Why buy en primeur or allocation?

A proven system

The en primeur system was invented by the Bordeaux region two centuries ago and has survived all economic crises. The beginning of en primeur sales dates back to the 18th century, when the negociants did not taste the previous year's harvest but directly the bunches of grapes to determine whether the vintage would be good or not. The en primeur sale as we know it appeared in the 1970s and became widespread in the 1980s under the notable impetus of Baron Philippe de Rothschild and was reinforced by the influence of critics like Robert Parker. The funds recovered at this time were used to strengthen the châteaux' treasury in order to guarantee the smooth running of the estate and to help finance the following year's production.

The sale of "en primeur" wines is reserved for professionals in Bordeaux (châteaux, brokers and merchants). The traditional "Semaine des primeurs" (in April of the year following the vintage) brings together nearly 400 châteaux and 5,000 merchants, importers, critics and specialist journalists from all over the world to taste the wines of the new vintage. At the end of this week, the reference prices of the new vintage are set.

What is the difference with wine allocations?

For the other regions, we do not speak of primeur but of allocation. An allocation refers to the quantity that a winery sells each year directly to a third party. This term is used for the regions of Burgundy, the Rhône Valley and other great terroirs. An allocation represents a limited quantity of bottles that are difficult to obtain, especially in the case of grands crus. An allocation investment is an investment in the great growths of the above-mentioned regions. For an individual, this means that he or she has the opportunity to be the first owner of the latest vintage marketed by the estate (in the same spirit as the Bordeaux primeurs).

What are the advantages of the primeurs for an investment in wine?

• This system makes it possible to reserve wines in advance to be sure of obtaining them, particularly in the case of highly prized or low volume references.
• The wines purchased en primeur come directly from the châteaux' cellars, without any other intermediary. They do not undergo successive transportations which could alter their good conservation and their authenticity is guaranteed.
• Buying en primeur is the possibility of making a saving compared to the final price that the wine will fetch 2 years later when it comes on the market. By buying the bottle under "négociant" conditions, the purchase is made at the best market conditions. The buyer benefits from the natural value of the wine and the risks linked to market fluctuations are minimised.
• Only buying en primeur allows you to buy at a fixed price, outside the law of competition. Indeed, the en primeur prices are fixed by the châteaux.
• The en primeur purchase has characteristics of a so-called "forward purchase". It is a purchase in which the terms are agreed on the day of the transaction, while the transfer of ownership, delivery and payment of the price will take place at a later date agreed between the parties.
• You create a cellar thanks to our primeur rates and allocations allows you to obtain significant performances, an average annual net saving (of storage costs) of 8% compared to a purchase of deliverable wines*.

The traditional Bordeaux en primeur sale is very interesting from a financial point of view as it guarantees a reference price below the market price. It is also an opportunity for professionals to discover a wide range of appellations (Saint-Julien, Pauillac, Margaux, Sauternes, Pessac-Léognan, Saint-Emilion, etc.) in various formats (half-bottle, bottle, magnum, etc.) and to purchase excellent vintages.

* Past performance is not indicative of future performance.

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