(FORTUNE Magazine) – The mood will be less bon than usual this November when the typically bon vivant crowd of vintners and buyers gather in the Burgundy wine capital of Beaune for the annual Hospices wine auction. Merchants bidding for the first blush of this year's vintage are going after damaged goods. Heavy rains at grape-picking time likely ruined the effects of a perfect summer. Regrets Michael Aaron, chairman of U.S. importer Sherry-Lehmann: "It looked like a beautiful horse race, but instead of glory at the finish there was mud." The hangover for merchants could mean a bouquet of bargains for consumers on both sides of the Atlantic -- if they act fast. Hugh Johnson, the noted wine writer, believes producers may underrate this year's wine. "You will be able to pick up bargains to drink," Johnson says, "and not to invest." His advice is to sniff out the fast-maturing Burgundy whites from Chablis, Meursault, and Puligny-Montrachet, and imbibe now. The crop of bargains won't last long, however. As Burgundy auction returns sank 68% over the past five years, merchants uncorked aggressive marketing campaigns. France's large Nicolas wine chain is acting like a gas station to unload its product: its stores now offer a "buy two, get one free" deal on 20 grands crus. Merchants also slashed prices -- so much so that some observers believe they have indeed reached the bottom of the barrel. U.S. sales of French wine are up some 20% this year, while prices have begun to waft upward because of a strong dollar. Says Michael Aaron: "I can smell big price increases in the air."

CHART: NOT AVAILABLE CREDIT: NAI LEE LUM FOR FORTUNE SOURCE: SYNDICAT DES NEGOCIANTS EN VINS FINS DE BOURGOGNE CAPTION: Burgundy bottoms out