We differ from more traditional investment houses when recommending a portfolio. This is primarily due to our impartial approach. Although we have many valuable working relationships within the industry, we do not commit to long-term agreements that could influence or hinder our selection strategy.
While many successful merchants and advisors are able to assist investors, we employ a hands-on consultative approach in which communication is key. Essentially, you only deal with decision-makers who have a shared interest in our long-term success. With low overheads and vast experience, we’re able to equip both the novice and experienced investor.
With the fine wine market being more accessible than in years gone by, the demand for ultra-rare products has been responsible for a large percentage of the overall growth within the market. This demand stems from the insatiable appetite of the ‘super rich’ wanting the very scarcest products, not only when it comes to fine wine but also artworks, classic cars, properties and jewels.
“Sotheby’s wine and spirit sales have broken through the $100 million barrier for the first time in a single year.”
Decanter, Feb 2019
With this elite group being a vital part of the secondary market, it’s welcome news that the number of global billionaires increased by 18% (in the year from Feb 2017 to Feb 2018) with over 2,200 sharing an estimated worth of over $9trillion.
Forbes reported 259 newcomers with an average net worth of $4.1billion, with the majority based in the US. China has the second highest number of billionaires and 10 Saudi Arabians have been lost from the elite list.
When this is taken into account, along with a combination of falling fortunes and political headwinds, we envisage exciting times ahead as we work with more individuals based within territories that have a deep-rooted passion for fine wines.
The fundamentals of fine wine investing are ultimately supply and demand, an equation that is intrinsically linked to performance of any asset. Fine wine matures and improves as it ages becoming more desirable and importantly more valuable, while the consumption of fine wines increases the rarity of certain vintages, with producers pushing the price up as more investors seek out fewer bottles.
The increasing global demand for this asset provides investors with significantly more opportunities to realise profit with multiple exit strategies available. We select wines that we see as the best option for any given client and implement the same process when conducting a sale. We are not limited or tied to any product and can buy with freedom. On exit we search for the highest demand, whether that’s domestically, internationally, via trade or auction.
“Cars, wine and art, in no particular order, are likely to be the top three alternative investment categories with the highest return over the next five to ten years.”
South China Morning Post, Feb 5, 2019
WHAT NEXT
For a free, no obligation consultation and for a copy of our brochure, please leave your details here.
Also download The fine wine market: Past, Present, Future. An independent report by Sarah Phillips DipWSET for WSET (Wine & Spirit Education Trust) Alumni.
