Special report – 2023’s big investment themes: fine wine and beyond
Our latest report, 2023’s big investment themes: fine wine and beyond, has now been released. The report looks at the key themes that defined markets this year, from interest rates to sustainability. It positions fine wine within a broader investment context and analyses the key events that influenced its performance.
Report highlights:
- Tech, interest, and sustainability came to define markets in 2023.
- The stock market bounced back, and technology stocks rallied as the world became fascinated with generative AI.
- In a bid to cool down the red-hot inflation levels, the Bank of England cranked up interest rates 14 times.
- As central banks increased interest rates, they also began to stockpile gold.
- In the UK, interest rates reached the highest point since 1998. This signalled an end to the era of cheap borrowing, which could limit growth for some economies.
- 2023 saw the rush of demand for green bonds – borrowing money to finance sustainable projects.
- Sustainability drove fine wine demand among investors and led to other positive developments in the wine industry.
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Three reasons why the Brexit deal will prevent customers from paying more for their wine.
Ever since the UK voted to leave the European Union in 2016, trade talks and negotiations between the two sides had been full of uncertainty, posturing and brinkmanship which at times made it feel like a deal was unobtainable. So, the news that a trade deal – now ratified by the UK Parliament - had been struck on Christmas Eve last year was met with welcome relief across all industry sectors on both sides of the Channel and especially by those looking to invest in wine.
1. The costly VI-1 import documentation for UK and EU wines is no longer going to be introduced in July as previously planned. Taking its place will be a straightforward Wine Import Certificate which asks for basic producer and product information. This means far less admin and fees for wine importers, which in turn means no extra costs will be passed on to customers.
2. Crucially, wines will not have to undergo lab assessment for the new Wine Import Certificate. Submitting wines for lab analysis would have caused backlogs of wines which would have created frustrating shipment delays.
3. While UK wine importers are going to have to get to grips with new processes and forms over the coming months, this is just part of the anticipated bedding-in period which will become second nature as time goes on and as new processes are established.
With the previous uncertainty around Brexit having disappeared with the end of the transition period and with 2021 looking to mirror previous years of healthy returns for fine wine, contact us to speak to one of our advisors about creating your portfolio to invest in wine.
