Wine BHM

Wine and spirits broker

Everything you need to know about wine and spirits brokers

What is a wine and spirits broker?

A wine and spirits broker is a professional intermediary who connects sellers (producers, winegrowers, cooperatives) and buyers (negociants, importers, distributors) without ever owning the goods themselves. They receive a commission on the transactions they facilitate, generally expressed as a percentage of the sale amount. The broker takes no risk on stocks and never owns the wines they negotiate.

The broker is above all an expert in market knowledge: they know the prices practised, the qualities available, the needs of buyers and the productions of sellers. Their added value lies in their ability to quickly find the ideal counterpart for each transaction, thanks to their relational network and their in-depth knowledge of the local and regional professional landscape.

History

Wine broking is one of the oldest professions in the wine trade. From the Middle Ages, specialised intermediaries facilitated transactions between winegrowers and merchants in the major wine regions. In Bordeaux, brokers have played a fundamental role since the 17th century, forming a structured and recognised professional body that organised transactions between the châteaux and the Chartrons negociants.

In 1725, King Louis XV officially created the office of Wine and Spirits Broker in Bordeaux, recognising the importance of this profession in organising the wine trade. This official recognition contributed to professionalising and regulating Bordeaux broking, which became a model for other regions.

Today, while the role of the traditional broker has evolved with the digitalisation of trade, their function as a trusted intermediary between producers and buyers remains irreplaceable, particularly for transactions involving fine wines, bulk wines and exceptional spirits.

The profession day to day

The broker spends most of their time prospecting and maintaining their network. They regularly visit producers to know their availability and qualities, and maintain permanent contacts with negociants and importers to identify their needs. This dual knowledge, on the supply and demand sides, is the foundation of their activity.

When an opportunity arises, the broker organises tastings and facilitates negotiations between the parties. They can take samples, send them to potential buyers, comment on the wines and argue their value. Once an agreement is reached, they draft the contracts and ensure the smooth execution of the transaction.

Market and price monitoring is a permanent activity: the broker must know in real time the prices of bulk wines, the prices practised on appellations and the evolution of supply and demand. This expertise allows them to advise their clients and justify their added value in an increasingly transparent environment.

Wine broking in figures

According to data from the Syndicat National des Courtiers en Vins et Spiritueux and the CIVB:

Approximately 200 accredited brokers operate in the Bordeaux region — CIVB, 2022

Over 80% of bulk Bordeaux wine transactions go through brokers — CIVB

The broker's commission is generally between 1 and 2% of the transaction amount

In Burgundy, brokers intervene in approximately 60% of transactions between winegrowers and negociants

Over 500 brokers in wines and spirits recorded in France across all regions

The different broker profiles

Bulk wine broker — specialised in transactions of unpackaged wines, between winegrowers and negociants or packagers

Fine wine broker — specialised in grand crus and prestige wines, collector and investor clientele

Spirits broker — facilitates transactions of Cognac, Armagnac, whisky, rum between distillers and negociants

Export broker — connects French producers with foreign importers, expertise in international markets

Appellation broker — specialised in one or more specific appellations, fine expertise of the local terroir

Auction broker — transaction facilitator at fine wine auctions

Digital broker — uses online platforms to connect buyers and sellers, emerging model

Vineyard broker — specialised in transactions of wine properties, vines and châteaux

Contemporary challenges

The traditional broker faces the digitalisation of markets. Online platforms now allow producers and buyers to connect directly, without going through a human intermediary. To maintain their added value, the broker must accentuate their role as advisor, expert and guarantor of trust that an algorithmic platform cannot offer.

The concentration of buyers is also a challenge. When a negociant or importer represents a growing share of the market, their negotiating power increases and the broker's room for manoeuvre shrinks. Brokers who diversify their buyer portfolio and develop export markets fare better.

Finally, price transparency made possible by the internet and specialist publications is changing the traditional balance of power. The broker can no longer rely on information asymmetry to justify their commission: they must demonstrate genuine relational, qualitative and service added value to remain indispensable.