The 2023 Bordeaux En Primeur campaign has already unveiled a significant moment for wine investors. This year, leading chateaux are introducing substantial price discounts on their previous vintages, positioning this vintage as a compelling buy.
Unlike some recent campaigns, the 2023 vintage is one primed for growth. It also sees a return of the key reason to invest in En Primeur missing from recent campaigns. Here’s why the 2023 Bordeaux vintage offers you a unique investment opportunity.
What is En Primeur?
The concept of buying wine "en primeur" is a key investment strategy in the world of fine wine - particularly in Bordeaux.
En Primeur, also known as wine futures, involves purchasing wines while they are still in the barrel, long before they are bottled and released onto the market. This approach allows investors and collectors to secure potentially high-demand wines at prices that are generally lower than those expected when it comes to a wines release to the market.
Our View of the 2023 Vintage
Our team's week in Bordeaux provided invaluable insights into the 2023 vintage's quality and investment potential.
During our tastings, the diversity in quality across different estates was evident. Standout wines from both banks of Bordeaux showed excellent potential.
Higher yields in 2023 will add extra pressure onto the pricing, and we anticipate that 2023 wines will drink earlier compared to other recent vintages. With increased demand driven by lower prices we feel it’s likely that price growth could come much sooner, resulting in a slightly reduced investment hold. This vintage has the potential to follow a similar trajectory to the 2012, 2014 and 2017 vintages.
The right bank wines impressed with their refined balance and readiness for early drinking—a rare characteristic that could appeal to a broader range of investors.
Bordeaux’s left bank in comparison demonstrated youthful vigor and potential longevity.
Each region was able to use their expertise, technology, and past mistakes to make sure this vintage still had the power to not just be known as an average vintage but potentially one to remember. It embodies the essence of a ‘traditional’ Bordeaux vintage, one we haven’t seen for a few years.
You can view detailed notes on each of the wines our team tasted, and the respective critic scores, by clicking below.
New approach to pricing
The 2023 campaign is likely to be the most price sensitive since the Covid pandemic hit with the release of the 2019 vintage in Spring 2020. Bordeaux recognised the economic challenges then and priced the 2019 wines to engage the market.
Looking at the initial release prices, the trade needs to see the Chateaux and negociants recognise the challenging conditions of the last year. One critic has sagely observed that “deep cuts, not gestures are the only thing that will open wallets”.
Why Bordeaux dominates share of trade
Bordeaux dominated Q1 trading on Liv-ex as price growth continued to stutter across the whole market.
With the Liv-ex 100 increasing for the first time in 12 months in March (see our Quarterly report for more detail), investors have recently flocked to ‘safe haven’ chateau, seeking out the regions high profile producers with a focus on back vintages showing value.
Both Lafite Rothschild and Mouton Rothschild featured at the top of the highest volume of producer searches across the Liv-ex platform in Q1 2024.
Whilst this may not be too much of a surprise, the early releases of the more prominent chateau have shown a willingness from the regions producers to revitalise the market.
| 2023 Wine | Discount on 2022 release price | Release date |
|---|---|---|
| Chateau Leoville Las Cases | 40.0% | 30.04.24 |
| Chateau Lafite Rothschild | 31.7% | 02.05.24 |
| Chateau L’Evangile | 30.6% | 02.05.24 |
| Chateau Pontet-Cantet | 26.9% | 30.04.24 |
| Carruades de Lafite Rothschild | 19.4% | 02.05.24 |
Chateau Leoville Las Cases was the very first of the investment wines to release on the 30th April, at an outstanding 40% discount compared to its 2022 release price. Whilst this was an astonishing drop in price, what was even more unexpected hit the market a few days later.
Creating market dynamics
In a move that has grabbed the market by the horns, Domaines Barons de Rothschild has made a massively bold step with its 2023 release onto the secondary market. Chateau Lafite Rothschild 2023 will be available at a 31.7% lower cost compared to the 2022 vintage.
| Critic scores for Lafite Rothschild 2023 | Score |
|---|---|
| William Kelley (Wine Advocate) | 97 – 99 points |
| Jane Anson | 98 – 100 points |
| Lisa Perroti-Brown MW (Wine Independent) | 97 – 99 points |
| James Suckling | 97 – 98 points |
| Neal Martin (Vinous) | 98 points |
Traditionally the First Growths are the last to release their en primeur wine in early June, signalling a campaign reaching its climax. This year Lafite is one of the first investment wines out of the blocks.
In so doing, Domaines Barons de Philippe is setting a significant bar for the campaign in terms of pricing at the start of the campaign which will likely draw more of the trade back into the market.
How will discounts impact the market?
The earliest learning we can take is that the Bordelais have listened to the merchants, trade press and even the critics on the need to deliver value in this years En Primeur campaign.
The merchants and some negociants have borne the burden of the market price drift in the 12 months since the 2022 wines were released with stock of recent vintages remaining unsold despite their undoubted quality.
The aim from the chateau in 2023 needs to be centred on drawing interest back into the market to help drive growth, which has suffered since its peak in October 2022. A successful En Primeur campaign brings money back into the market, generating new interest and in turn, increasing demand and liquidity.
Previous campaigns where prices have been discounted compared to previous years (2008, 2014, 2019), certainly have had a positive impact on market growth. Will we see the same in 2023 – only time will tell.
The table below shows how Lafite Rothschild vintages have performed in those years above, where prices were discounted compared to previous years:
| Vintage | Release Price | 5 Yr Growth* | Current Market Price |
|---|---|---|---|
| 2008 | £1,850 | 145.47% | £6,450 |
| 2014 | £2,900 | 69.37% | £5,200 |
| 2019 | £5,112 | 11.84% | £5,600 |
2023 En Primeur - In Summary
As the 2019 En Primeur campaign stands out as a well-priced vintage for investors, 2023 is looking increasingly likely to follow suit.
Early indicators show a potential harbinger of a campaign that may deliver the original rationale for investing in En Primeur - i.e wines priced for future growth.
Looking forward, the 2023 vintage could be a pivotal moment for Bordeaux investments. The combination of lower entry prices and high-quality production could yield significant returns.
The current market conditions and the pricing strategy adopted by Bordeaux estates create a favourable environment for new and existing investors. With the recent price corrections in the market stabilising, early investments in the 2023 vintage may lead to substantial portfolio growth.
How to invest in En Primeur 2023
We’re due to receive news on our 2023 Bordeaux allocation shortly. To register your interest in investing, please click below to be one of the first to hear about our availability.