Decanter World Wine AwardsEn primeur credibility 'damaged': survey
- Thursday 16 February 2012
- Comments (3)
Bordeaux En primeur: 'doubtful value as purchasing method'
The Fine Wine Market Outlook 2012, a survey of 120 wine merchants, auction houses and investment fund managers, has reported a largely upbeat view of the investment market for 2012, with only 12% of respondents expecting further significant price drops.
The report blamed much of the recent price drops on the ‘trauma’ inflicted by the high prices of last year's Bordeaux en primeur campaign, which in some cases were 40% higher than already-expensive wines of 2009.
Respondents unanimously demanded a price drop for the 2011 vintage. Europeans suggested a reduction of ‘at least’ 20%, while Asian respondents suggested 10%.
One wine merchant in Malaysia said, ‘If (the Bordeaux vintage) is overpriced again this year, I don’t think there will be any gains (in Asia).’
Overall, 70% of respondents expressed doubt over the value offered by en primeur as a purchasing method, and 50% felt the 2010 campaign damaged consumer sentiment towards Bordeaux.
Despite these doubts, Wine Yield publisher Jackson Taylor told Decanter.com, Bordeaux is still the first choice for investors and collectors.
‘For all the controversy - which many in the trade agree has damaged Bordeaux - it still turns up in question after question as the strongest pick for the collectible wine market.’
He added, ‘but sectors of support are wavering, and Bordeaux 2011 needs to be handled carefully.’
The Fine Wine Market Outlook 2012 is a joint report, issued in English and Chinese, by analysts Wealthmonitor and online magazine Wine Yields.
Have your say!
Alex Andrawes
February 17 15:39
why buy 2000-2012 when you can buy 1982's, 1986's, 1989's, 1990's, 1995's, 1996's and so forth at half the price, ready to drink from well maintained cellars. The secondary markets have yet to catch up. $1000 release price is absurd. Even to billionaires and millionaires.
James Swann
February 17 08:28
Very good to see balanced and progressive reportage on en primeur, given how heated it has been at times.
There are a number of rather interesting findings in the report, such as, Asia-Pacific's embrace of collectible Spain as a tendency for the year ahead, something largely unconsidered in Europe.
Some times there has been some cross over between the traditional trade and fine wine markets. For example, when discussing 'natural wines' and the increasing embrace of native grapes and in one or two other areas.
Its strongest suit, however, is the more global breadth of actors, not traditional markets-Asia centric but wider reaching, providing for somewhat of a consensus on certain aspects and instructive in others.
Steve Webb
February 16 21:57
There will be next to no interest from UK customers for 2011 En Primeur unless prices go down by much more than 20% - why buy 2011s at 20% less when there are many 2008s and other older vintages at much less? Bad timing again for Sauternes where early tastings suggest another great vintage. If only they could get a great vintage in good economic times and when the reds fail!