en primeur / wine futures

Question 1

Describe by a 2 key points the

“en primeur - system”!

Answer 1

• method of selling wine before bottling

- purchasers buy the wine while in barrel

Question 2

Which costs does the en primeur price cover?

Answer 2

• all the production costs & bottling

Question 3

What are the advantages for a chateaux and a purchasers ?

Answer 3

chateaux advantages:
- generate cash flow to survive & further investments

purchasers advantages:

• cheaper / easier to buy
• price COULD go up

purchasers disadvantages:
- limited production

Question 4

1.) When, 2.) where and 3.) why was the en primeur system introduced

Answer 4

1. ) after the second world war
2. ) in Bordeaux

3.) generate cash-flow for struggling chateaux
= because of the long maturation period

Question 5

Give a meaningful order for explaining the en primeur system!

Give the answers to each of the 7 points.

Answer 5

1. ) When?
2. ) Why?
3. ) what does it mean?
4. ) advantages & disadvantages for chateaux
5. ) advantages & disadvantages for purchasers
6. ) was ist successful?
7. ) which regions adopted it?