Touted as one of the world’s most desired investments that is not subject to taxation, fine wines have enjoyed a substantial rise in demand throughout the world over the past three decades and the UK is a key player in that market. The excellent wines selected by top wine investment firms in the UK have proven to be both a safe investment as well as a very profitable one. And to increase their value even more, as the demand for these selected wines grows the supply diminishes, which in turn makes the wine investment accrue value. Over the years the market has shown that the finite supply of fine wines produced each year lags behind the growing demand of those wines for investment or for drinking pleasure. Wines for investment have stood their ground amongst the most traditional investment schemes and even in an economic turndown, they have retained their value. Unlike many investments, fine wine is a tangible asset that should be considered as a strong addition to a financial portfolio. It is a precious bottled commodity waiting in storage until it is sold to the highest bidder. But while in storage, the wine continues to improve and accordingly, with fewer bottles left in storage the price and quality continues to rise. UK wine investors have an excellent array of wine merchants to assist with advice and trading through while taking advantage of the tax-free status of their investment.
Bordeaux as an Investment
Bordeaux wines have an excellent track record as being high quality wines that carry a low risk for investment. As an example, a bottle of 1982 Lafite Rothschild wine skyrocketed from a value of £2,600 in the year 2000 to a current selling price of £25,500. While this is an outstanding example, it is true that returns on the most sought after wines consistently reach at least 30% annually. The wines from Bordeaux are divided into five categories, with the first growths being the most sought-after category. The remaining categories represent the super second growths and the third, fourth and fifth growth wines. Some of Bordeaux’s top red wines are Haut Brion, Latour, Lafite Rothschild, Margaux and Mouton Rothschild. Although the wine can be consumed immediately, first growth wines require a minimum of 15-20 years to reach their full maturity, so careful storage in a bonded warehouse is an important consideration.
UK Top Wine Merchants
Wine merchants represent the top producing wine houses and provide all the information and services required for making a solid investment. There are a number of good merchants who are well established and come with a reputable track record for supplying high quality vintage, storage in a safe and bonded warehouse, managing the insurance and brokering the resale. The London based Bordeaux Wine Company is an independent brokerage firm that specializes in bottles of first growth Bordeaux coming from the top estates in France. The company, which has been trading wine for ten years, it carefully selects and buys choice wines through international auctions and lists them for sale online. The Bordeaux Wine Company is staffed with knowledgeable wine experts who guide investors through the entire process, from selecting the correct portfolio addition to managing the storage details, also well as advising when to sell. A major shareholder and partner in the firm, Frederick Achom, is a successful investment specialist who follows the international trends in the wine industry and uses his in-depth knowledge of the market to promote the addition of wine to investment portfolio managers, wealth managers, private bankers, hedge fund managers and asset management groups. Frederick Achom is also the chairman of Rosemont Group of Companies, a private entrepreneurial corporate investment firm with investments from wine to property to entertainment. Another leading UK broker is Premier Cru Fine Wine Investments Ltd, who also tailor personal portfolios to include the addition of fine wines. The company provides full management over the portfolio, provides detailed and updated valuations and distributes newsletters detailing current trends. As a full service company, it recommends storage facilities in a UK bonded warehouse that is customs controlled and ensures records of personal ownership. The UK Fine Wine Investments Ltd also specializes in first growths from Bordeaux and offers top quality tailored services through its team of brokers who analyze the market and make appropriate recommendations. Berry Bros, Albany Vintners, Wilkinson Vintners, Justerini and Brooks, Corney and Barrow and Farr Vintners are considered to be in the higher echelons of the wine trade and are amongst the most reputable and well established wine merchants in the UK.
Thomas Heler is based in the United Kingdom and is a writer and wine connoisseur. A wine investor himself, he likes writing about fine wine investment. An example of his writing can be found at Bordeaux Wine Company – Fine Wine Experts.
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