En Primeur - The Conclusion

The en primeur process has been around for centuries; however, this does not necessarily mean that it is still a viable institution. Many commentators believe the process to be both flawed and outdated, yet despite widely publicised negativity, no one seems to offer anything to replace it which would benefit both consumers and producers.

The major issue is that many of the châteaux are not prepared to sell their own wine which is why they use negociants. However, if châteaux work on this issue, they could vastly improve their distribution channels. Many producers don’t even benefit from the high prices charged for their wines on the secondary markets, and have become aggrieved by the lost revenue.

En primeur has become an outdated system, one which has created an air of elitism around Bordeaux and one which has become a huge area for debate in the industry. With many people within the industry turning against the process and questioning its benefit for the consumer, it is hard to see a change not occurring. It has also become too overpriced to remain a viable option for investors, leaving a surplus to required wine. If this happens, producers will have no choice but to accept they need to find new methods of sale, one which gives them the continued capital they require, but offers the best deal for the end consumer.

One big problem with changing the process is that despite a constant stream of objections to the process, no one has been able to find a suitable replacement to the method, if indeed there is one at all. Without the producers improving their network of distribution and exploring new channels, such as the internet, while investing in marketing campaigns it is unlikely they will accept any push for a change.

En Primeur Part Two: The Pro's

Arguably, the advantages of buying en primeur are few and far between for the consumer. However for those looking to make an investment; the practice arguably holds great sway. For them, the ability to buy high quality wine from the most sought after regions, for a heavily discounted price makes it a worthwhile process.

As consumers and investors pay before wine is even bottled another advantage is the ability to choose the sizing of the bottle you require. The producer will present the wine however you want it, from a half to a magnum. Whilst this might not be important to some, for some wine enthusiasts the opportunity to buy wine in a magnum, which is a rarity, adds to the draw.

From a producers point of view, the advantages are numerous. Firstly, and for many châteaux’s, most importantly, is the fact that they do not have to wait three years to cash in on that years harvest. This means the chateaux itself has to invest less capital to sustain its business.

Secondly, en primeur wine creates a huge demand within the industry, due to the publicity it receives. The economic laws of supply and demand mean that when there is high demand for a product in low supply, prices will naturally be high if there is a market for them. With en primeur pricing being guided by commentators such as Robert Parker, and regarded as some of the best in the world, it is unsurprising that many producers are able to charge large amounts for wine which isn’t even matured.

Finally, selling wine en primeur reduces the châteaux’s own risk. By selling it before it is matured, producers do not have to concern themselves with the possibility of unsold wine not to the complexity of the original tasting. Again taking away the risk and ensuring a profit!

Tomorrow – the con’s!