Why Fine Wine?
A stable, tangible, and enjoyable asset class that you can count on. Combining resilience and returns, fine wine offers great diversification for collectors looking to expand and protect their wealth.
Rare and Exclusive
At the heart of every collectible wine is it’s scarcity. Limited production, rare grape varietals and exclusive vintages contribute to the allure of a bottle. Numerous highly sought-after producers worldwide employ strict ‘allocation only’ distribution methods, ensuring that many wines remain unavailable to everyday buyers.
Stable & Tangible Asset
Wine collections are considered less volatile compared to many other mainstream assets. Fine wine is a physical asset that you can hold, store and enjoy. Fine wine’s tangible nature and continuous demand have enabled wine collectors to seek stability from their cellars, in all market conditions.
Finite Supply
The law of supply and demand is a fundamental driver in the world of wine collection. Wines produced in small quantities, especially those from boutique wineries or limited-edition releases, often find themselves in high demand among collectors. The idea that a particular wine is a rare find adds an air of exclusivity that captivates the discerning collector.
Consumption
An increase in high-net-worth individuals (HNWIs) and ultra-high net worth individuals (UHNWIs) means more people with the means to indulge in the world’s most prestigious wines.
Emerging markets, particularly China, have seen a surge in demand for luxury wines. Various sources estimate China will have an additional 80 million people to the middle and upper classes in the period from 2022 – 2030. There’s been a cultural shift toward appreciating fine wine beyond a beverage, but also as a collectible. Fine wine has become a symbol of sophistication and taste.
All Weather Market
Wine collections can be regarded as tangible, defensive assets in times of economic uncertainty. Fine wine and other alternative assets exhibit qualities that are often unaffected by the fluctuations in other markets and economic conditions.
The demand for luxury goods is often inelastic, meaning it doesn’t decrease significantly with price increases. Luxury consumers are less price-sensitive, which can provide stability to luxury markets, even in times of economic turmoil as demonstrated by the 15 year track records outlined above.
Quality Over Time
“You age like fine wine” isn’t a saying without reason! Fine wines typically appreciate as they age, and this increase in quality over time, adds to the potential of financial growth as the wines near their optimal drinking window. Wines stored under optimal conditions can preserve their quality and value over several decades. We guarantee perfect provenance, due to climate regulated storage, with our trusted storage partners.
Tax Efficiency & Flexible Ownership
Many jurisdictions offer favourable tax advantages for fine wine cellars and often qualifies for tax-exempt status in most cases, which can enhance your overall returns. When you purchase wine through our services, we ensure ownership in your name and can readily provide certificates and photos upon request. Additionally, transferring ownership to a company’s name, family trust, or any other entity of your choice is a straightforward process.