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12 Month Burgundy Valuation

 

“he was pleased to see a valuation at 29.43% after  just 12 months”


Aim


Client A is a passionate wine lover who wanted to invest in Fine Wine. The aim was to have a bespoke selection of wine to drink once they reach maturity and also invest for the future with a view to sell some of them. He was happy with any valuation above 8% and was curious to see if we could deliver over the 12% to 15% we suggested.

Strategy

It was important in this case to take on board the client’s preferences as he wanted to enjoy part of his investment. We recommended buying at source when the wines were being released: Burgundy 2015 vintage and any white Burgundies from previous 2014 and 2012 vintage. In cases like this we recommend investing in village wines from a talented/famous producer which will provide great value when drunk over the next 10/12 years (vintage depending). Whilst the lesser accessible Premier Cru and rarer Grand Cru can yield excellent returns they also provide exceptional drinking pleasure over 10 to 20 years

Wine Investment

White and Red Burgundy bought in March 2017.

 
 

Conclusion

Our client has a bespoke cellar created for him that reflects his taste in wines. He also has got a serious investment that will increase in value as these wines come from high quality producers that are sought after, and only produce a few barrels of each wine. Furthermore, he was pleased to see a valuation at 29.43% after just 12 months. As highlighted in this study, it is important to buy from source. Once the wines are bottled and traded the value will increase. The inherent constraints on supply coupled with growing demand is pushing up bottle prices and returns for investors. Moreover, the limitations on supply are exacerbated as wine is consumed, further reducing the total number of bottles of a vintage in the marketplace. 

 

Valuations are done using a cross section of platforms such as Wine Searcher pro, Live ex and Wine Owner as well as referencing with specialist wine data analysts Wine Lister