Christopher Piper Wines En Primeur Policy for 2015
We thought that we should let all our regular En Primeur Bordeaux suppliers know exactly what Christopher Piper Wines policy for buying the 2015 vintage is.
Chris's letter to our suppliers in Bordeaux sent last week:
"As I am sure that you are all aware, the UK is in the middle of a long and tedious campaign to decide whether, as a nation, we pull out of the European Community. With the referendum taking place on June 28th, this falls extremely badly for companies like ours, who do buy and offer En Primeurs. The obvious issue is that of the next eight weeks of uncertainty and the effect that this will have on the exchange rate between the Pound and Euro. The Pound will fluctuate according to various events over the next couple of months; indeed we have just seen the Obama-effect push the Pound back up above 1.28 this morning. What we have to consider is:
1) If we buy Euros ahead, lets say at 1.28 this morning, we will at least make sure that we can cost our En Primeurs out at this rate. However, if the UK decides to stay in the European Community on June 23rd, the Euro is likely to weaken to above 1.35 to the Pound. This will mean that wines that have been purchased by us and our customers, will automatically reduce in value. This, after the negativity of loss of value in the 2010s and 2009s, is something we really do want to avoid.
2) If we price our En Primeurs out at 1.28 to the Pound and then the UKs pulls out of the European Community, the chance is that there will be parity between the two currencies, certainly over the period when we come to have to pay our invoices.
Lets also hope that there is not too much ego Bordelais when it comes to pricing! Not an encouraging sign when you consider the 2009 Couspaude is trading in-trade at £400/ dozen ex. duty and sales tax.
Therefore, we have decided that we will offer wines that we particularly liked from the 2015 vintage but not until after June 23rd. It may well be that some of these have already sold out by that time, in which case tant pis but if not, tant mieux! Thats a risk that we are quite prepared to take!
Many thanks indeed for your understanding.