VINTAGE CELLAR

An introduction to procuring blue-chip fine wine

Buying vintage wines for capital appreciation has become an established avenue to diversify wealth portfolios for collectors across the globe. This is by no means a new trend, and is often compared to traditional asset classes over the medium to long term.

Who decides what is a suitable wine when considering to buy fine wine?

Ultimately, that decision is yours. You should take the advice from an experienced wine professional and read supporting articles that give reference to past performance, however this information alone will have no indication of how your wines will perform in the future.

In terms of past performance and rating, there is no secrecy, smoke screens and mirrors. Information can easily be found online although the best reports widely used in the industry are found by subscribing to Liv-ex or Robert Parker – Wine Advocate.

 

What impact does an international wine critic have on wine prices and who are they?

There are many renowned international wine critics however the most notable are Robert Parker Jr, Jancis Robinson and Tim Atkin to name a few. An influential international wine critic can have a significant impact on The Fine Wine Market.

The ratings and reviews provide a crucial role in shaping the perception of a wines’ quality, value and investment potential among collectors, investors and consumers.

To use Robert Parker Jr as an example, wines that receive a score of 95-100 points can see an immediate price increase due to heightened demand. He uses his 100-point rating system to score wines based on various factors such as taste, aromas, texture and aging potential.

A high score signifies exceptional quality that could lead to an increase in demand and sufficiently higher prices over time.

Collectors and investors often reply on wine critics’ ratings to make an informed decision on which wines to add to their portfolio.

What wine critics look for when scoring a wine

Experts will judge the quality of a wine on a number of factors, which include:

Complexity: A wine that keeps revealing different things about itself, revealing new flavours and aromas. Having complexity is usually considered better quality.

Finish: The impression it leaves in your mouth after you have swallowed. In a good wine, you can still perceive it’s flavours such as fruitiness or spiciness.

Balance: A balanced wine is when nothing sticks out as you taste it, such as harsh tannin or too much sweetness.

Length: Length is a sure sign of high quality. Many standard wines are very up front on the palate. These make a big impression as soon as you taste them but fall short. Excess tannin or high alcohol can be to blame. You’ll be able to taste a good quality wine across the full length of your tongue.

Depth: Depth is when it does not taste flat or one dimensional in your mouth.

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4 reasons to build your fine wine portfolio

Performance: Over the last decade, it has demonstrated the potential to outperform traditional financial markets and commodities. This makes it an attractive option for investors & collectors looking to diversify their portfolios and seek alternative investment opportunities.

Uncorrelated to markets: One of the key advantages of building a fine wine collection is its lack of correlation to financial markets. The success of fine wines primarily relies on the principles of supply and demand. As a tangible asset, the fine wine market is relatively insulated from the volatility and fluctuations of traditional financial markets. This makes it an attractive option for investors looking to hedge against market risks.

Tax relief: Building a fine wine portfolio offer advantageous tax treatment, making them even more appealing for collectors & investors. Profits from selling fine wine are typically exempt from capital gains tax. It is important to seek independent tax advice to fully understand the potential tax benefits based on your individual circumstances.

Global marketplace: Selling fine wine under bond on an international marketplace offers numerous benefits. It provides access to a global pool of buyers, increases price transparency, connects sellers with specialised buyers, offers efficient logistics and shipping options, enables currency diversification, and provides valuable market insights. These advantages make international marketplaces an attractive option for sellers looking to maximize their reach and potential profits in the fine wine market.

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vintage cellars

How to store your wine correctly for ageing

This is quite possibly one of the most important points you should not overlook and factor into your decision to buy. If looking to resell your case back to the market in the future, the buyer will need reassurance that your case has been kept in an optimal condition within an bonded warehouse just for wine.

The term for storing your wines in a government regulated and controlled warehouse is referred to as storing your wine ‘in bond’. The alternative is to take your wines out of bond whereby you will need to pay the duty & taxes on your wine. However selling your case of wine in the future will not achieve the best market price in comparison to storing your case ‘in bond’.

There are other benefits to keeping your wine ‘in bond’. If kept under bond, the purchase and sale of your wine does not incur VAT or count towards your capital gains tax.

We recommend storing your wines London City Bond (LCB). They have been established since 1988 and have warehouses throughout the whole of the UK.  LCB is the largest and most successful privately owned tax warehousing company in the UK.

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Before getting involved

The vintage wine market has been popular among fine wine collectors over the years however, we must point out:

The fine wine industry is not regulated, and Our Sommelier is not a financial institution. As such, we do not give financial advice or offer guarantees about the potential increase in a wines’ value.

Our Sommelier is run by experienced wine merchants and as such we are qualified to give information regarding vintages and wines, their quality and prevailing market conditions. This information is based upon our knowledge, acquired from over 30 years combined experience of trading, and our daily dealings in the global wine market. Using our knowledge of this market, we can provide valuations for wines and, in conjunction with past performance of wines, we can give you our informed opinion as to whether a wine might have the ability to accrue value.

Our Sommelier does not charge a management fee to purchase vintage wine and there are no hidden fees involved. The only fee you will pay will be if you are looking to store your wines at a suitable vino warehouse. When you come to sell your wines, you are not tied to selling through us, although we will make you a competitive offer for you to consider.

Wines can go down, as well as up in value, and many things can influence the market price. We would urge you to research the industry yourself about the pros and cons of buying vintage wine for capital appreciation before deciding to buy. Our staff are available to answer any questions that you may have.

For specific financial advice, tax implications or other financial elements of wine investment, it is important to speak to an accredited financial advisor.

To receive further information or would like to speak to one of our of consultants, fill in the form below.

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Wine Style & Region Vintage Wine Drink Date Rating
Red Bordeaux 1990 Margaux 2015 – 2050 100/100 pts
Red Bordeaux 1996 Margaux 2016 – 2050 100/100 pts
Red Bordeaux 2000 Margaux 2020 – 2050 99/100 pts
Red Bordeaux 2006 Margaux 2026 – 2056 95/100 pts
Red Bordeaux 2015 Margaux 2023 – 2050 99/100 pts
Red Bordeaux 1982 Lafite Rothschild 2012 – 2045 98/100 pts
Red Bordeaux 1995 Lafite Rothschild 2008 – 2028 95/100 pts
Red Bordeaux 2003 Lafite Rothschild 2014 – 2039 100/100 pts
Red Bordeaux 2010 Lafite Rothschild 2025 – 2080 100/100 pts
Red Bordeaux 2018 Lafite Rothschild 2028 – 2068 100/100 pts
Red Bordeaux 1986 Mouton Rothschild 2021 – 2050 100/100 pts
Red Bordeaux 1996 Mouton Rothschild 2019 – 2056 97+/100 pts
Red Bordeaux 2000 Mouton Rothschild 2020 – 2055 97+/100 pts
Red Bordeaux 2010 Mouton Rothschild 2023 – 2060 98/100 pts
Red Bordeaux 2016 Mouton Rothschild 2022 – 2085 100/100 pts
Red Bordeaux 2000 Latour 2015 – 2050 97/100 pts
Red Bordeaux 2003 Latour 2018 – 2060 100/100 pts
Red Bordeaux 2005 Latour 2018 – 2050 98+/100 pts
Red Bordeaux 2010 Latour 2024 – 2080 100/100 pts
Red Bordeaux 2012 Latour 2020 – 2050 96+/100 pts
Red Bordeaux 1989 Haut-Brion 2009 – 2059 100/100 pts
Red Bordeaux 1998 Haut-Brion 2018 – 2045 99/100 pts
Red Bordeaux 2000 Haut-Brion 2020 – 2060 99+/100 pts
Red Bordeaux 2015 Haut-Brion 2024 – 2064 100/100 pts
Red Bordeaux 2016 Haut-Brion 2025 – 2070 100/100 pts