Why buy en primeur or on allocation?

A system that has proved itself

The en primeur system was invented by the Bordeaux trade two centuries ago and has survived every economic crisis. En primeur sales date back to the 18th century: at the time, merchants did not taste the previous year's harvest but the grapes themselves, to decide whether the vintage would be good or not. En primeur sales as we know them appeared in the 1970s and became widespread in the 1980s, driven notably by Baron Philippe de Rothschild and reinforced by the influence of critics such as Robert Parker. The funds raised at that stage strengthen the châteaux's cash position, keeping the estate running and helping to finance the following year's production.

Sales of wine "en primeur" are reserved for the professionals of the Bordeaux marketplace (châteaux, brokers and merchants). The traditional En Primeur Week (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 that 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 en primeur but of allocation. An allocation is the quantity a wine estate sells each year, directly, to a third party. The term is used for Burgundy, the Rhône Valley and the other great terroirs. An allocation is a limited number of bottles that is hard to obtain, all the more so for grands crus. Investing in allocations means investing in the grands crus of the regions mentioned above. For a private individual, it means the chance to be the first owner of the latest vintage released by the estate (in the same spirit as Bordeaux en primeur).

What are the advantages of en primeur for a wine investment?

• This system lets you reserve your wines in advance to be sure of obtaining them, especially for highly sought-after or low-volume references.
• Wines bought en primeur come straight from the châteaux's cellars, with no other intermediary. They are spared successive transport that could affect their proper storage, and their authenticity is guaranteed.
• Buying en primeur means the chance to save compared with the final price the wine will carry two years later, when it is released on the market. By buying the bottle on "merchant" terms, the purchase is made on the best terms available on the market. The buyer benefits from the wine's natural appreciation, and the risks tied to market fluctuations are minimised.
• Only buying en primeur allows a purchase at a fixed price, outside the rules of competition: en primeur prices are set by the châteaux.
• Buying en primeur has the characteristics of what is known as a "forward purchase": a purchase whose terms are settled on the day of the transaction, while the transfer of ownership, delivery and payment of the price take place at a later date agreed between the parties.
• Building your cellar with our en primeur and allocation prices delivers significant performance: an average net annual saving (in storage costs) of 8% compared with buying wines ready for delivery (*).

The traditional Bordeaux en primeur sale is very attractive financially, since it guarantees a reference price below the market's. 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 a variety of formats (half-bottle, bottle, magnum, etc.) and to secure cuvées of excellence.

(*) Past performance is no guide to future performance.