Why invest in wine with Cru Wine?
At Cru Wine, our approach to wine investment takes your objectives into account right from the beginning. We strive to build a unique, diversified portfolio for every client – using market data to find maximum return opportunities – while fostering an exceptional investment experience along the way.
Premium wine access and knowledge
Our long-standing relationships with producers, merchants and suppliers enable us to obtain the best wines for your investment. Also, our team of in-house experts – from savvy wine buyers to senior portfolio managers – will pinpoint exactly the right strategy for you and your goals.
Secure wine storage and digital portfolio management
We have a two-fold approach to portfolio security, both physical and digital. Firstly, we offer bonded wine storage at our state-of-the-art storage facilities with precise temperature, light and vibration control. Secondly, we have a secure online platform where you can review your portfolio – along with the latest market data on its investment value – at the touch of a button.
Delivering strong returns on your investment
We pride ourselves on our personalised portfolio management service. With our industry connections and experienced investment team, we have delivered in recent years an average of 11.8% annualised gross returns. Wine is famously a long-term investment, but we aim to move swiftly – empowering you to get more for your money in a shorter period of time.
The key benefits of investing in fine wine:
Low risk and stable returns
Fine wine has very low historical volatility, with minimal value loss over time compared to other assets. This significantly lowers risk for wine investors and, with a stable return profile, improves risk-adjusted returns.
High-quality tangible investment
Fine wine has an inherent physical value, and high-quality wine becomes more valuable as it matures. This may reassure investors during periods of recession. Also, unlike with other investments, you always have the option of physically removing your wine from our storage and into your own.
Good counterpart to other assets
For diverse and ambitious investors, fine wine is an excellent way to round out your overarching portfolio. Indeed, as a relatively stable asset, wine provides a degree of downside protection which allows you to invest more securely in other areas.
Finally, wine investments are subject to tax exemptions in the UK. Because wine is considered a ‘wasting asset’ with a limited life span, it can qualify for exemption from your annual Capital Gains Tax.¹
1Always consult your own professional tax expert for advice
What returns will you see on your wine investment?
Let’s take a look at a current case of fine wine – 1989 Château Haut-Brion, from Pessac-Léognan in Bordeaux. When this was first released from the Château the following summer, a case of 12 bottles was worth £360. Some 30 years later, that same case is worth over £25,000 – a return just shy of 7000%. Had you put your money into major asset classes like Gold or FTSE 100, you’d only be looking at returns between 200-300%.
Quite a difference.
GET STARTED WITH YOUR WINE COLLECTION
Ready to start investing in premium wines and diversifying your portfolio? Book a call with one of our experts, we would love to help you on your wine investment journey.
Download our Guide to Fine Wine Investment for an overview of the process of investing in fine wine, with everything you’ll need to know to get started on your first wine investment.
Let us introduce our top experts in fine wine investment:
Associate Director with 15 years of experience in fine wine and wine investment
Contact: +44 (0) 2039 2545 28
What is the best investment you have made so far?
Seeing great potential in Italian wines, classic regions such as Tuscany and Piedmont. In the last two decades, these regions benefited from a lot of investment as well as well as global warming which means the quality of the wines have never been better in this part of the world. Seeing big improvements in quality, consistent high scores from wine critics and great history of these wines meant that demand will only rise for these wines. I bought my first bottle of 2010 Monfortino at £300 and it’s now worth circa £1000.
What do you think to be the main characteristics of a well-established wine portfolio?
Only carefully selected producers should be part of the wine portfolio. There are a number of great and expensive wines out there but not all of them investment-grade wines, so it’s important to stick to right “brands”. These producers typically have earned a great reputation over the years and show a proven track record of growth. A balanced portfolio is another key to successful portfolio; like with any assets, it is important to diversify.
What is your number one advice to someone new in wine investment?
Partner with a professional investment wine company that will work on a personalised needs of yours.
Senior Portfolio Manager 10 years of investment experience at Danske Bank and Cult & Boutique
Contact: +44 (0) 2039 2545 15
Given your background, how are you putting your equity investment experience to work?
The equity and wine markets are remarkably similar. Price is determined where demand meets supply, we are trying to identify securities/products where the market price is below fair value and limit our risk by having exposure to multiple sectors/regions. As with the equity market, the macro environment has an impact on the wine world and a knowledge of these dynamics are important when making wine investment decisions.
What do you think are the main characteristics of a well-established wine portfolio?
Most importantly the wine portfolio is tailored to the client’s risk appetite and time horizon. From a top down perspective the portfolio will be diversified across regions which not only lowers the portfolio risk but also increases the risk adjusted return. From a bottom-up perspective we hand pick producers with strong brand names and excellent past performance. That’s not to say we will not select vineyards who we deem to have massive potential, however striking the right balance is key.
Advice to someone new to wine investment?
Work with a wine investment manager who you trust. The best investments in life tend to be the ones that make sense and work over the long-term.