The image of great red wine aging carefully in a cellar is more a story of Bordeaux and its wine trade than any other wine in the world.

And a story out of Europe last week is a possible precursor to the collapse of the entire system under which Bordeaux (and all wine) have lived for decades.

The wire service Agence France-Presse carried a story that said Diageo Chateau & Estates would abandon the sale of Bordeaux wine immediately. I confirmed that story on Monday, and already I’m hearing repercussions from the wine trade of possible price declines in many sectors.

“C&E is dumping a lot of its inventory,” said one former executive with the company, who was there when it was still owned by Joseph Seagram and Sons. “They have millions of dollars worth of Bordeaux of various vintages and they are liquidating everything.”

One source said he thought the retail value of that wine was in the     $200 million range.

Chateau & Estate has all but controlled the red Bordeaux wine business since 1974, when the company assisted the district with its distribution at a time when Bordeaux houses were suffering from terrible sales and low prices.

C&E exiting the business may well have terrible repercussions for retailers and wholesalers, and may harm the financial infrastructure of Bordeaux itself. C&E is a subsidiary of the British drinks giant Diageo.

Before its sale to Diageo eight years ago, the company was part of the Seagram empire, and in the 1980s it survived many problems due mainly to the professionalism of its chairman, Ab Simon. His sane negotiations kept prices reasonable when price increases by various Bordeaux houses threatened to topple the entire system.

 In a 1988 article, the New York Times focused on Simon, calling him “arguably the most influential figure in the world of fine wines.”

A key component of the current crisis is the ever-rising prices of wine from many Bordeaux houses that fancy themselves as making wine as good as more prestigious houses.

As C&E liquidates, U.S. prices for red Bordeaux are in limbo and appear to be collapsing. One retail source said he hoped lower prices for consumers would spur sales, but how low prices will go is anyone’s guess.

Consumers will see the largest discounts on First Growth wines that reached ludicrous prices in the last five years partly as a result of very high scores in some magazines. Some wines were released at more than $500 per bottle.

But there will be discounts at all levels. Best bet is for consumers to shop around carefully and watch for discounts. Already I have seen one famed fifth-growth Bordeaux selling for $180 at one store and at $89.99 at another.

Dan Berger lives in Sonoma County where he publishes Vintage Experiences, a weekly wine newsletter. Write to him at danberger@rocketmail.com.