Month: March 2022

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Fine Wine Taxation | Guide

Two fine wine bottles next to an oak barrel

Fine wine offers you a sound and lucrative investment. While traditional investors have only fairly recently discovered the tremendous opportunities available with fine wine, collectors have known about its profit-making value for hundreds of years. Through the centuries, shrewd wine lovers have been selling part of their collections as a way of subsidising their consumption, leveraging the gains of a uniquely rarifying asset against their own cellars.

Granting easy access to this highly lucrative asset, WineCap offers extensive advice from a team of seasoned experts who can help with sourcing, storage and other crucial aspects to wine investment. With the benefit of our industry-leading technology, we can help you make the most of a bespoke portfolio and reach your investment goals. 

Acting as agents, we take care of sourcing your wine and organising its storage and insurance while you remain in complete control over your investment. Thanks to our links to the UK, you’ll benefit from the most developed secondary fine wine market there is. You’ll also enjoy access to the worldwide wholesale market via the London International Vintners Exchange known as Liv-ex, allowing you to secure a fast and fruitful sale once you’ve reached your investment goals. Lastly, we feature an unparalleled global reach while being tactically positioned in London, the fine wine market’s premier hub.

Click the button below to download our Fine Wine Investment Guide and learn more about our proven strategy for investment success. Do not hesitate to get in touch and speak to one of our wine investment advisors for further information and to reserve your allocations.

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Bordeaux 2019 | Vintage Report

Bordeaux wine barrels in a cellar

Our Bordeaux En Primeur 2019 Report is available to download. Find out what our wine investment experts thought of 2019, a wonderful vintage that saw a surprisingly successful En Primeur campaign during the global uncertainty and financial stress of the time. Discover which Bordeaux sub-regions and producers we feel delivered top class wines worth paying attention to. 

In 2019, cool weather during flowering led to reduced quantities and conditions favoured producers with multiple plots of different soil types that could handle both the sunshine and rainfall. Right Bank clay soils were better able to retain water and thus sustain the vines.

Though 2019 is undoubtedly a fantastic vintage, investors are advised to be selective and search for relative value rather than being led solely by critics’ scores. 2019 was quite different in terms of how tastings were conducted. No longer could massive trade tastings be held for the media and critics. Therefore, the tasting notes from that year may be the most careful and well-thought out of any, as the critics were not being whisked from one mass tasting to another and could taste samples at their leisure at home. Without the pressure of being in the company of the winemaker, or under the influence of peers, these may be some of the most honest ratings ever. 

Through careful study and data analysis, WineCap provides insight into the wines that we feel present both value and opportunity for capital growth. With our bespoke, industry-leading graph and analysis tools we have concluded that the wines selected in this report are attractive prospects and that any carefully built investment portfolio should consider 2019 Bordeaux.

Click the button below to download our Bordeaux En Primeur Report. Do not hesitate to get in touch and speak to one of our wine investment advisors to discuss buying wines En Primeur.

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Report

Fine Wine Investment | Guide

Fine wine investment

A renaissance in the market over the last two decades has let the secret of fine wine out, and the mainstream investment community has responded in kind. The word on fine wine is that it’s not just for the privileged few: it is an ideal choice for everyday investors looking to diversify their portfolios.

By choosing fine wine, you benefit from a proven market that is stable, relatively detached from the mainstream, and consistent in its double-digit returns. What’s more, fine wine offers you a great hedge against inflation.

Discover in our Fine Wine Investment Guide:

  • How to invest successfully in fine wine
  • What WineCap will do for you
  • The beauty of fine wine as an investment
  • The long-term returns of fine wine
  • The influence of wine critics
  • How to create the perfect portfolio

Click the button below to download our Fine Wine Investment Guide and learn more about our proven strategy for investment success.

Do not hesitate to get in touch and speak to one of our wine investment advisors for further information and to reserve your allocations.

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Report

United States | Regional Report

1976 was the turning point for California and US wine in general. ‘The Judgement of Paris’ blind tasting on May 24th proved that France had a serious contender when top Californian Bordeaux blends were tasted against Bordeaux classed growths, and Californian Chardonnays against white Burgundy. To the surprise of many, California led on both fronts.

This was the first step that set the region in motion. In the 1990s, the first Californian ‘cult wines’ emerged – big brands that attracted collector followings. Producers such as Inglenook, Stag’s Leap, and Robert Mondavi were the pioneers, but it was Screaming Eagle that established the formula for success that many followed: tiny volumes, word-of-mouth hype, and soaring prices. Robert Parker’s appraisal and perfect scores further bolstered their image.

The global market for US wines, dominated by California but also featuring wines from Washington and Oregon, has exploded in recent years. Its share of secondary market trade has risen from 0.1% in 2010 to around 7% this year, and an increasing number of previously overlooked wineries are now showing investment-worthy returns.

Our USA Report delves into the development of its investment market, historic performance, recent expansion and key players.

Discover more about:

  • History of the US wine industry
  • International and domestic trade
  • California’s most significant AVAs
  • Napa Valley’s investment-worthy wines

Do not hesitate to get in touch and speak to one of our wine investment advisors for further information and to reserve your allocations.

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Report

Champagne | Regional Report

Champagne region

Champagne needs little introduction, even to those not typically involved with fine wine. It is everywhere – from restaurants and clubs to airport lounges and private cellars. Fit for every occasion, Champagne has developed an investment market in part thanks to its strong brand recognition. More approachable than other fine wines, the Champagne market has become one of the most liquid – an added benefit for investors. In fact, the region dominated the top-traded wines on the secondary market in 2023.

A decade ago, the region made up less than 3% of the fine wine investment market. Today, its trade share comfortably sits between 13% and 15%, making it a close contender to Burgundy (the second-     most-popular region after Bordeaux).

Pricing dynamics have also evolved during this time. From a relatively modest price performer, and one of the most affordable entry points into the wine investment market, Champagne has risen to new heights in recent years. As the ultimate fine wine ‘luxury’ asset, Champagne has shown remarkable resilience to economic crisis and relatively low volatility.

Our Champagne Report delves into the fundamentals of this fascinating region, including the development of its investment market, historic performance, recent expansion and key players.

Discover more about:

  • Champagne’s investment performance
  • Supply and demand dynamics
  • Key Champagne houses and brands to watch

Do not hesitate to get in touch and speak to one of our wine investment advisors for further information and to reserve your allocations.

 

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Report

Bordeaux 2018 | Vintage Report

Our Bordeaux En Primeur 2018 Report is available to download. Find out what our wine investment experts thought of 2018, a vintage that promises long development times thanks to powerful tannic structures and acidity. Discover which Bordeaux sub-regions and producers we feel delivered top class wines that will perform well. 

2018 was defined by extremes of weather, with heavy rainfall earlier on followed by a hot, dry summer. Conditions favoured producers with multiple plots of different soil types that could handle both the sunshine and rainfall. Clay soils were better able to retain water and consequently sustain the vines throughout drier conditions.

Though 2018 is undoubtedly a fantastic vintage, investors are advised to be selective and search for relative value rather than being led solely by critics’ scores. 

Through careful study and data analysis, WineCap provides insight into the wines that we feel present both value and opportunity for capital growth. With our bespoke, industry-leading graph and analysis tools we have concluded that the wines selected in this report are attractive prospects and that any carefully built investment portfolio should consider 2018 Bordeaux.

Click the button below to download our Bordeaux En Primeur Report. Do not hesitate to get in touch and speak to one of our wine investment advisors to reserve your allocations.

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Learn

Investment Options: Why Wine?

Bottles of wine in storage

Find out what investment options are out there so as not to miss out on wealth creation by holding excessive cash. That was the message from the Financial Conduct Authority (FCA) which launched a new campaign this week to both incentivise and educate Britons to invest their cash wisely.

The recent emergence of user-friendly apps and free time born of the global pandemic has drawn record numbers to the market in the hope of turning their down time into financial return. However, this surge of investment opportunism has given rise to poor decision-making; with many investors tantalised by the promise of big wins from high-risk strategies such as cryptocurrency and volatile stocks. The FCA’s double-pronged campaign aims to encourage more prudent investment, while at the same time educating about the risks. The watchdog is roughly targeting a fifth of the estimated 8.6m Britons who have over £10,000 in cash.

‘Over time, [they] are at risk of having their money eroded by inflation.’ – The FCA

This recent investment activity highlights that, with interest rates as low as 0.1% at the time of writing, those looking to either start investing or diversify their portfolios would do well to take advantage of the current trend and to consider investing in wine, a proven way of delivering growth.

The benefits of wine as an investment option:

  • In the last 30 years wine investment has delivered an average of 10% compounded growth

  • It is a tax-free investment with no Capital Gains Tax

  • It has a low correlation to other assets

  • Uniquely, wine both improves and becomes rarer with age, unlike other assets in the same class

Based on previous performance, solid returns could be realised after five years, though customers who have held their wine investments for up to ten years or more have seen even greater returns and any potential investor should consider a long-term strategy.

Ultimately, wine is considered an excellent opportunity to grow your pot of cash in a time where interest rates cannot. With good advice and the right selection, wine could be the best investment option you add to your portfolio this year.

Find out more by downloading our free guide to wine investment.

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Insight

Our Top List of Tuscan Wines for Investment

A Tuscan vineyard

Italian wine is increasingly becoming hot property when it comes to wine investment. Last year was one of the category’s strongest when it came to trades, with an increase of 7%. Tuscany also performed remarkably well and, because of this, we have put together a list of Tuscan wines that are highly respected, built to age for years and that are leading the charge when it comes to investment grade wine.

The classic ‘Super Tuscans’ – including producers such as Solaia, Ornellaia and Tignanello (all having increased in trades in 2020 by 15%, 10% and 9% respectively) – began making incredible wines in the 1960s and 70s. These producers created standout wines using Bordeaux grape varieties and paved the way for others who are now gaining more and more recognition using other grape varieties, including Sangiovese.

Tua Rita is widely regarded as the producer who spearheaded the second wave of Super Tuscans, with its flagship wine Redigaffi. Like some of the greatest things in life, Redigaffi was created entirely by accident. In 1984, Rita Tua and her husband Virgilio moved to the quiet Etruscan coast to retire and cultivate wines for fun. Years later, and with 30 hectares of Merlot under vine, Redigaffi is now considered one of Tuscany’s finest wines that commands respect. This wine continues to gain momentum and we believe it would make an excellent investment option for those wanting to diversify their portfolio.

Second on our list of Tuscan wines is the top-flight Chianti producer Fontodi. Keeping a steady hand on the tiller at the Fontodi estate are Marco and Giovanni Manetti who have been making its predominantly Sangiovese-based wines since 1979. Their vision, expertise and commitment to quality continue to reap rewards: Fontodi’s Flaccionella della Pieve 2017 was one of last year’s top ten most-traded Tuscan wines & in the top 15 most-traded Italian wines. It represents a great diversification into a wine investment category that’s accelerated in the past 12 months.

Biondi Santi is one of the old, traditional Tuscan wine estates whose pioneering work propagating the Biondi Santi Brunello di Montalcino clone of Sangiovese cemented it as one of the region’s legendary producers. As perhaps the greatest expression of Brunello di Montalcino, this 100% Sangiovese wine aged for at least 36 months in oak is built to last for decades, if not longer. With the Riserva 2012 having all three ingredients that we would expect to appreciate: a historic brand, immense ageing potential and one of their highest ever scores – 97 points – it offers excellent value compared to top tier wines from other regions.

If you want to find out more about investing in Italian wines – and the growing Tuscan category in particular – schedule a free consultation with one of our investment experts.

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Learn

How to Structure a Wine Investment Portfolio

Lady browsing WineCap site on laptop

A great deal can and has been written about how to structure a wine investment portfolio. Just Googling ‘Modern Portfolio Theory’, ‘Post-Modern Portfolio Theory’, or the ‘Efficient Market Hypothesis’ makes it clear that a few hundred words can only scratch the surface.

At times we may recommend – or clients may wish for greater exposure – to a particular sector. However, the common belief is that the best practice is to hold a good spread of assets and a good spread of asset classes. One of the (many) advantages wine has to investors is its relative simplicity and that it lends itself to fairly easy portfolio structuring.

Here are some things to consider when thinking about how to structure a wine portfolio: 

  • Know your goals & understand your timescales. You want to be able to take as much advantage as possible of wines’ ability to improve as it ages. As attractive as we think 2019 Bordeaux is, if you’re looking at a short hold it might not make sense to invest in En Primeur wine if its drinking window may not line up with your timescale.

  • Understand the veil of ignorance. While predictions can be useful, the future cannot be certain. Unless you have a functioning crystal ball, it’s good to have a reasonably broad selection. Hold a spread of regions, vintages and price points, but also keep an eye on holding varying formats too.

  • Don’t focus solely on the highest pinnacles when considering how to structure your wine investment portfolio. Oftentimes it is less heralded wines or vintages that outperform the market. Naturally, you’ll want to hold some tip-top wine, but make space for the less than stellar and perhaps even the objectively bad vintages. If you’re looking at well-priced examples of the best brands, there’s no reason to avoid off vintages on principle, Lafite 2007 and 2013 being great examples.

  • Have some flexibility. When building a portfolio we always have half an eye on the current shape of the wine market but it’s easy to be overly focused on sticking rigidly to a planned portfolio structure. Will it make a difference to your portfolio if you’re at 20% Burgundy or 25%? Probably a bit, but it is not going to be night and day.

It’s hard to know exactly what different sectors of the wine market will do in the next 12-24 months, but if you do your research and ensure broad holdings you can structure your portfolio for long-term stable growth. Want to talk to one of our experts about creating a wine investment portfolio in more detail? Schedule a call here.

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Learn

How does Wine Investment Work?

Two men drinking wine and looking at a laptop

Are you considering investing in wine and want to know how wine investment works? Congratulations, you are just one of the growing number of people who know that fine wine is a top performing alternative investment. Inflation hit 7% in April 2022 in the UK according to the Office for National Statistics (ONS). And it says it’s set to increase. Any serious investor should consider fine wine as an investment.

So, how does wine investment work? Here’s our recommendations:

-Buy with a medium to long-term view. Wine investment’s central idea is that it is an improving asset in diminishing supply. As time passes and the wines become rarer, they will be harder to find. This is why it’s always wise to enter the market with the intention of holding wines for a minimum of five years.

-Choose how much you want to invest and then diversify your wine investment portfolio. Select wines from different countries and regions for a balanced portfolio. We’d advise starting with traditional and well-established regions, such as Bordeaux. Many seasoned wine investors add a range of wines from different countries to their portfolios to create a spread.

-Make sure your wines are stored professionally. Perfect provenance of fine wine secures its value and desirability and is absolutely critical when investing or selling. A wine’s authenticity must be documented and assurance of proper storage should be available. WineCap stores all its wines in government bonded warehouses.

-Be in the know about fees. Some brokers charge an annual fee that’s known as a management fee to handle your portfolio. We pride ourselves on not charging one and also having the lowest brokerage rates.

-Prepare your exit strategy. When the time comes to sell your investment, there are a number of avenues you can go down. As your investment broker, we would advise you on the best route to take based on your wine’s position on the market at the time. Options include selling to wholesalers, private sales and auction houses.

Ready to start investing in wine? Find out more by downloading our free guide.