Why Buy Bordeaux Futures?
Let us introduce you to the world of Bordeaux Futures and en primeur - a phrase that will arouse and pique the interest of the most astute wine professionals. Taking place in the world's most prestigious and critically acclaimed wine region, Bordeaux futures have a long standing history of opportunity and precedence.
Sold at the universally known event en primeur, the sale of Bordeaux futures begins in late March, early April. Hosted by the chateau and the Union des Grand Crus (UGC), en premier provides early access for the wine trade to taste and preview the previous vintage shortly after the wines have been barreled. The majority of these wines will spend another two years in barrel before being bottled and sent to their respective markets. The critical reviews and initial assessments have historically set the bar on how these wines are priced in the market along with broad market economic conditions. For the savvy buyer, this represents an investment opportunity and a chance to obtain some of the most highly allocated wines in the world.
Given the global demand and growing interest in the fine wines of Bordeaux, there has never been a better time to acquire futures. Every year we see the values of certain wines double or triple in value from the time of release to the time of arrival. That's a heady investment ROI in twenty-four months. One of the greatest testaments to the appreciating value of futures is captured in a bottle of 1982 Chateau Latour, which originally sold for $40 a bottle and today can sell for well over $4000.
Please note: wine is an iliquid, liquid investment and not all wines appreciate over time. It takes time for your asset to appreciate. The more people drink of an investment grade wine, there is less supply. Sometimes, the associated price will increase.
The futures market peaked between 2004 to 2008 and is looking to rebound following the successful 2019 vintage, which saw prices down as much as 50% from the previous year. So if you’re like me, an oenophile that wants to spend your hard earned money on investments, then buying Bordeaux Futures might be for you. Even if the wine doesn't appreciate in value, fine wine is the rare investment you can drink and enjoy.