This is a kind of commodity future applying to (red) wine.
The principle is simple: buy a wine (at the most expensive end of the spectrum) while it is still undergoing maturing and before bottling at a price supposedly lower than the expected price when it is ready to deliver.
The buyer pays a portion of the price sight-unseen up-front and in full when the wine is delivered, usually years later.
This allows the producers to recoup some cost of production in advance. Nowadays mostly the top Chateaux wines are sold en primeur.
But a new trend may be forming – in 2012 Chateau Latour opted out.
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