What you need to know to invest in Bordeaux 2022 En Primeurs?

Are you thinking about investing in wine futures? With the latest Bordeaux vintage being prepared for market – what do you need to know?

The three stages of the En Primeur campaign.

The Bordeaux annual En Primeur campaign is still one of the most highly anticipated events in the wine calendar and comprises three stages.

1. Stage 1 In-barrel tastings of the vintage wines by critics and trade buyers
2. Stage 2 Publication of the key critics’ quality scores
3. Stage 3 The initial Release Price confirmation as allocations of the en primeur wines are placed onto the secondary market and trading commences.

The Bordeaux 2022 wines are being sampled by some key critics now ahead of the official trade tastings on the 20 -27 April 2023. The Union de Grand Crus de Bordeaux (UGC) represents 131 affiliated chateaux and will host around 6,000 journalists and trade buyers from around the world.

However, the exclusive very first tastings of the embryonic 2022 produced by the legendary First Growths, Right Bank icons’ and key investment wines, are strictly managed by the Chateaux and are the hottest wine-tickets in town. Of course, we will be sharing our thoughts and those of the key critics in the coming days.

What do we know about Bordeaux 2022?

The variables that give each vintage its qualitative characteristics come down to temperatures, rainfall, humidity and destructive events such as hail, fire and pest through the growing season. These factors determine yield. Cellar management and the winemaker will have the final say with potential adjustments to the constituent grape varietals in the blend in line with each Chateau’s protocol.

Already labelled a ‘Vintage of Extremes’, 2022 has been one of the most climatically challenging vintages in modern wine growing history. A year marked by searing temperatures and drought, interspersed with dramatic rainfall and hail events. The resultant lower than average yield of a potentially outstanding quality wine could earmark it as an important one for wine investors.

How did climate shape Bordeaux 2022?

The outstanding feature of 2022 was a series of heatwaves with higher-than-average temperatures which exceeded 40 degrees Centigrade in June and above 32 degrees for around a third of the growing season in some areas of Bordeaux.

Average temperatures in each month and the growing period as a whole last year were higher than the averages recorded in 5, 10 and 30 years. The May to September 2022 average was 21.2 degrees, compared to 19.5, 19.2 and 19.3 respectively.

Temperature by Prime vintages compared with 2022

Source: Liv-ex.com / Gavin Quinney April 2023. Temperature measured in degrees C.

Extreme temperatures triggered devastating storms in June with hail and a third more rainfall than the 30-year average for the month. An extremely hot and dry July and August resulted in the lowest levels in over 30 years with just 3 mm in July. The total 2022 rainfall of 278mm most closely compares with the legendary 2010 vintage. But it’s not as simple as how much overall, but also when it falls, and the stress imposed on the vines by drought. 

Rainfall by Prime vintages compared with 2022

Source: Liv-ex.com / Gavin Quinney April 2023. Rainfall measured in mm.

Yield and 2022 investment wine supply

The key outcomes are quality and supply. The 2022 harvest yield was 15 per cent smaller than the 10-year average. If the critics confirm the quality is on par with recent Prime vintages this could be an important factor for wine investors to bear in mind. With parallels being made to other outstanding ‘hot’ vintages there is a lot of excitement about the forthcoming tastings.

What kind of returns can you get from investing in En Primeurs?

The rationale for investing in En Primeur is two-fold, firstly to secure rare wine, and secondly price. Historically Bordeaux used to price wines sold ‘in-barrel’ at a discount to anticipated future in-bottle prices to a small number of loyal customers happy to buy the wines very young.

Pricing has evolved with market demand in the last decade and the discount has either disappeared in most cases or become marginal. Identifying those wines with the potential for growth from release prices is key for investors and their advisors. We appraise the campaign very carefully to ensure we select those wines with excellent quality scores and that are appropriately priced.

The 2020 vintage provides the most recent example of newly ‘physical’ wines and the returns made by top performers since their market release two years ago. Investors in  Chateau Petrus 2020 at release have enjoyed returns of around 170% so far.

Top scoring Bordeaux 2020 wines and returns since release

Source: Liv-ex.com, scores - Neal Martin, Vinous.com.

Can the wine critics’ scores influence En Primeur prices?

More than any other region, the scores of the most influential critics rating Bordeaux guide the market. This may be due to the history of more choice in investment wines and the larger supply generally of them. Also, the tradition of quality scores is perhaps more firmly set with Bordeaux than any other region and there is simply more critics rating the region’s great wines. See which key critics are important for wine investors to follow. 

Get the Bordeaux 2022 En Primeur campaign investment pointers

Our team are heading out to Bordeaux now and we will provide our view on the latest vintage via our social media channels, newsletter and blog over the campaign period.

You can find out more information on the benefits and risks of investing in Bordeaux En Primeurs and by speaking to our expert team on 0203 384 2262. See more information on Bordeaux's 2020 climate influences from Gavin Quinney