EN PRIMEUR FAQs
What does 'en primeur' actually mean?
En primeur refers to the practice of purchasing wine whilst it is still maturing in barrel.
Which regions sell their wine this way?
Although this process could be practiced anywhere in the world, only a few regions sell their wines this way. Bordeaux and Burgundy are the two key areas. Typically, the Bordeaux Châteaux will release the prices of their wines for sale in the spring following vintage. Many Burgundy producers, in recent years, have released their wines for sale in January, about four to six months before shipping to the UK.
Why buy en primeur?
Historically the main reason for buying en primeur was to buy at a better price than that which you might pay when the wine is bottled and shipped to the UK. However, there are other key advantages: it allows you to secure an allocation of potentially rare, highly sought-after wines, which may be produced in very small quantities. You may have an option to specify the bottle size you would like; halves, magnums or larger. It also guarantees the absolute best provenance of your wines, direct from the winery.
How do I actually buy en primeur?
You will buy your wine "under bond", i.e. excluding duty and VAT, and pay for the wine when you confirm your order. When the wine arrives, (usually two to three years after the harvest), you will be informed of this by us and asked for confirmation of delivery instructions. At this point you may opt to store the wines under bond, or have them delivered. Should you choose the latter option, you will then be required to pay duty and VAT at the prevailing rate. Should you choose to store the wine in bond, you will only pay duty and VAT if and when you take delivery. We will charge you for storage on an annual basis. Our current annual storage rates are £4.75 for cases of 1-6 bottles and £9.50 for cases of 7-12 bottles (prices include VAT).
Why should I store my wine under bond (UB)?
You don't have your own cellaring facilities. You want to guarantee the best possible resale value (typically this is achieved with UB sales). To defer paying duty and VAT until your wines are ready for drinking.
What is a bonded warehouse?
Bonded warehouses are licensed by H.M. Customs & Excise to store wines on which duty and VAT has not been paid. VAT, duty and a release charge are levied at the prevailing rates only when wines are released from the bond.
UK DUTY
£1.81+VAT per 75cl bottle of still wine.
£2.32+VAT per 75cl bottle of Champagne or sparkling wine.
£2.41+VAT per 75cl bottle of Sherry or Port
UK VAT is currently 20% (payable on both the cost of the wine and the duty)
Rates are subject to change by the government at any time.
Which bonded warehouse will my wines be stored in?
Wine is kept in optimum condition at EHD London's Locke-King Vaults: a secure, underground bonded warehouse, with ideal temperature and humidity. The security of the site is acknowledged as among the best in the industry giving you piece of mind. Insurance against all risks to full replacement value is included in the annual storage charge. EHD's stock management system conforms to HM Revenue & Customs strict controls allowing regular inventory checking and stock reconciliation.
Read more about Locke-King Vaults.
Are there any risks of buying en primeur?
You may buy a wine which could decrease in value. Although recent years have shown wine to be a very sound investment, we always recommend you buy wine you will enjoy drinking - and not to be disappointed if it doesn't increase in value. We insure your wine until your delivery and / or storage instructions have been completed.
See the Wine & Spirit Trade Association Guide to the en primeur wine market
Read FT.com January 2010 report on wine investment
