All posts tagged: en-Primeur

On Brexit and the international fine wine trade

Alan Livsey, an Oxonian on the FT’s Lex team has aptly started his wine-commentary piece on the FT as follows: “Fine wine does not take well to shaking – sloshing the sediments around the bottle only muddles the product inside”. There has been plenty of sloshing going around, as Livsey has noted in the same piece. There are tales of booms and busts, sticky prices and the likes. This is especially true when it comes to Bordeaux en primeur – a system that is very near the point of breaking, only to be saved from its brink of doom by a very good vintage. Even so, there are plenty of criticisms on early bottling, unfinished products and so on, which makes you wonder when will the barrage ever stop. But with cheap and abundant shell suppliers, I doubt the barrage will ever end. I am not here to discuss the limitations of the Bordeaux fine-wine market and its en primeur system. I am here to talk about Brexit and its implications on the UK fine-wine scene and the dynamics …

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 …