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En Primeur - Wine Futures

What is En Primeur?

En Primeur can be one of the most exciting sectors of the fine wine investment market with potential for sharp price movements over the short to medium term. En Primeur can add extra potential for capital growth in a diversified fine wine portfolio.

Commonly referred to in the market as ‘wine futures’, En Primeur refers to the process of buying wine whilst still in barrel, with bottling and physical delivery 2-3 years after the vintage release.

Wines can be purchased in different size formats, but to ensure the best resale value Cult Wines only supply En Primeur that will become 750ml bottles (either in 3s, 6s or 12s) in original wood casing.  

Prices for En Primeur are quoted to include delivery to London City Bond warehouse in the UK and are inclusive of other handling charges.

 

Key Benefits of En Primeur

Lowest price – En Primeur typically offers the chance for collectors and investors to get involved at the lowest market offer price.

Youngest age – At En Primeur release, the wines are at their youngest age, with the maximum period for maturity and potential growth in value.

Security of provenance – When purchasing wines En Primeur, collectors and investors have the added benefit of having wines delivered via the most direct route from the Chateau, ensuring absolute provenance. 

Secondary market buying trend – Traditionally, the secondary market buying trend is for physical stock. This allows collectors to take advantage of En Primeur gains, with stocks that are easily liquidated after physical delivery.

Why invest in En Primeur?

In recent years En Primeur is increasingly being bought for investment purposes. In general, one can secure better prices for key wines from leading as they are virtually always cheaper than the price of the wine when it is bottled.

With the clamour for good vintages, prices of En Primeur wines can increase rapidly, sometimes even double within a matter of weeks. It is a way to secure wines that are difficult to obtain and highly sought after once physically bottled. 

Buying En Primeur does not guarantee price rises but if you get involved with the right wines it offers great value and should be considered as part of a diverse wine portfolio. 

The En Primeur market can be very active and with potentially high profit margins available there can be several opportunities even before the wine is bottled to take advantages of price increases and take profits.

 

How Does It Work?

  • Process starts with the En Primeur tastings at the start of European Spring quite sometime before wines are ready to drink.
  • These barrel tastings are assessed and rated by the wine trade and experts.
  • One can purchase En Primeur selections before they are bottled and released to the market while they are still in Bordeaux. All wines are purchased “In Bond” which means purchasers do not have to pay any Duty Tax or Value Added Tax (VAT).
  • The French Chateaux offer some of their production at a lower price than the final bottled product. This wine is released in a series of tranches with prices typically rising in line with market demand.
  • Delivery of these wines from France to the UK and our bonded warehouse at London City Bond is typically expected around 24 months after release.
  • The wine will arrive in our UK bonded warehouse where it will be stored under bond and on the clients behalf. Clients retain full ownership for the duration of the investment. 
Note: All En Primeur purchases are exclusive of VAT and any Import Duties. If you choose to have the wines delivered outside of our bonded warehouse fees and taxes may become payable.
  • Cult Wines are responsible for insuring En Primeur purchased through Cult Wines at the original invoice value until delivery of stock has been completed.

 

En Primeur opportunities are usually extremely limited with high demand.

If you are interested in receiving more information about investing in En Primeur or learning more about the process then please call:

+61 (3) 9034 5255

Or email

australia@cultwinesltd.com

And one of our expert team will be delighted to help.

Alternatively, create your free no obligation wine investment account and receive your own personal login and access to Cult Wines client investment opportunities, including priority access to exclusive En Primeur issues.

 

Open Free Account click here!