The 2009 Bordeaux vintage, billed as still another vintage of the century, has received less than an enthusiastic response from the Asian markets. High prices and small allocations have been blamed for the results. Laurent Ehrmann, the managing director of a Bordeaux negociant, Barrieres Freres, added that buyers were not blindly buying any wine at any price. All the big merchants stated that they didn't get the stock they wanted because of initial allocations. China is still a bit reluctant to dive head first into the futures markets, questioning the integrity and trust in the system. There is also a lack of confidence in storage conditions in China with many wines heat damaged, something that clearly would have a significant impact upon the high end wine market. Nonetheless, with China ‘s GDP growth expected to continue for the foreseeable future, it should only be a matter of time before increased interest in futures picks up.
Posts Tagged ‘en primeur’
Asian Markets Reluctant to Buy ’09 Bordeaux En Primeur
Tuesday, August 17th, 2010French Take on 2009 Bordeaux Futures Pricing
Friday, August 13th, 2010We all know how insane the pricing of the 2009 en primeur Bordeaux has become, with first growths commanding over $1000 per bottle to be delivered sometime late in 2011 or 2012. As we were traveling through France from Paris to Burgundy, Rhone and points south, I used the opportunity to ask both consumers and wine industry professionals alike of their opinion about the pricing. After all, it is possible that we here in the United States, view this differently than wine lovers in France. The responses were interesting.
On the whole, wine consumers seemed to be indifferent to the issue. Most people sip on a glass of affordable everyday local wine either at home or at a local bistro. There are so many very affordable “village” wines for daily drinking that never make it out of the country (no exporter), that it really makes no difference what Bordeaux does. As well, remember that Bordeaux is on the southwest side of France, quite some distance from Paris, Burgundy and Rhone so consumers there are pretty divorced from the hype.
The 2009 Bordeaux Futures Train Gains Steam
Wednesday, March 31st, 2010The anticipation continues to build regarding the quality of the 2009 Bordeaux vintage, barrel tasting now underway as the “experts” attempt to drink their way through hundreds upon hundreds of wines. Makes you wonder how much justice is done on behalf of the final batch of tastings on any given day. Despite cleansing with water and crackers, my palate would be on life support by the end of the day. That being said, however, the developing consensus from early barrel tasting seems to echo the earlier pronouncement by vintners that this is to be one outstanding vintage. While there seems to be some question regarding degree of extraction in selected wines, many seem to be destined for stardom. Of course, the real test will come ten years down the line as the wines will have settled, aged a bit and begin to reveal what they really will be when they grow up. En primeur or futures are expected to be setsomewhere between the end of April and June, offering those interested in getting in early an opportunity to place their orders. The question at hand is do you plunk down some cash for future delivery of these wines? Let’s examine this one step at a time.
If you’re looking to start or add to your Bordeaux collection, buying on futures is one alternative, the other being the purchase at market price when the wine is released. Buying on futures involves paying in advance for the wine. The 2009 vintage in bottle, for example, will not be available until late in 2011. It’s analogous to futures investing in the financial markets except you wait longer for the wine to arrive. Why consider futures? There are two potential advantages.
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