How to Invest in Wine Futures
May 13, 2025
“It may an attractive method for certain investors.”
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Investing in wine futures—also known as en primeur—is a way to buy wine while it is still in the barrel, before it is bottled and released to the public. This approach can be both rewarding and risky. Wine futures are best suited for enthusiasts who know wine well and long-term investors who can tolerate illiquidity.
Here’s a step-by-step guide to help you get started:
1. Understand What Wine Futures Are
- Wine futures allow investors to purchase wine at a lower price before it’s bottled and released—typically 18 to 24 months later.
- Most commonly associated with Bordeaux wines, though some Burgundy and Rhône producers also offer futures.
2. Know Why People Invest
- Price appreciation: Wines bought en primeur can increase in value once bottled.
- Access: Futures provide access to in-demand wines that may be hard to find later.
- Collecting: Some do it for the prestige and personal collection, not just profit.
3. Choose a Reputable Merchant
Work with a reliable wine merchant or broker with a solid track record.
Examples include:
- Berry Bros. & Rudd
- Millesima
- Farr Vintners
- Liv-ex (a marketplace for fine wine)
4. Understand the Costs
- Initial purchase price: You pay now for wine that will be delivered later.
- Storage: Often stored in bonded warehouses, and you’ll pay annual fees.
- Insurance and delivery: Additional costs when taking possession or selling.
- Taxes: Depending on your country, there may be VAT or capital gains tax implications.
5. Track Vintage Reports
- Follow reports from Robert Parker, Wine Spectator, Jancis Robinson, or Decanter to understand which vintages are promising.
6. Timing & Selling
- Most investors hold wine for 5–10 years or more, depending on the vintage.
You can sell it through:
Auction houses (e.g., Sotheby’s, Christie’s)
Online platforms like Liv-ex or WineBid
7. Risks to Be Aware Of
- Market fluctuations: Wine values can drop.
- Counterfeit or fraud: Always use trusted vendors.
- Storage issues: Improper storage ruins wine and its value.
- Liquidity: It can take time to sell at your desired price.
For some, wine futures may well be a fun and profitable method to invest.
Please keep in mind this information should not be considered as financial advice. Investment decisions should be based on individual research and consultation with a qualified financial professional. The value of investments can fluctuate, and past performance is not indicative of future results. Always consider your risk tolerance and financial goals before making investment decisions. US citizens have unique tax requirements which should always be reviewed with a professional.
