Month: June 2016

The upward creep: will price points replace Parker points?

Re-posted from the Liv-ex blog! See also this excellent overview of en-Primeur price increases this year so far.  Followers of this year’s En Primeur campaign will have noticed that release prices are creeping up again. What’s behind the upward creep? In a previous post we saw that release prices have been stuck at elevated levels since 2011: after the heady bull-market for the 2009 and 2010 vintages, prices did not revert to pre-boom levels but got stuck somewhere in between. You could say that the En Primeur system lost its innocence during the bubble years. Producers still remember a ballooning spread between En Primeur and London prices when the secondary market became red-hot. The fear of regret is a powerful motivator. No producer wants to run the risk of leaving money on the table again, especially when a vintage feels right. The Wine Society has described the vintage in 2015 as “unquestionably the finest for the past five years.” Producers are aiming higher in case the vintage booms. Apart from release price stickiness, there’s another reason …