First in line

The wine world is in a frenzy over the soon-to-be released prices of 2008’s En Primeur wines. Gabriel Suk tells you what it means and how you can benefit

En Primeur (or ‘wine futures’ in plain English) refers to purchasing wine before it has been bottled. The practice took off in earnest in 1972 when it became mandatory for all Chateaux to bottle wines themselves rather than shipping barrels to négociants (wine merchants) who bottled and sold the wines for them.

The advantages of buying early is that you lock in a low price, which might reap profi ts if the vintage takes off after release.

It’s no sure bet and in this economy, is increasingly fraught with risk – those who got in early on the 2000 Bordeaux vintage have doubled their investment of 3,000USD a case, yet those who bought the 2007 vintage find themselves currently sitting on a wine with a price that is equal to, and in some cases less, than it was in 2008.

The lowdown on 2008

The 2008 Bordeaux vintage got strong reviews but has had many problems, leading to speculation that there might be no En Primeur. The value of a wine is linked to barrel tastings organised by the respective Chateaux.

Wine writers and merchants are invited to taste it while it is still maturing in oak barrels – their initial assessment, combined with the perception of the winemakers themselves, determine the wine’s price.

The trouble right now is this: riding on the back of the amazing success of the 2005 vintage, the 2006 and 2007 vintages carried a hefty price tag. While 2006’s Bordeaux wines moved okay, the 2007 vintage did not.

This leaves wine merchants holding on to a significant quantity of 2007 vintages. The prospect of pricing the likely superior 2008 vintage below 2007’s might leave merchants stuck with the more expensive, inferior 2007 vintage, as people scramble to buy the better and (potentially cheaper) 2008.

With most of the 2008 prices still unannounced, it’s hard to know how it will play out. Things could be looking good, though – Chateau Angelus recently released its 2008 vintage at 50 euros a bottle, down from 85 euros for the 2007 vintage. If this trend continues, a 2008 vintage Bordeaux could be a great buy.

Where to buy

Now, before you rush out to place an order there are a couple things to bear in mind. Buying wine purely for investment can be a risky business. While there are many success stories, it is a very involved process that can take a while to bear fruit.

In general, don’t buy anything that you wouldn’t mind drinking some day if it doesn’t all pan out like you had hoped. Neither should you just buy from any joe-schmo claiming to have wine futures for sale.

It’s risky, so stick with a company that is well known and trusted. They should have a long history of selling wine, great storage facilities and competitive prices.

The great thing about wine futures is that you can purchase them from anywhere, so while Beijing might not be the wine trading hub of the world, you can easily purchase futures (that won’t be ready to drink for years anyway) and store them at a location of your choice in Europe, America or even Hong Kong. Here are our top picks if you’re ready to lay down the money...

Berry Brothers and Rudd

This renowned British merchant has offi ces in London and Hong Kong, and is regularly a major player in the En Primeur market – a very trustworthy source (+852 2110 1680 www.bbr.com).

Bordeaux Wine Index Newer on the scene than Berry Brothers, but still an eminent and reputable class act, the Bordeaux Wine Index also sells wine from London and Hong Kong with extensive future offerings (+852 2504 1122; www.bordeauxindex.com).

Watsons Wine Cellar Hong Kong’s own Watsons wine cellars provides broad future offerings for its Hong Kong and Mainland clients (+852 2606 8828; www.watsonswine.com).