On the 24th of August the French version of the « ING Direct » blog published an article called « HOW TO INVEST IN WINE WITHOUT TAKING (TOO MUCH) RISKS? ». This article even if extremely interesting, needs, according to us, to be completed to give as much information as possible to a potential wine investor.
The ING direct blog article mentions that to reduce your wine investment risk you should first diversify the origins of the wines which are in your portfolio. This is true and it can be done within a same region. For instance in Bordeaux don’t invest all in Margaux, but mix with Pauillac, St Emilion, St Estèphe etc. However, before even thinking about that, we think that when doing a wine investment, the investor should above all carefully consider how his wines will be bought and sold. Basically, consider the “entry” and “exit” conditions of his wine investment.
Indeed, to optimize your ROI the wines you will have in your portfolio need to be bought at the best possible price. In that respect, we believe that the Bordeaux En Primeur wines are perfect for a wine investment. En Primeur wines are sold to professionals only, 8 months after the harvest and 10 months before the wines are actually bottled. Purchasing wines En Primeur is a guarantee to get them from the “source” at their “initial price”. This will mechanically increase the possibilities of potential added value for your portfolio. At the other end of your wine investment, make sure that when your wines are sold, you do not have to do it yourself. Best is to make sure that the professional you have invested with is well introduced in the professional distribution network and will resale the wines on your behalf to the Bordeaux market place for instance. This will increase considerably the resale possibilities of your wine investment.
In that respect, the U’Winevest offer by U’Wine is the only offer on the market that is 100 % Bordeaux en Primeur wines. The advantages of such a portfolio are as follows:
- The wines remain the property of the investor (The wines are bought, bottled in the Châteaux and stored in our warehouses in Bordeaux and Geneva).
- An optimized ROI thanks to the En Primeur system where the wines are bought at their « initial price ».
- A balanced portfolio comprising « rising stars » and famous Grands Crus
- The resale of the wines is operated by U’Wine through the Bordeaux market place.
- A secured investment thanks to the registration of the U’Winevest offer by the French Market Authority (AMF) since August 2014.
As we can see, a wine investment can be a good opportunity to diversify your investments to the condition that you carefully choose the company you will invest in with and make sure that your investment will be monitored with the following three words in mind:
Performance – Pleasure – Protection.