Do you have some fine wines in your cellar, but you don't know which ones to drink (or when), which ones to sell, and which wines you should buy to balance your portfolio? Or would you like to establish a fine wine cellar, only you don't have the time, or the expert knowledge, to do so?
Why have a fine wine cellar?
Most people have a fine wine cellar because of their love of the product, and the pleasure they derive from drinking each bottle and sharing it with their friends. But fine wine can also be a wealth enhancing asset and, as such, needs judicious management.
Fine Wine as an Investment
A case of Chateau Lafite 2000 bought in 2001 (its first year of trading) for £2000 is now worth about £17,000 – an increase of over 8 times in ten years, and there are many other similar stories. More modestly, the 2005 vintage of La Mission Haut Brion has gone up by more than 2 1/2 times since it was first traded. That said, it is as well to remember the old adage that the value of wines can go down as well as up. Not all wines perform like Chateau Lafite!
Many respected financial advisers believe that a responsibly diversified portfolio should have up to 5% in fine wine. It is well known that wine can sometimes outperform other asset classes, including bonds and equities. On top of this, there should be no income tax to pay (unless you become an habitual trader) nor capital gains tax (profits are exempt from CGT because the Inland Revenue regards wine as a wasting asset). Consult your tax adviser if you are in any doubt.
Why Choose Vintry Classic Wines?
The directors of Vintry Classic Wines have been actively engaged in managing their own and their families' fine wine cellars for over 20 years, as well as advising others on their wine portfolios. Vintry Classic Wines has built up an enviable reputation for its integrity and in providing a bespoke personal service to its clients.
What can Vintry Classic Wines do?
Having fully understood your requirements, Vintry Classic Wines can manage your Cellar, buying the wines at market prices, storing them for you and then either selling them at attractive prices, or delivering them to your door for you to drink! Some of the wines in the Cellar may be bought en primeur (before the wine is bottled and shipped) to take advantage of the (usually) better prices available. It is quite common to find that one can buy, say, two cases of a chateau’s wine en primeur, sell one later at twice the price, then enjoy the remaining case at effectively no cost!
Your wines will be stored at London City Bond, the wine trade's favourite wine storage venue, thereby relieving you of the need to find the right space and conditions. How often have you heard of good wines being ruined (and their value lost) because of inadequate storage? In addition, these storage arrangements allow the wines to remain in bond, thus delaying the payment of excise duty and VAT until its removal.
Vintry Classic Wines provides its customers with annual statements, showing a list of the wines in each Cellar, their cost and current value, and the dates they are likely to be ready for drinking. Customers’ Cellars are valued conservatively, to reflect a realistic potential sale price.
What safeguards are there?
Title to your Cellar is not an issue - every case is bought in your name and marked with your name, thus ensuring your legal right to ownership. Furthermore, your wines cannot be removed from London City Bond without your approval.
How much will it cost?
Vintry Classic Wines will charge the customer third-party running costs such as storage, insurance, handling and delivery, as well as excise duty and VAT charges. In addition a 12% commission is charged on sales of wine for your Cellar.
If you would like to discuss your fine wine portfolio, either setting one up, or rationalising an existing portfolio, please contact Vintry Classic Wines.