Patriwine: First fruits, a martingale?

First of all, let’s recall how the early harvesters work. It is a question of buying in advance wines that are still in the maturing phase. Given the demand, this means that buyers are ready to pay for a product that they will not take possession of until about 2 years later. In return, they should benefit from a more advantageous price. Is this always true depending on the vintage?

How do you choose the right vintage for an en primeur wine?

First of all, you have to observe the notes of the critics. Since the withdrawal of the famous Robert Parker, a dozen or so critics, generally unanimous, have been rating the wines. The most representative are Neal Martin, Jean Marc Quarin, Jancis Robinson and James Suckling.

Then, you have to taste them. What a tough job! The great annual mass of primeurs will take place next week in Bordeaux.

Finally, the history of the previous vintages is important. Indeed, we can see that after several good vintages, the châteaux are finding it difficult to reduce their claims and that after average vintages prices become more reasonable. We have to admit that the 2011 vintage, for example, has come out at a high price after the exceptional vintages of 2009 and 2010. Its prices have not changed much so far. The average vintages of 2012 and 2013 have come out at better prices. However, it is the good 2014 vintage that has created great opportunities for wine lovers and investors alike. Thus, Patriwine, created in 2010, carried out its first “primeur” campaign in 2015 on the 2014 vintage. As an example, our clients were able to buy Château Canon 2014, Château Canon la Gaffelière and Château Figeac, which achieved growth of 17.7% net; 21.84% net and 35.32% net respectively over a period of less than 3 years.

As for the 2015 primeurs, prices rose by more than 40% on the return from Vinexpo Hong Kong following a sharp rise in Chinese demand. Patriwine therefore decided to stop its campaign in the middle of the year and cut €500 K in turnover. You have to know how to put the interests of your customers ahead of the interests of the company. It’s frustrating in the short term but that’s the lot of objective advice.

2016 is an exceptional vintage. It came out expensive but is stimulating demand and prices are already feeling the effects. We will have to wait for the delivery in 2019 to draw up the first assessment?

It will be necessary to be vigilant on 2017, the production has been reduced by 40% because of frost then hail. Faced with this shortage of supply, prices are likely to be high in relation to quality. The ratings will allow us to position ourselves before the first releases at the end of April.

To sum up, we must be patient and beware of traders who are not selective in offering early products each year.  It is also necessary to consider that it is not a martingale but that beautiful operations can be carried out when one turns to professionals concerned about the interests of their customers. The primeurs remain a great opportunity to buy depending on the vintage.

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