En primeur campaign launches with increased prices

Tuesday April 23 2019 by Vitisphere

'We are not, yet, a household name. We launched first to secure publicity for ourselves”, commented Jean-Christophe Meyrou.'We are not, yet, a household name. We launched first to secure publicity for ourselves”, commented Jean-Christophe Meyrou. - Photo credit : DR

Announcing its En Primeur prices before anyone else, Kwok vineyards launched their 2018 vintage one week after its debut presentation. On April 11, Bordeaux trading firms put its first 2018 futures on the market. Château Bellefont Bellecier came out at 30 euros (+4% compared to 2017 for the Saint-Émilion Grand Cru Classé), Haut-Brisson at €15.30 (+4%, Saint-Émilion Grand Cru), Tour Saint-Christophe at €14.50 (+7%, Saint-Émilion Grand Cru), Enclos Tourmaline at €90 (no change)... As trading companies called for price moderation, Kwok vineyards were not necessarily singing from the same hymn sheet as them, and have pulled it off.

Traders pessimistic

Despite the success of these first sales, the atmosphere remains mixed amongst Bordeaux trading companies. “The release worked well due to a market with inside knowledge, the United States, and low volumes which tasted well”, commented a Bordeaux trader, who remains pessimistic about the bulk of the campaign. The fear is that properties will fuel price increases, while markets remain challenging and trading companies still have stocks of wines from 2015 and 2016 that have not shown well price-wise.

Underscoring the need to help marketers with more attractive prices, Château Angélus released its 2018 vintage on 16 April at a selling price of 295 euros. This is 8% down on the €322 commanded by the 2017 vintage (itself down from €345 for the 2016 vintage). In the En Primeur market, each property has a responsibility for gauging fair prices for its wines.

 

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