China has suspended all imports from Australia and New Zealand, including wines, dairy products and beef, according to the country’s official logistics trade association: China Federation of Logistics and Purchasing (CFLP). The ban is set to significantly escalate tensions between China and its Pacific neighbours.
In a post by the Food Ingredients Supply Chain Association under the country’s official logistics trade association (CFLP), it announced that on the 15th of August an order had been given which requests incoming cargo wait at each port for further notice.
The news has not been officially announced by the Chinese Customs Administration, but the association highlighted that relevant organisations working in customs and logistics have already been informed.
It’s currently unknown whether this will be a temporary ban or long-term one. While the CFLP hasn’t given its reasons for the ban, it did cite Australia&#8217;s revoking of the ‘One Belt, One Road’ deal as having damaged mutual trust between the nations.
What’s made the situation even more confusing is that within just 24 hours after the CFLP published its article, it was deleted. Anyone now trying to open the WeChat post is presented with an error message that says ‘the article has been deleted by the author.’
<h3>Trade</h3>
New Zealand’s exports to China totalled US$22.83 billion in 2021 with the main products being lamb, butter and cheese.
Australia and China’s relations have been worsening since 2017. Recently, tensions were heightened due to the origin of Covid, 5G and Huawei that resulted in China imposing hefty tariffs in 2020 on Australian goods such as wine and barley.
Despite the tensions between the two nations, China is still Australia’s number one trade partner, with the Asian country having imported US$164 billion, over 40% more in value than a year ago according to China’s Ministry of Commerce.
If legitimate, the ban would be a huge blow to bilateral trade as the administration in Canberra has been in talks with the Chinese for over two years in a bid to repair relations.
What’s more, the timing couldn’t be worse as 2022 marks the 50th anniversary of diplomatic relations between China and Australia.

Australia and Chinese flags with tear in middle

China Suspends all Imports from Australia & New Zealand

In a year of drought, heatwaves and fires, producers in the three Bordeaux appellations of Pessac-Léognan, Pomerol and Saint-Émilion have been given special dispensation to water their vines. 
The lack of rain this year has been so pronounced that Météo France, the French national weather service, declared that July of 2022 was the driest on record since 1959. Irrigation is usually banned in the region from the 1st of May onwards. However, producers sent a request to the regulatory body, the Institut National de l’Origine et de la Qualité (INAO), which issued a derogation in light of the ‘extreme situation’ facing Bordeaux châteaux. Winegrowers are permitted to water their vines during times of persistent drought with permission and only if the drought ‘disrupts the good physiological development of the vine and ripening of the grapes.’ The vignerons were told by the INAO that their request was granted in this case but to use it when ‘only absolutely necessary’.
In Pomerol, the derogation states that producers must submit their proposals for irrigation two days ahead of any activity, along with the size of the vineyard area and grape varieties to be watered. Grapegrowers must also only use water from wells near the vineyard sites and not from the network.
The threat drought poses to vines, especially young vines, is hydric stress. This means that vines can’t get enough water to flourish and are unable to build up sufficient levels of sugars which delays ripening and harvest. Older vines have deeper roots which can draw water from further underground but vines aged between three to eight years old need the most attention.
The permission to irrigate vines is a much needed lifeline for wine producers this year who have had to deal with April frosts, the June hail storms, fires and a heatwave. With forest fires having started up again around Bordeaux, the region’s châteaux will be praying that the next few weeks bring cooler temperatures and long overdue rain.

3 Bordeaux Appellations Permitted to Irrigate Vines

Legendary Napa producer Shafer Vineyards has purchased a nine-hectare vineyard in proximity to its winery in the Stags Leap District from Screaming Eagle founder Arlie Jean Phillips as part of a $35 million deal.
Shafer Vineyards was acquired earlier this year by the Korean luxury firm, Shinsegae Property, and it has now purchased the nine-hectare Wildfoote Vineyard in the Stags Leap District of Napa Valley. 
The deal has been reported by various news outlets to form at least part of an overall acquisition of some 46 hectares for $35 million. 
In a statement, Shafer Vineyards said that the purchase ‘secures a key source for the winery, ensuring that winemaker Elias Fernandez will continue to select from the best-of-the-best fruit each vintage.’
Cabernet Sauvignon, Cabernet Franc and Merlot grapes are all grown in the Wildfoote Vineyard. Shafer Vineyards&#8217; President Doug Shafer commented on the sale that ‘the real winner in this is the consumer, as it gives our winemaking team the ability to choose the best possible fruit in a given vintage.’
General Manager Matthew Sharp highlighted that ‘this is a once-in-a-generation opportunity to acquire a world-class vineyard property of unequaled caliber’. He added that ‘it’s a great privilege to make this site part of the Shafer Vineyard portfolio.’
Shinsegae Property, the property arm of a Korea-based luxury company, purchased Shafer Vineyards in February earlier this year.
A historic Napa winery founded in 1972, Shafer Vineyards is one of a handful of the region’s producers that helped gain worldwide recognition for its wines.
Commenting on the sale, Doug Shafer added: ‘for those who are fans of our wines and our team, you’ll see a continuation of everything you love about the winery.’ &#8216;There may be some new things down the road that I think you will love and embrace as well.’

Shafer Vineyards Buys Stags Leap District Vineyard

Like a nervous first date wondering if they’ve been stood up, cryptocurrency has kept alternative investors biting their nails, on the edge of their seats and glancing restlessly at the door. As a decentralised asset, it shouldn’t have been impacted by rocketing inflation, rising interest rates or other market shocks. But the theory isn’t holding up. When disaster struck, crypto investors behaved in the same way as the stock markets – if anything, they panicked more. Over recent weeks, crypto enthusiasts felt their stomachs lurch as Bitcoin plummeted to less than the value of creating it [1] &#8230; It’s a punch in the face for hopeful diversifiers who turned to crypto as an alternative asset.
In this article, we’ll uncover seven fascinating and under-used diversifying investments, that truly steer clear of the market. In theory and in practice. ‘Alternative alternatives’ to inspire you as you build (or re-build) your portfolio.
<h2>1. Litigation finance</h2>
The up-and-coming investment that almost nobody has heard of. Litigation investors help people to cover the cost of their legal suit and take a share of the damages if they succeed. This type of finance has the potential to do good for society, while offering an alternative source of revenue to investors. Most recently, it’s being used in greenwashing and climate cases, so <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment" target="_blank" rel="noopener">alternative investors can help protect the environment</a> too. The downsides are that it is risky, not possible in every country and can take a while.
<h2>2. Art</h2>
An old favourite for seasoned alternative investors, but still relatively unknown in the wider world of investing. Buying art has the double advantage that you can appreciate and enjoy your investment while you own it. Many affluent investors purchase valuable art from museums, auctions and galleries. But if you’re looking for lower price tags, you could take a chance and buy from undiscovered artists directly … It’s certainly riskier, but if you have a good eye, you might just hit the jackpot.
<h2>3.   Domain names</h2>
Believe it or not, an aptly-named domain can rake in a fortune. Cars.com sold for $872 million. Carinsurance.com swept up $49.7 million. And Insurance.com went for a cool $35.6 million [2]. Not every domain name will be valuable, of course, around a third are never even used. But if you manage to buy a good one, you could reap serious rewards. Better still, this type of investment is completely uncorrelated to the stock market, meaning you can protect yourself from market shocks.<a href="#_ftnref1" name="_ftn1"></a>
<h2>4.   Whiskey</h2>
The water of life, as it’s known in Gaelic cultures, doesn’t just taste good on the lips… it can feel great on the wallet too. While whiskey may not offer the kind of eyebrow-raising returns that fine wine has, over the past years it has enjoyed a steady real return of 7.9% from 2011 &#8211; 2020 [3].
<h2>5.   Comic books</h2>
It’s hard not to smile when you imagine the likes of Wonder Woman, Spiderman, or the Joker in your portfolio. But, as well as being a passion investment, comic books have enjoyed a boost in recent years. According to one alternative investment site, ‘Comics continue to trend upwards with very little signs of the market slowing anytime soon’ [4]. Like fine wine and whiskey, these are much-appreciated collectables which become rarer over time.
<h2>6. Music royalties</h2>
Another fascinating yet little-known alternative investment is in music royalties. When investors own a share of the music rights, they should profit when the sounds are played. For example, in movies, adverts, video games and even cover songs. (Although, of course, there is always the risk that people will use the music without paying up). Investors could also pick up profits from hardware sales, such as the reproduction of vinyl disks or CDs. This is generally one for high net worth investors, as price tags can start quite high. But there are exchange platforms available for cost-conscious players too.
<h2>7. Fine wine</h2>
Our favourite alternative investment is – of course – fine wine. As well as offering <a href="https://winecap.com/learn/what-are-the-benefits-of-investing-in-fine-wine" target="_blank" rel="noopener">stable, yet strong returns of 12.6% CAGR each year</a>, it’s an excellent diversifier too. Unlike many other high-performing assets, the value of fine wine is not correlated to the stock market. Return is largely based on the vintage year, scarcity and storage, so fine wine owners have a lot more control over the value of their investment. This can help reassure investors in times of economic turmoil. What’s more, one advantage investment-grade wine has over other alternative assets is the availability of market data to analyse and a more regular marketplace. If you’re looking to bolster your wealth against market shocks, a 1-3% allocation of fine wine could help you reduce your exposure.
Finding a truly alternative investment takes time and research. Often investors will need to stray away from the beaten track. And, as we’ve seen recently, they may also need to laser through all the crypto-sphere hype too.
Call us old-fashioned, but we believe that the best alternative investments are the ones that have been around the longest. Proving themselves decade after decade, recession after recession and beyond. If you’re interested in learning more about the benefits of investing in fine wine, <a href="https://winecap.com/start-investing" target="_blank" rel="noopener">we’re here to support you</a> on your journey.
&nbsp;
[1] Source : <a href="https://finbold.com/bitcoin-mining-becomes-unprofitable-as-btc-price-falls-to-the-average-cost-of-mining/" target="_blank" rel="noopener">Finbold</a>
[2] Source : <a href="https://alts.co/investing-in-domain-names/" target="_blank" rel="noopener">Alts.co</a>
[3] Source : <a href="https://www.whiskyinvestdirect.com/" target="_blank" rel="noopener">WhiskyInvestDirect</a>
[4] Source : <a href="https://alts.co/category/comic-books/" target="_blank" rel="noopener">Alts.co</a>

7 Under-Used Alternative Investments

The innovative Australian producer Penfolds is pushing winemaking boundaries even further with its soon-to-be-released wine that is a blend of Bordeaux and Australian grapes.
‘Penfolds II Cabernet Shiraz Merlot 2019’ blends Bordeaux-grown Cabernet Sauvignon and Merlot grapes with Shiraz from South Australia. The project was brought to fruition through Penfold’s partnership with Thiénot, a Champagne house that owns Dourthe in Bordeaux.
Peter Gago, Penfolds’ chief winemaker, was delighted at a press conference in London with the imminent release of the new project, but highlighted the logistical problems in shipping a container of French wine to Australia where it was blended with the Shiraz. Both components were from the 2019 vintage, although the Shiraz was six months older due to its grapes having been harvested from vineyards located in the southern hemisphere.
Penfolds’ aim was to make wines sourced from around the world in its ‘house style’. Gago added that the key to making the wines was to have ‘ripe tannins from the start’. 
The wine is being released this month under the label ‘FWT’ (French Winemaking Trial), along with another expression that’s a Bordeaux blend which also forms part of the ‘Collection’. The objective behind this activity is to expand the Penfolds range while keeping its signature character.
Gago commented on this new release, saying: ‘it is done through the Penfolds lens: we are not saying the wine is better, but done in the Penfolds way.’
This is just the beginning of the pioneering Australian brand breaking new ground. One interesting future project would be a blend of Australian Shiraz with Syrah grapes from the Northern Rhône, as the Rhône is the original heartland of Syrah, better known as Shiraz in the New World. Gago confirmed that we might not have too long to wait as a ‘project with the Rhône Valley’ is in the pipeline. 
There’s certainly a lot going on at Penfolds and we’re excited to learn what the next new innovative launch looks like.
Read more about Penfolds&#8217; recent <a href="https://winecap.com/news/penfolds-to-produce-special-made-in-china-bottling" target="_blank" rel="noopener">made in China project here</a>.

Penfolds Innovates New French-Australian Blend

Our Bordeaux 2021 En Primeur Report is now available to download. Read our full analysis of the new 2021 vintage which is considered to be an approachable, good quality one that differs in style to the wines from the three previous years.
2021 was the coolest and second wettest vintage in the past decade with frosts, rain and mildew. This meant yields were down significantly in some appellations. Meticulous sorting in both the vineyard and the winery enabled producers to select only the best fruit and this created the finest wines possible. 
Critic reports suggested that quality was better than expected and there is a selection of outstanding wines on offer that will bear comparison with the very best and various châteaux have produced some of their highest ever rated wines.
Prospective buyers have been expectantly waiting for the 2021 vintage’s scores and prices. Release prices were expected to be lower than those of the top rated trilogy of 2018, 2019 and 2020 as this is a different style of vintage from a challenging year. However, there were economic reasons that could justify price rises such as inflation, wine shortages and the US dollar’s appreciation against the Euro.
In general, wines have been released at the same price as 2020 &#8211; just 1% lower on average. However, some châteaux released at up to 15% discounts, while others at up to a 15% premium with lower scores than last year.
Discover our analysis and the fine wines we recommend fully in this report. While it was a mixed vintage, there are some excellent wines on offer at attractive prices.

Bordeaux 2021 | Vintage Report

The UK recorded some of the highest temperatures on record at over 40°C on the 20th of July and fires broke out across England. For the WineCap team that was in Bordeaux at the time, it was an all too familiar scene.
France, like other countries on the continent, has endured sweltering temperatures in recent weeks. The combination of the mercury rising and the tinder-dry ground have provided the perfect conditions for forest fires which have ravaged large parts of South and South-West France since the 12th of July. Around Bordeaux, over 6,500 hectares have already been burnt in the Landiras commune and over 3,000 have been scorched in La Teste de Buch according to the <a href="https://emergency.copernicus.eu/mapping/list-of-components/EMSR592" target="_blank" rel="noopener">Copernicus</a> website.
While no vineyards have been directly affected yet, the fires have come too close for comfort for some producers. Loic Pasquet, owner of Liber Pater, based in the previously mentioned Landiras commune just North-West of Sauternes, revealed that a fire had come almost within 500m of his vines. Fortunately, it has now been fought back to 7km away.
Some 2,000 firemen and a combination of sea planes and water bombers have been battling the blazes in the region. This, combined with temperatures dropping from 41°C to ten degrees cooler, has provided a much needed respite and the forces are currently optimistic that they will be able to contain the fires unless circumstances change.        
Although Bordeaux has experienced large scale fires before – in 1949 and 1989 – none have been as severe as these. For wine lovers, the risk of fires and smoke taint affecting wineries and grapes is something that they’ll probably have read about most with California wines. In 2020, Napa’s ‘Glass Fire’ caused wineries Cain, Newton and Behrens Family on Spring Mountain to suffer complete losses.
It’s too early to tell in Bordeaux if smoke taint has affected grapes and therefore the 2022 vintage. Producers who think their vineyards may have come into contact with the smoke are being urged to take samples and perform tests. The mood in Bordeaux remains optimistic, but with the August and September months still to go before harvest, we’re sure many producers are keeping everything crossed.

Heatwave Provokes Bordeaux Fires

WineCap CEO Alexander Westgarth spoke to Forbes Advisor&#8217;s Andrew Michael about wine investment&#8217;s benefits and long-term performance. Below is a summary of the &#8216;How to Invest in Wine&#8217; article which you can read <a href="https://www.forbes.com/uk/advisor/investing/how-to-invest-in-wine/" target="_blank" rel="noopener">in full here</a>.
2021 was a good year for wine investment, as reported by Knight Frank’s Wealth Report released earlier this year. In fact, fine wine shared the top spot in the &#8216;alternative investments&#8217; category with collectible watches. Both delivered a 16% return over the course of a year.
More and more money is being invested in the wine market. Alexander Westgarth highlighted fine wine&#8217;s solid and consistent returns over the past 15 years, with compound annual growth of 8% and some regions, such as Burgundy, delivering 12.5%.
In the current economic climate, traditional asset classes, including stocks and shares, aren&#8217;t performing as well as they historically have. The US stock market has entered a &#8216;bear market&#8217; and is down 20% since January this year.
More and more investors are considering tangible assets as they are less likely to be affected by market fluctuations.
Mr Westgarth commented that &#8216;wine is a low-stress investment that doesn’t require constant attention, or frequent trading in and out of.&#8217;
Other advantages of investing in wine and advice include:
&#8211; There is no capital gains tax to pay on profits. HMRC classifies wine as a &#8216;wasting asset&#8217; as it determines the wines to have a lifespan of fewer than 50 years.
&#8211; Think about working with a reliable investment specialist that can build a portfolio for you, manage storage and insurance, keep you updated with valuations and advice and eventually manage the sale of your investment.
&#8211; Consider an initial investment of between £5,000 and £25,000. Even at the lower end, you can start building a portfolio with exposure to different wine regions.
Want to find out more about how to get started investing in wine? Download our <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">free guide here</a>.

WineCap in Forbes Advisor

A magnum of Château Avenue Foch 2017 has sold for a record-breaking US$2.5 million at auction, making it the world’s most expensive Champagne and perhaps the world’s most expensive wine. Interestingly, the magnum wasn’t the sole item in the auction lot. The Champagne also came accompanied by an NFT – a non-fungible token – a digital image that trades on the blockchain. The NFT is of a ‘Bored Ape Mutant’ whose face features on the bottle and that was designed in collaboration with the artist Mig. It also includes the digital image’s intellectual property rights.
The British entrepreneur Shammi Shinh was responsible for commissioning and selling the bottle and whose aim was to boost NFTs’ profile through associating it with the luxury fizz. ‘I&#8217;m hoping for more awareness — I want people to understand NFTs now’, he commented. Shinh also hinted that this may be the first in a series of limited edition bottlings. 
The successful buyers at auction were brothers Giovanni and Piero Buono. They are Italian investors in cryptocurrencies, as well as in fashion and technology markets. However, while they are involved with cryptocurrencies, the purchase was reportedly made in dollars &#8211; as first reported by the <a href="https://www.wsj.com/articles/most-expensive-bottle-of-champagne-sold-for-2-5-millionnfts-included-11657636077" target="_blank" rel="noopener">Wall Street Journal</a>. Giovanni confirmed to the paper that they have no plans to open the bottle.
Château Avenue Foch is a new Champagne brand that’s made from Premier Cru grapes grown at the family-owned estate of Allouchery in Chamery.
Want to discover the ten most expensive wines in the world? From Burgundy to Bordeaux, we’ve put together a list of the world’s most expensive bottles, and their intriguing stories, in our <a href="https://winecap.com/news/ten-of-the-most-expensive-wines-in-the-world" target="_blank" rel="noopener">article here.</a>

Bottle of Champagne Avenue Foch on table with glasses

Champagne Sells for Record $2.5 Million at Auction

Our Q2 Report is now available to download. In it, we examine the wine investment trends that shaped the fine wine market over the past three months. The report looks at how inflation and the possibility of recession have impacted fine wine, the success of the 2021 Bordeaux En Primeur campaign, the top-performing regions and the most in-demand wines.
Fine wine proved itself as a stable investment in the second quarter of the year, which was characterised by exacerbated economic pressure. As stagflation worries grew, equities experienced increased volatility and some entered bear markets. Meanwhile, fine wine prices continued their steady ascent and even outperformed safe haven assets like gold. The best-performing wines were blue-chip labels, which attract regular demand, hinting at narrowing focus and increased caution in the current economic situation.
On a regional level, Burgundy and the Rhône experienced the biggest price rises. The top-performing wines can now be seen on Wine Track, our latest tool, which helps you track wines’ price performance over any given period at a wine label level.
In Q2, Champagne and California continued to trade actively, with Louis Roederer Cristal cementing its place as the most in-demand Champagne. The 2021 Bordeaux En Primeur campaign stimulated interest in previous vintage wines, which presented many good value wine investment opportunities. Some of the most successful 2021 releases included the First Growths and their second wines, Châteaux Lafleur, Calon Ségur, Les Carmes Haut-Brion, Léoville-Barton, Ausone and Cheval Blanc.
The third quarter will throw the spotlight on releases from the Rest of the World, with the La Place de Bordeaux campaign taking place in September. Almaviva, Opus One, Vérité, Seña, Catena Zapata, Masseto and Solaia are few of the star names that will offer their latest vintages internationally, with many more new additions. The next three months will also further test the bullishness of the fine wine market.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by investing in wine. Download our brand new quarterly report for your summary of the past quarter in fine wine.

Q2 2022 | Report

With an increasing number of investors looking to alternative investments, and in particular fine wine, WineCap&#8217;s CEO Alex Westgarth explores why this sector has risen to prominence in recent years in <a href="https://www.wealthadviser.co/2022/07/01/310060/fine-wine-investing-during-market-volatility-and-uncertainty" target="_blank" rel="noopener">Wealth Advisor</a>. Read his opinion piece in full below:
&#8216;Although wine is mainly known for its leisure benefits, many would be surprised to discover that fine wine investments can provide both stability and returns to investment portfolios during times of market volatility and uncertainty.
Fine wine investing can be a safe haven for investors in times of instability. As global markets experience increased levels of volatility due to factors such as the conflict in Ukraine, the threat of rising interest rates and spiking inflation, investors are exploring different ways to shield their wealth and assets.
We cannot predict what ways the current factors will affect the economy and financial markets and many experts expect volatility will stick around even when these short-term drivers have faded away. Therefore, investing in more stable options, such as fine wine, has grown in popularity in recent months.
Fine wine’s ability to hold its value through times of instability can be seen from historic data. At the start of the 2008 recession, the Liv-ex Fine Wine 1000, which tracks 1,000 wines from across the world, dropped 10 per cent from its peak in August 2008 to a low in December of that year. But by early 2009, it began a steady recovery and recouped all its losses by the end of 2009.
In contrast, the FTSE 100 fell 47.82 per cent and took over five years to return to pre-2008 levels. More recently, the first quarter of 2020 saw stock markets spiral down in the wake of COVID-19. While the S&amp;P Global Luxury Index fell 23 per cent, the Liv-ex Fine Wine 1000 slipped just 4 per cent and had already begun its recovery by May 2020.
How is fine wine able to maintain such stability? As with the very nature of wine itself, the longer you hold on to it, the more valuable it becomes; and in investment terms, the more consistent your returns become. This is because, over the long-term, the demand-supply imbalance is exacerbated by increasing consumption and subsequently decreasing availability, and therefore wines become more desirable due to rarity and improvements in quality as they age.
Furthermore, the fine wine market is self-contained and, to a large extent, divorced from equity markets. This is because the value of the wine market is not determined by a single economy, rather, it shadows the movement of wealth around the world.
This unique characteristic means it is less vulnerable to the fluctuations witnessed in conventional equity markets which ultimately allows people to safeguard their investments and distance themselves from the exposure that traditional investors are often forced to endure. Moreover, the wine investment market provides flexibility as it is less open to fashionable interpretation compared to most other luxury collectables.
Particularly, when market volatility increases or economic conditions go south, investors acknowledge that fine wine can offer great capital preservation, real value growth and a way to diversify a portfolio away from the most volatile assets. Good wine will always be in demand, which means long-term returns will continue to be supported by consistent consumption.&#8217;

Fine Wine Investing during Market Volatility & Uncertainty

The French luxury goods house LVMH has announced that it is expanding its portfolio of northern Californian wineries with the purchase of high-end producer Joseph Phelps. 
Phelps has produced sought-after bottles from Napa and Sonoma for almost 50 years. The winery’s top cuvée – Insignia – was one of Napa’s first Bordeaux-style Cabernet blends and helped the region’s new style of wine to gain recognition in the 1970s.
The purchase means that Moët Hennessey has now deepened its foothold in California where it already owns three other wineries: Domaine Chandon, Newton Vineyard and Colgin Cellars.  
Included in the sale is the Phelps brand, winery and inventory, as well as approximately 500 acres in vineyards in Napa and Sonoma counties. No purchase price was disclosed.   
Moët Hennessy Chairman and CEO Philippe Schaus said that Joseph Phelps is ‘an iconic name and an iconic winery’. ‘It’s important for us that we are acquiring a family business with a legacy and heritage. It’s super important that we keep that heritage.’
For Schaus, Moët Hennessy’s aim is to be able to offer ‘all the different moments of consumption’: from apéritifs, Champagne and fine dining wines to bars, clubs and cocktails. The company’s Cloudy Bay brand covers white wines and its Whispering Angel line offers rosé, but, Schaus commented, ‘we were missing a strong red wine.’
It’s clear than LVMH &#8216;s purchase of this Napa stalwart fits comfortably into its portfolio, as Schaus declared: ‘Joseph Phelps has been to the Napa Valley what Nicolas Ruinart, Mrs. Clicquot, Joseph Krug and Claude Moët were to the Champagne region and likewise we will continue to develop this new House in the respect of the founder’s heritage and vision.’

Exterior of Joseph Phelps winery and vineyard

LVMH Buys Top Californian Winery Joseph Phelps

WineCap featured in the &#8216;Money&#8217; supplement of Saturday&#8217;s The Telegraph. You can read <a href="https://www.telegraph.co.uk/money/consumer-affairs/buying-hermes-bags-beat-stock-market/" target="_blank" rel="noopener">Lauren Almeida&#8217;s full article here</a> and find an excerpt below on how investors are turning to fine wine to protect their savings:
&#8216;As share prices fall, investors are turning to luxury goods and fine wines to protect their savings.
The world of investing – of index trackers, Isas and platform fees – is not the most glamorous. But it has been hugely lucrative. A decade-long bull-run in the stock market meant that for a long time, securing a 10pc return each year was a reasonable target.
Not anymore. Growing fears of a global recession have started to pull the market downwards; global stocks have dropped 12pc so far this year. With inflation running at a 40-year high of 9.1pc and paltry saving rates, investing is the only hope that savers have of preserving the value of their money.
&#8230;
Rod Peel, a former engineer at British Gas who is now retired in Bolivia, has a portfolio of fine wines worth more than £1m. “I started in 2004, when I received a call from my current broker WineCap,” he said.
“You only make profits on the wines when you sell them. Otherwise, they sit there gaining hypothetical money. I pay around £1,000 for storage and insurance each year.”
A key attraction of investing in wine and whisky is that investors do not need to pay capital gains tax on any realised profits, because the Government classifies them as a “wasting asset”.
“It’s also very fun,” Mr Peel added. “It’s interesting to learn about the wines. You discover something new every day. I think it’s more engaging than investing in shares.”
Cameron Scott, a 78-year-old accountant from Staffordshire who is nearing retirement, has also built up a portfolio of fine wines.
“My wine makes up between 5pc and 10pc of my overall portfolio,” he said. “I like it because I can’t imagine that its value would ever fall to zero, and it helps reduce currency risk. My best investment has been in an American wine that I bought seven or eight years ago, Screaming Eagle. It cost a few thousand a bottle, and its price doubled in just three years.
“But overall I view it as a long-term investment. I don’t sell many, because I’d like to pass my wine down to my beneficiaries, rather than cash in now.”
However, Mr Peel and Mr Scott both warned that finding a trustworthy broker in wine and whisky had proven difficult. “It is not a fully regulated market, so there are a lot of rogues out there,” said Mr Peel.
Keen to find out more about the benefits of wine investment? <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">Download our free guide</a>.

WineCap Featured in The Telegraph

Rocketing inflation is no longer creeping toward us. It’s striding. Currently at 9% in the UK (jumping from 1.5% in April 2021)[1], inflation rates are set to hit a crisis point. And worried <a href="https://winecap.com/learn/investing-in-fine-wine-what-to-consider" target="_blank" rel="noopener">investors are understandably looking for solutions</a> to hedge their exposure.
Investing in wine is one of the most effective inflation hedges because of three main reasons:
• The performance of fine wine is uncorrelated to global markets 
• Fine wine is a scarce asset, becoming rarer over time 
• The growth of fine wine has been exceptionally stable, even more so than gold
In this article, we’ll explain the inflation-shielding qualities of fine wine as an investment.
<h2>The performance of fine wine is uncorrelated to global markets</h2>
For many investors, the bulk of their assets will be in marketable securities – publicly-traded stocks, bonds, or currencies. Famously, for generations, the rule of thumb has been to invest 60% in stocks and 40% in bonds. But this style of investing has a huge downside, which many are now coming to terms with. Even with diversification, entire asset sectors and classes are still affected by the same market turbulence.
Inflation is one such market shock. Even at a rate of just 3%, the entire value of cash will erode after just 24 years[2].
At the current rate of 9%, outpacing inflation will be an uphill struggle for investments in bonds and currency. <a href="https://winecap.com/learn/investing-in-wine-vs-investing-in-stocks-which-is-safer" target="_blank" rel="noopener">The stock markets – although slightly more resilient – will also feel the force of inflation</a>. As businesses grapple to remain competitive with soaring prices, stagnant wages, and less consumer spending, all sectors are likely to be affected in some way.
Fine wine investments, however, do not derive their value from the broader markets. And shocks like inflation have almost no effect on their worth. This is because the price of the fine wine is determined by a niche, insider group of passionate investors. As the supply and demand come from within, fine wine is almost entirely uncorrelated to the global markets. Interestingly, <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">fine wine continues to grow in value despite market turbulence and soaring inflation levels</a>.
Other value drivers for fine wine include qualities that are personal to the bottle. For example, the brand of wine, the quality, and how it has been stored. None of these drivers have any direct link to the wider markets. While all of them give investors a lot more control over the value of their investment.
<h2>Fine wine is a scarce asset, becoming rarer over time</h2>
There are many ways to define value, but one of the most enduring is the scarcity of an asset. When there is less supply than demand, the value usually goes up. Fine wine is one of the purest examples of this.
Unlike other treasure assets such as gold or precious stones, fine wine naturally depletes over time as people drink it. Some bottles are so rare they are known as Unicorn Wines. One example is the legendary 1945 Domaine de la Romanée-Conti. The wine is famed for its iconic flavours and complexity. But the fact there are so few left in the world drives up the price exponentially. Only 600 were produced and there are almost none left today. In 2018, two such bottles were sold at auction for over $1 million[3], beating all records along the way. This bodes extremely well for long-term investors.
<h3><a href="https://winecap.com/news/ten-of-the-most-expensive-wines-in-the-world" target="_blank" rel="noopener">What are the most expensive wines in the world?</a></h3>
There is a clear trend showing how fine wines have increased in value over time. This is great for hedging against inflation. The Liv-ex index is one of the ways investors can track this steady increase. Since it began life in 2004, the fine wine market has grown in value by a staggering 315% (as of the end of 2021). Adjusting for inflation, the real value has grown by 125%. This is compelling growth, especially for those looking to outpace the 9% rates of inflation.
<h3><a href="https://winecap.com/news/why-the-2022-burgundy-vintage-is-looking-more-promising" target="_blank" rel="noopener">Which wine looks the most promising for 2022?</a></h3>
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<h2>The growth of fine wine is exceptionally stable, even more so than gold</h2>
Wine has been on a steady upward trajectory for some time now. In 2021, the collectible saw record gains and topped the Knight Frank Luxury Investment List. Some performed exceptionally well. Cases of Domaine Bizot, Vosne-Romanée, Aux Jachées, for example, soared by a whooping 414% over the past twelve months[4]. And an incredible 3,004% over five years[5].
By contrast, the worst-performing wine on our books – the Château Croizet-Bages 5eme Cru Classé, Pauillac – fell by just 23% over twelve months. And it’s already increasing in value, again. Over a five-year period, the brand has increased in value by an average of 29%.
<h3><a href="https://winecap.com/wine-track" target="_blank" rel="noopener">Discover the biggest risers and fallers this month</a></h3>
This illustrates the promising risk and return outlook for fine wines. Overwhelmingly, wine as an investment has shown growth.
In recent years, the strong performance of fine wine has even caused economists to question if the asset is more steady than gold. For centuries, gold has been considered an inflation hedge. Demand for this asset – and therefore value – has tended to spike during times of market turbulence. However, the flip side of this is that the precious metal can also tumble when the environment calms. Fine wine, to date, has not suffered this volatile fate. Investors in wine tend occasionally buy more during times of turbulence, as we saw in 2020. But there are no signs of mass sell-offs later. Arguably, this makes fine wine even more stable than rock-solid gold – an impressive feat!
<h2>How can you hedge against inflation with fine wine?</h2>
Shielding against inflation <a href="https://winecap.com/learn/seven-delicious-reasons-to-invest-in-fine-wine" target="_blank" rel="noopener">is just one of the many delicious benefits of investing in fine wine</a>. To name a few, fine wine investors benefit from tax perks, compelling growth potential and improved diversification. What’s more, they also support a much-loved industry, filled with passion. And, with fine wine investments, they can even <a href="https://winecap.com/learn/5-ways-fine-wine-investments-good-for-environment" target="_blank" rel="noopener">help to protect the environment</a>.
For the best results, experts recommend allocating a small proportion of your investments into treasure assets like wine.
Getting started is simple and hassle-free. For more information, contact us or explore our <a href="https://winecap.com/learn/fine-wine-investment-tips" target="_blank" rel="noopener">tips for investing in fine wine</a>.
[1] Source : <a href="https://ycharts.com/indicators/uk_inflation_rate" target="_blank" rel="noopener">Y Charts</a>
[2] Source : <a href="https://www.cnbc.com/2021/09/02/traditional-60/40-portfolio-has-actually-reached-its-expiration-date.html" target="_blank" rel="noopener">CNBC</a>
[3] Source : <a href="https://www.bloomberg.com/news/articles/2018-10-15/most-expensive-bottle-wine-1945-romanee-conti-burgundy-auction" target="_blank" rel="noopener">Bloomberg</a>
[4] Source : <a href="https://winecap.com/wine-track" target="_blank" rel="noopener">WineCap</a>
[5] Source : <a href="https://www.credit-suisse.com/media/assets/corporate/docs/about-us/media/media-release/2018/02/giry-summary-2018.pdf" target="_blank" rel="noopener">WineCap</a>
[6] Source : <a href="https://www.credit-suisse.com/media/assets/corporate/docs/about-us/media/media-release/2018/02/giry-summary-2018.pdf" target="_blank" rel="noopener">Credit Suisse</a>

Two men looking at a laptop drinking glass of wine

Is Fine Wine Inflation-Proof?

It’s English Wine Week and there’s now one more reason to raise a glass of Sussex sparkling wine. It has just been awarded Protected Designation of Origin (PDO) status from the Ministry for Farming, Fisheries and Food.
A product with a PDO means that it’s made in a particular way and comes from a specified region. It represents a guarantee to consumers that the product they’re buying is the real thing and prevents imitations.
Top wineries including Nyetimber, Bolney Estate and Rathfinny Estate all make wines in the region and will soon have another layer of protection in the form of the Sussex Sparkling Wine PDO that they can add to their bottles.  
Sussex currently has just under 50 wineries and – like many of the extraordinary English sparkling wines out there – has gained well-deserved international recognition. Its still wines are gaining momentum too. As the region gains accolades, awards and wineries, the only way is up and it continues to produce some of the finest sparkling wine in the world, giving top Champagne cuvées a run for their money.
Another element the Sussex PDO highlights is the difference in terroir in English winemaking by drawing a clear line between them and others made in Kent or Surrey.
Simon Thorpe, CEO of WineGB, commented on the new PDO: ‘The approval of a PDO for wines grown and made in Sussex comes at an important time for English and Welsh wines… There has never been more interest in and demand for our wines and the reputation they have gained in both domestic and international markets is based on high quality viticulture and winemaking excellence.’

Nyetimber vineyard with rows of vines in the sun

Sussex Sparkling Wine Secures PDO Status

The fine wine market has seen immense growth and <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">broken numerous records</a> in the past year – here we outline four of the biggest wine investment trends to watch in 2022.
<h3>Bordeaux investment wines</h3>
Bordeaux remains the most important region for investable wines globally. It attracts the greatest liquidity, meaning that its wines, particularly the classified Growths, see consistent levels of trade. Bordeaux is a staple in <a href="https://winecap.com/learn/fine-wine-market" target="_blank" rel="noopener">most investment portfolios</a>, and the annual En Primeur campaign draws attention from collectors and trade year after year.
2022 sees the <a href="https://winecap.com/news/bordeaux-en-primeur-2021-initial-thoughts" target="_blank" rel="noopener">launch of the 2021 vintage</a>, which critics have largely claimed exceptional for dry and sweet white wines. Many of the new releases offer great value for money but there is also a plethora of exceptional older vintages like 2019 which are already enjoying serious price growth. A category to watch this year is the second wines of the First Growths, which benefit from the same technical expertise as the Grand Vin but represent a lower-priced alternative. These wines tend to deliver some of the biggest <a href="https://winecap.com/learn/wine-investment-market" target="_blank" rel="noopener">return on investment</a>.
<h3>Strong competition from Burgundy</h3>
On the global fine wine market, Burgundy has emerged as Bordeaux’s strongest competitor. For the first time in 2022, Burgundy has even taken a greater share of the UK fine wine market than Bordeaux. Demand is greater than ever but so are allocations.
Driven by scarcity, early investors in the sector have seen <a href="https://winecap.com/learn/burgundy-region-report" target="_blank" rel="noopener">increases of over 2,000%</a> in some wines. Over the past two decades, Burgundy’s leading index, which tracks the price performance of the 150 most sought-after wines, has risen over 740%. Today, the trend is to seek value – and stock – within Burgundy’s appellations, as the region continues to give investors reasons to want more.
<h3>Vintage Champagne </h3>
The start of the year was all about bubbles. Vintage Champagne led the charts in our <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">Q1 wine market report</a> – a trend that is set to continue. Looming shortages due to the 2021 grape harvest, which was one of the smallest on record, have only increased global demand and pushed up prices. Consistent returns, stability, brand appeal and unparalleled distribution are just <a href="https://winecap.com/news/invest-in-champagne">few of the other reasons</a> why Champagne is very much in vogue in 2022.
<h3>The rise of other wine investment regions</h3>
The <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">ongoing broadening of the fine wine market</a> means that there are plenty of investment opportunities to discover outside the aforementioned French regions.
One such example is California. A string of good vintages in the past decade and high critic scores have elevated the region’s share of the fine wine market from just 0.1% to 7.6% over the past decade – a theme that is set to continue.
Italy is another success story. More Italian regions outside the pillars of Tuscany and Piedmont are delivering value and stable returns.
Want to discuss these wine investment trends in more detail with an expert? <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Schedule a call with one of WineCap’s investment advisors.</a>

The Biggest Wine Investment Trends in 2022

We’re delighted to launch <a href="https://winecap.com/wine-track">Wine Track</a>, the most comprehensive index available. It enables you to identify the right, undervalued wines to buy and sell across the global market at the right time and price.
Our in-house technology collates and analyses Liv-ex and Wine-Searcher data, along with over 400,000 wine prices a day collected independently from 250 leading wine merchants across the globe, helping you navigate fine wine markets with confidence.
We’re proud to have also developed our own bespoke scoring system: the Wine Track critic score. It aggregates more than 100 wine critics’ scores from 12 worldwide publications to produce a simple and transparent score that marks each wine out of 100. This helps you reference a wine’s quality at a glance, as some critics use different scales to grade wines.
To demonstrate just how powerful Wine Track is, we’ve identified that Chateau de la Tour, Clos de Vougeot Grand Cru, Vieilles Vignes – at £1,794 per case – represents a real opportunity for retail investors to diversify their portfolio. This wine is from the same vineyard in Burgundy as Domaine Leroy, Clos de Vougeot Grand Cru – at £65,816 a case – and has an almost identical Wine Track critic score: 93.8 points compared to Domaine Leroy’s 94.7 points. While Domaine Leroy’s price is driven by its excellent reputation, Chateau de la Tour offers better value and accessibility.
Our tool monitors over 75,000 investment-grade wines from 1990 to the present day, enabling you to track how prices have changed over any given period.  
Wine Track is testament to the hard work of our development team and we’re proud to launch this free tool that harnesses the latest technology. Our data-led investment decisions are the reason our customers continue to experience positive returns.

Free Wine Investment Tool ‘Wine Track’ Launches

Le Clos Lanson is set to become the second Champagne ever to be sold on La Place de Bordeaux, one of the world’s oldest marketplaces. The single vineyard expression – and Champagne Lanson’s top cuvée – follows Champagne Philipponnat’s Clos des Goisses onto the historic marketplace.
La Place de Bordeaux is over 800 years old and is a distribution system that consists of around 300 négociants (distributors) and courtiers (middlemen) who buy and sell wines from Bordeaux châteaux. Historically, La Place only sold wines that were made in Bordeaux. However, in 1998 the marketplace opened its doors to its first non-Bordeaux bottling: Viña Almaviva’s 1996 vintage, a joint venture between Château Mouton-Rothschild and Chile’s Concha y Toro. In subsequent years, more and more non-Bordeaux wine producers have been invited to sell on La Place. Think Napa’s Opus One, Australia’s Penfolds Grange and Argentina’s Catena Zapata.
The advantage of selling wines on La Place is its access to global markets and experience selling into Asia, especially China. Négociants have salespeople around the world primed to sell high-end wines. Lanson’s president, François Van Aal, commented on this new approach:
‘This distribution method will enable our icon cuvée to reach a larger amount of wine lovers and collectors around the world, while strengthening the awareness of our Champagne house which is already present over 80 countries’.
Le Clos Lanson 2009 will be the first expression sold on the platform. This top cuvée is produced from 100% Chardonnay grapes harvested from a one-hectare, walled vineyard in the heart of Reims. Only just over 7,000 bottles, along with some magnums, were produced of the 2009 vintage.

Champagne Lanson to sell on La Place de Bordeaux

The wine investment market is characterised by its stability, increased diversity and high returns, which are particularly valued when traditional markets underdeliver.
Long considered a niche, the global fine wine market has considerably grown in size over the past two decades and has attracted <a href="https://winecap.com/learn/fine-wine-market" target="_blank" rel="noopener">more and more investors</a>. This, in turn, has contributed to greater price transparency (making it easier to discover the price of a wine) and market liquidity (making it easier to sell it), which have <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">facilitated the trade</a> of fine wine. The more wines that have been in demand, the more prices have risen, creating something of a virtuous circle.
But the fine wine market is not without its intricacies. Below we examine the importance of market data, the returns you can expect from wine investment and the reasons why the market is growing.
<h3>What is the ROI on wine?</h3>
Fine wine prices are <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">currently at record levels</a> so there is arguably no better time to be involved in the wine investment market. The globally recognised Liv-ex Fine Wine 100 index, which monitors the price movement of the 100 most sought-after fine wines in the world, has risen 307% over the past two decades. The broader Liv-ex 1000 index, which tracks 1,000 wines from around the world, has seen even greater returns: 361% since its conception in 2003.
Individual wines have risen by <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">different amounts</a>, like the First Growth Château Mouton Rothschild 2000, which has appreciated over 800% in value since release, or Domaine de La Romanée-Conti Romanée-Conti Grand Cru 2010 – up by over 1,000%. Such rare fine wines impress with their stellar performances, but there are other more widely available alternatives that can deliver your desired return on investment (ROI). There are currently over 12,000 different wines that can be considered investment worthy.
While ROI is dependent on the wines you choose to invest in, there are additional factors such as provenance, <a href="https://winecap.com/learn/investing-in-fine-wine-what-to-consider" target="_blank" rel="noopener">storage</a> and the time of buying and selling that will affect your profits. Reliable market data can help you make informed investment decisions.
<h3>Is wine a risky investment?</h3>
Wine is a <a href="https://winecap.com/learn/what-are-the-benefits-of-investing-in-fine-wine" target="_blank" rel="noopener">low-risk investment</a>. Physical assets like fine wine are stable sources of value in times of uncertainty. While stock markets can crash and share prices can collapse overnight, tangible assets do not cease to exist. As a <a href="https://winecap.com/learn/fine-wine-market" target="_blank" rel="noopener">low-volatile investment</a>, fine wine delivers stability and consistent returns. It is a proven way to <a href="https://winecap.com/learn/fine-wine-taxation-2022" target="_blank" rel="noopener">strengthen and diversify an investment portfolio</a>. Additionally, wine is not reliant on a single economy and it can be traded internationally.
Fine wine also tends to perform well in <a href="https://winecap.com/learn/seven-delicious-reasons-to-invest-in-fine-wine" target="_blank" rel="noopener">inflationary environments</a> due to its inherent tangibility and scarcity. It is a combination of investment and luxury good, which benefit from rising global wealth.
<h3>Is wine a good investment? </h3>
Fine wine has a proven track record as an investment. A quick look into the <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">history of the fine wine market</a> shows how it has delivered stability and returns during the 2008 financial crisis, Brexit, the Covid-19 pandemic and other global events that have shaken equities.
As a passion investment, fine wine benefits from global demand. Wine is, after all, one of the oldest beverages in the world and its appeal has never waned. Its inherent value only adds to the strength of the fine wine investment market.
Interested in speaking to one of WineCap&#8217;s <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">investment experts</a>, now you know the wine investment market’s fundamentals?

The Wine Investment Market: What You Need to Know

When it comes to fine wine investments, the environment probably isn’t the first thing that crosses people’s minds. We&#8217;ve taken a closer look at why, we believe, it should be reconsidered as an Environmental, Social and Governance (ESG) or Socially Responsible investment.
With ESG, alcohol is usually one of the first asset classes to get screened out[1]. Interestingly, this could stem from the Quaker movement, who first started the trend of ethical investing about three hundred years before it became mainstream[2]. This famously teetotal religion encouraged investing, but only if it toed the holy line. In the late twentieth century, other investments came under fire too, especially those which profit from war. Today, it’s generally accepted that investments in alcohol, pornography, gambling, and weaponry cannot be “ESG”[3].
But is this approach a little sour? Especially when you can find the likes of British American Tobacco, McDonalds, Coca-Cola, PepsiCo, British Petroleum, Phillip Morris, ExxonMobil and more featured on popular ESG funds[4]? How could fine wine possibly be worse for the environment than junk food or oil companies? And is it time to reset the dial and realise the true environmental potential of this asset?
Here are five sobering reasons why fine wine should be reconsidered as an ESG investment: 
<h2>1. Vineyards are a carbon sink</h2>
A rugby-pitched-sized area of vineyard soaks up a respectable 2.84 tonnes of carbon every year[5]. For context, three of these plots would balance out what the average Brit emits annually[6]. Unlike most other ESG investments today, this off-setting is a natural and intrinsic part of the business model of wine-making. It’s not an &#8216;extra&#8217;. This is no ESG stunt or short-term project.
Supporting the healthy growth of plants is essential to the production of winemaking. There are precious few investments which literally grow on trees and soak up carbon as part of their day-to-day functioning.
<h2>2.   Soil quality can be enhanced through fine wine</h2>
What’s more, vineyard managers who mulch or compost their old or unused vines (rather than burn them) can save an additional 4.5 tonnes of carbon[7]. As well as helping to mitigate climate change, this also raises the quality of the soil, which is great news for local ecosystems too.
Soil degradation is hot on the radar for concerned environmentalists. Around a third of the planet’s land is damaged from intensive farming[8]. And, alarmingly, fertile soil is being lost at a rate of 24 billion tonnes a year[9]. Sustainable vineyards provide a welcome respite against this concerning environmental damage.
<h2>3.   Organic wine production supports pollinators</h2>
Vineyards can also offer welcome sources of nectar for pollinators, like bees. These tiny creatures are vital for our planet and well-being. It’s estimated that one third of all our food is thanks to the humble pollinator moving from plant to plant and spreading seeds along the way[10]. Sadly, over the past decades, irresponsible agriculture, overzealous pesticides, and the loss of wild meadows have seen these essential creatures fall into steep decline.
Organic or pesticide-free vineyards – often one of the hallmarks of fine wine – helps bees and other pollinators get back on track. Small flowers bud around the vines as by-products, and split grapes provide rewarding sweet juice for the hungry invertebrates. Some wineries are now planting more native shrubs around vineyards to further support pollinators[11].
<h2>4.   Fine wine fights back against single-use plastic</h2>
Plastic is fast becoming a dirty word – and especially single-use plastic. Even 400 years after it&#8217;s thrown away, this packaging will not have biologically degraded[12]. As activists and environmentalists call for an end to this era, fine wine could help carve out a new way forward. Unlike disposable plastic, fine wine glass bottles are something to be treasured.
What’s more, glass has a much higher recycling rate than plastic alternatives, and unlike plastic it can be 100% recycled.[13] Although glass is by no means a perfect solution, it seems to be a better way forward than many other “ESG” junk food, soft drink or oil companies are offering. Fascinatingly, some wineries are even experimenting with light-weight glass and even cardboard bottles as we type[14]. Watch this space!
<h2>5.   Vineyards help fill rocky terrain and hills with plants</h2>
As anyone who spent a youthful summer picking grapes will be able to tell you, it was more of a work-out than expected! This is because the knee-high vines are usually grown on steep sunny hills and even over rocky terrain.
While this may be strenuous on the hamstrings, it’s great for using up space wisely. Vineyards often voyage up mountains and valleys to face the sun. This helps to fill up otherwise unsuitable stretches of hillside with plants and flowers.
The higher altitude also acts as a natural pesticide, making it much easier to create organic wines. What’s more, these vineyards are also less likely to catch and spread grape diseases[15], adding yet another environmental benefit to the investment.
<h2>… Is it finally time to consider fine wine as a sustainable investment?</h2>
As assets go, wine is one of the least carbon-intensive. As WeForum recently pointed out[16], you’d have to drink a bottle of wine every single day for three years for it to have the same impact as a single London to New York flight.
The fundamental business of creating wine is so intrinsically sustainable that most of its emissions come from just the packaging [17] and tourism[18]. And winemakers are keen to cut these down! Every day, we’re seeing more and more environmental initiatives coming from the industry. From renewable energy to sustainable wine tours, there’s a vast range of bright and brilliant programmes coming into the mainstream.
So, is it time to start considering fine wine as a viable environmental investment? We believe so.
If you’d like to learn more about the fascinating world of wine investments, <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">download our complimentary guide</a>.
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[1] Source : <a href="https://www.unpri.org/an-introduction-to-responsible-investment/an-introduction-to-responsible-investment-screening/5834.article" target="_blank" rel="noopener">UN PRI</a>
[2] Source : <a href="http://www.the-ethical-partnership.co.uk/historyofethicalinvestment.htm" target="_blank" rel="noopener">The Ethical Partnership</a>
[3] Source : <a href="https://www.unpri.org/an-introduction-to-responsible-investment/an-introduction-to-responsible-investment-screening/5834.article" target="_blank" rel="noopener">UN PRI</a>
[4] Source : <a href="https://www.hdinvestmentcontent.com/post/5-vice-fund-companies-in-esg-investments" target="_blank" rel="noopener">HD Investment Content</a>
[5] Source : <a href="https://www.winegb.co.uk/home-visitors/sustainable-winegb/carbon-calculator/" target="_blank" rel="noopener">Wine GB</a>
[6] Source : <a href="https://www.winegb.co.uk/home-visitors/sustainable-winegb/carbon-calculator/" target="_blank" rel="noopener">Wine GB</a>
[7] Source : <a href="https://www.winegb.co.uk/home-visitors/sustainable-winegb/carbon-calculator/" target="_blank" rel="noopener">Wine GB</a>
[8] Source : <a href="https://news.un.org/en/story/2019/06/1040561" target="_blank" rel="noopener">United Nations</a>
[9] Source : <a href="https://news.un.org/en/story/2019/06/1040561" target="_blank" rel="noopener">United Nations</a>
[10] Source : <a href="https://ourworldindata.org/pollinator-dependence#:~:text=When%20we%20calculate%20how%20much,35%25)%20relies%20on%20pollinators." target="_blank" rel="noopener">Our World in Data</a>
[11] Source : <a href="https://www.forbes.com/sites/lizthach/2021/09/08/how-napa-and-sonoma-vineyards-are-going-beyond-sustainability-to-embrace-climate-positive-goals/?sh=da607e376521" target="_blank" rel="noopener">Forbes</a>
[12] Source : <a href="https://www.nationalgeographic.com/science/article/plastic-produced-recycling-waste-ocean-trash-debris-environment#:~:text=Plastic%20takes%20more%20than%20400,12%20percent%20has%20been%20incinerated." target="_blank" rel="noopener">National Geographic</a>
[13] Source : <a href="https://www.sustainablejungle.com/sustainable-living/glass-vs-plastic/" target="_blank" rel="noopener">Sustainable Jungle</a>
[14] Source : <a href="https://www.winemag.com/2020/07/27/paper-beer-bottles-wine-sustainble/" target="_blank" rel="noopener">Beverage Industry Enthusiast</a>
[15] Source : <a href="https://www.olivemagazine.com/drink/high-altitude-wine-guide/" target="_blank" rel="noopener">Olive Magazine</a>
[16] Source : <a href="https://www.weforum.org/agenda/2021/07/what-can-the-wine-industry-teach-us-about-sustainability/" target="_blank" rel="noopener">We Forum</a>
[17] Source : <a href="https://www.upmraflatac.com/news-and-stories/articles/2021/08/reducing-the-carbon-footprint-of-wine--from-vineyards-to-packaging/" target="_blank" rel="noopener">UPMRAFLATAC</a>
[18] Source : <a href="https://theconversation.com/vineyard-tourism-is-a-big-source-of-carbon-emissions-want-to-help-then-buy-more-wine-164600" target="_blank" rel="noopener">The Conversation</a>

5 Ways Fine Wine Investments are Good for the Environment

Château La Gaffelière has announced that it has decided to leave the Saint-Émilion classification. That now makes it the fourth Premier Grand Cru Classé to withdraw from it.
The Malet-Roquefort family has owned the estate for over 300 years and released a statement which detailed the reasons for its departure. The château no longer recognises ‘the values in the criteria for evaluating the great terroirs and fine wines of Saint-Émilion as set out by the Classification Committee’.
The château cited the committee’s first report which it said ‘called into question the quality level of our terroir, which has been acclaimed and distinguished by the AOC authorities for more than 65 years’. The Malet-Roqueforts argue that the scoring system put in place for the tasting, ‘contradicts all the scores that Château La Gaffelière has obtained over many years from the greatest wine professionals’.
The classification is updated every 10 years and in 2012 it awarded Premier Grand Cru Classé A status to Châteaux Angélus, Ausone, Cheval Blanc and Pavie. Only Pavie currently remains. Angélus said that the classification had become a ‘vehicle for antagonism and instability’. 
Châteaux Ausone and Cheval Blanc withdrew from the classification last year as they found that there had been ‘a profound change in its philosophy’ in 2012. They believe that there was now ‘too much of a focus on marketing drift such as the importance of product placement, how often an estate appears in media, including PR and in social media, along with wine tourism infrastructure’. 
Defending the classification’s process, the Saint-Émilion wine council said that the new ranking system is ‘a formidable tool for challenge, innovation and modernity’.

Château La Gaffelière to Leave the Saint-Émilion Classification

Frosts descended on some of France’s key fine wine regions in April for the second year in a row. Producers in Burgundy, Bordeaux and Champagne braced themselves for the coldest temperatures the country had experienced since April 1947. Burgundian winemakers were perhaps the most hypervigilant out of all the country’s producers who were taking measures in the vineyard to prevent the frost from settling. Burgundy’s vignerons were poised to battle the elements each night in the hope of escaping the same losses that impacted the 2021 vintage.       
Fortunately, the Bureau Interprofessionnel des Vins de Bourgogne (BIVB) – Burgundy’s wine board – has just announced that this year’s frost damage isn’t as bad as first thought. While ‘everyone had feared the worst’, due to a mild winter and two snaps of frost in April, it commented that ‘this event is different’ to last year’s. ‘The vines are less advanced in the growth cycle and in general terms, the frost was shorter and less intense.’ The areas which came under the most pressure from frost were ‘certain sectors in the northern part of the region.’
The BIVB’s technicians found in their analysis of vineyard plots that early May’s warmth and rainfall had helped accelerate the growing season and that flowering had begun mid May.  
While the climatic challenges experienced this year hadn’t resulted in as much damage in Burgundy’s vineyards as previously feared, the BIVB warned last month that there are still potential difficulties that lie ahead. This stems from a combination of increased global demand from consumers and reduced yields in 2021. Another factor the wine board highlighted was the financial pressure winemakers were under, having had to pay for additional vineyard equipment, such as candles, to ward off the frost. 
With frosts becoming more and more of a yearly occurrence and with producers’ margins becoming even tighter, could we see already high Burgundy prices rise even more? WineCap will be keeping a close eye on the 2022 Burgundy vintage and its progress. 
Want to learn more about Burgundy, its producers and appellations? Download our <a href="https://winecap.com/learn/burgundy-region-report" target="_blank" rel="noopener">Region Report</a> to find out more.

Why the 2022 Burgundy Vintage is Looking Promising

If you&#8217;re considering fine wine investment, here are some tips to help you get started.
<h3>How to get the right information?</h3>
It is important to do your own research and stay up-to-date on fine wine investment trends but where do you get started?
Looking into wine types, growing regions and brands is a useful first step. Researching average prices for the <a href="https://winecap.com/learn/investing-in-fine-wine-what-to-consider" target="_blank" rel="noopener">wines you want</a> will help you make sure you are being quoted a reasonable price when you come to buy them. Nowadays there is a wealth of pricing data online for investors to navigate.
Meanwhile, regional fine wine investment reports and vintage overviews can help you understand the fine wine market in more depth. <a href="https://winecap.com/learn" target="_blank" rel="noopener">WineCap’s Academy</a> provides a resource on producers and their wines so your knowledge grows, as your portfolio does. News websites like The Drinks Business, Decanter, Bloomberg, and the Financial Times, regularly cover topics related to fine wine investment. Critical coverage can also help you navigate the world of fine wine and inform your investment decisions.
Regularly researching the fine wine market and identifying emerging trends will help you find the best investment opportunities available.
<h3>Should I use a wine investment company?</h3>
Wine investment companies have years of experience dealing with the fine wine market and its intricacies. Relying on the latest digital innovations, wine investment experts can share their unbiased knowledge with you and advise you on the best wine investments. WineCap’s unique proprietary technology analyses over 400,000 wine prices a day to identify buying and selling opportunities across the global market.
Working with a reputable fine wine investment company helps you get the wines that you want. WineCap has <a href="https://winecap.com/learn/your-wine-investment-questions-answered" target="_blank" rel="noopener">access to the top investible allocations</a> and an extensive portfolio of wines stored in secure government bonds.
While it is possible to conduct your own research, find your own storage and buy your selected wines, investing in fine wine through a trusted specialised company saves you time and money.
<h3>Looking for a wine investment guide? </h3>
Our <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">Fine Wine Investment for Beginners guide</a> can help you get started. The guide provides an overview of the fine wine investment market and how it works in practice. It also outlines the wine investment process in four simple steps.
Get started now you&#8217;ve discovered these top fine wine investment tips. <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Speak to one of WineCap’s advisors</a> to find out more about next steps.

Laptop open on a desk with a cup of coffee

Fine Wine Investment Tips

WineCap featured on <a href="https://www.yourmoney.com/investing/blog-why-fine-wine-might-be-a-better-investment-than-you-thought/" target="_blank" rel="noopener">YourMoney.com</a> today in an article that focused on how fine wine is gaining an increasing amount of investor attention in a climate of rising inflation and market volatility. You can read the full article below:
Against the backdrop of war, rising inflation and market volatility, alternative asset classes have come to the fore, and fine wine is gaining investor attention.
The world has become a very uncertain place in a short amount of time. Many asset classes have been materially impacted by several factors, chiefly the conflict in Ukraine, but also legacy issues from Covid-19 such as record inflation and supply chain constraints.
The return of high inflation presents some investors with a very real problem. In the UK, price increases reached 9.2% in March, the highest level for 30 years, and that rate is expected to accelerate over the months to come.
Similar pressures are being felt in economies across Europe and in North America. Central banks have reacted by increasing base rates, with guidance pointing to further rises across 2022.
With wide uncertainty in markets and nervousness about the prospect of traditional assets such as bonds, many investors are looking to reduce risk through diversification.
In this environment, alternative asset classes have come to the fore, with fine wine once again showing capital strength. The fine wine market is providing a stable environment with international appeal, even during times of economic turbulence such as the ones we are currently facing.
The top end of the fine wine market is self-contained and, to a large extent, separated from financial markets. This is, in part, because it shadows the movement of wealth around the globe rather than being attached to a single economy or bloc. It is less susceptible to the volatility experienced in conventional markets and has shown to be less volatile than other ‘luxury’ asset classes.
Although collecting quality and rare wines as an investment to trade in the future is not a new concept, over the past 25 to 30 years it has become one of the most popular soft commodity markets due to its flexibility, limited production and stability.
It also has a strong track record of providing inflation protection. Since its launch and to the end of 2021, the LIV-ex 1000 index, the main pointer that measures fine wine market performance, has risen 270.7%, survived three global financial crises and returned more than the S&amp;P500.
Further, in the current economic landscape, as inflation spiked towards the end of last year, so did the price of wine, with the Liv-ex 1000 rising 19.08% in 2021.
Much like gold, during periods of high inflation, wine is often seen as a good way to store value. Over the past few years, wine has had a better performance track record compared to gold.
Looking at data from both assets for the 2021 calendar year, wine returned 22.5% while gold returned -2.69%. That’s not saying gold isn’t a good investment in times of volatility or higher inflation, but rather, supports fine wines’ ability to deliver stable returns and portfolio diversification.
During recent years, the market has seen an increased influx of investment from both sophisticated and retail investors which has increased the demand on a limited supply chain. This demand continues to grow as the market attracts new areas of wealth, while production remains static. This is particularly notable on most sought-after wines where demand outstrips supply.
Against this backdrop, companies are trying to democratise what was once only the playing field of affluent, high net worth individuals and sophisticated investors.
By harnessing cutting edge technology, and lower fee models, retail investors can now make the most of fine wine’s stable and diversifying powers in the current environment.
WineCap is a new wine investment company which analyses over 400,000 wine prices a day to identify the right, undervalued wines to buy and sell across the globe.

Why Fine Wine Might be a Better Investment Than You Thought

In this article, we outline the key things that you need to consider when investing in fine wine. Fine wine investment experts like the team at <a href="https://winecap.com/learn/your-wine-investment-questions-answered" target="_blank" rel="noopener">WineCap</a> can help you make informed decisions relating to the following factors.
<h3>Is investing in fine wine a good idea?</h3>
Investing in fine wine is <a href="https://winecap.com/learn/fine-wine-taxation-2022" target="_blank" rel="noopener">a proven way</a> to strengthen and diversify your portfolio. Fine wine is a stable, low-risk investment thanks to its tangibility and low volatility. As an alternative asset, fine wine has shown very little correlation to mainstream markets. When traditional investments like bonds and equities fall, fine wine tends to hold steady. Moreover, fine wine has been one of the best-performing assets over the last 30 years, delivering consistent returns even in times of uncertainty.
<h3>How much should you invest in wine?</h3>
Fine wines are a luxury commodity, which means they can sometimes command high prices. <a href="https://winecap.com/learn/your-wine-investment-questions-answered" target="_blank" rel="noopener">Most people</a> tend to start off in the vicinity of £5,000-£10,000 to make their investments worthwhile. However, there are <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">a range of options</a> depending on the region and the producer, how much of the wine is made and the wines’ age. Setting your budget before you start will help you narrow your focus and ensure you have exposure to the wines that suit your investment goals. This figure may change as time goes on, but it’s good to have a starting point.
<h3>Which wines should you invest in?</h3>
Once you have set your budget and determined your investment goals, you need to decide which wines you want. Factors such as region, producer, grape variety and critical acclaim will affect their final value.
A wine investment expert will help you find the appropriate wines for your investment portfolio. <a href="https://winecap.com/about-us" target="_blank" rel="noopener">WineCap</a> has formed long-lasting relationships over the past decade with négociants, wholesalers and private collectors. This means that we have access to some of the world’s most prized wines. What’s more, our unique proprietary technology analyses over 400,000 wine prices a day to identify the right, undervalued wines to buy and sell across the global market at the right time and price.
<h3>How will you store your wines?</h3>
Investment-grade wine should be stored correctly to help protect its value. For long-term storage, this means holding the wine in a cool, dark place with minimal disturbance. Bonded storage (a secure location approved by the HMRC that stores items that haven’t paid VAT or duty tax) will give you the peace of mind that your wine is being kept in the right conditions. World-class care ensures that when you come to sell, your wine’s provenance will quickly secure maximum prices.
Ready to embark on your wine investment journey? <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Schedule your free consultation with one of WineCap’s investment experts</a> to find out the next steps.

Investing in Fine Wine: What do You Need to Consider?

Penfolds is Treasury Wine Estates’ most iconic brand. Its most sought-after bottling is undoubtedly ‘Grange’ which is revered by wine lovers and collectors the world over and has received a wealth of 100 point scores, rave reviews and awards since its first official vintage in 1960.
China is an important market for Treasury Wine Estates and its Penfolds wines are in high demand. However, due to the eye-wateringly high tariffs (up to 200%) that were imposed by Beijing in <a href="https://www.smh.com.au/politics/federal/pm-warns-of-economic-challenges-ahead-as-china-wine-tariffs-hit-20201128-p56irn.html" target="_blank" rel="noopener">November 2020</a>, its exports to the country are down by 26%. 
In order to supply its wines to China as smoothly as possible in future, Treasury Wine Estates has found a way to bypass the tariffs: by growing grapes and making wines domestically to create ‘Penfolds China’. The international drinks company has been experimenting with viticulture in the western province of Yunnan in the Ningxia and Shangri-la regions and is happy with the results of its ‘primarily Cabernet-based’ wines so far, as Chief Executive Officer Tim Ford commented: ‘China is an emerging fine winemaking region and we’re confident we can produce a premium Chinese Penfolds that maintains the distinctive Penfolds house style and uncompromising quality’.
Penfolds is expected to release this new wine in the second half of 2022 and each bottle will reach between A$30 &#8211; A$50, as reported by <a href="https://www.bloomberg.com/news/articles/2022-05-18/made-in-china-penfolds-wine-will-dodge-crippling-import-tariffs">Bloomberg</a>.
This isn’t the first time that Penfolds has looked to foreign shores in order to push winemaking boundaries. It launched Penfolds California last year, with a series of wines made in Napa from Cabernet Sauvignon and Shiraz. ‘Quantum’, its top cuvée, was released at £545, 10% higher than Grange in the UK. Interestingly, its parent company has also acquired vineyard holdings in Champagne and Bordeaux.
All eyes are sure to be on China, Champagne and Bordeaux over the coming months and years as the fine wine world waits to see which other innovative and ground-breaking wines Penfolds releases from both established and emerging wine regions.

Penfolds to Produce Special Made-in-China Bottling

Fine wine has numerous investment benefits that distinguish it from other assets. More than just a passion investment, fine wine provides stability and substantial financial returns. Below we examine seven of the reasons <a href="https://winecap.com/learn/fine-wine-investment-for-beginners" target="_blank" rel="noopener">why fine wine makes a good investment</a>.
<h3>High-performing asset</h3>
Fine wine has been one of the best-performing assets over the last 30 years, meaning that its value has been increasing over time. The compound annual growth rate since January 1988 has been 12.6%. During the Covid-19 pandemic, leading fine wine indices registered double-digit increases in contrast to the extreme volatility experienced in financial markets. 2021 was a record-breaking year for the fine wine market, which outperformed mainstream equities. In the past year, the broadest measure of fine wine prices, the Liv-ex 1000 index, has risen 24.6% versus 4.2% for the FTSE100, and declines of 2% for the S&amp;P500 and 11.7% for the tech-heavy Nasdaq index.
<h3>Tangibility</h3>
Wine is a tangible physical asset, which only adds to its allure. While stock markets can crash and share prices can collapse overnight, tangible assets do not cease to exist (unless, in this case, they are drunk and enjoyed). Fine wine can be compared to real estate but without the high maintenance costs and without being reliant on a single economy. It can also be traded internationally.
<h3>A stable, low-risk investment</h3>
Physical assets are stable sources of value in uncertain times. Fine wine is an effective hedge against inflation and recession. Its performance has proved that it can successfully weather rising prices and economic downturns. As a <a href="https://winecap.com/learn/fine-wine-market" target="_blank" rel="noopener">low-volatile investment</a>, fine wine delivers stability and consistent returns.
<h3>Finite supply and rising demand</h3>
Investment-grade wines are finite as they are both physical goods and vintage products. Supply is limited due to the strict conditions under which they are produced and as the wines enter their drinking windows and are consumed. This, plus rising demand from a growing global market and new wealth from emerging economies guarantees stable price appreciation over time – a phenomenon relatively unique to fine wine.
<h3>Portfolio diversifier</h3>
As an alternative asset, fine wine has shown very little correlation to mainstream markets. When <a href="https://winecap.com/learn/investing-in-wine-vs-investing-in-stocks-which-is-safer">traditional markets</a> fall, fine wine tends to hold steady. This makes it a popular alternative to more traditional investments, such as bonds and stocks. As a portfolio diversifier, fine wine reduces the overall risk of an investor’s portfolio, protecting wealth and providing returns.
<h3>Tax exemption</h3>
Fine wine is a tax efficient investment. As a ‘wasting’ asset – an item with a life span of no more than 50 years – most fine wine is exempt from Capital Gains Tax when it is sold. Although wine can be drinkable some 60 years later, most wine sales would not give rise to a potential tax liability, meaning that investors can enjoy more significant returns.
<h3>Passion investment</h3>
Last but not least, fine wine is a passion for many investors. There is a growing trend for people who profit from what they might consider their hobby. Buy, sell or drink, fine wine allows you to simultaneously grow your passion and profits.
Ready to get started now you know more about investing in wine? <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Speak to one of WineCap’s investment experts</a> to discover the next steps on your wine journey.

What are the Benefits of Investing in Fine Wine?

As alternative assets go, fine wine is one of the most vibrant and exciting on the market. Not only does it add depth and passion to an investment portfolio, but it can deliver extraordinary returns too. Experts recommend allocating between 1 – 2% of an overall portfolio to this intriguing asset class<a href="#_ftn1" name="_ftnref1">[1]</a>. And among the super wealthy high net worth individuals, the proportion is anticipated to be even higher<a href="#_ftn2" name="_ftnref2">[2]</a>.
Here are seven compelling benefits to consider investing in fine wine:
<h2>1.   Impressive potential for returns</h2>
Investors should always remember that there are no guarantees, and historical returns do not mean future ones. But it’s hard to ignore the impressive and steady performance of the fine wine markets.
Overall, the fine wine market has enjoyed a compound annual growth rate (CAGR) of 12.6% since 1988<a href="#_ftn1" name="_ftnref1">[3]</a>. Another report by Knight Frank that fine wines had increased in value by a staggering 127% over the past decade<a href="#_ftn2" name="_ftnref2">[4]</a>. And it’s showing no signs of slowing. Already within the first months of 2022, fine wines outperformed all other major markets, except commodities<a href="#_ftn3" name="_ftnref3">[5]</a>. What’s more, experts are optimistic for the future. Burgundy wines and <a href="https://winecap.com/news/the-champagne-brands-driving-price-growth" target="_blank" rel="noopener">Champagne have particularly flourished over recent months</a>. And – as adverse weather and climate change impacts the creation of new wine<a href="#_ftn4" name="_ftnref4">[6]</a> &#8211; these vintages are likely to become ever more sought-after.
<h2>2.   Powerful inflation-beating properties</h2>
Today’s market is overheating. And as central banks frantically increase interest rates in a bid to slow down inflation, it shows no sign of cooling. In May 2022, the Bank of England warned Britain to brace itself for inflation levels to rise above 10% &#8211; the highest since 1988<a href="#_ftn1" name="_ftnref1">[7]</a>. This leaves traditional stocks and bonds investors feeling nauseous. The markets are staggering, with cash and debt instruments on the edge of plummeting.
Meanwhile, those assets such as gold, art or fine wines which have inflation-beating properties are in demand. This could make it an excellent choice for concerned investors.
<h2>3.   An exceptional diversifier</h2>
Nobel Prize laureate, economist Harry Markowitz famously quipped that diversification is the only “free lunch” in investing<a href="#_ftn1" name="_ftnref1">[8]</a>. This is the process of spreading wealth across many different investments to take advantage of market opportunities while shielding against turbulence. Diversification doesn’t just mean investing in different asset types, sectors, or geographical locations though. Crucially, it also means investing in assets with different income sources and value drivers. Or to put it another way, the value of some assets should be uncorrelated to the stock market.
This is often a stumbling block for investors. How can you invest in an asset that’s uncorrelated or even negatively correlated to the stock market? Whether it’s tech companies in the US, or renewable energy plants in Europe, most assets are all impacted by the same market events. However, fine wine is different. The value of fine wine is determined by a completely unrelated set of criteria to publicly-traded stocks or bonds.
Some of these value-drivers are unique to the bottle. The wine-making technique, region, weather, year, packaging, storage, age and more all play a part. While the supply and demand factors are generally kept within a niche and exclusive circle of connoisseurs. This makes fine wine a truly exciting diversifier, akin to art. During the 2020 pandemic and recession, for example, the value of fine wines increased by a whopping 13%<a href="#_ftn2" name="_ftnref2">[9]</a>. This highlights a powerful negative correlation to the wider market performance.
For forward-thinking investors, fine wine could just be the strategic hedge against market volatility they’ve been looking for.
<h2>4.   A refreshingly tangible investment</h2>
In a world filled with bitcoin, the metaverse and crypto-assets, an investment you can touch is a breath of fresh air. Physical assets like gold, property, or fine wines can feel extremely reassuring during periods of market turbulence – which becomes reflected in their value.
Tangibility is one of the most significant benefits and differentiators of fine wine as an asset. While the costs of storage and insurance can eat into returns, it’s a small price to pay for the durability of the asset. After all, companies can collapse, rendering their shares and stock options useless. Inflation can eat away at cash or debt. And companies or governments can default on their loans, and file for bankruptcy. Electronic shares are only real if they exist on a screen.
But, regardless of the economy outside, a premium bottle of fine wine still be there. It will still be a desirable and solid asset which becomes better and rarer over time.
<h2>5.   Fine wine is exempt from Capital Gains Tax</h2>
Fine wine falls into a curious tax bracket. As it is deemed by the HMRC to have a useful economic life of 50 years or less, it’s known as a “wasting chattel” or a “wasting asset”. While this may not sound flattering to the purveyors of fine wines, this unsightly name is really a blessing for investors. It means returns from these assets are free from costly Capital Gains Tax (CGT) &#8211; currently set at 20% for all annual income after £12,300.<a href="#_ftn1" name="_ftnref1">[10]</a> This is a major benefit of fine wines and can seriously boost returns for investors.
If the wine is considered to have a life of more than 50 years, some CGT may apply, but it’s still somewhat shielded from the full hit. Tax is payable only for returns of more than £6,000. This is a significant perk for investors which could more than compensate for storage and insurance costs. <a href="https://winecap.com/learn/fine-wine-taxation-2022" target="_blank" rel="noopener">Find out more about fine wine taxation.</a>
<h2>6.   More room for price negotiation</h2>
More than one million trades<a href="#_ftn1" name="_ftnref1">[11]</a> are made on the London Stock Exchange every single day. With so many people jostling to buy and sell shares, this makes the public investment markets extremely efficient. Whatever price a stock has at any moment of time is probably exactly what it’s worth, according to thousands of investors. Because of this, it’s almost impossible to get a bargain in the short-term. Instead, investors need to buy at a pre-determined price and wait until the asset appreciates or depreciates.
With fine wine, the process of buying and selling is completely different. And unless, you’re investing with an index fund or something similar, you’ll likely find yourself at exclusive auction houses or negotiating a sale privately. Just like buying a property or bidding online, this opens the possibility of getting a better price than you expected.
<h2>7.   Support a much-loved industry</h2>
It’s no coincidence that fine wines are known as “passion assets”. Investors who want to do more than simply generate financial returns often turn to this unique world because of its vibrant industry and exclusive inner-circle.
Being part of this group of investors means supporting a sector steeped in history and culture. It means putting value on true quality and appreciating some of the finest craftsmanship in the world. It is the only asset class that you can sip and savour, bringing exquisite flavours and exceptional taste to your portfolio.
<h2>Interested to learn more …?</h2>
Incorporating fine wine into a diversified investment portfolio could be a tasteful way to; boost returns, enhance diversification, shield against inflation, benefit from tax perks and even support an industry steeped in culture. If you’d like to learn more about the fascinating world of wine investments, <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">download our complimentary guide.</a>
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<a href="#_ftnref1" name="_ftn1">[1]</a> Source : <a href="https://www.honestgrapes.co.uk/news-events/could-capital-gains-tax-exemption-on-fine-wine-get-the-axe/" target="_blank" rel="noopener">Honest Grapes</a>
<a href="#_ftnref2" name="_ftn2">[2]</a> Source : <a href="https://delphia.substack.com/p/fine-wine-the-liquid-investment-thats?s=r" target="_blank" rel="noopener">Alt Class</a>
<a href="#_ftnref3" name="_ftn3">[3]</a> Source : <a href="https://www.liv-ex.com/2022/04/fine-wine-market-q1-2022/" target="_blank" rel="noopener">Liv-ex</a>
<a href="#_ftnref2" name="_ftn2">[4]</a> Source : <a href="https://www.knightfrank.com/research/article/2021-03-01-covid19-and-its-impact-on-luxury-investments" target="_blank" rel="noopener">Knight Frank</a>
<a href="#_ftnref1" name="_ftn1">[5]</a> Source : <a href="https://www.liv-ex.com/2009/07/fine-wine-investment-long-term-view/" target="_blank" rel="noopener">Liv-ex</a>
<a href="#_ftnref4" name="_ftn4">[6]</a> Source : <a href="https://www.thedrinksbusiness.com/2022/05/this-is-why-burgundy-is-going-to-get-even-pricier/" target="_blank" rel="noopener">The Drinks Business</a>
<a href="#_ftnref1" name="_ftn1">[7]</a> Source : <a href="https://www.theguardian.com/business/2022/may/05/bank-england-raises-interest-rates-inflation-cost-of-living" target="_blank" rel="noopener">The Guardian</a>
<a href="#_ftnref1" name="_ftn1">[8]</a> Source : <a href="https://www.netwealth.com/ourviews/diversification-is-the-only-free-lunch-in-investing/" target="_blank" rel="noopener">NetWealth</a>
<a href="#_ftnref2" name="_ftn2">[9]</a> Source : <a href="https://www.knightfrank.com/research/article/2021-03-01-covid19-and-its-impact-on-luxury-investments" target="_blank" rel="noopener">Knight Frank</a>
<a href="#_ftnref1" name="_ftn1">[10]</a> Source : <a href="https://www.gov.uk/capital-gains-tax/rates" target="_blank" rel="noopener">HMRC</a>
<a href="#_ftnref1" name="_ftn1">[11]</a> Source : <a href="https://www.statista.com/statistics/325326/uk-lse-average-daily-trades/" target="_blank" rel="noopener">Statista</a>

Seven Delicious Reasons to Invest in Fine Wine

The esteemed northern Rhône producer E. Guigal has acquired Château d&#8217;Aqueria in Tavel, one of the jewels of the southern Rhône. The celebrated maison made the purchase from the de Bez family and the estate spans 242 hectares with 168 under vine. Some 100 acres are in Tavel with the remainder in the neighbouring Lirac appellation.
This isn’t <a href="https://www.guigal.com/en/" target="_blank" rel="noopener">Guigal’s</a> first purchase in the southern Rhône; the maison bought Domaine de Nalys – now Château Nalys – five years ago. It had previously sourced grapes from there over the course of three centuries for its négociant arm.
Château d’Aqueria dates back to 1595, when Louis Joseph d’Aqueria purchased the land for grape growing. The estate has been bought and sold over the centuries and, most recently, Paul de Bez’s sons, Vincent and Bruno, were in charge of it until this new purchase. 
The Tavel appellation lies just across the Rhône river from Châteauneuf-du-Pape and spans some 933 hectares. The region is famous for producing complex and deeply coloured rosé wines from primarily Grenache and Cinsault grapes, with Syrah and Mourvedre supporting. Tavel rosé must have at least 11% alcohol which renders it suitable for ageing.
The estate produces approximately 16,000 cases of wine each year and it will be kept by E. Guigal as a separate domaine, aside from the négociant arm. 
Lirac is gaining more and more interest recently as Châteauneuf-du-Pape lovers look to this region which shares a similar terroir. Producers from Châteauneuf have been buying vineyards here and making more accessibly priced white and red wines from old vines. 
Philippe Guigal, winemaker and CEO, said that the team is ‘eager to make its contribution to Château d&#8217;Aqueria’ and that its first project will be to ‘drive forward the practice of biological-ecological viticulture, with the help of the existing team at the Château.’

E. Guigal Buys Château d’Aqueria

The Bordeaux En Primeur 2021 campaign is set to begin this quarter. Critics and the wine trade have descended – in person this year – on the famous French wine region to taste samples of last year’s vintage which will be sold as new releases while the wines are still in barrel.
Performance isn&#8217;t just about how good a wine or a vintage is though, growth can be seen across the spectrum. For instance, Château Lafite Rothschild 2013 (Neal Martin, 90 points), is up 110% since release, Carmes Haut Brion 2012 (Antonio Galloni, 94 points) is up 160%.  Younger wines haven&#8217;t had the chance to move as far yet, but there are still good numbers to be found: Château Beychevelle 2017 is up 30% and Château Pontet-Canet 2019 45%
<h2>Initial Thoughts on the Bordeaux 2021 Vintage</h2>
After speaking with winemakers, the négociants who sell the wine, journalists and other members of the trade, the general opinion is that 2021 is a fresh and approachable vintage that’s good quality and that many remarked is similar to other cooler years. WineCap will make a full assessment of it once critics’ scores and release prices are out in the next quarter. 
2021 was a more challenging year than each of the three vintages that preceded it. January started off mild but with some heavy rain. Temperatures were cooler than normal which helped create wines with a fantastic freshness to them with lower alcohol levels. Many producers experienced frosts in April and May. However, some châteaux weren’t affected at all due to their terroir’s elevated topography, as is the case with Pomerol’s Troplong Mondot which had almost no loss of yield. Rain in mid August and September helped promote downy mildew in the vineyard which affected grapes, although this wasn’t a problem for all châteaux. Merlot was the most affected grape as it is an early ripener and is also the most prone to suffer from mildew. This meant that production levels were down, as rigorous sorting in the vineyard allowed only the finest grapes to be used. Many producers on both the Left and Right Bank held off harvesting until as late as possible in the hope of warmer weather to ripen grapes a final bit more. This paid off as those who waited were rewarded with sun and higher temperatures. 
<h3>New Technology Helping Create the Best Bordeaux Wines</h3>
Producers now have excellent technology at their disposal to help them identify and select the finest grapes possible. In 2021, many châteaux used optical sorting machines that have cameras and/or lasers to determine grapes’ colour, size, structure and chemical composition. Another technique that was employed last year and that is gaining more and more prominence is density sorting. Grapes are bathed in a sugar solution at a sweetness level the winemaker desires. Ripe grapes that meet the desired sugar level sink to the bottom. These methods are enabling winemakers to create fantastic wines even during a challenging vintage. 
Of course, while these machines are gaining more popularity, the hard work begins in the vineyard: taking care of the vines and hand sorting grapes there before further quality control can take place in the winery. Château Pontet-Canet in Pauillac is the posterboy for good vineyard management and – in particular – biodynamic practices as it retained most of its yield in 2021 as it was prepared for inclement weather.  
2021 appears to be continuing a trend of fresher wines that are approachable earlier, while still having the potential to be able to age for decades to come.
<h3>Left Bank Bordeaux</h3>
As with many of the Bordeaux wines we tasted regardless of appellation, the Left Bank producers were happy with their wines, despite not having been able to make as much of them as they’d like. Pessac-Léognan’s Château Haut-Bailly and Saint-Julien’s Château Beychevelle were textbook examples of the 2021 vintage, delivering fantastic freshness, purity of fruit and fine tannins.
<h3>Right Bank Bordeaux</h3>
What stood out in Saint-Emilion and Pomerol was the higher percentage of Cabernet Franc used in the 2021 blend, typically with Merlot, as it is a late-ripening grape. Château Angelus’ 2021 Grand Vin contains the highest amount of Cabernet Franc on record: 60%. This gives the wine fantastic freshness and soft tannins. It was a similar story for many producers on the Right Bank, with higher levels of the grape used than usual. 
<h3>The Outlook for Bordeaux En Primeur 2021</h3>
While we eagerly await the release prices and critics’ scores that will appear during this quarter, the general opinion is that the 2021 vintage has produced fresh, approachable wines that are good quality. With yields down significantly in the case of some châteaux, we can expect there not to be as many bottles released as in previous years. Therefore it’s reasonable to expect that producers won’t be pricing these En Primeur wines at a discount. As always, it’s a question of individual châteaux prices.
Want to keep up-to-date on the Bordeaux 2021 En Primeur campaign? <a href="https://winecap.com/download-guide" target="_blank" rel="noopener">Sign up here</a> to receive the latest news and releases.

Bordeaux En Primeur 2021: Initial Thoughts

Rare Burgundy wines are set to feature in Christie’s upcoming ‘Luxury Week’ in May and also in its Finest and Rarest Wines and Spirits sale in June. Spring heralds warmer weather, new growth and for one of the world’s most famous auction houses, a series of auctions that include some of the finest wines, watches, jewellery and handbags ever produced.
<h2>Christie’s Auction House </h2>
Last year’s sales of luxury items at Christie’s was incredibly successful, topping just over $980m and the highest since 2015. Interestingly, 35% of buyers across all categories were new to the business and 32% of them were millennials, according to Christie’s CEO Guillaume Cerutti. It’s these new buyers that are driving the current buoyancy at the top end of the luxury auction market and that continue to push prices up on rare, collectible wines. What’s more, Christie’s has heavily invested in technology, a move brought about by the pandemic, in order to livestream auctions.  
All eyes will no doubt be focused on the upcoming rare Burgundy auction in June. It’s sure to be a real highlight as all of the 45 lots have been brought above ground from the deep, vaulted cellars of King’s College Cambridge. King’s College is said to have one of the most well respected cellars out of all of the university colleges and a real heritage when it comes to wine as its University Wine Society was founded in 1792. The college bought all of the wines on release from UK importer Richards-Walford and the cases were then moved to the university’s cellars, where they have remained since then. Only four wine stewards have been appointed in the past two centuries and their enviable role is to act as the cellar’s guardians and curate its collection.
<h2>A Wine Investor’s Dream</h2>
The 45 lots are set to feature rare Burgundies from such highly sought-after producers as Henri Jayer and his nephew Emmanuel Rouget, who is now the proprietor of some of Jayer’s most famous vineyards. Wines from these producers are expected to hail from such revered appellations as Echézeaux and Vosne-Romanée Cros Parantoux. Bids are sure to reach eye-wateringly high amounts for stand-out wines from a region that has tiny production levels.
Speaking about the upcoming auction, Adam Bilbey, Christie’s Global Head of the Wine and Spirits Department commented: “The hallowed cellars of King’s College, Cambridge are steeped in such history and tradition that this sale will garner the imagination and attention of wine lovers around the world. This small glimpse into the King’s College cellar will most certainly be a highlight of Christie’s wine sales this season”.
Want to find out more about rare Burgundy wine? Download our <a href="https://winecap.com/learn/burgundy-region-report">Burgundy report</a> and discover why the region and its producers’ wines command some of the world&#8217;s highest prices.

Rare Burgundy Auction at Christie’s

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Our first quarterly report, analysing the trends that shaped the <a href="https://winecap.com/about-us">fine wine market</a> in the beginning of the year, is now available to download. The report examines how the global situation has impacted fine wine’s performance and the regions, producers and wines to follow.
The fine wine market was keenly poised at the beginning of the year after a record-breaking 2021. This helped it brave the volatility that traditional assets failed to withhold. Fine wine indices continued to rise despite slowing GDP growth, high inflation and the turmoil brought by Russia’s war with Ukraine. Burgundy, in particular, delivered a standout performance following a successful 2020 En Primeur campaign. Bordeaux continued to lose trade share to other regions, while California and – in particular – Champagne attracted a new wave of investment interest.
The start of the year was all about bubbles. Champagne did not only dominate the list of wines on the rise, but the region took four out of the five spots of the most traded wines this quarter. Louis Roederer’s Cristal itself filled three of these.
Judging by the first quarter, 2022 is set to be an exciting year, abound with opportunities for fine wine. The ever-decreasing supply of the most sought-after wines is pushing up prices but also leading to a market expansion, as buyers seek value and (re)discover regions, new and old. The perceived stability of fine wine is providing protection in an environment of rising costs and inflation and is bringing more investors to the most delectable of markets.
WineCap’s independent market analysis showcases the value of portfolio diversification and the stability offered by fine wine. Download our brand new quarterly report for your summary of the past quarter in fine wine.

Q1 2022 | Report

Champagne looks set to capitalise on its excellent 2021 performance. Last year was fantastic for Champagne brands as sales figures for the category rocketed beyond pre-pandemic levels. Over 350 million bottles were exported worldwide last year and the appetite for French bubbles – synonymous with luxury, indulgence and good times – gained the most ground in the US which has now surpassed the UK (37.4%) as the largest export market by volume (39.1%). 
This price growth can be attributed to two things: restaurants, nightclubs and bars reopening worldwide, as well as ultra high net worth collectors focusing their attention on the category. With less supply available, prices surged.
The sky was the limit for Champagne in 2021 as it ended the year up 40% and at a record high level. 2022 looks incredibly promising for the category too as it’s up 9.6% so far this year. 
<h2>Louis Roederer Cristal Rosé</h2>
Prestige Champagne brands were the key price drivers in 2021 and the headline acts with the top performance were highly sought-after names including Louis Roederer Cristal (with high demand across the 2008, 2012, 2013 and 2014 vintages). Interestingly, the most traded wine by value was the 99 point scoring Louis Roederer Cristal Rosé 2012 as the market for rosé Champagne expands. Other Grande Marques with top billing were the ultra-premium Salon (2007, 2006 and 2002 vintages), as well as Taittinger’s Comtes de Champagne 2006 and Dom Pérignon’s Rosé 2005.
<h2>Non-Vintage Champagne</h2>
However, it wasn’t just vintage Champagne that sparkled. The trade of non-vintage (NV) Champagne also broke new ground and made up the most-traded part of the category. The market has also broadened with NV Champagne’s trade share up from 5.1% in 2018 to 17.6% in 2021.
With such impressive performance in 2021 as well as in Q1 this year, there’s no doubt that Champagne has now cemented its place in the secondary market for fine wine. What’s more, there is no other region where the top wines are still this affordable. Savvy investors who hold top Champagne know just how approachable this category is, when compared to the most prestigious Burgundies, top Napa wines and the very best of Bordeaux.
Want to find out more about investing in Champagne? Read WineCap’s in-depth analysis in our <a href="https://winecap.com/learn/champagne-report-2022" target="_blank" rel="noopener">Champagne Report</a>.

The Champagne Brands Driving Price Growth

Bordeaux wine producers braced themselves this week as temperatures dropped as low as -7℃ in certain areas. It’s the second year in a row that the region has experienced Spring frosts and the coldest temperatures for this season since 1947. As châteaux try to ward off the frost that can wreak havoc on their entire crop, we’ve taken a closer look at how it impacts vines and what producers can do to try and combat it.
<h2>Frost and Wine: How Does it Affect Vines?</h2>
Spring frosts happen when cold air below 0℃ collects at ground level and freezes any water that has settled on surfaces. If this happens to new buds that have burst it kills them. The impact of this is huge and can impact the vintage yield significantly.
<h3>Vineyard Frost Protection</h3>
There are several ways that wine producers can try to combat frost in the vineyard. One popular and traditional method in French winemaking regions is the use of ‘bougies’, literally ‘candles’ in French, but more often ‘burners’, using old oil drums. They are placed throughout the vineyard to generate heat which helps the air to circulate and prevents the cold air from settling and causing the frost.
Wind machines are more common in areas that are prone to frosts. They act as large fans with a heating element inside and aim to keep the temperature at ground level above freezing. You might have even seen photos of some producers using helicopters above the vineyards in order to circulate the air!
Sprinklers are also used to spray water onto the vines. As the water freezes around the green tissue, it releases some heat which gives vines just enough protection to fight off the frost. 
One Bordeaux producer who has fought frost with 100% success using another method this year is Liber Pater in the Graves region on the Left Bank. Owner ​​Loic Pascquet no longer bottles his wines adhering to the AOC system which has strict production requirements. Instead, he chooses to bottle his wines as ‘Vin de France’ and is free to use frost nets in the vineyard, something that AOC classified producers are not permitted to do. Frost nets cost half the price of burners and are also reusable.
<h3>The Impact on the 2022 Vintage</h3>
While we don’t know just yet the full impact the Spring frosts may have had in Bordeaux, it’s likely that yields will be down. With less fruit available to make the wines, the amount of the 2022 vintage released on the market could be drastically reduced, meaning that the global demand for Bordeaux would struggle to be satisfied.
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Aerial shot showing burners in Bordeaux vineyards

Spring Frosts in Bordeaux

Our Burgundy Report is available to download. Discover more about this historic wine region that produces some of the world’s most expensive and sought-after wines.
With only two primary grape varieties and three classification ranks, Burgundy may appear simple, but with dozens of controlled places of origin (AOCs), hundreds of producers and many thousands of wines, it can be fiendishly complicated.
Growing liquidity and increased awareness of the sector has made Burgundy much more accessible to those looking to make a return and its prominence has grown significantly over the last decade.
Thanks to Burgundy’s status and its tiny production levels, early investors in the sector have seen eye-watering growth: upwards of 2000% in 15 years for some wines. This fascinating and wide-ranging region is a significant one for both wine enthusiasts and investors. Part of the region’s allure is due to its limited production levels. Only small quantities of particular wines are produced and this only adds to the appeal of the often hard-to-find and highly sought-after top quality bottlings.
The volume, value and breadth of trading has increased significantly and wine values have increased dramatically over the last decade; the major index is up almost 200% in the past ten years. After a quieter 2019–2020, it appears that the Burgundy market is on the up and it now makes up around 25% of all trades on the largest platform.
WineCap has analysed the data and the fundamentals suggest that continued growth is likely. With the market now more active than it was five years ago, all portfolios should include some Burgundy. Download the report to discover further market analysis and lesser-known producers with impressive recent performance.

Burgundy | Region Report

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There is no question that appreciation of wine is increasing all over the world which, subsequently, has piqued the interest of potential fine wine investors across the globe.
The fine wine market has established itself as a low-risk marketplace for anyone looking to get into the investment world or wanting to expand their existing portfolio. But why is it so popular?
In this article, discover why more and more people are investing in fine wine and, if you’re considering becoming a fine wine investor yourself, find out how to get started.
<h3>Differences between fine wine and other investment methods</h3>
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<h4>An alternative investment</h4>
An alternative investment is any way of growing your capital that doesn’t fit into the traditional categories, such as equity and bonds.
Alternative investments, such as fine wines, allow investors to diversify their investment portfolios. Doing so decreases the risk over their entire portfolio, giving them the chance to strengthen what they already have.
<h4>Low correlation with the stock market </h4>
The fine wine market doesn’t correlate with the stock markets because its value relies on the good old-fashioned supply and demand model.
Investment-grade wine producers only make a small amount of wine every year, this already increases its value. As soon as someone drinks that bottle of wine, there is one less bottle to buy, but the demand for that wine doesn’t go away.
This continuous cycle is what often gives fine wine investors such a healthy return on investment, unlike traditional investment methods where prices often rise and fall unexpectedly.
<h4>It’s a tangible asset</h4>
A tangible asset means it is a physical object. A fine wine investor invests in a real-life, physical product, which means they have direct ownership of that wine and can crack open and enjoy it should they wish to.
This differs to stocks and shares, where although you may receive paper confirmation, you don’t truly own the product – making it less secure than tangible assets.
<h4>Low volatility</h4>
Volatility is a term to describe the rate prices of an item increase and decrease in a market over a period of time.
Traditional investment methods, like stocks and bonds, have very high volatility. Prices can increase and decrease for any reason at any given time. Indeed, sometimes it only takes one prominent and influential figure to publicly criticise it for its price to dramatically drop.
The fine wine market has low volatility with stable price growth over time, which is why fine wine is considered a low-risk investment.
<h3>So, how can you turn fine wine into profit?</h3>
One of the many great things about fine wine investment is that you can take it up whether you are an investment expert, or a hobbyist looking to expand your portfolio.
If you are new to fine wine investment and would like some help deciding where to invest your money, you could look into working with a fine wine investment company like WineCap.
Here at WineCap, we offer expert, unbiased advice on strategic investment opportunities and can walk you through how to get the most out of your investment.
We also store your fine wine in government bonded warehouses, ensuring your wines are stored in optimum conditions.
Learn more about wine investment and <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">schedule a free consultation today</a>.

The Fine Wine Market is Seeing More & More Investors

If you’re looking for viable investment opportunities then you’ve likely considered a range of potential investments, including stocks and wine. But of these two drastically different investment arenas, which is the safer option during the current economic climate?
In this article, discover the pros and cons of investing in wine and investing in stocks to help you make a more informed decision about which investment direction is best suited to you.
<h3>The pros of investing in wine</h3>
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<h3>A low-risk investment</h3>
Fine wine is a physical asset, so it represents a very low-risk investment. When you invest in the market, your wines are stored in optimal conditions within a secure bonded warehouse.
<h3>Wine is a physical, tangible asset </h3>
Wine, unlike stocks, is a tangible asset created to be drunk and enjoyed. This gives it intrinsic value as a medium to long-term investment.
<h3>A relatively resilient marketplace  </h3>
<a href="https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/fine-wine-investors-toast-despite-stock-market-tumble-58149302" target="_blank" rel="noopener">According to S&amp;P Global</a>, wine is one of the few luxury assets to have withstood the harsh impact on assets triggered by the coronavirus pandemic, proving the market relatively resilient. Indeed, wine is widely considered to be a ‘safe haven asset’.
<h3>The cons of investing in wine</h3>
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<h3>Portfolio valuation can be tricky</h3>
Traders tend to purchase and sell wine at a less frequent rate than stocks are purchased and sold, and there is no standardised international market. These factors can make it challenging for wine investors to get an accurate idea of the value behind the wines in their portfolio.
<h3>Selecting well-known wines could be disadvantageous</h3>
Many wine investors tend to choose mainstream wines from well-known wine regions such as California, Burgundy, or Bordeaux. Owing to their ubiquity, these wines can have a reduced chance of transitioning to rare wine status.
<h3>Selling wine can take a while </h3>
It can take wine investors some time to sell a bottle of wine in their portfolio, particularly when trying to navigate the marketplace without expert support. This can make it more difficult to access funds quickly should the need arise.
<h3>The pros of investing in stocks</h3>
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<h3>The potential for large cash gains</h3>
Though the prices of individual stocks rise and fall daily, the potential to grow your money over time can be significant. Investing in stable companies that have the ability and intention to grow can often result in profit for investors.
<h3>Quick purchases and sales</h3>
Thanks to their liquidity, stocks can usually be bought and sold fairly quickly, and often at a fair price.
<h3>Diversification</h3>
The stock market gives investors the ability to build a diverse stock portfolio across a wide variety of different industries and sectors. This diversity can help to reduce the overall risk of stock investment.
<h3>The cons of investing in stocks</h3>
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<h3>An erratic, volatile marketplace</h3>
Unlike the fine wine market, the stock market is a high-risk, erratic and volatile investment arena. Although stocks can be highly lucrative when invested in tactically and sensibly, the rapid, widespread price fluctuations can make it difficult to achieve the desirable returns on your investments.
<h3>Limited company information </h3>
It’s important to remember that when you invest in stocks you are investing in a public company. However, investors may not be able to access all relevant information about the company, which can make it more difficult to make good investment decisions.
<h3>Capital Gains Tax</h3>
If you make a profit on shares you sell, then you will likely have to pay Capital Gains Tax, depending on your total gains for the tax year.
However, it is worth noting that you do not have to pay Capital Gains Tax when you sell fine wine because the HMRC classes it as a ‘wasting asset’.
<h3>Wine Vs. stocks – which is the safer investment?</h3>
While the stock market represents a high-risk, high reward investment arena, investing in wine tends to offer more security – which is an important consideration if you want to create a sustainable investment portfolio.
Fine wine has a long, proven history of robust returns on investment. According to the world’s largest online wine stock exchange, Liv-ex, fine wine has delivered 13.6% annualized returns over the last 15 years – outperforming most stock markets. One need only review the <a href="https://www.liv-ex.com/news-insights/indices/">Liv-ex fine wine indices</a> to see how modest but consistent annual growth adds up over time.
So, in the case of wine vs. stocks, it is our opinion that wine is a much safer investment.
<h3>Talk to our wine investment experts</h3>
We hope you found this article helpful. If you’d like more information or advice about investing in wine, simply schedule a free 30-minute consultation with one of our wine investment experts.
<a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Schedule your free consultation</a>

Investing in Wine Vs. Investing in Stocks – Which is Safer?

Our Bordeaux En Primeur 2020 Report is available to download. Discover our wine investment experts thoughts on 2020, a vintage that has widely been heralded by prominent wine critics as excellent and the third in a row of top Bordeaux vintages. Find out which Bordeaux sub-regions and producers they feel delivered top class wines that are worth seeking out. 
As with the two vintages that preceded it, conditions in 2020 favoured producers with multiple plots of different soil types due to the abundance of both sunshine and rainfall. Right Bank clay soils were better able to retain water and thus sustain the vines. 
Although Bordeaux En Primeur 2020 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 2020 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.

Bordeaux 2020 | Vintage Report

Hello, we’re WineCap and we’ve changed our name from Westgarth Wine Investments to give it a bit of a refresh, invested more in our technology, streamlined the new site and have added extra features that benefit our visitors. You can now schedule a <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">free 30-minute consultation</a> with one of our investment experts. We&#8217;ve also created the <a href="https://winecap.com/learn" target="_blank" rel="noopener">Academy</a> which is a hub of online resources.
<h3>New Name. Same Team.</h3>
We’re still the same independently-owned company and team who’ve been proud to serve you for the past ten years and who will continue to offer expert investment advice for the next chapter of your wine journey.
<h3>Do I Need to do Anything?</h3>
You don&#8217;t need to take any action. Your online details remain the same, there are no changes to the wines you hold or where they&#8217;re stored and you can phone the same people using the usual number.
<h3>What&#8217;s New?</h3>
You&#8217;ll see our updated branding on our new website. We&#8217;ve also launched the <a href="https://winecap.com/learn" target="_blank" rel="noopener">WineCap Academy</a> where you can learn more about the producers you invest in, stay up-to-date on what&#8217;s been happening in the market and get the low-down on everything in the wine investment sector. What&#8217;s more, you can expect new quarterly reports in order to stay informed with market trends.
So, a big &#8216;hello&#8217; and &#8216;welcome&#8217; from all of the team here at WineCap and we&#8217;re excited about this new phase of our wine investment journey together.

Welcome to WineCap

<h1 data-pm-slice="1 1 []">Considering investing in Champagne?</h1>
It&#8217;s not necessarily the most costly, nor the rarest of fine wine. However, Champagne is supremely consistent, making it arguably one of the strongest and most appealing sectors of the fine wine market.
Its steadfast presence can be attributed to its brand strength, liquidity and an aura of exclusivity it maintains despite being well-known in the main. 200-plus years of expert marketing by the best producers is what arguably makes Champagne the most broadly understood luxury good in the world.
As with all fine wine, as Champagne ages, its quality improves. As it is consumed, its supply decreases. This virtuous circle drives prices over time. This luxurious bubbly tends to be released later than other investable wines and as consumption begins in earnest immediately, we can see the impact of this cycle faster.
<h3>Top Champagne Brands to look out for</h3>
For those considering investing in Champagne, the most important brands to keep in mind are Dom Pérignon, Cristal, Krug, Taittinger and Salon. Volumes produced vary considerably from producer to producer. Dom Pérignon is widely believed to make around 4,000,000 bottles a year across all their wines. In contrast, in 2020 Salon released just 8,000 bottles of their 2008.
<h3>The Best Champagne Vintages </h3>
The strongest vintages include 1996, 2002 and 2008. Unlike in Bordeaux or Burgundy, producers tend not to release vintage wines every year, emphasising the exclusivity. This means there are vanishingly few &#8216;bad&#8217; Champagne vintages. Although of course, some are superior to others, it is no more necessary to focus on only exceptional vintages in Champagne than it is in other regions.
Over the past five years Krug&#8217;s value is up 75% and Dom Pérignon up by 65%. These numbers demonstrate that Champagne is a smart addition to any diversified investment portfolio and should no longer be considered just a celebratory indulgence.
Want to find out more about investing in Champagne? <a href="https://winecap.com/learn/champagne-report-2022" target="_blank" rel="noopener">Read our in-depth report here</a>.

Invest in Champagne

Fine wine investment is increasingly gaining popularity amongst beginners and novices looking to reap the benefits of this alternative asset. Not only is it a proven way to diversify and strengthen an investment portfolio, but also an enjoyable pastime for wine enthusiasts and budding connoisseurs.
Surging prices regularly push fine wine investment into the spotlight, and headlines are filled with stories of investors who bought wine at low prices, then sold it years later for thousands. But how and where do you get started as a beginner? And what are the wine investment returns that you can expect?
The following guide provides an overview of the fine wine investment market and how it works in practice.
<h3>How big is the wine investment market?</h3>
Investing in wine is no new phenomenon. In fact, it has existed in different forms since antiquity, as wine was circulated and traded throughout the ancient world by Greeks, Egyptians, Phoenicians, and Romans. The writings of Thomas Jefferson provide one of the first pieces of evidence of a premium charged for an older wine. In 1787, he wrote that the 1786 vintage for top Bordeaux wines cost 1800 livres per tonneau compared to 2000 livres for the older 1783. 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 <a href="https://winecap.com/learn/fine-wine-taxation-2022" target="_blank" rel="noopener">uniquely rarifying asset</a> against their own cellars.
Today, the market is transparent and open for beginners as well as experienced investors looking to embark on their wine journey. Investing in fine wine is easier than ever, thanks to specialised wine investment companies, relying on current market data and the latest technology.
The global wine market is forecast to reach US$525 billion by 2025. But while fine wine has emerged as a popular alternative investment, <a href="https://winecap.com/learn/your-wine-investment-questions-answered" target="_blank" rel="noopener">not every wine is investment worthy</a>. For example, the majority of wines produced in renowned regions, such as Burgundy and Bordeaux – perhaps surprisingly – often won’t appreciate in value. In fact, of all the wines made worldwide, only a very small percentage have the potential to improve as they age, and an even smaller percentage of that group has the capacity to see its price rise.
Precisely this scarcity of investible wines is one of the main drivers behind wine investment’s profitability. The limited supply of collectible wine leads to price increases, especially for labels in high demand. This is why it is important to keep abreast of the latest market trends and factors influencing global appetite.
<h3>More fine wine investment opportunities than ever before</h3>
Historically, Bordeaux’s classified growths have been the leading force on the fine wine investment market. In 2010, Bordeaux took 96% of all trade on the global marketplace for wine. <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">Today</a>, it accounts for less than a third of this market by value.
The main reason behind its declining trade share is that the fine wine investment market is bigger and broader than ever before. Other French regions like Burgundy, Champagne and the Rhône, USA, Italy (led by Tuscany and Piedmont), Germany, Spain and Australia are increasingly seen as reliable sources of considerable wine investment returns.
Investing in fine wine is thus not limited to a small group of wines, contrary to what one might expect. There are more opportunities than ever before that can be suited to your stylistic preferences and budget. The collectors’ market is booming, with <a href="https://winecap.com/learn/q1-2022-report" target="_blank" rel="noopener">record number of investible wines</a> trading right now.
<h3>Greater fine wine investment returns</h3>
As global demand for fine wine has grown, the investment returns have increased too. <a href="https://winecap.com/learn/burgundy-region-report" target="_blank" rel="noopener">Burgundy</a> is a prime example. Thanks to its iconic status and its tiny production levels, early investors in the sector have seen eye-watering growth: upwards of 2000% in 15 years for some wines. The volume, value and breadth of trading has increased significantly, and wine prices have risen dramatically over the last decade; the region’s major index is up almost 200% in the past ten years.
Meanwhile, investors in <a href="https://winecap.com/news/invest-in-champagne" target="_blank" rel="noopener">Champagne</a> have benefitted from supremely consistent returns, although it is not the most expensive or the rarest of fine wines. Its brand strength and distribution network, however, remain unparalleled.
Prices for different regions and wines have risen at a different pace. Region and wine-specific factors thus play a role in the returns that an investor can expect, the cost and length of the investment.
<h3>How long do I need to invest in fine wines for?</h3>
Fine wine is considered a medium to long-term investment. As a general rule, we advise our clients to hold their wines for three years at the very least.
Many collectible wines have long ageing windows, between ten and 50 years. As the scarcity and quality of fine wine appreciates over time, so does its value. The premise of fine wine investment is to buy wine when it’s young, then sell it once it’s older and more valuable. There are other external factors that may help determine how quickly a wine may deliver the desired returns such as critic scores, supply/demand and significant events related to the region or the producer.
For instance, the price of the Super Tuscan Sassicaia 2015 went up 25% in the day when the American publication <a href="https://www.winespectator.com/" target="_blank" rel="noopener">Wine Spectator</a> announced its ‘Wine of the Year 2018’. Those buying and re-selling the wine on the day would have made a small profit; however, those holding the wine since release would have seen its value rise over 160% to the present day.
As a long-term low-risk investment, fine wine doesn’t lose its value overnight. Where share prices may increase one day and decrease the next, fine wine provides stable returns year after year. Its low volatility has led many to consider it the best ‘safe-haven’ asset – a great advantage particularly in times of market turmoil.
Unlike mainstream assets, fine wine is fairly insensitive to macro-economic events. When global markets tumbled due to ongoing Covid-19 restrictions and upon Russia’s invasion of Ukraine, fine wine remained resilient. The returns of leading fine wine indices were greater than the FTSE100, S&amp;P500 and even other safe investments such as gold.
<h3>How do I start investing in wine?</h3>
There are a lot of decisions you need to make when taking on wine investment. Wine investment experts like our team here at WineCap can help you make decisions relating to the following factors:
<h3>Set a wine investment strategy</h3>
The first step is to set your budget. Consider how long you would like to hold your wines for and your preferred investment strategy. Fine wines command a range of prices depending on the producer, how much of their wine is made and the wines’ age. Make sure to set your budget before embarking on building your portfolio so you can ensure you have exposure to all countries and regions.
<h3>Speak to a wine investment expert</h3>
There are different routes to accessing the wine investment market, such as through specialised retailers and auction houses. Expert wine investment brokers offer unbiased advice on strategic investment opportunities and can help you build your portfolio, based on your preferred length of investment and budget. While <a href="https://winecap.com/about-us" target="_blank" rel="noopener">WineCap</a> doesn’t charge any annual fees, most wine investment companies do, so be sure to do your research and be aware of any fees your portfolio might incur.
<h3>Select world-class wines for your portfolio</h3>
A wine investment expert will help you find the wines best suited for your investment portfolio. <a href="https://winecap.com/about-us" target="_blank" rel="noopener">WineCap</a> has formed long-lasting relationships over the past decade with négociants, wholesalers and private collectors. This means that we have access to some of the world’s most prized wines. What’s more, our unique proprietary technology analyses over 400,000 wine prices a day to identify the right, undervalued wines to buy and sell across the global market at the right time and price.
<h3>Store your wines professionally</h3>
Choose to keep your wines in government bonded warehouses as this will ensure they are professionally stored in temperature-controlled conditions best-suited for ageing wines. World-class care ensures that when you come to sell, your wines&#8217; provenance will quickly secure maximum prices.
Fine wine investment can be daunting if you are a beginner, but with a little practice and help you can soon enjoy the benefits of the best-performing luxury asset.
Ready to get started now you know more about how to invest in wine? <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Speak to one of WineCap’s investment experts</a> to discover the next steps on your wine journey.

Fine Wine Investment for Beginners

Wine has been a staple at the dinner table and in people’s lives for centuries, but did you know the quality of wine increases over time? Which subsequently leads to an increase in value? These factors have made wine collection a popular hobby for many.
Wine collectors will buy rare and expensive wines, store them for a number of years and then sell them for a higher price. This is known as wine investment.
In this article, we take a look at ten of the world’s most expensive wines, summarising their prices, types, grape varieties and regions.
<h3>What makes wine so expensive? </h3>
Collectible wines, or investment-grade wines, are wines that could increase in price from their original cost as time goes on.
There are several elements to question to find out whether your wine is investment-grade or not, such as:
<ul>
<li>Is the brand well known? Reputable brands create high-quality wines that have a high demand, which can mean a higher price.</li>
<li>Does the wine have positive reviews from reputable critics?</li>
<li>Will the quality increase when the wine ages?</li>
<li>How many bottles of the wine have been produced? A limited-edition wine is going to be more expensive than a winemaker that produces many hundreds of thousands of bottles a year.</li>
</ul>
<h3>Ten of the world’s most expensive wines</h3>
Taking into account what is mentioned above, we have looked into ten of the most expensive wines in the world and why they carry such a high price tag.
<h3>Domaine Georges &amp; Christophe Roumier, Musigny Grand Cru </h3>
Producer: Domaine Georges &amp; Christophe Roumier
Average price: £13,595
Wine type: Red
Grape: Pinot Noir
Region: Burgundy, France
Domaine Georges Roumier is a wine producer that creates highly commended and expensive wines, based in the village Côte de Nuits in France. The vineyard consists of over approx. 28.5 acres of land across multiple regions of Burgundy.
&#8216;Grand Cru&#8217; is a classification of the quality of wines produced across Burgundy and Alsace and is the highest grade you can get. It means that the land the grapes grow on and the vineyard itself is of high quality, reaffirming the value of the wine.
<h3>Château Margaux</h3>
Producer: Château Margaux
Price: $225,000 (gained by insurance reimbursement in America)
Wine type: Red
Grape: Bordeaux blend
Region: Bordeaux, France
A bottle of this wine, created in 1787, was said to be a part of Thomas Jefferson’s personal collection.
A wine trader called William Sokolin later acquired it and took it to a dinner in Bordeaux, where the waiter knocked it off the table and smashed the bottle. Sokolin was later reimbursed with $225,000 by his insurance company, but the bottle was originally thought to be worth $500,000.
<h3>Domaine Leroy, Musigny Grand Cru </h3>
Producer: Domaine Leroy
Average price: £31,691
Wine type: Red
Grape: Pinot Noir
Region: Burgundy, France
Founded in 1868 by wine merchant François Leroy, the Domaine (vineyard) is now owned by Lalou Bize-Leroy, who also owns Domaine d&#8217;Auvenay.
This dry red wine is produced from Pinot Noir grapes and is the by-product of biodynamic farming. This ethical approach to farming provides nutrients to the plants by using their own composting measures, as opposed to using chemical fertilisers. Although more labour intensive, this method produces high-quality crops and is better for the environment.
<h3>Krug Vintage Brut Champagne </h3>
Producer: Krug
Price: Sold for £14,800
Wine type: Sparking wine
Grape: Champagne
Region: Champagne, France
Krug is known for being one of the renowned houses in the Champagne region, making their wines some of the most sought-after and expensive in the area.
In 2009, a bottle of Krug Vintage Brut Champagne, created in 1928, was sold at an Acker Merrall &amp; Condit auction in Hong Kong. At the time, it was the most expensive bottle of Champagne ever sold at auction.
<h3>Screaming Eagle Sauvignon Blanc</h3>
Producer: Screaming Eagle
Average price: £4,610
Wine type: White
Grape: Sauvignon Blanc
Region: Oakville, USA
Although not the most expensive wine on the list, this is one of the most expensive white wines from the North Coast of the United States.
Established in 1986, Screaming Eagle is based in Napa Valley in the USA and is one of the original cult wines to be created in the area. Its higher prices stem from their low production numbers.
<h3>Domaine Leflaive, Montrachet Grand Cru</h3>
Producer: Domaine Leflaive
Average price: £12,430
Wine type: White
Grape: Chardonnay
Region: Burgundy, France
This particular domaine does sell wines that are significantly cheaper, but as these grapes are harvested from vineyards with a Grand Cru classification, therefore increases their value.
This barrel-fermented wine has a buttery and citrus flavour.
<h3>Liber Pater</h3>
Producer: Liber Pater
Average price: The 2015 variety had an average price of £27,500
Wine type: Red
Grape: Bordeaux blend
Region: Bordeaux, France
This vintage wine was created in 2015, and due to its very low production numbers and the use of grapes from ungrafted vines, that makes them some of the most expensive wines in the world.
<h3>Château d’Yquem</h3>
Producer: Château d&#8217;Yquem
Price: Sold for £75,000
Wine type: Dessert
Grape: Semillon &amp; Sauvignon Blanc
Region: Sauternes, France
A bottle of Château d’Yquem, created in 1811, was sold in 2011 at the Ritz hotel by the Antique Wine Company, rare wine experts. It was sold for £75,000 to Christian Vanneque, and at the time, the Guinness Book of World Records stated that was the most expensive standard bottle of white wine to be sold at auction.
The wine bottle is said to be on display in Mr Vanneque’s restaurant in Bali, protected by bulletproof glass.
<h3>Domaine Leroy, d&#8217;Auvenay Chevalier-Montrachet Grand Cru</h3>
Producer: Domaine d&#8217;Auvenay (part of Domaine Leroy)
Average Price: £23,439
Wine Type: White
Grape: Chardonnay
Region: Burgundy, France
Domaine d&#8217;Auvenay is owned by Lalou Bize-Leroy, making it part of Domaine Leroy. This four-acre estate, which is not solely for this particular Chardonnay, means that production numbers are small.
<h3>Egon Müller, Scharzhofberger Riesling Trockenbeerenauslese</h3>
Producer: Egon Müller
Average Price: £12,147
Wine Type: Dessert
Grape: Riesling
Region: Mosel, Germany
Based in the Saar Valley in Germany, the producer Egon Müller’s family has solely worked with the Riesling grape since their inception in 1797, creating a sweet dessert wine with citrus flavours.
<h3>Why should I invest in wine? </h3>
Wine is a great alternative to traditional investment methods like buying stocks or bonds. Expensive wines have very little connection to the global stock market and is a lot more consistent than gold and real estate.
Investing in wine also gives you a great excuse to expand your wine collection!
<h3>Your wine investment journey starts here</h3>
WineCap gives you access to the top investible wine allocations. Once we have discovered your preferences, you will have access to a vast portfolio of the most investable wines stored in secure government bonds.
We don’t charge a management fee and our brokerage charges are very low, so you have access to rare wines at a fair price.
To start your wine investment journey, <a href="https://bit.ly/36essdh" target="_blank" rel="noopener">schedule a consultation with one of our experts</a>.

Ten of the most Expensive Wines in the World

Investment in fine wine is a great investment alternative for any hobbyist and can give you a healthy return too! But if you’re a novice to wine investment, you may have a lot of questions.
This article explores the most frequently asked questions about fine wine investment to help you understand more about it.
<h3>Wine Investment FAQs</h3>
<h3>Is wine a good investment?</h3>
As an alternative to stocks and shares, fine wine investment is a pursuit that has increased in popularity over the years. The scarcity and quality of fine wine appreciates over time, as does it value. This, among other contributing factors, makes fine wine a highly sought-after asset.
With a proven stable price growth, this medium to long term investment is a great way to strengthen your investment portfolio. It’s also a great excuse for any budding wine connoisseur to expand their collection!
<h3>Which wine appreciates the most?</h3>
It can be tricky to determine which wine’s financial value will appreciate over time, as it’s not always as simple as “the more well-known wines will give you a better return on investment”. For example, the vast majority of wines produced in renowned regions, such as Burgundy and Bordeaux – perhaps surprisingly – often won’t appreciate in value. In fact, of all the wines made worldwide, only a very small percentage have potential to improve as they age, and an even smaller percentage of that group has the capacity to appreciate in value.
Looking at the previous records of appreciation for wine can give you an idea of whether it is a good investment choice or not, as can keeping abreast of current trends and demands that are influencing the marketplace.
<h3>Is wine investment profitable?</h3>
According to a (the global marketplace for wine trade), the price of prices of fine wine increased in 2021 reaching an all-time high. The fine wine market often outperforms other global stock markets, making it a profitable alternative investment option for people who wish to expand their investment portfolio.
<h3>How do you store investment-grade wine?</h3>
It is important to make sure that wine is stored correctly, if they’re not stored in the correct conditions your wine could decrease in value.
Investment-grade wines are normally stored in bonded storage. These are secure locations that have been approved by HMRC for storing items that haven’t had VAT or duty paid on them.
These optimal storage conditions also tend to increase the liquidity of fine wine, making for quicker conversions of assets into cash.
<h3>What is the risk of investing in fine wine? </h3>
Like any investment, there is always an element of risk involved. One risk with wine investment is if a critic gives a negative review on a particular wine you have invested in, demand may dwindle and the value of the wine is therefore likely to decrease.
However, wine investment is considered to be a low-risk investment. The value of wine is protected during inflation and insecure economic periods, mostly thanks to its physical tangibility as an asset.
<h3>What tax is applied to my wine investment? </h3>
Fine wine is considered a ‘wasting asset’, which means that your wine is exempt from Capital Gains Tax when it’s sold. You can be charged Inheritance Tax, which is the tax on an estate of someone who has passed away if the estate is worth over £325,000.
We recommend seeking tax advice from a professional advisor before you start investing in wine.
<h3>How much should I invest in fine wine? </h3>
There is no set rule for how much money one should invest in fine wine. Investment-grade wines are a luxury commodity; to ensure you have a wide variety of options to invest in and to get a good return on investment, most people tend to start off in the vicinity of £5,000-£10,000 to make their investments worthwhile.
However, as with any given speculative investment, you should be prepared to lose that money. It’s not advisable to make such an investment if the loss of your invested funds would debilitate your financial situation.
<h3>What are good wines to invest in now?</h3>
When you look into wines that could be good to invest in, keep an eye on wine investing news to identify trends in the market and see where the opportunities are. You should also consider working with our investment experts, who will be able to give you unbiased advice on what wines you should be investing in.
Take a look at some of our related blogs for more information:
<ul>
<li>The beginner’s guide to wine investment</li>
<li>Ten of the world’s most expensive wines</li>
<li>Is buying Bordeaux En Primeur still a good investment?</li>
</ul>
There are several things to consider when you invest in wine. One of the most important things to consider, if you are new to the industry, is whether to seek the help of a fine wine expert.
<h3>What is important when investing in wine?</h3>
WineCap can give you access to the top investable wine allocations and an extensive portfolio of investment-grade wines, as well as guide you through the steps you need to take to get the most out of your investment.
<h3>Start investing in wine today</h3>
<a href="https://bit.ly/3q5e1iG" target="_blank" rel="noopener">Schedule a consultation</a> with one of our wine investment experts to start your wine investment journey today.

Your Wine Investment Questions Answered

Bordeaux – a treasured destination for wine lovers the world over and a renowned benchmark of the fine wine market. But are Bordeaux En Primeur wines still considered a good investment?
Whether you’re a seasoned connoisseur or a budding wine investor, this article will help you decide whether investing in Bordeaux En Primeur wines is a worthy addition to your portfolio.
<h3>How buying &#8216;En Primeur&#8217; wine works</h3>
En Primeur, also called &#8216;wine futures&#8217;, is a method of purchasing newly produced wine early on before it’s even been bottled and released onto the market. En Primeur wines are usually shipped to the buyer between 18 months and three years after being bottled.
En Primeur wines are bought &#8216;In Bond&#8217; (i.e., exclusive of Duty and VAT). They are often cheaper than the future price of those wines when they become available to the open market (10%-30% cheaper, on average) because they’re being bought a good two years before the wine has been bottled, meaning they have only been reviewed and scored by a few critics.
<h3>The attraction of Bordeaux En Primeur</h3>
Buying En Primeur wine is a custom that dates back hundreds of years exclusively to the world-renowned wine region of Bordeaux, France. Indeed, it is a concept that is still highly regarded today.
It’s no secret that the Bordeaux region produces some of the world’s most prized wines. In fact, Bordeaux has been a staple in the cellars of seasoned wine collectors for centuries.
Sought-after due to their ageing potential – among other factors – buying Bordeaux En Primeur can often be the best way to secure particularly good vintages with limited availability and the strong potential to appreciate over time.
Other benefits of investing in Bordeaux En Primeur wines include:
<ul>
<li>You may be able to request a specific format for the wine, be it halves, magnums, or larger bottles.</li>
<li>When you buy En Primeur wine, you’re guaranteed provenance, given that you’re buying directly from the winery.</li>
<li>Some Bordeaux wines are simply impossible to obtain if one does not purchase them at such an early stage.</li>
</ul>
<h3>What are the risks involved with buying Bordeaux wine En Primeur?</h3>
As with any endeavour to obtain assets, investing in Bordeaux wines En Primeur is not without its risks.
First and foremost, there is no guarantee that any wines you buy En Primeur – be it the latest Bordeaux vintage or otherwise – will appreciate over time. There is, however, always the potential for your En Primeur-purchased wine to lose value over time.
What’s more, some critics of the En Primeur system say that selling wines in their youth doesn’t accommodate a proper review and rating of the vintage in question.
Further, it has been suggested that the Bordeaux negociant system is a ‘delicate’ one, as it can tend to reward buyers with a well-established purchase history, which can make the process difficult for new buyers.
<h3>Is Bordeaux En Primeur still a worthy investment?</h3>
To answer that question, let’s take a look at the investment potential of the Bordeaux 2020 vintage.
According to the Bordeaux En Primeur 2020 Report, the 2020 vintage was of excellent quality and yielded many outstanding wines. Here are some additional highlights from that report:
<ul>
<li>Production is down slightly in comparison to the 10-year average. This is largely due to hot weather affecting the grapes.</li>
</ul>
<ul>
<li>Despite disruptive factors such as the coronavirus pandemic, it is a well-priced vintage overall, though less consistent than the previous vintage.</li>
</ul>
So, is Bordeaux En Primeur still a worthy investment? Here’s what Alex Westgarth, CEO of WineCap, thinks:
&#8216;When it comes to buying Bordeaux wine En Primeur, it all depends on the vintage. Anyone considering it should be aware of the balance between quality and price in a vintage.&#8217;
In addition to those wise words, it’s also important to keep in mind that it’s still quite early to be drawing such conclusions about the Bordeaux 2020 vintage.
<h3>Talk to our wine investment experts</h3>
We can build you a bespoke wine investment portfolio based on your established goals and budget.
For reliable, expert wine investment advice, simply schedule a FREE 30-minute consultation with one of our wine investment specialists.
<a href="https://bit.ly/3IbZ6JI" target="_blank" rel="noopener">Schedule your free consultation</a>.

Is Buying Bordeaux En Primeur still a Good Investment?

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.

Two fine wine bottles next to an oak barrel

Fine Wine Taxation | Guide

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.

Bordeaux 2019 | Vintage Report

Fine Wine Investment | Guide

The global market for US wines has exploded in recent years, with an increasing number of previously overlooked wineries now showing investment-worthy returns. While California continues to offer the most diverse range of options, savvy investors should also look further afield to opportunities in emerging regions such as Washington.
The USA is now the largest non-European wine region for wine investors. 2020 was a watershed for American wines being considered as an investment option as a US wine featured for the very first time as one of the top ten traded wines. Screaming Eagle maintained this status in 2021. Moreover, the number of American wines trading is increasing. At the same time, spreads between buy and sell prices are shrinking: both key signs of increasing liquidity and confidence.
Consumption of wine in the USA has also increased significantly at 1bn gallons in 2020, up 750% since 2000. American consumers are also &#8211; like the rest of the world &#8211; drinking more expensive wine.
Exports have also increased, up 35% by volume since 2002 and up 140% by value, again well ahead of inflation (42% over the same period). By volume, the US is the world’s eighth largest exporter, by value the world’s sixth largest exporter. The dominance of California both domestically and internationally is startling. 
Detailed producer analysis using WineCap’s bespoke data tool revealed crucial information and key trends such as the market share for US wine, performance against similar assets and some of the highly lucrative opportunities available across a number of different and upcoming wineries.
Click the button below to download our US Wine Report. Discover top performers and why investors should consider diversifying their portfolios to include a range of American wines now more than ever before. Do not hesitate to get in touch and speak to one of our wine investment advisors to reserve your allocations.

United States | Region Report

Our Champagne Report is available to download. Find out more about one of the most important and rapidly growing sectors of the fine wine market. Representing a unique opportunity by nature of its immunity from the voices of high-powered critics, Champagne has strong brand recognition established by almost three centuries of history. 
By contrast to other sectors, culture sways Champagne’s popularity through endorsements from celebrities, royalty and elite restaurants making it challenging to track through scores alone. But we believe that prudent selection with the help of our wine investment experts, could garner promising performance.
Champagne has been enjoying a significant rise in popularity as an investment asset. Demand for Champagne has increased its overall production from 50 million bottles in the 1970s to over 300 million today. Due to its staggering consumption market, particularly due to hospitality and entertainment industry buyers, the availability of vintage Champagne is limited, further enhancing its desirability as an investment. As it ages, its quality improves; as it’s consumed, its supply decreases. This dynamic brings about an inverse supply curve &#8211; the ideal scenario for investors.
Through careful study and data analysis, WineCap has put together this Champagne report to provide 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 Champagne.
Click the button below to download our Champagne Report. Do not hesitate to get in touch and speak to one of our wine investment advisors to find out about this exciting category and to gain some exposure to it in your portfolio.

Champagne | Region 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.

Bordeaux 2018 | Vintage Report

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 href="https://www.ft.com/content/a8f4b690-489e-49cb-9abd-e7972cfc6b0b">a new campaign this week</a> 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.’ &#8211; 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.
<h3>The benefits of wine as an investment option:</h3>
<ul data-rte-list="default">
<li>
In the last 30 years wine investment has delivered an average of 10% compounded growth
</li>
<li>
It is a tax-free investment with no Capital Gains Tax
</li>
<li>
It has a low correlation to other assets
</li>
<li>
Uniquely, wine both improves and becomes rarer with age, unlike other assets in the same class
</li>
</ul>
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 <a href="https://bit.ly/34cbmfo" target="_blank" rel="noopener">our free guide</a> to wine investment.

Investment Options: Why Wine?

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’ &#8211; 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&#8217;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 &amp; in the top 15 most-traded Italian wines. It represents a great diversification into a wine investment category that&#8217;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 &#8211; and the growing Tuscan category in particular – <a href="https://bit.ly/3CDOpid" target="_blank" rel="noopener">schedule a free consultation</a> with one of our investment experts.

Our Top List of Tuscan Wines for Investment

A great deal can and has been written about how to structure a wine investment portfolio. Just Googling &#8216;Modern Portfolio Theory&#8217;, &#8216;Post-Modern Portfolio Theory&#8217;, or the &#8216;Efficient Market Hypothesis&#8217; makes it clear that a few hundred words can only scratch the surface.
At times we may recommend &#8211; or clients may wish for greater exposure &#8211; 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.
<h3>Here are just some of the things we think about when considering how to structure a wine portfolio: </h3>
<ul data-rte-list="default">
<li>
Know your goals &amp; understand your timescales. You want to be able to take as much advantage as possible of wines&#8217; 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.
</li>
<li>
Understand the veil of ignorance. While predictions can be useful, the future cannot be certain. Unless you have a functioning crystal ball, it&#8217;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.
</li>
<li>
Don&#8217;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&#8217;s no reason to avoid off vintages on principle, Lafite 2007 and 2013 being great examples.
</li>
<li>
Have some flexibility. When building a portfolio we always have half an eye on the current shape of the wine market but it&#8217;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.
</li>
</ul>
It&#8217;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? <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">Schedule a call here</a>.

How to Structure a Wine Investment Portfolio

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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.



<h3>So, how does wine investment work? Here’s our recommendations:</h3>



<ul>
<li>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.</li>
</ul>



<ul>
<li>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.</li>
</ul>



<ul>
<li>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.</li>
</ul>



<ul>
<li>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.</li>
</ul>



<ul>
<li>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.</li>
</ul>



Ready to start investing in wine? Find out more by <a href="https://bit.ly/3pDkP6V" target="_blank" rel="noopener">downloading our free guide</a>.

Two men drinking wine and looking at a laptop

How does Wine Investment Work?

Asian buyers now make up 65% of the total wine and spirits buyers in the world. That’s according to <a href="https://www.sothebys.com/sothebys-2020-wine-market-report.pdf" target="_blank" rel="noopener">Sotheby’s 2020 Wine Market Report.</a> Asia’s demand for the world’s finest wines looks set to grow too, as 2020 was the second highest percentage on record for Asian buyers, after 68% in 2019.
There are multiple factors that can be attributed to Asia’s growing market share of the total wine and spirits market. The Coronavirus pandemic had a direct impact on drinking habits last year. Unable to visit restaurants and bars, China’s wealthy citizens began opening bottles of some of the finest wines from their cellars at home.





An international travel ban and lockdowns across China also meant that those who usually would have travelled abroad on holiday, opted instead to spend their money on buying top wines such as Domaine de la Romanée-Conti: a producer that represented 20% of all wine sales at Sotheby’s last year. However, while Bordeaux and Burgundy producers still make up the top ten names in Sotheby’s annual producer rankings, Asian buyers are looking further afield to regions such as Napa, in order to discover new wines such as Harlan Estate, Sine Qua Non and Colgin Cellars.



The future for wine imports into Asia, particularly into China, looks very promising. 2.25m nine-litre cases were imported into China in 2006 compared with a colossal 50.5m cases in 2019. Although there was a slight drop in the number of cases imported in the past two years, the trend for increased wine consumption looks set to continue. This is due to a combination of wine enthusiasts having opened bottles from their cellars during lockdown, as well as the disruption caused to supply chains to mainland China by the Hong Kong riots having ended.



As more and more Chinese cities open up &#8211; such as Shanghai &#8211; on-trade sales of fine wine are beginning to blossom, as consumers celebrate the easing of lockdown restrictions. With such strong figures from Sotheby’s recent report, all eyes remain firmly fixed on Asia with big expectations for this wine market that shows huge potential for growth.

Asian lady selecting a bottle of wine from her cellar

Asian Buyers make up 65% of the World’s Total Drinks Buyers

Investing in wine used to be intimidating. It was also considered only for the rich. Fortunately, things have changed. Wine investment is available to everyone and anyone who is looking for a stable alternative investment. It has &#8211; and continues to &#8211; deliver consistent returns. The category went up +13% from June 2020 to June 2021, according to the <a href="https://www.knightfrank.com/research/article/2021-06-28-luxury-investments-past-present-and-future" target="_blank" rel="noreferrer noopener">Knight Frank Luxury Investment Index</a>. What’s more, only a modest amount of up-front funds are required to begin building your portfolio. While we always recommend speaking to one of our investment experts before getting started, fine wine is considered to hold fewer risks and more advantageous gains than nearly any other financial or alternative asset category.



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Our Top Five Reasons to Invest in Wine



<ol>
<li>Fine wine has a low correlation with gold, oil and global financial markets. It has delivered consistent compounded growth of 10% over the last 30 years. By diversifying your overall investment portfolio with wine, you could add a safe investment that could bring stability and profits, regardless of the economic climate.</li>
<li>It’s a tax-free investment with no Capital Gains Tax. Those who leave their cash in UK bank accounts will see their money eroded over time by inflation. Inflation is currently running at 4% in the UK at the time of writing and those wanting to make the most of their savings should seriously consider taking advantage of the tangible investment options out there.</li>
<li>Fine wine is an improving asset in diminishing supply. The more corks that are pulled over time, the rarer the wine is and therefore the harder to find.</li>
<li>Investing in wine is best when held for a mid to long-term investment period. The longer wines are held, the more opportunity you could have for higher returns.</li>
<li>Perfect provenance of fine wine secures its value and desirability and is absolutely critical when investing or selling. Provenance is 100% guaranteed when you buy from us. All our wines are professionally stored in government bonded warehousing.</li>
</ol>



Find out how to get started investing in wine: download our <a href="https://bit.ly/34GkZmR" target="_blank" rel="noopener">free guide</a> or contact us.

Can you Invest in Wine?

Lucie &amp; Auguste Lignier, Gevrey Chambertin Aux Combottes

+350%-10 year return

“I have always been impressed by their professionalism and their competitive pricing. I have trust and confidence in WineCap”

Rod|Valued long term client

&#8220;I am a new investor to the wine industry and in Martin and WineCap I found an informative and exciting guide&#8221;

Tamara|New wine investor

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Wine is part of a group of investments collectively known as ‘treasure assets’. These include things like art, jewellery, antiques, watches, antiquities, toys and classic cars. Those considering investing in wine as part of their wider portfolio often do so in the context of these other treasure assets, so it&#8217;s worth understanding the similarities and differences. While we wouldn&#8217;t want to discourage anyone from investing in other sectors, these differences illustrate why we think wine is the best option for most investors when it comes to treasure assets.



<h2 class="wc-sub-header-text">Investing in wine: its similarities to other asset classes</h2>



<ul>
<li class="wc-sub-header-content">Product homogeneity: a homogenous product is one that cannot be distinguished from another and that can be easily substituted. While wine isn&#8217;t perfectly homogenous, it&#8217;s certainly close. As far as the market is concerned, one case is essentially the same as any other. It’s a different situation with most other treasure assets. The value of one Monet painting will tell you relatively little about the price another will fetch. Even with industrially manufactured products such as classic cars, their condition, mileage and service history can have an outsized impact on pricing and desirability.</li>
<li>Established storage and logistics: while it’s increasingly common for art to be stored in free ports and for classic cars to be kept in professional storage facilities, wine still has an advantage here. There is a long-established global network of affordable wine storage facilities that ensure a wine’s provenance is documented, as well as keeping it in top condition. Should the owner wish to stop investing in wine and drink it, final mile delivery can easily be arranged.</li>
<li>An established marketplace and data: in 2021, data on the performance of wine as a collective and on individual wines is relatively easy to obtain and to track. Thanks to product homogeneity, WineCap is able to provide valuations quickly and easily, allowing investors to know at any point, exactly what their wines are worth. Wine also has well-established marketplaces and a relatively low transaction cost. In comparison, art is usually sold at auction houses which command high fees, 20-30% is not unusual once all costs are considered, or in galleries where markups can be 50% or more. Costs to use online wine trading platforms or merchants such as WineCap are significantly lower.</li>
<li>Low cost: when compared with other treasure assets, even investing in wines that are at the top-end is somewhat affordable. This is one of the reasons why prices are generally robust and unaffected by the global economic climate. Imagine someone who regularly buys investment-grade wine; a financial crash might put them off buying a £20m Ferrari 250 GT LWB California Spider, but will it deter them from taking up their annual allocation of £15,000 Domaine de la Romanée-Conti?</li>
<li>Low cost of ownership: a Ferrari F40 has to have its fuel cells replaced every ten years and the parts alone for that one item could run to £30,000. If the batteries in your Mclaren P1 need replacing, that&#8217;s £100,000. A case of wine, regardless of value, shouldn&#8217;t cost more than around £15 a year to keep in perfect condition.</li>
<li>An improving asset in diminishing supply: there’s no other asset in this class that both improves and becomes rarer with age. This advantage is unique to fine wine.</li>
</ul>



Above all, the argument for wine is fundamentally one of investment returns. The graphs above show that, over the long-term, wine has comprehensively outperformed both the treasure assets it is most similar to, as well as more mainstream assets. We believe there is a place for investing in wine in any portfolio.
Want to find out more? <a href="https://bit.ly/3Jc66YA" target="_blank" rel="noopener">Schedule a free consultation</a> with one of our wine investment experts.

How does Investing in Wine Compare to Similar Asset Classes?

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<h2 class="wc-header-text">Investing in wine is more straightforward now we have a deal</h2>



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 &#8211; had been struck on Christmas Eve in 2020 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 the years to come looking as though they&#8217;ll mirror previous years of healthy returns for fine wine, <a href="https://bit.ly/36iWRqL" target="_blank" rel="noopener">contact us</a> to speak to one of our advisors about creating your portfolio to invest in wine.

Invest in Wine with Confidence now that we have a Brexit Deal

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The Bordeaux En Primeur 2020 campaign is well underway and the general consensus from the trade and from critics is that this is an excellent vintage, the third in a row:
‘We have a reputation in Bordeaux to say the last vintage is the best one. But we did with 2018, 2019 and now 2020… after we did our tastings in the spring I can say it is a really great vintage. It is different from 2019 with more freshness, more tension, more balance. It’s a good one. Maybe a bit less powerful than 2019 but it made really great wine. I think that we can call it a trilogy now (three consecutive high quality vintages: 2018, 2019 and 2020).’ &#8211; Michel Rolland in conversation with James Suckling
Ahead of the Bordeaux En Primeur 2020 campaign, we’ve all been expectantly waiting to see how this year’s prices compare to 2019’s, as last year’s prices were considerably lower than previous years, due in part to the ongoing global pandemic that caused significant disruption, especially when it came to mass tastings being cancelled. Initial releases have come in either at the same price as last year or slightly higher. Increased prices are due largely to volumes being down some 25% on the year before.
The quality of the vintage has been declared as very good to excellent and the wines that have been released so far have commanded varying scores that range all the way from very good to 100 points.
As Jane Anson writes in Decanter: ‘Bordeaux 2020 is a year of contrasts, so it favoured terroirs that are best able to cope with the changes – and winemakers who were able to follow closely and help their vines adapt.’ There are some stunning wines being released and those who have done their research will reap the benefits. For expert advice, <a href="https://winecap.com/schedule-a-call" target="_blank" rel="noopener">schedule a call</a> with one of our investment analysts.
Interested in reading the Bordeaux En Primeur 2020 report in full? <a href="https://winecap.com/learn/bordeaux-en-primeur-2020" target="_blank" rel="noopener">Access it here</a>.







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