The buying, managing and selling of En Primeur wines can, at first glance, seem like a complicated process for drinks businesses to manage effectively within a single software system. Bevica, however, has all the functionality you need to simplify this process and ensure it works smoothly. In this blog, we take a look at what En Primeur wines are, how the buying and selling process works and what Bevica can offer those businesses that include En Primeur wines in their product offering.
What is En Primeur?
En Primeur, or “Wine Futures” is the purchase of wines before they are bottled and shipped by the winery. Wines bought in this way are usually highly sought after wines and vintages. Payment for the wine is made at an early stage, usually 18 to 24 months before each wine is actually bottled.
How does the En Primeur process work?
En Primeur originated in Bordeaux after World War 2 as a way to provide financial relief for Chateaux that were struggling after the war. Since then, it was expanded to Burgundy, the Rhone Valley and into many other countries.
In Bordeaux, En Primeur week takes place in late April and is a gathering of industry professionals at the top Chateaux in the region to taste young wines from the previous year’s harvest. These industry professionals, usually a mix of wine merchants, journalists, and critics, all provide opinions on the vintage and assign score ranges to the young wines. The Chateaux then determine the prices and sell the wines in the following two months.
The important thing to note about buying En Primeur wines is that it is an investment in tomorrow, rather than buying for today. Wines bought do not physically change hands at this stage. Instead, buyers are “pre-booking” wines that are still in barrels.
Once the buyer has secured their En Primeur allocations for that year, they will release these wines for sale and customers will have the opportunity to make their purchases.
The wines will only be bottled and shipped once the winery decides that particular vintage is ready. This can be many years later depending on the vintage. Once bottled, the wine is shipped to the buyer. In the UK market the client typically stores the wine in a bonded warehouse (under duty suspension) or they can ask for the wine to be delivered to them. This is the point at which Duty and VAT become payable.
What are the advantages of investing in En Primeur Wines?
- Potential Cost Savings – En Primeur allows buyers to purchase wine at a lower price than they would pay once the wine is bottled and released to the market. This can result in significant savings, especially for wines that are expected to increase in value over time.
- Access to Limited Editions – En Primeur buyers often have access to limited-production or highly sought-after wines that may not be readily available once they are released to the general market.
- Investment Potential – En Primeur purchases can be seen as investments, as buyers have the opportunity to acquire wines from highly regarded vintages or wineries that may appreciate in value over time.
- Guaranteed Allocation – By purchasing En Primeur, buyers can secure an allocation of a particular wine before it becomes available to the general public. This can be particularly advantageous for wines with high demand and limited availability.
- Guaranteed Provenance – By purchasing En Primeur, buyers can be sure that they are buying authentic wines of the highest quality. They know that the wine is being stored and handled in optimal conditions. This guarantee of provenance, in turn, is a key selling point when the buyer sells it on to their clients.
- Broking – While managing your clients’ stock, either En Primeur or after bottling, wines can be brokered between your customers. This provides an opportunity to expand your portfolio to wines otherwise closed off from the market.
- Customisation – En Primeur allows buyers to select specific wines and vintages that suit their preferences, rather than having to choose from whatever is currently available on the market.
How does Bevica handle the En Primeur Process?
Bevica has been specifically designed to handle the business management needs of the wine industry. Therefore, it has the features and functions needed to effectively manage your business’s En Primeur activity.
To manage and sell En Primeur wines, Bevica customers make use of a combination of standard Bevica documents (Purchase/Sales and Transfer orders) as well as its Allocations, Reservations and Private Reserves functionality. For every case or bottle, Bevica provides a full audit trail from initial allocation to sale, potential broking, shipping, and ultimate dispatch.
To find out more about Bevica’s En Primeur functionality and all of Bevica’s other drinks industry-specific features and functions, request a demo today.