Gold as an investment

Cult Wine Wants To Help You “Vin-Vest” In Your Favorite Bottle In 5 Easy Steps

Sep 23, 2022

Tom and Phil Gearing had a sneaking suspicion investing in wine, or vin-vestments, was an untapped market in the world of credible assets. Yes, people have always stockpiled wines from prime vintages but how and where to access those bottles was a trickier. In a small and tightly controlled industry, how would one proceed? The trick is to make investing in luxury libations so simple and seamless that anyone with the curiosity could dive into the rarified world of wine. With the goal of revolutionizing the world of wine investments, Cult Wines launched in the UK in 2007 and they haven’t looked back. While the entry points vary significantly, the cultural caché attached has kept them in good standing.

Ripe grapes ready for winemaking.

Cult Wine

Investing in wine carries its own brand of name recognition with a notoriety comparable to purchasing NFT’s. The data is impossible to ignore. A 1998 Perrier-Jouët, Belle Epoque cost $790 a decade ago. It is now worth $3,225, four times more than its value. Or look at a 2000 vintage bottle of Krug, Vintage Brut. In the last five years its value has almost doubled from $2,204 to $4,300.

Traditional wine buyers and importers have always been in on the game but the market has expanded to include casual investors and those from new sectors including the NBA, NFL, celebrities, musicians and more. While entry-level investors dabble with a bit of surplus and a healthy dose of curiosity, Cult Wines expansion into the US markets brings new opportunities. They hope to introduce consumers to the potential value and ease of investing in fine wine.

One of the fine wines perfect for investing.

Cult Wine

While the statistics are staggering, the expansion comes at a perfect time. “The Champagne 50 outperformed Gold and the FTSE 100 in the last quarter and Christie’s wine and spirits auction saw a single bottle of Perrier-Jouët ‘Brut Millesimé’ 1984 sell for $56,769.” Says Cult Wines Operations Director, Tom Turner, “it is possible that producers are holding back stock in anticipation of lower production, the yield for the 2021 vintage has been hit by frost and mildew resulting in a 40% - 50% reduction, something experienced by almost all major wine producing regions of France this year.”

Curious about getting into the wine game? Read on for five tips to jump into the wine game.

Another investment level wine suggestion from Cult Wine.

Cult Wine

Top Tips for Vin-Vesting with Cult Wines:

  1. Don’t put all of your money behind your favorite wines, build a diverse portfolio across the top investment grade regions (ex. Burgundy, Bordeaux, Champagne) to deliver the best risk adjusted returns – with Cult Wine Investment, this can be achieved with an initial investment of $10,000. Fine wine is an excellent diversification tool as part of a portfolio alongside other unrelated assets.
  2. When it comes to wine investment, age-worthiness is very important. The wine needs to have the ability to mature and reach its optimum drinking over a 10-20 year-plus time horizon.
  3. Investors should consider if the producer and wine itself are well regarded by professional critics and consumers alike. Before putting physical money behind wine, you should confirm the wine has received high scores and positive reviews from well-known critics and publications. Wine scores, as determined by expert wine critics, can influence the market perception of wine.
  4. You should also ensure the wines are stored in a professional warehouse in the optimum environment for fine wine storage, which is regulated for temperature, humidity and other microclimatic factors, and that you have title and ownership of the underlying asset.
  5. Manage your expectations. Don’t expect to buy one bottle, or a case of wine, and to automatically generate 10% returns per annum. You need to spread your capital, and, above all, be patient. Fine wine is a medium to long term investment. In order to benefit from a typical market cycle, expect to wait a minimum of 3-5 years; with an optimum term of 5-10 years.

Follow me on  Twitter or LinkedIn. 


Related Posts