Cult Wines, a London-based wine investment firm, has robustly denied allegations of cancelling Bordeaux En Primeur wine orders worth €20 million. The allegations, initially reported by a Chinese media outlet, has caused a huge stir among the wine trade in China, Bordeaux’s largest export market.
Tom Gearing, CEO of Cult Wines, in his response to Vino Joy News, stated, “First and foremost, we want to emphasize that we are taking this issue very seriously. Our primary objective is to ensure the accuracy and integrity of the information presented in the public domain. Consequently, we are in the process of initiating legal action against the media outlet responsible for the article, with the aim of having the article removed and an apology issued expeditiously.”
The article that sparked this controversy was published by China’s leading wine trade publication WBO and alleged that Cult Wines breached its contract by cancelling a substantial portion of its 2022 Bordeaux En Primeur orders, citing a Chinese importer and an individual described as familiar with the Bordeaux market as sources. The report however did not include comments from Cult Wines.
Gearing labeled these allegations as “misinformed” and “materially damaging” to Cult Wines’ reputation and business. He highlighted the lack of due diligence by WBO in not verifying these claims with Cult Wines before publishing.
He maintained the cancellation was false and insisted that the quoted amount of €20 million is far higher than the amount the company placed during the 2022 Bordeaux campaign. “The allegations are made up,” he refuted.
The company also issued a formal statement in Chinese via its WeChat account.
The 2022 Bordeaux En Primeur campaign has just came to an end earlier this year. The wines are described by critics in general as “surprisingly good” after an unusually hot and dry summer. Despite the quality, the average release price increase during the En Primeur campaign was 20.8% higher compared to 2021, according to Liv-Ex.
Describing the 2022 En Primeur campaign as “another missed opportunity”, Liv-Ex expressed disappointment in the pricing strategy. In its analysis, it lamented: “This has led to a difficult and costly campaign and sadly, despite the quality of the wine on offer, is unlikely to have encouraged a new generation of buyers.”
I believe Mr Gearing that these purchases haven’t been cancelled by Cult. The reality is much worse. The E20 million in ‘purchases’ has been cancelled by the negociants in Bordeaux because Cult Wines hasn’t paid for them. It is an open secret within the wine industry.