WHAT IS EN PRIMEUR?

“EN PRIMEUR” is a French wine trade term for wine which is sold as a ‘future', i.e. before it is bottled.

En Primeur therefore also means buying wine at its very first offering price. After harvesting the Chateau's crop (usually around September), initial fermentation in Vats is done followed by selection of the best Vats to be transferred to oak barrels for further fermentation and maturation. These barrels will be stored away in the Chateau's wine rooms for a period of 14 to 20 months. Sometime in March of the year following the harvest, the new wine is tasted for the first time by the growers, wine critics and connoisseurs. Through this, they are able to make initial opinions about the quality of the harvest and the Chateau's owner will peg a price per bottle. Do take note however, that delivery is not till another one and half to two years later, or when the Chateau feels the wine is ready for bottling. From the time the “EN PRIMEUR” is offered, all orders must be paid in full within the next thirty days.

THE BENEFIT OF BUYING “EN PRIMEUR”

It guarantees supply of the wine at opening price, which usually proves advantageous to the wholesaler and/or retailer. A good analogy of this is buying stock in a privately held company, or at par value. By the time the company offers the IPO, shares may be offered at two, three, maybe more times its par value. However, just like an IPO, the price of the “EN PRIMEUR” upon release will depend on the quality of the product and reputation of the grower.

Who buys “EN PRIMEUR”?

Not just anyone can knock on the Chateaux doors and request to buy a few bottles of their best vintage. Traditionally, each Chateau has a few exclusive brokers who allocate the wine to people call negociants. From the negociants, out go the bottles to importers and wholesalers, then finally to the consumers through retail stores and restaurants. Thus, people in the wine business (e.g. brokers, negociants, merchants, wholesalers, retailers) are the main buyers of “EN PRIMEUR”. However, many wine enthusiasts also partake in this yearly ritual, for the same reasons of supply and price advantages. Priority allocations are often assured for those who follow the en primeur campaigns faithfully every year.

How does one buy “EN PRIMEUR”?

Because of centuries-old tradition and the need for financial balance for wine producers, only the merchants, brokers and negociants, who have a very long and good relationship with the Chateaux are given allocations of the real “EN PRIMEUR” or “first release” prices against payment upfront. These merchants, brokers and negociants, upon requests from their clients, may turn around and sell some of their allocation for the same reason, much like selling one's shares on an IPO before they are listed on the stock exchange (e.g. selling over the counter). However, because of the recent boom in demand for classified wines worldwide, merchants, brokers and negociants have been very careful not to sell their “EN PRIMEUR” too quickly after the first release.