Millsima launches US arm ahead of 2005 primeur scrum

Published: 23 July, 2008

Millsima - the Bordeaux ngociant which specialises in selling direct to consumers - is opening a US office in order to capitalise on the immense demand predicted for the 2005 Bordeaux en primeur campaign on the other side
of the Atlantic.
The r45 million turnover company - which, unusually, holds almost its entire stock in its own vast temperature controlled warehouse in Bordeaux - has signed up a US Master of Wine, Roger Bohmrich, to head up the US arm. Bohmrich, who will be taking a 10% stake in the company, has worked at New York-based importer Frederic Wildman & Sons for more than 20 years, latterly as senior vice president.

Patrick Bernard, owner and managing director of Millsima, told Harpers: The US is a massive market for top-quality Bordeaux wines, which is what we will initially concentrate on. In good vintages, like 2000 and 2003, the demand in the US is enormous for en primeur. We have been very lucky that the law changes [which now allow interstate shipping] have occurred before a great vintage. The 2005 looks like one that will create a big demand in the States. I have decided to put aside 10% of our entire allocation to sell there and we will be competitive on price.'

Apart from the legal issues regarding Millsima's move, which are not entirely clear as yet, the major issue will be whether Millsima significantly undercuts established US Bordeaux retailers. In the UK, Millsima is relatively expensive compared to major UK importers and brokers, but would arguably find it relatively easy to undercut the margin heavy three tier system' in operation in the US.

Stephen Browett, a director at Farr Vintners, called Millsima's move very interesting, although they will have to tread carefully if they don't want to upset the trade over there.'

Bernard said that 38 states where legal issues have been resolved would be targeted initially, with the company aiming to deliver to customers' doors within 10 days of ordering, direct from the companies premises in Bordeaux.

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