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What is En Primeur?
Early Release - En Primeur, is the buying of
wines at its initial offering price long before
it reached the bottling stage.
How does it work?
Every spring, the great cru classe properties
of Bordeaux produce young barrel samples from
the previous year's harvest. These are then
tasted and assessed by members of the international
wine trade in Bordeaux. The chateau, then release
a proportion at an opening price but in strict
allocation to negociants, who then releases
these wine in strict allocation to their next
tier buyers.
Why buy En Primeur?
It guarantees supply of wine at opening price.
It is possible to profit greatly on en primeur.
Anyone who purchased top wines from 1982, 1990,
1996, 2000 and 2003 vintages can easily testify
on this. During great vintages like 2000,
2003 & 2005, the value of many wines increased by more
than 50% in two years from en primeur to release.
However, in vintage 1997, with a very weak world
economy and high prices for the quality of the
wines (overpriced), there were little to no
movements in the value of the prices, in fact,
several wines lost in value as negociants reduced
price to convert stock to cash.
Who buys En Primeur?
No one goes directly to the Chateaus. Traditionally,
the chateau appoints exclusive brokers, negociants.
From there, out goes the bottles to importers
& wholesalers, then finally to the consumers
through retail stores & restaurants.
When will the wines arrive?
Usually in Spring or Summer, 2 years after the
offer. Then, once additional shipping cost,
freight insurance & duty charges are paid,
the wines will be delivered. The current estimated
cost is about Singapore Dollars $20.00 per bottle.
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