Should You Buy Wine Futures? (How To Invest In Them)

Wine Futures (En Primeur) is the practice of buying wines before they’re bottled and released to retailers. 

This system allows wine experts to taste the wine straight from the barrel and share their vintage reports, tasting notes, and scores. Based on these scores, the prices are set, and the wine is sold 18-24 months before it arrives in the market. 

This way, wine lovers can purchase wine at low prices and in different bottle formats (half bottles, magnums, or even larger bottles.) 

The wine futures buying system is popular in the Bordeaux, Rhone Valley, Napa Valley, Burgundy, Piedmont, and Port wine regions.

This article will explore how the wine futures system originated, how it works in Bordeaux and Burgundy, and how the wine futures process works. We’ll also discover why you should invest in wine futures and how Vinovest can help you start your wine investment journey.

Origins of The Wine Futures System

The En Primeur system has been around for over 200 years. Here’s a brief glimpse into its origins:

• The wine futures system was created in the 18th century by a group of negociants (merchants.) 
• After 1945 (post-WWII), wine futures became a popular way for wine merchant establishments to purchase wine (before it’s bottled) directly from the wineries and sell it at their own price. Selling wine in advance helped poorly funded chateaux finance the following season’s operational and production expenses. 
• With wine investment gaining traction in the 1970s, the wine future system became a popular way for the private consumer to gain access to collectible wines. 
• The 1982 Bordeaux En Primeur event was a turning point for the wine future system since it was the first great vintage in decades. People who bought Bordeaux wine as futures in 1982 enjoyed high returns on their investment later on. 
• Today, buying wine futures is a popular way of investing in wines at a lower price so you can enjoy high returns later on. 

Bordeaux Futures

Bordeaux En Primeur is the most grandiose wine futures event and it receives more attention and revenue compared to En Primeurs in other wine regions. 

Wine lovers can buy the Bordeaux futures through a well-incorporated supply chain management system. After the wines are bottled, the wine producer sends them directly to the consumer.

During the Bordeaux En Primeur week (typically organized sometime in spring), the wine grower’s association, Union des Grands Crus de Bordeaux (UGCB), presents a central trade tasting of Bordeaux wine. 

Other dedicated communal appellations also have tastings of barrel samples during this time. The top estates showcase their En Primeur wine at private wine tasting events. 

Burgundy Futures

The wine futures system in Burgundy operates more informally and on a smaller scale than in Bordeaux.

Some wine producers have private tastings for certain critics, journalists, and importers in October and November in Burgundy. There are also Burgundy En Primeur events (usually in January) in cities like Tokyo, Hong Kong, and London. 

Why Buy Wine Futures?

Here are a few reasons to consider buying wine futures:

1. Exclusive Access, Lower Prices & Higher Resale Value
2. Different Bottle Sizes
3. Authentic Wine Bottles
4. Latest Vintages from Famous Wineries

1. Exclusive Access, Lower Prices & Higher Resale Value

Some of the most prestigious wine labels have a very limited supply. So, finding such collectibles at a regular wine shop is usually quite hard. Additionally, even if you find the wine you’re looking for, you will probably have to purchase it at a much steeper price. 

On the other hand, if you buy through the wine future system, you are among the first ones to get access to a limited vintage and you will pay much less than the retail price.   

The resale value of En Primeur wines is usually high, particularly if you have owned the wine bottle since its initial release. For example: 

• The 1982 Château Latour (a Cabernet Sauvignon and Merlot blend) was pre-sold in 1983 for $40. Today, it’s valued at $2,576.
• By 2019, the price of 2013 and 2014 Bordeaux futures rose by 162.74% and 86.91%, respectively.

En Primeur is a great way for wine lovers and investors to purchase rare wines at an exclusive price and get high returns later on.

2. Different Bottle Sizes

When you buy wine futures, you can obtain the wine in various bottle sizes like half bottles, magnums, Jeroboams, and other larger bottle formats. 

Larger bottle formats are also fantastic collectibles. You could be among the select few to own a vintage wine in a unique bottle format and make a good profit whenever you decide to sell — perfect for any wine enthusiast!

3. Authentic Wine Bottles

There’s no risk of buying fraudulent wine when you purchase through the wine futures system. The authenticity of fine wine is guaranteed when you buy directly from the producer, unlike when you buy at a wine shop.

4. Latest Vintages from Famous Wineries

Got a famous winery you adore? 

Buying wine futures lets you develop a close relationship with a winery and buy its latest vintages as soon as they’re available for pre-order. 

Since wineries tend to have a small En Primeur wine allocation set, this is also a good way to get the vintages you desire. For instance, if you’re eyeing limited-edition bottles from Château Latour of Bordeaux, or ​​the Romanée-Conti winery of Burgundy, then futures is the way to go!

Now, if you’re curious to know what the timeline of an En Primeur wine looks like, read on:

​​Wine Futures: What Happens During The Vintage Year & Onwards?

Here’s a quick glimpse at what happens during the harvest year and onwards in the wine futures timeline: 

1. The Vintage Year

Here’s what happens during the vintage year before the winemaker vinifies the grapes:

• The vines are pruned in the middle of winter.
• The plantings start to flower between May and June.
• The grapes are harvested from September to mid-October 

2. First Year After Vintage

Here’s what happens the first year following growing, harvesting, and vinifying (during En Primeur events):

• Wine experts taste some of the wine after it spends 3-4 months in the barrel.

At this point, professionals and critics (like Robert Parker of the Wine Advocate and Thomas Matthews of the Wine Spectator) are invited to various wine tasting events to assess the new vintage. They write tasting notes and scores and give their expert opinion.

• After fermentation is complete, the wine is moved into new oak barrels for two years of aging. 

3. Second Year After Vintage

Between the first year and the second year, the wine producer releases the prices of the new vintage for wine futures sales. This is typically when the tasting events take place.

4. Third Year After Vintage

The bottles are usually shipped and delivered to the consumer in the third year.

How To Invest In Wine Futures Through Vinovest

The wine futures buying game has evolved since its inception. 

Thanks to advances in technology and finance, younger buyers have stepped into the wine industry, making the average age of a wine auction buyer about 40-years-old. 

The demand for fine wine has also increased. Great wine has always been required in Europe, and its demand continues to grow in North America, South America, Asia, and Russia. Industry pros expect the prices of collectible wine to rise as many high-end wine producers provide only a limited quantity of their vintage wines.

Considering these factors, how does the average wine enthusiast gain access to limited En Primeur wines? 

You can purchase wine futures from an auction house or through a futures tasting event but these are usually tough to access. Luckily, there’s a much easier and quicker way to buy fine wine and futures - Vinovest. 

Vinovest is a wine investment company that helps you buy, store, and sell fine wine from anywhere in the world with just a few simple clicks. 

Additionally, Vinovest has excellent customer service and has built strong relationships with some of the top wine producers in the world, giving you access to the best vintage wines each year.  

Maximize Your Returns By Investing In Wine Futures

Purchasing wine futures is a fantastic way to buy authentic, investment-grade wine at a lower price with the opportunity to resell at a profit later on. Additionally, it’s a lucrative way to invest in alternate assets. 

If you’re keen to get in on the wine futures action, check out the Vinovest website for a hassle-free way to invest in great wine from Napa Valley, South America, Bordeaux, and more.