An Investor’s Guide To Buying Wine “En Primeur”

What is “En Primeur”?

The French term “en primeur” is usually translated as “wine futures” and it is usually associated with buying top fine wines from the French regions of Burgundy and Bordeaux. Purchasing En Primeur simply means you’re buying the wine while it’s still in the barrel and has not yet to be bottled and released. 

How does it work?

En Primeur campaigns are usually held twice a year. Burgundy En Primeur takes place in January and February, while Bordeaux campaigns take place in April. Wines released En Primeur are highly sought-after and can sell out immediately. This is why collectors and investors often rely on companies like OenoFuture who have insider knowledge and strong relationships with top Burgundy and Bordeaux producers to secure outstanding wines from that vintage. 

Wine experts will carefully analyse the quality of each vintage and each individual producer’s wines to decide which are the most likely to increase in value. This is usually done through barrel tastings at the individual chateaux and larger tastings organised in London and other major cities.

Benefits of buying wine En Primeur

Although it might sound counterintuitive, there are significant benefits for investors who decide invest in En Primeur campaigns.

Firstly, En Primeur is often a way for buyers to get in at the lowest market price for their chosen wine, giving them an edge over those who buy in later. Prices tend to rise after the wines are released and when they enter the secondary market, so buying ahead of the crowd can be a great way to lock down a real bargain. En Primeur is also a way for collectors and investors to secure wines that are very rare and will be challenging to source after their general release to the market.

Another huge advantage is that wines sold En Primeur are purchased in bond. This means that the buyer does not pay VAT or duty as long as the wines remain at the winery or in dedicated bonded warehouses in the UK. This means investors have less initial outlay than if they had chosen to purchase their wines via auction or private sale of stock that is not stored in bonded warehouses.

Guaranteed provenance is a crucial benefit of buying En Primeur as the wines are purchased directly from the winery where they will have been stored in optimum conditions. This is why buying En Primeur is often viewed as a safer option than other methods of sourcing fine wines like auctions or private sales.

Buying into En Primeur doesn’t necessarily mean you’ll have to wait years for a return either, as prices can increase drastically even before bottling as a result of outstanding reviews from top wine experts. 

As with any investment, there is no guarantee that prices of En Primeur wines will rise, but this way of buying wines offers an opportunity to get in ahead of the crowd. With the right advice and guidance from wine investment experts, buying En Primeur can be an extremely attractive venture thanks to the high potential profit margins.

For more information on OenoFuture’s Burgundy En Primeur campaign, please contact your account manager or email info@oenofuture.com for further details.

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