At The Premier Wine Company we offer our clients the very best opportunities for investment. The fine wine market has in the last 25 years established itself as an area offering a high yield, a low risk and a consistently stable market. Records going back decades show that in general, fine wine has remained unaffected by stock market fluctuations and interest rates.
Bordeaux boasts over 4,000 chateaux, however only around 40 reach the standards we demand for quality. For a high yielding investment the wine must have a combination of brand repute, a strong demand for the product and positive critical acclaim. It is by combining all of the above together with an expert knowledge of wine and extensive industry contacts we are able to achieve the highest financial returns.
KEY BENEFITS ARE:
Capital Appreciation
Like the luxury goods market, fine wine is well placed to benefit from the growing worldwide demand for prestige products. The demand for these products has grown steadily for several years with Asia set to be the world’s number one consumer by 2012. The popular belief is that fine wine investment has grown rapidly over the past few years whilst in fact it has risen steadily and provided attractive returns for many years. Analysis of fine wine prices over a 20 year period (1989 – 2009) shows a compound annual growth of 12.5%. This compares favourably against UK Equities +4.3%, Japanese Equities -4.8% and +4.1% for gold.
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Prices for the most desirable fine wines have risen considerably in the last few years. Essentially this is due to the increase in demand from modernising economies in Asia, Latin America and the Far East and a fixed and diminishing supply from the chateaux. The prospect for future growth is excellent.
Access To Stock
The Premier Wine Company has a well established worldwide network of producers, vineyards, winemakers, merchants and traders. These relationships enable us to secure (Buy) and dispose (Sell) stock in the most cost efficient manner possible.
Tax Advantage
If correctly handled fine wine is capable of returning a highly tax efficient asset. UK tax law considers wine to be a "Food" or "Wasting Asset" and as such it is not subject to Capital Gains Tax. Wines are generally stored in UK Government Bonded Warehouses and as such are Duty Free and do not attract VAT.
Building a Portfolio
As with all investments it is important to look at several areas to buy into rather than a blanket investment into a single wine/vintage or chateau. Whilst it is usual to focus investment into classic Bordeaux wines we also recommend spreading your investment around and possibly supplement it with a top Champagne, Burgundy and/or Rhone.
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On-Going Management
The Premier Wine Company takes a very active approach in maintaining a good balance within your portfolio. We will follow the market and advise you where you can achieve optimum yields when new opportunities arise. It is our responsibility to keep you completely advised of all market movement and help you maximise the gains from your investment assets.
The information in the graph opposite is based on the average price of the above vintages from the following
wines:
