Month: March 2022

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Insight

Is Buying Bordeaux En Primeur still a Good Investment?

Barrel room at Chateau Lynch-Bages

Bordeaux – a treasured destination for wine lovers the world over and a renowned benchmark of the fine wine market. But are Bordeaux En Primeur wines still considered a good investment?

Whether you’re a seasoned connoisseur or a budding wine investor, this article will help you decide whether investing in Bordeaux En Primeur wines is a worthy addition to your portfolio.

How buying ‘En Primeur’ wine works

En Primeur, also called ‘wine futures’, is a method of purchasing newly produced wine early on before it’s even been bottled and released onto the market. En Primeur wines are usually shipped to the buyer between 18 months and three years after being bottled.

En Primeur wines are bought ‘In Bond’ (i.e., exclusive of Duty and VAT). They are often cheaper than the future price of those wines when they become available to the open market (10%-30% cheaper, on average) because they’re being bought a good two years before the wine has been bottled, meaning they have only been reviewed and scored by a few critics.

The attraction of Bordeaux En Primeur

Buying En Primeur wine is a custom that dates back hundreds of years exclusively to the world-renowned wine region of Bordeaux, France. Indeed, it is a concept that is still highly regarded today.

It’s no secret that the Bordeaux region produces some of the world’s most prized wines. In fact, Bordeaux has been a staple in the cellars of seasoned wine collectors for centuries.

Sought-after due to their ageing potential – among other factors – buying Bordeaux En Primeur can often be the best way to secure particularly good vintages with limited availability and the strong potential to appreciate over time.

Other benefits of investing in Bordeaux En Primeur wines include:

  • You may be able to request a specific format for the wine, be it halves, magnums, or larger bottles.
  • When you buy En Primeur wine, you’re guaranteed provenance, given that you’re buying directly from the winery.
  • Some Bordeaux wines are simply impossible to obtain if one does not purchase them at such an early stage.

What are the risks involved with buying Bordeaux wine En Primeur?

As with any endeavour to obtain assets, investing in Bordeaux wines En Primeur is not without its risks.

First and foremost, there is no guarantee that any wines you buy En Primeur – be it the latest Bordeaux vintage or otherwise – will appreciate over time. There is, however, always the potential for your En Primeur-purchased wine to lose value over time.

What’s more, some critics of the En Primeur system say that selling wines in their youth doesn’t accommodate a proper review and rating of the vintage in question.

Further, it has been suggested that the Bordeaux negociant system is a ‘delicate’ one, as it can tend to reward buyers with a well-established purchase history, which can make the process difficult for new buyers.

Is Bordeaux En Primeur still a worthy investment?

To answer that question, let’s take a look at the investment potential of the Bordeaux 2020 vintage.

According to the Bordeaux En Primeur 2020 Report, the 2020 vintage was of excellent quality and yielded many outstanding wines. Here are some additional highlights from that report:

  • Production is down slightly in comparison to the 10-year average. This is largely due to hot weather affecting the grapes.
  • Despite disruptive factors such as the coronavirus pandemic, it is a well-priced vintage overall, though less consistent than the previous vintage.

So, is Bordeaux En Primeur still a worthy investment? Here’s what Alex Westgarth, CEO of WineCap, thinks:

‘When it comes to buying Bordeaux wine En Primeur, it all depends on the vintage. Anyone considering it should be aware of the balance between quality and price in a vintage.’

In addition to those wise words, it’s also important to keep in mind that it’s still quite early to be drawing such conclusions about the Bordeaux 2020 vintage.

Talk to our wine investment experts

We can build you a bespoke wine investment portfolio based on your established goals and budget.

For reliable, expert wine investment advice, simply schedule a FREE 30-minute consultation with one of our wine investment specialists.

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Report Uncategorized

Bordeaux 2019 | Vintage Report

Bordeaux wine barrels in a cellar

Our Bordeaux En Primeur 2019 Report is available to download. Find out what our wine investment experts thought of 2019, a wonderful vintage that saw a surprisingly successful En Primeur campaign during the global uncertainty and financial stress of the time. Discover which Bordeaux sub-regions and producers we feel delivered top class wines worth paying attention to. 

In 2019, cool weather during flowering led to reduced quantities and conditions favoured producers with multiple plots of different soil types that could handle both the sunshine and rainfall. Right Bank clay soils were better able to retain water and thus sustain the vines.

Though 2019 is undoubtedly a fantastic vintage, investors are advised to be selective and search for relative value rather than being led solely by critics’ scores. 2019 was quite different in terms of how tastings were conducted. No longer could massive trade tastings be held for the media and critics. Therefore, the tasting notes from that year may be the most careful and well-thought out of any, as the critics were not being whisked from one mass tasting to another and could taste samples at their leisure at home. Without the pressure of being in the company of the winemaker, or under the influence of peers, these may be some of the most honest ratings ever. 

Through careful study and data analysis, WineCap provides insight into the wines that we feel present both value and opportunity for capital growth. With our bespoke, industry-leading graph and analysis tools we have concluded that the wines selected in this report are attractive prospects and that any carefully built investment portfolio should consider 2019 Bordeaux.

Click the button below to download our Bordeaux En Primeur Report. Do not hesitate to get in touch and speak to one of our wine investment advisors to discuss buying wines En Primeur.

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Special-reports

Fine Wine Investment | Guide

Fine wine investment

A renaissance in the market over the last two decades has let the secret of fine wine out, and the mainstream investment community has responded in kind. The word on fine wine is that it’s not just for the privileged few: it is an ideal choice for everyday investors looking to diversify their portfolios.

By choosing fine wine, you benefit from a proven market that is stable, relatively detached from the mainstream, and consistent in its double-digit returns. What’s more, fine wine offers you a great hedge against inflation.

Discover in our Fine Wine Investment Guide:

  • How to invest successfully in fine wine
  • What WineCap will do for you
  • The beauty of fine wine as an investment
  • The long-term returns of fine wine
  • The influence of wine critics
  • How to create the perfect portfolio

Click the button below to download our Fine Wine Investment Guide and learn more about our proven strategy for investment success.

Do not hesitate to get in touch and speak to one of our wine investment advisors for further information and to reserve your allocations.

Fine Wine Investment Guide cover


Fine Wine Investment

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Report

United States | Regional Report

1976 was the turning point for California and US wine in general. ‘The Judgement of Paris’ blind tasting on May 24th proved that France had a serious contender when top Californian Bordeaux blends were tasted against Bordeaux classed growths, and Californian Chardonnays against white Burgundy. To the surprise of many, California led on both fronts.

This was the first step that set the region in motion. In the 1990s, the first Californian ‘cult wines’ emerged – big brands that attracted collector followings. Producers such as Inglenook, Stag’s Leap, and Robert Mondavi were the pioneers, but it was Screaming Eagle that established the formula for success that many followed: tiny volumes, word-of-mouth hype, and soaring prices. Robert Parker’s appraisal and perfect scores further bolstered their image.

The global market for US wines, dominated by California but also featuring wines from Washington and Oregon, has exploded in recent years. Its share of secondary market trade has risen from 0.1% in 2010 to around 7% this year, and an increasing number of previously overlooked wineries are now showing investment-worthy returns.

Our USA Report delves into the development of its investment market, historic performance, recent expansion and key players.

Discover more about:

  • History of the US wine industry
  • International and domestic trade
  • California’s most significant AVAs
  • Napa Valley’s investment-worthy wines

Do not hesitate to get in touch and speak to one of our wine investment advisors for further information and to reserve your allocations.

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Report

Champagne | Regional Report

Champagne region

Champagne needs little introduction, even to those not typically involved with fine wine. It is everywhere – from restaurants and clubs to airport lounges and private cellars. Fit for every occasion, Champagne has developed an investment market in part thanks to its strong brand recognition. More approachable than other fine wines, the Champagne market has become one of the most liquid – an added benefit for investors. In fact, the region dominated the top-traded wines on the secondary market in 2023.

A decade ago, the region made up less than 3% of the fine wine investment market. Today, its trade share comfortably sits between 13% and 15%, making it a close contender to Burgundy (the second-     most-popular region after Bordeaux).

Pricing dynamics have also evolved during this time. From a relatively modest price performer, and one of the most affordable entry points into the wine investment market, Champagne has risen to new heights in recent years. As the ultimate fine wine ‘luxury’ asset, Champagne has shown remarkable resilience to economic crisis and relatively low volatility.

Our Champagne Report delves into the fundamentals of this fascinating region, including the development of its investment market, historic performance, recent expansion and key players.

Discover more about:

  • Champagne’s investment performance
  • Supply and demand dynamics
  • Key Champagne houses and brands to watch

Do not hesitate to get in touch and speak to one of our wine investment advisors for further information and to reserve your allocations.

 

Categories
Regional-reports

En Primeur Report – Bordeaux 2022: Unfulfilled Potential

Bordeaux 2022 is a great vintage that, despite its high quality, failed to reverse the waning sentiment for En Primeur. The excitement of the new was counteracted by the value on offer.

Although there was a significant increase in the number of visitors at the En Primeur tastings this spring, the campaign did not succeed in capitalising on this positive momentum.

Our latest report, Bordeaux 2022: Unfulfilled Potential, delves into the reasons why the campaign didn’t quite deliver on hopes and the event’s place within the industry in coming years.

Key findings:

  • Bordeaux 2022 is a high-quality vintage that has surpassed expectations, given the challenges of the growing season.
  • Neal Martin’s average 2022 in-barrel score was below 2020, 2019, and 2016, with most critics noting that it is a vintage to be selective.
  • The En Primeur tastings saw a significant increase in the number of visitors this spring, indicating continued interest in the region.
  • Some wines managed to offer value and were met with high demand upon release, including Château Cheval Blanc, Château Beychevelle, and Château Lafleur.
  • Average price increases between 15% and 25%, and as high as 55%, did not resonate well with the soft Bordeaux market.
  • Bordeaux 2022 vintage failed to reverse the declining sentiment for En Primeur due to high release prices in the context of older vintages offering better value.
  • Producers should evaluate the market dynamics to navigate the evolving fine wine market, and the role of En Primeur within it.

Download your complimentary copy of the en Primeur Report – Bordeaux 2022 and discover how fine wine can enhance your investment portfolio.



Bordeaux Regional Report


Categories
Regional-reports

Bordeaux 2021 | Vintage Report

Bordeaux vineyard

Our Bordeaux 2021 En Primeur Report is now available to download. Read our full analysis of the new 2021 vintage which is considered to be an approachable, good quality one that differs in style to the wines from the three previous years.

2021 was the coolest and second wettest vintage in the past decade with frosts, rain and mildew. This meant yields were down significantly in some appellations. Meticulous sorting in both the vineyard and the winery enabled producers to select only the best fruit and this created the finest wines possible. 

Critic reports suggested that quality was better than expected and there is a selection of outstanding wines on offer that will bear comparison with the very best and various châteaux have produced some of their highest ever rated wines.

Prospective buyers have been expectantly waiting for the 2021 vintage’s scores and prices. Release prices were expected to be lower than those of the top rated trilogy of 2018, 2019 and 2020 as this is a different style of vintage from a challenging year. However, there were economic reasons that could justify price rises such as inflation, wine shortages and the US dollar’s appreciation against the Euro.

In general, wines have been released at the same price as 2020 – just 1% lower on average. However, some châteaux released at up to 15% discounts, while others at up to a 15% premium with lower scores than last year.

Discover our analysis and the fine wines we recommend fully in this report. While it was a mixed vintage, there are some excellent wines on offer at attractive prices.

Bordeaux 2021 Vintage Report cover

Bordeaux Vintage Report


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Regional-reports

Bordeaux 2020 | Vintage Report

Barrels in a Bordeaux cellar

Our Bordeaux En Primeur 2020 Report is available to download. Discover our wine investment experts thoughts on 2020, a vintage that has widely been heralded by prominent wine critics as excellent and the third in a row of top Bordeaux vintages. Find out which Bordeaux sub-regions and producers they feel delivered top class wines that are worth seeking out. 

As with the two vintages that preceded it, conditions in 2020 favoured producers with multiple plots of different soil types due to the abundance of both sunshine and rainfall. Right Bank clay soils were better able to retain water and thus sustain the vines. 

Although Bordeaux En Primeur 2020 is undoubtedly a fantastic vintage, investors are advised to be selective and search for relative value rather than being led solely by critics’ scores. 

Through careful study and data analysis, WineCap provides insight into the wines that we feel present both value and opportunity for capital growth. With our bespoke, industry-leading graph and analysis tools we have concluded that the wines selected in this report are attractive prospects and that any carefully built investment portfolio should consider 2020 Bordeaux.

Click the button below to download our Bordeaux En Primeur Report. Do not hesitate to get in touch and speak to one of our wine investment advisors to reserve your allocations.

Bordeaux 2020 Vintage Report cover

Bordeaux Vintage Report


Categories
Regional-reports

Bordeaux 2019 | Vintage Report

Bordeaux wine barrels in a cellar

Our Bordeaux En Primeur 2019 Report is available to download. Find out what our wine investment experts thought of 2019, a wonderful vintage that saw a surprisingly successful En Primeur campaign during the global uncertainty and financial stress of the time. Discover which Bordeaux sub-regions and producers we feel delivered top class wines worth paying attention to. 

In 2019, cool weather during flowering led to reduced quantities and conditions favoured producers with multiple plots of different soil types that could handle both the sunshine and rainfall. Right Bank clay soils were better able to retain water and thus sustain the vines.

Though 2019 is undoubtedly a fantastic vintage, investors are advised to be selective and search for relative value rather than being led solely by critics’ scores. 2019 was quite different in terms of how tastings were conducted. No longer could massive trade tastings be held for the media and critics. Therefore, the tasting notes from that year may be the most careful and well-thought out of any, as the critics were not being whisked from one mass tasting to another and could taste samples at their leisure at home. Without the pressure of being in the company of the winemaker, or under the influence of peers, these may be some of the most honest ratings ever. 

Through careful study and data analysis, WineCap provides insight into the wines that we feel present both value and opportunity for capital growth. With our bespoke, industry-leading graph and analysis tools we have concluded that the wines selected in this report are attractive prospects and that any carefully built investment portfolio should consider 2019 Bordeaux.

Click the button below to download our Bordeaux En Primeur Report. Do not hesitate to get in touch and speak to one of our wine investment advisors to discuss buying wines En Primeur.

Bordeaux 2019 Vintage Report cover

Bordeaux Vintage Report


Categories
Regional-reports

Bordeaux 2018 | Vintage Report

Our Bordeaux En Primeur 2018 Report is available to download. Find out what our wine investment experts thought of 2018, a vintage that promises long development times thanks to powerful tannic structures and acidity. Discover which Bordeaux sub-regions and producers we feel delivered top class wines that will perform well. 

2018 was defined by extremes of weather, with heavy rainfall earlier on followed by a hot, dry summer. Conditions favoured producers with multiple plots of different soil types that could handle both the sunshine and rainfall. Clay soils were better able to retain water and consequently sustain the vines throughout drier conditions.

Though 2018 is undoubtedly a fantastic vintage, investors are advised to be selective and search for relative value rather than being led solely by critics’ scores. 

Through careful study and data analysis, WineCap provides insight into the wines that we feel present both value and opportunity for capital growth. With our bespoke, industry-leading graph and analysis tools we have concluded that the wines selected in this report are attractive prospects and that any carefully built investment portfolio should consider 2018 Bordeaux.

Click the button below to download our Bordeaux En Primeur Report. Do not hesitate to get in touch and speak to one of our wine investment advisors to reserve your allocations.

Bordeaux 2018 Vintage Report cover

Bordeaux Vintage Report