Experts’ opinion on 2009 en primeurs in China: “In an unregulated and uneducated wine market, there is always potential for rogue trading”

August 31, 2011

2009 vintage fraud attempts have already come to light on the Chinese wine market. The most sought after wines have been offered to potential customers, even though the chatêaux themselves have not yet announced their release prices…. Sam Gleave, wine sales director at Bordeaux Index, has seen his fears confirmed: “We’ve long had concerns that a vintage like 2009 could result in fraudulent futures trading. There’s huge interest in 2009 Bordeaux wine from China. In an unregulated and uneducated market, there is always potential for rogue trading in en primeur. Unfortunately, it seems as if that potential has been realised.”

Vianney Castan, Managing Director of Vins Joseph Castan, isn’t surprised either: “Requests for copies are extremely common in China. Not a week goes by without someone asking me to create a label called “Château Lafut ” or “Château Lafile”. Some Chinese wine importers show a capacity for great opportunism. Someone, who knows someone, whose wine business is related to yours, will find a way to offer his service as an intermediar in return for a commission. It is difficult to identify reliable partners, because a person who today offers to put you in touch with a wine merchant, can tomorrow put you in touch with a pharmaceuticals or meat trader … Everyone represents numerous business interests and specialists who remain specialists in a given sector are few and far between ”

The UK’s Wine & Spirit Trade Association (WSTA) has issued a series of guidelines for potential investors. Investors would do well to pay close attention to:
– The size and reputation of the wine merchant;
– The availability of guarantees or insurance;
– Checking whether the wine prices are competitive and include delivery;
– Ensuring that invoices and statements clearly establish entitlement to the wine purchased.

WSTA’s chief executive, Jeremy Beadles, said “Bona fide merchants and brokers won’t have any problem proving their credentials, but consumers who ask the right questions will ensure they are not caught out by dubious wine dealers”

August 31, 2011

2009 vintage fraud attempts have already come to light on the Chinese wine market. The most sought after wines have been offered to potential customers, even though the chatêaux themselves have not yet announced their release prices…. Sam Gleave, wine sales director at Bordeaux Index, has seen his fears confirmed: “We’ve long had concerns that a vintage like 2009 could result in fraudulent futures trading. There’s huge interest in 2009 Bordeaux wine from China. In an unregulated and uneducated market, there is always potential for rogue trading in en primeur. Unfortunately, it seems as if that potential has been realised.”

Vianney Castan, Managing Director of Vins Joseph Castan, isn’t surprised either: “Requests for copies are extremely common in China. Not a week goes by without someone asking me to create a label called “Château Lafut ” or “Château Lafile”. Some Chinese wine importers show a capacity for great opportunism. Someone, who knows someone, whose wine business is related to yours, will find a way to offer his service as an intermediar in return for a commission. It is difficult to identify reliable partners, because a person who today offers to put you in touch with a wine merchant, can tomorrow put you in touch with a pharmaceuticals or meat trader … Everyone represents numerous business interests and specialists who remain specialists in a given sector are few and far between ”

The UK’s Wine & Spirit Trade Association (WSTA) has issued a series of guidelines for potential investors. Investors would do well to pay close attention to:
– The size and reputation of the wine merchant;
– The availability of guarantees or insurance;
– Checking whether the wine prices are competitive and include delivery;
– Ensuring that invoices and statements clearly establish entitlement to the wine purchased.

WSTA’s chief executive, Jeremy Beadles, said “Bona fide merchants and brokers won’t have any problem proving their credentials, but consumers who ask the right questions will ensure they are not caught out by dubious wine dealers”