Sokolin - A Pioneer of the Wine Futures Industry

A pioneer of the wine futures industry, Sokolin was one of the first wine merchants in the United States to bring wine futures to the US market. For the last 50 years, we’ve been reliably selling and delivering futures to our customers. The 1959 vintage was the first that Bill Sokolin, our founder’s son, sold as futures. With a track record that spans 50 years, Sokolin is one of the most trusted and experienced sources for selling wine futures. We’ve positioned ourselves to be a leader in this segment of the fine wine market.

---

What Are Wine Futures?
For those of you who are maybe new to wine futures or are not as seasoned as we are when it comes to the ins and outs, we thought we’d share with you some basics. When you buy wine futures, you are buying wine before it’s even bottled, at a set, determined price. Buyers pay in full for the futures at the time of purchase (excluding freight, miscellaneous charges and applicable taxes, which are charged when the futures arrive to us and prior to your delivery).

Right now, the 2010 vintage is still in the barrel, and delivery of any wine future typically doesn’t occur until 2 - 2 ½  years after you purchase them. This means that 2010 futures are expected to arrive to us sometime in 2013. As soon as they arrive to us, you will be notified so delivery can be arranged. When paying up front for a product in full that you won’t actually see for 2+ years, working with a trusted, reliable and experienced wine merchant is of the utmost importance.

---

The Upside of Buying Wine Futures
With the increased global demand for wine, buying wine futures helps secure your allocations of the wine. There is only a certain amount of 2010 Chateau Mouton Rothschild produced, and once it’s gone, it’s gone. Buying futures helps you get in early on the vintage. Additionally, another benefit of buying futures has to do with pricing. Every vintage is different and unique in its own way, but historically there has been a trend that buyers can purchase wine futures at a lower price on release versus delaying their buying until the bottles actually arrive to the US market a few years later. Often, by the time those same bottles are selling in the US, the price for that wine has already risen, and in some cases, quite substantially. Buying low often creates sizable room for a nice gain when selling later.

At a quick glance, this opportunity for futures price appreciation can be seen with the following examples:

Of course, this off-the-charts price climb doesn’t always happen, so caution is to be exercised when buying wine futures. No one knows, including us, if this trend and potential for value increase will continue for wine futures, particularly given the current economic climate. When critics give their final scores on the 2010 vintage one year from now, any downgrade in score from the initial score range awarded can have significant adverse effect on the wine’s price and its value. It’s important to understand these inherent risks when buying futures. That is why we are here to assist you.