When investing in wine, the potential investor has to verify a number of key factors among which, according to most experts, priority should be given to : How will my wines be resold? Our experts shade a light on this key issue.
There is no doubt that a successful wine investment is conditioned by the resale of the bottles when the aforesaid investment has reached its term. Indeed, until the wines are actually resold, the added value of your investment remains “potential”. U’Wine’s experts give you some advice to turn that potential added value into a real one:
- Avoid managing the resale by yourself. It can rapidly turn into a nightmare. A serious and recognize professional will always optimize the resale better than a private individual.
- Avoid reselling your wines to private individuals. Unless rare opportunities, reselling wines to private individuals takes time and is often done in small quantities, sometimes, to the unit. Of course, it is always tempting to try this outlet as the potential added values prospects are very attractive. But in general, the wine management companies that base their business model on that system leave their customers in a struggle to resale their bottles, when they do not end-up sending them to the customer’s as no potential buyer was found.
- Give Mandate to your investment manager. Some companies, including U’Wine, resale the wines on behalf of their customers under their management mandate conditions. They are renown and recognized professionals well aware of the wine market, the demand and who know the main players of the Bordeaux market place (One of the biggest Grands Crus trading places in the world) and, by doing so, mechanically increase the resale possibilities in France and everywhere in the world.
- Prefer reselling your wines through the Bordeaux market place or Liv-Ex. U’Wine business model is based on this solution because the B to B demand is higher and sustainable. Without being an absolute guarantee, selling through the B to B channel is a quicker process that allows to convert “potential” added values into real ones.
- Only base your ROI on the wine natural added value. The amazingly high ROI that some investment managers promised over the last few years were based on the speculative bubble that the wine market went through. U’Wine never based their target ROI on those punctual events. We have always and will always base our target ROI on the wine natural added value and will consider any speculative phenomenon as a « plus » and not as a “given for granted” matter.
- That is how our customers who had invested in the 2008 vintage en Primeur, benefited, once their wines were resold, of a 16.2 % ROI. Their bottles were sold quickly on the Bordeaux market place. Even if we cannot guarantee such ROI’s for the future vintages, U’Wine’s target ROI remains between 4 and 8%.As we see, investing in wine can combine Pleasure and Performance only if we add a third « P » to the first two, and that is « Protection ». All those advices and principles are the basis of our U’Winevest offer for all and makes it a growing success.