How Do Wine Allocations Work? En Primeur Explained
Updated
How do wine allocations work? Securing highly sought-after wines often involves navigating allocation systems, primarily through en primeur offers. This method allows you to purchase a vintage while the wine is still in the barrel, typically a year or 18 months prior to its official release. A potential advantage of buying en primeur is the opportunity to invest before the wine is bottled. The wines may be considerably cheaper during this period than they will be once bottled and released to the market. However, this is not guaranteed, and some wines may lose value over time. This approach is particularly useful for securing wines with very limited quantities that might not be available later. Wines bought en primeur are often placed directly into custom-free storage, known as "in bond."
What is an En Primeur Allocation?
An en primeur allocation allows you to purchase a vintage while it is still aging in the barrel. The process involves tasting barrel samples when the wine is 6 to 8 months old. A preliminary score or rating influences the en primeur price. The winemaker crafts an approximate blend for sampling, though the final composition may differ.
This purchasing method is most commonly associated with wines from Bordeaux, Burgundy, the Rhône Valley, and Port. Other regions like Piedmont, Tuscany, Ribera del Duero, and Rioja are also adopting the practice. For the consumer, purchasing en primeur provides the opportunity to secure wines that may have very limited quantities and be difficult to buy after their release.
While en primeur can offer considerable profit, it is not without risk. For example, the 1982 vintage of Château Latour was sold at £250 a case en primeur in 1983, and was valued at £9,000 in 2007. The major part of this price increase occurred after bottling. Conversely, the record release prices of the 2009 and 2010 vintages tested the market's resolve. Many buyers faced losses during the following four years. However, the market has since turned, with top wines of the 2014 vintage reporting an average ROI of +13.4% as they approach release in bottle. Understanding these dynamics is crucial for any fine wine investment strategy.
How Do Auction Houses Facilitate Wine Acquisitions?
Auction houses act as agents for the seller, providing a structured platform for you to acquire wines, often including those from allocation systems. To participate, you must register in advance. Christie's requires individuals to provide photo identification and proof of current address. Corporate clients need their Certificate of Incorporation and proof of directors and beneficial owners. Christie's may also request a financial reference or deposit. Zachys similarly requires a valid government-issued photo ID, a valid credit card, and a bank reference or proof of funds for new bidders. You must also confirm you meet the legal age to purchase alcohol: 21+ in the U.S. and 18+ in Hong Kong, according to Zachys: conditions of sale.
You can bid in several ways: in person, by telephone, through written (absentee) bids, or online via platforms like Christie's LIVE™ or auction.zachys.com, as detailed by both Christie's and Zachys. All bids are final once submitted, and you cannot cancel them, according to Zachys and WineBid: frequently asked questions. The auctioneer's decision is final in case of bidding disputes, Zachys states.
When evaluating lots, you should be aware that auction house descriptions are opinions rather than statements of fact you can rely on. Lots are sold "as is," without any representation or warranty as to condition by the auction house or seller, Christie's: London Conditions of Sale, Wine specifies. Condition reports are provided as guidance only and may not refer to all faults. Zachys strongly encourages prospective buyers to examine lots before the auction at their temperature-controlled warehouse, disclaiming liability for inaccuracies or errors in descriptions. WineBid also states that all purchases are made "as is," and they do not offer refunds or exchanges for issues like cork taint or oxidation. These factors cannot be observed until the bottle is opened. For more details on navigating the auction process, consult our guide on how to buy wine at auction.
What Are the Costs Beyond the Hammer Price?
Beyond the hammer price, you will pay a buyer's premium, various taxes, and potentially duties, storage, and shipping fees. The buyer's premium is a charge added to the hammer price of each lot sold. Rates vary by auction house:
| Auction House | Wine Buyer's Premium | Additional Notes |
|---|---|---|
| Christie's | 25% of hammer price | For Wine, Spirits and Cigars. VAT payable on premium. |
| Sotheby's | 24% of hammer price | For Global Wines & Spirits, plus 1% Overhead Premium on all hammer prices. |
| Bonhams | 24% of hammer price | For Wine and Whisky. VAT at 20% added to Buyer's Premium. |
| Zachys | 25% of hammer price | Unless otherwise indicated. Credit card payments incur a 2% processing fee. |
| WineBid | 17% of hammer price | Covers inspection, market value, photos, ratings, tasting notes, producer history, and insurance in storage. |
You are responsible for all applicable taxes, including any VAT, GST, sales, or compensating use tax, wherever such taxes may arise on the hammer price and the buyer's premium, Christie's notes. For example, Bonhams states that it adds VAT at the current rate of 20% to the Buyer's Premium for Wine and Whisky.
Sales tax regulations vary by location. For New York Live Auctions and New York Internet Auctions, Zachys is required to charge and collect New York sales tax. This applies to your purchase unless the property is released to a licensed freight forwarder for immediate shipment outside the United States. In contrast, the State of Delaware does not impose sales tax on tangible personal property sold within the state. Zachys is therefore not required to charge or collect sales tax for sales conducted there. WineBid collects sales tax on all purchases where title passes in Napa County, CA, except for international shipments or to states where they hold a direct shipper permit, such as Louisiana, Nevada, New Hampshire, Oregon, and Wyoming.
Furthermore, many wines are imported and may be subject to tariffs, duties, taxes, or other governmental charges imposed or adjusted after the time of purchase. Zachys states that you bear full responsibility for any additional fees, taxes, or charges that arise as a result of these changes. For a comprehensive understanding of all potential costs, use our landed cost calculator.
How Does "In Bond" Storage Affect Your Purchase?
Buying wine "in bond" allows you to defer or avoid certain taxes and duties by storing the wine in a customs-controlled warehouse. Wines offered "in bond" are typically marked with a ‡ symbol in auction catalogues, as indicated by Christie's.
If you choose to purchase wines "in bond," no excise duty or clearance VAT will be charged on the hammer price, according to Christie's. However, VAT will still be charged on the buyer's premium. You become responsible for arranging collection by a shipper with a bond movement guarantee or by a warehouse with a customs bond/suspense regime, and for any fees charged by the shipper or warehouse. If you later take your purchases out of bond, excise duty and clearance charges will become payable. This option is particularly beneficial if you intend to export the wine directly outside the UK using an Excise authorised shipper. It can help secure applicable VAT or duty refunds, Christie's explains.
Alternatively, if you choose to buy the wine "duty paid," excise duty at current rates and clearance VAT on the duty-inclusive hammer price will be added to your invoice. Christie's cannot cancel or refund these charges. For context, HMRC sets the Alcohol Duty rate for wine (including sparkling wine) with an alcohol by volume (ABV) between 8.5% and 22% at £30.62 for each litre of pure alcohol, as of 1 February 2026. For wine with an ABV between 3.5% and 8.4%, the rate is £26.61 per litre of pure alcohol, according to HMRC: alcohol duty rates. Understanding these options is key to managing the total cost of your acquisition and can be further explored in our guide on how to store wine.
What Are Your Responsibilities for Collection, Storage, and Shipping?
You are responsible for promptly collecting your purchased wines, arranging storage, and managing all shipping and export logistics. After making full and clear payment, you must collect the lot promptly, Christie's states. Zachys requires you to either pick up purchases or make shipping arrangements within 14 calendar days of the auction. If you do not collect them, Zachys will transfer the wines to its storage at your expense.
For storage, WineBid places all wines purchased on its platform into storage at Global Storage Network (GSN). All WineBid customers receive a minimum of two months of free storage at GSN. Those with a Collector membership tier receive four months of free storage. Pro tier members receive six months of free storage, WineBid: frequently asked questions specifies. Christie's charges storage costs from the end of the 90th day following the auction date if a lot has not been collected.
Regarding shipping, you must make all transport and shipping arrangements, Christie's: London Conditions of Sale, Wine notes. Christie's can arrange to pack, transport, and ship your property if you ask and pay the costs. WineBid partners with GSN for white glove storage and shipping services, with wines packed in molded Styrofoam shippers for insured, alcohol-compliant transit. WineBid states that purchases are never shipped automatically, allowing you to schedule shipping or pick up at your convenience.
You are solely responsible for determining and satisfying the requirements of any applicable laws or regulations relating to the export or import of any lot you purchase, Christie's advises. This includes obtaining any necessary export or import licenses, as Zachys: conditions of sale also emphasizes. A delay in obtaining licenses will not justify the cancellation of any sale or excuse a delay in providing full payment for the lot. Local laws may prohibit the importation of certain products or restrict their resale in the country of import. No such restriction will justify the cancellation of a sale or delay in payment, Zachys warns.