Diageo to let Bordeaux futures stocks run dry in US

French wine trader Diva plans to set up a sales company in the US to supply Bordeaux crus classés, following Diageo's decision to wind down operations on the market.

Diva plans to create Avid Wines, based in San Francisco and with staff in New York, Florida and the Midwest.

Diva's managing director, Jean-Pierre Rousseau, told just-drinks that the move follows the decision by Diageo's fine wine arm, Chateau & Estate Wines, to largely withdraw from the Bordeaux wine futures market in the US.

"Diageo had been present in this market for decades and was arguably the leading player," said Rousseau.

"It has left a considerable gap which has to be filled and this is the thinking behind the creation of Avid Wines. It's likely other Bordeaux traders will move in a similar direction."

He claimed that leading Bordeaux traders, such as Joanne, Duclot and the Compagnie Médocaine, have spent "tens of millions of dollars" in buying back stock - rather than see Diageo sell off wines at knock-down prices.

For the full story on Diageo's decision to exit the market, click here.