2 million Fraudulent Burgundy Bottles

2012-06-15

Several directors of Labouré-Roi, the Nuits-St.-Georges negociant, have been arrested following a year's investigation by the French Fraud Squad (DGCCRF).

For several years, since 2005 through 2009, Labouré-Roi been accused of consumer fraud; systematically mis-labelling burgundies from village wines through to Grand Crus, blending juice inappropriately, and making false claims about fictitious competition medals.

Labouré-Roi is Burgundy's 3rd largest negociant by volume, and the fraud affects 2,000,000 bottles.

Quatre dirigeants de la maison de négoce en vins de Bourgogne Labouré-Roi, basée à Nuits-Saint-Georges (Côte-d'Or), ont été placés en garde à vue la semaine dernière dans le cadre d'une affaire de fraude sur les vins, a-t-on appris mercredi 13 juin auprès de leur avocat. Il leur est reproché des faits de "tricherie sur les étiquettes", des "mélanges de vins" et l'utilisation de "fausse médailles", selon le quotidien Le Bien Public qui a révélé l'affaire.

Does this spell the end of the Famille Cottin's ownership of the long-standing Maison founded in 1832 and acquired by them in 1974? Le Monde quotes the company's Counsel as fearing the worst if banks refuse borrowings following the scandal that has made headlines in France.

As Burgundy buzzes with interest & growing sales from China, stories of grand-scale fraud are the last thing the BIVB (Bureau Interprofessionel des Vins de Bourgogne) needs after all its excellent work educating Far Eastern buyers on the value ofClassification and micro-climats.