WINE INVESTMENT
Why Invest in Fine Wine?
Fine wine investment is one of the longest standing and stable alternative asset classes, offering effective diversification for your investment portfolio. Over the past 20 years, the fine wine market has evolved into a stable asset class, offering investors an exciting venture.
Diversification is key in asset management and fine wine presents a chance to establish a resilient, low volatility portfolio with minimal correlation to major assets. The perfect blend of passion and profit!
To bring it back to basics, a finite amount of wine is produced in any vintage. Over time, these wines are purchased, collected and consumed so the supply decreases. As investors become more sophisticated and diversify further into alternative investments, the dynamics for investment are attractive given this structural rise in demand.
Traditionally linked to historic winemaking regions such as Bordeaux, we’ve seen this grow over the past 10 years, alongside technological advances, into a truly global market. However, the fundamentals have remained the same, an ever-growing demand for a finite supply of fine wine. This is what drives pricing on the secondary market and creates a compelling investment opportunity.
The Key Benefits of Investing in Fine Wine:
Solid Returns:
In the last 10 years, fine wine has seen a growth of 137% and the market has returned 7.3% on average per annum.
Asset Backed Investment:
Fine wine has an inherent, physical value, which can act as a safe haven for investors during periods of economic uncertainty.
Low Risk & Stable Returns:
Low historical volatility helps de risk the overall investment portfolio and, with a stable return profile, improve risk adjusted returns.
Low Correlation to Traditional Assets:
Which means wine can provide protection in market downturns.
Tax Efficiency:
Wine is considered a wasting asset, generally qualifying for exemption from Capital Gains Tax in the UK.
Ever Growing Demand:
A finite supply of fine wine drives pricing on the secondary market and creates a compelling investment opportunity.
What returns will you see on your wine investment?
Let’s take a look at a current case of fine wine – 1989 Château Haut-Brion, from Pessac-Léognan in Bordeaux. When this was first released from the Château the following summer, a case of 12 bottles was worth £360. Some 30 years later, that same case is worth over £25,000 – a return just shy of 7000%. Had you put your money into major asset classes like Gold or FTSE 100, you’d only be looking at returns between 200-300%.
Quite a difference.
Why Invest With Us?
At Cru Wine, our approach to wine investment takes your objectives into account right from the beginning. We strive to build a unique, diversified portfolio for every client – using market data to find maximum return opportunities – while fostering an exceptional investment experience along the way.
Our priority is to deliver an exceptional investment experience for our clients and to build them a profitable wine portfolio that is forward-looking, diversified and designed to deliver long term returns.
Premium wine access and knowledge
Our long-standing relationships with producers, merchants and suppliers enable us to obtain the best wines for your investment. Our team of in-house experts have the insight to identify the right wines for you, your goals and your investment portfolio.
Secure wine storage and digital portfolio management
We have a two-fold approach to portfolio security, both physical and digital. Firstly, we offer bonded wine storage at our state-of-the-art storage facilities under optimum conditions at Eton Park, London City Bond. Secondly, we have a secure online platform where you can review your portfolio – along with the latest market data on its investment value – at the touch of a button.
Delivering strong returns on your investment
We pride ourselves on our personalised portfolio management service, which is backed by our in-house technology and team of investment managers with more than 30 years of experience combined. The current investment team has delivered an average of 11.8% annualized gross returns.
Download Our Free Brochure
Download our Guide to Fine Wine Investment for an overview of the process of investing in fine wine, with everything you’ll need to know to get started on your first wine investment.
Book a Free Consultation Today
To discuss a potential investment or to simply learn more about this compelling asset class, please book a free consultation with one of our experts.
On this call we will discuss your investment goals, time-frame and budget and how we would build a bespoke portfolio for you. We would love to help you on your wine investment journey.
What Our Clients Say...
"From initial contact through to becoming a new client, the experience provided by Cru Wine has been excellent. It's impressive to see how Matt approaches wine from both the angles of a sophisticated financial investor and as a wine lover and collector. Can't wait to see the portfolio grow in time and start delivering returns, I'm confident the wines selected will do well and that I'll learn a lot along the journey!"
Trusted customer | May 2023
"Excellent account managers who are helpful and knowledgeable, brilliant communications and efficient service for buying, transferring and bringing me first to market offers."
Rachyeta | Jan 2024
"I have been using Cru Wine for over four years now. What's compelled me to write this review is the consistent, responsive, professional and genuine customer service received from a number of their employees during this time. In any changing, and growing, industry you search for those you can trust. From what I can see is they're listening to customers and, quite honestly, putting the customer first."
FF | June 2023
Let us introduce our top experts in fine wine investment:
ROSTISLAV PETROV
Associate Director with 15 years of experience in fine wine and wine investment
Contact: +44 (0) 2039 2545 28
[email protected]
What is the best investment you have made so far?
Seeing great potential in Italian wines, classic regions such as Tuscany and Piedmont. In the last two decades, these regions benefited from a lot of investment as well as well as global warming which means the quality of the wines have never been better in this part of the world. Seeing big improvements in quality, consistent high scores from wine critics and great history of these wines meant that demand will only rise for these wines. I bought my first bottle of 2010 Monfortino at £300 and it’s now worth circa £1000.
What do you think to be the main characteristics of a well-established wine portfolio?
Only carefully selected producers should be part of the wine portfolio. There are a number of great and expensive wines out there but not all of them investment-grade wines, so it’s important to stick to right “brands”. These producers typically have earned a great reputation over the years and show a proven track record of growth. A balanced portfolio is another key to successful portfolio; like with any assets, it is important to diversify.
What is your number one advice to someone new in wine investment?
Partner with a professional investment wine company that will work on a personalised needs of yours.
MATT SMALL
Senior Portfolio Manager 10 years of investment experience at Danske Bank and Cult & Boutique
Contact: +44 (0) 2039 2545 15
[email protected]
Given your background, how are you putting your equity investment experience to work?
The equity and wine markets are remarkably similar. Price is determined where demand meets supply, we are trying to identify securities/products where the market price is below fair value and limit our risk by having exposure to multiple sectors/regions. As with the equity market, the macro environment has an impact on the wine world and a knowledge of these dynamics are important when making wine investment decisions.
What do you think are the main characteristics of a well-established wine portfolio?
Most importantly the wine portfolio is tailored to the client’s risk appetite and time horizon. From a top down perspective the portfolio will be diversified across regions which not only lowers the portfolio risk but also increases the risk adjusted return. From a bottom-up perspective we hand pick producers with strong brand names and excellent past performance. That’s not to say we will not select vineyards who we deem to have massive potential, however striking the right balance is key.
Advice to someone new to wine investment?
Work with a wine investment manager who you trust. The best investments in life tend to be the ones that make sense and work over the long-term.
ALREADY HAVE A WINE INVESTMENT PORTFOLIO?
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