Conclusion

The En Primeur market has the opportunity to embrace a step-change in transparency and efficiency brought about by the internet. This would add considerable value to buyers and sellers, just as it has across other markets.

The secondary market is already the most efficient pricing mechanism for fine wine, particularly for wines which enjoy the greatest liquidity. Liv-ex’s ‘fair value’ methodology harnesses the power of the secondary market to help price En Primeur.

The trade and their clients can use ‘fair value’ to help identify wines which offer the greatest value En Primeur and to avoid those which offer the least. In recent years, En Primeur has been mispriced relative to prices in the secondary market, sometimes by as much as 30%. Therefore the decision to buy En Primeur can have a significant impact on both margins and returns.

High expectations for the vintage, a recovery in fine wine prices and the opportunity to increase transparency and efficiency bode particularly well for En Primeur in 2016. The opportunity for a successful campaign is there – for those ready to take it.