablis is a great example,” says Racine. “There is also a lesser-known grape called Aligoté producing excellent Burgundian whites. It's similar in character to Chardonnay and made by some great producers for a fraction of the price.”

Rodil agrees. “There are people, like me, who are always searching for a great value, an overperformer, a stealth secret,” she says. “Expand outward from the premium appellations, and you'll find your value bottles.”

For some retailers who want to stock their shelves with Burgundy, it’s been an uphill battle.

“Over the past 5 years, prices have reached astronomical levels, becoming an occasional, luxury purchase even for retail buyers,” says Foret. “I have been expanding my research for Burgundy across a multitude of vendors trying to find rare gems like back vintages at pre-inflation prices or more unknown villages surrounding the famous ones like St. Romain or St. Aubin instead of Meursault, or Givry instead of Côte de Beaune wines.”

“I would turn to the Côte Chalonnaise,” says Walton. “My first mentor in the wine industry referred to a Rully as a ‘poor man’s Meursault.’ Of course, Rully is not Meursault. But wines in the Côte Chalonnaise stand on their own. They are complex, elegant, interesting, and more affordable.

But what if consumers still feel intimidated about the Burgundy appellations? “This is precisely why the Burgundy regional and village-level wines are so important; they are an accessible introduction to the Burgundy experience, providing excellent value,” says Barnier.