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The art of investment has diminished in the last few years with the fall of property prices and the uncertainty in the stock market. People are losing faith in traditional investment avenues and, with the help of experts, have started focussing on new approaches of gaining returns on their finances. Wine

investment is a relatively-new phenomenon in its current guise though traditionally there has always been a stronghold of wine connoisseurs who disapproved of using the grape as an investment, valuing it only for consumption, but rises in the market are seeing a growing confidence from the consumer and turning them into investors.

Clients can invest in anything from En Primeur wines (still in barrel) to an antique vintage, but much like any other investment market most of us would have to rely on experts to point us in the right direction. BWC Management and Consulting is a fast-growing industry name because of its unwavering expertise on the benefits of fine wine purchasing. “You won’t get your hands on a wine you have bought En Primeur until maybe two years later, so the pallets of the critics and the knowledge of the experts are what guide you,” says Nuala Araby, premier and corporate client advisor at BWC. Houses will not sell to a member of the public so you would have to buy through a merchant anyway, but what that brings you in terms of advice and guidance is invaluable. With investors seeing low returns on ISAs and poor stock performances

bringing them very little returns on their savings, the wine market, specifically those from the Bordeaux region which produces the finest and rarest wines, has been enjoying its own microclimate for the past ten years. Clients of the BWC have seen returns of over 100% of their initial investment. A client who bought six varying cases of wine, saw the initial investment of £21,629 in 2004 increase in value to £52,700 today, and another who invested £39,260 in twelve cases of Bordeaux between 2003 and 2004 has seen their risk achieve a whopping trade value today of £105.700. Like any investment, this industry has its risks, but the experts at BWC say you can always rely on it to pick up. The ever-changing industry means a chateau will only have a finite stock of a particular product. For example, a 2000 Lafite Rothschild will never again be reproduced, but due to critics’ rave reviews has become one of the most popular Bordeaux to date and since risen in value by approximately three hundred per cent. Many things can have an effect on the sale of particular wines, namely the opinion of renowned wine critics like Robert Parker Junior among others, the chateaux PR of a particular vintage or just an exceptional wine that has everyone talking. We can also rely on society trends to keep the market piqued. “As a

Wine investment advisors BWC Management & Consulting speaks to Concierge Magazine’s Jemma de Blanche about why wine is outperforming the stockmarket and the secrets to uncorking a good investment.

UncorkingtheProfitsin Wine

society, we drink up. You will not buy the same wine as a young professional than what you would have at university and equally, as a retiree, your tastes will again have evolved,” says Nuala. The wine industry follows this equation and as people earn more money their portfolio of investment becomes more varied. The demands always seem to surpass the supply.

Different cultures also have different effects on this industry. “The Chinese customers are having a profound effect on the market but in a very contrasting way.” I was advised by Daniel Patterson, BWC’s Market Analyst. “As they become more interested in luxury goods it is important for them to share that as a celebration with their business associates as gifts or while entertaining. Fine wine is trending in the luxury goods department and because of that, they are buying the products for consumption rather than investment, and they are buying a lot.” “Fine wine has always been an industry surrounded by the elite” I was told by Anthony Grant, partner at BWC. “Companies such as ours are opening up the fi ne wine market to a wider spectrum of the general public by educating individuals on where their money is best spent and why, for whatever their reasons of purchase.”

And what to do in a market slump? “Well just don’t sell,” advises Nuala. “And buy more. We had a client who invested in a case worth £12,500,

two years ago which has since gone down to £10,000. He looked at it as a good opportunity to buy more and therefore offset the potential losses of the fi rst purchase against the gains he will make on the extra. Which he will, we are sure of it.”

A good wine stored properly will always retain its value and BWC educates all their clients on the best practice for this. “We build relationships with our clients, letting them know what we think is an up and coming product based on our industry expertise, keeping them informed of sales they might be interested in, and making sure the correct transportation and storage of their purchase is taken care of.” I was told by one of the company’s senior portfolio managers, Sam Cheung. All their wines are carefully selected, come in OWC (original wooden cases) and are stored in London City Bond, which has been dedicated to the correct storage of wines and spirits since 1870.

Expertise is tantamount in an industry such as this, and being able to trust that your consultancy is taking your investments seriously without being forceful or condescending is investment in itself.

W: bwcmanagement.co.ukT: 0207 291 3600

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“Companies such as ours are opening up the fi ne wine market to a wider spectrum of the general public by educating individuals on where their money is best spent and why...” Anthony Grant of BWC