Bordeaux Futures

Panos Kakaviatos has an article in Decanter about supposed American disillusionment with Bordeaux Futures:

Wine merchants will buy 2009 Bordeaux futures, but they say that previous vintages are unsold, the economy is uncertain, the exchange rate unfavourable – and they doubt Robert Parker can score it higher than 2008 anyway.

Michael Glasby of the American retailer Premier Cru in California predicts that 2009 Bordeaux wines will have to 'fight for their place more fiercely than all the previous "vintages of the century".'

I know I am not a typical wine consumer, but I like the futures system and usually try to take advantage of it. This is a great way to pick up deals on what will undoubtedly be good vintages. In particular, I think there are some really good deals amongst the 2008 futures.

Let me illustrate with one of my favorites, Chateau Brane Cantenac. The 2005 vintage is going for about $100 a bottle. The 2006 vintage, which has only recently started hitting stores in the United States goes for about $70 a bottle. This make sense as the 2006 vintage was not as good as the 2005.

I had the chance to do a barrel tasting of the 2008 vintage while I was in Bordeaux, and I agree with Parker that it is a very complex, classic Bordeaux. Right now, futures for the 2008 vintage are available for around $38. That is a great deal for a wine that will probably retail for double that.

Of course there is risk with futures, just as there is with any investment. You have to rely that the company you purchase your futures from to be around in 2011 when the wine is finally delivered and if you are investor, not a drinker, you have to hope that the wine does increase in value. But, Bordeaux futures have been a strong investment for many years, if you have the money, an investment in futures almost always pays off.