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En Primeur Explained
What does en primeur actually mean?
En primeur refers to a long-established practice, originally associated with the purchase of young Bordeaux wine. Wines bought en primeur have not yet been bottled and are still in the cask. In the US, the commercial term used is “futures”.
Which regions sell their wine this way?
Although this process could be practiced anywhere in the world, only a few regions sell their wines this way. Bordeaux and Burgundy are the two key areas. Typically, the Bordeaux Châteaux will release the prices of their wines for sale in the spring following vintage. Many Burgundian producers, in recent years, have come to release their wines for sale in the January, about sixteen months after the vintage.
Why buy en primeur?
Historically the main reason for buying en primeur was to buy at a better price than that which you might pay when the wine is bottled and shipped to the UK. However, there are other key advantages: it allows you to secure an allocation of potentially rare, highly sought-after wines, which may be produced in very small quantities. You may specify the bottling format you would like an; halves, magnums or larger formats etc. It also guarantees the absolute best provenance of your wines, direct from the châteaux.
How do I actually buy en primeur?
The wines will generally be sold "in bond", ie. excluding duty and VAT. Some merchants include the cost of carriage to the UK and some don't, so bear this in mind. When the wine arrives in the country, (usually one to three years after the harvest), you will be informed of this by the merchant and asked for confirmation of delivery instructions. At this point you may opt to store the wines in bond, store them duty paid or have the wines delivered. Should you choose either of the latter two options, you will then be required to pay duty and VAT at the prevailing rate. Should you choose to store the wine in bond with the merchant, you will only pay duty and VAT if and when you take delivery. Again, bear in mind that most merchants will charge you for storage on an annual basis.
Are there any risks of buying en primeur?
You must buy from a financially stable merchant or broker with a good history of not only selling wines in this way, but delivering them too! If you are new to buying wine in this way, we would strongly advise you to refer to Jim Budd's website www.investdrinks.org which is an invaluable guide not only on how to buy, but from whom to buy.
Where to store your en primeur wines?
The correct storage of wines is always of vital importance. Learn more about ideal cellaring or our cellaring facilities in Corsham.
To see our current en primeur releases, please click here.