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by John Stimpfig
Buying your Bordeaux wines en primeur could be one of the best investments you ever make. But make sure you know the rules before you hand over your cash.
Do your research
You should always shop around for the wines that you are interested in. So get as many merchants' offers as you can and compare prices – they do vary.
Also, find out as much information as you can about particular wines and regions. Don't just read the merchants' reviews of the vintage, read several vintage reports written by respected journalists from specialist magazines and newspapers.
Choose a reputable merchant
Only deal with recommended, reputable specialist merchants who have a good en primeur track record. In the past, merchants have gone bust and customers have lost significant amounts of wine, which they had bought, but which the merchant had not paid for. Therefore, be wary of prices that are surprisingly low, merchants whom no one has ever heard of, and anyone who only operates through a PO box. If you have any doubts or suspicions, go elsewhere and buy from someone you can confidently trust.
You should therefore ask your merchant the following questions:
1. Are all cases of customers' reserves, whether duty paid or in bond, identified with customers' names or code numbers?
2. Can reserves be inspected by the customer?
3. Are individual stock certificates supplied annually?
4. Are customers' reserves insured on customers' behalf, at least to the value of the original purchase price?
5. Are wines only removed from reserves on receipt of written instructions from customers?
6. Is the value and/or existence of stock qualified by the auditors in the merchants' auditors accounts?
Only if the merchant can answer 'yes' to all these questions should you consider buying from them. Good, reputable merchants will offer all these guarantees.
Hidden costs?
Read the small print and work out what the final purchase cost will be as there are significant add-on costs. For instance, if you are buying ex-cellars, these costs will include VAT (in the UK), duty, transport and insurance. An in-bond price means you won't have to pay VAT, but the other charges must be paid for before you can take delivery. You should also take into account the annual storage costs if you plan to keep your wine in professional or merchants' cellars. Similarly, you may want to keep the wines in bond while they mature. This can be a good option if you want to re-export them. However, make sure that the wines are properly identified (see below).
Selling on?
If you plan to sell the wine on for profit, there are other costs to consider. If you sell to an auction house, you will have to pay a seller's premium. Remember also that consumers buy at retail and sell at wholesale prices. The difference when selling to an auctioneer or broker can amount to as much as 25 per cent.
Taking a punt
Bear in mind that all wines you buy en primeur are still in barrel. You are therefore taking a punt on the ability of various wine professionals to assess the quality of these unfinished wines. Things can turn out differently once they are in the bottle, and many a merchant and critic has made a mistake in predicting the quality of a particular wine.
Check it out
Lastly, once your wine has arrived, visit the merchant to make sure it is exactly as you ordered. You should also check that the wine is correctly labelled with your name or code and is stored separately from the merchant's stock.
Enjoy it
Buying en primeur can be very exciting and very rewarding in all sorts of ways. Remember, what you're getting at the end is likely to be some world-class wine which is well worth all the effort and cost involved.
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