What are wine futures?
Wine futures, also referred to as "en primeur", is the term that describes an investment made in wine before it is bottled. Usually, the investment is in a "pre-arrival", which is the first release of certain vintages. Wine futures are similar to an investment made in the futures market. Simply put, it is a bet that the expected future price will increase. Some wine futures, usually those that are highly sought-after premium wines, enter the secondary market. Upon investing in a wine future, the initial release price is usually at its lowest point. An investor can potentially reap a sizeable profit if the investment was made in a wine future that turns out to be an excellent vintage with tremendous demand. Of course, there's an element of risk to investing in wines. An investment in a wine future can turn out to be poor if there's little demand for the wine when it enters the retail market. Be sure to compare prices and only deal with an established and reputable retailer or importer before making an investment.