Wine investment is nothing new – in the past the English invariably bought more fine wine than they were able to consume and often sold off surplus wines for a profit. As the world became richer, the fine wine market changed considerably. During the 1990s increased demand, particularly from parts of the Far East, increased prices and demand to unprecedented levels and as a result the fine wine market has grown considerably.
Growing interest from professional investors and specialist wine investment funds has also elevated demand and prices, but do not be fooled into thinking that wine investment is easy – it is not. It is vital to choose the right wines with a strong provenance, and purchasing highly regarded vintages at the correct price and time is imperative, as is selling them at the optimum time and price.
In the past fine wine has not been affected by stock market fluctuations and generally shows less volatility tending to flatten out in times of recession. Moreover, fine wine is normally the last to fall and the first to recover as was witnessed during the global recession of 2008 and 2009.
Fine Wine is a fun and exciting investment option particularly if you have an interest in the subject. Importantly, investment wine is one of the rare asset classes that is not subject to Capital Gains Tax on the growth in value that you experience.
Buying investment wine should be interesting, exciting and most importantly financially rewarding. Nasty surprises and unscrupulous business practice is something that investors want to avoid at all costs. There are a fair number of reputable and effective investment wine merchants to choose from, as indeed there are some dubious operators, as some unfortunate clients can bear testimony. Waud Investment Wines Limited is building its business upon the sound foundations of the Waud Wine Club and our wine buyer Stuart McClosky. Our clients are friends, colleagues and mutual contacts for whom we have a vested interest to perform honourably and to a very high standard. In terms of price, we set out to be highly competitive with all other suppliers of investment wine.
Our founding wine business, Waud Wine Club Ltd, was formed in 2011 by Jeremy Waud and eldest son Charles. With co-directors, Stephen Waud, Martin Athey and Richard Kelly, their combined love and knowledge of wine, business acumen and enthusiasm was channelled into this new venture. Thirty investors quickly snapped up the opportunity to own even shares of this business with the directors, and the Wine Club was born.
In addition to sourcing, importing and supplying a variety of mainly old world wines to its members, the club also provided some En Primeur wines to some of its more discerning members – these included Chateau Beaucastel, La Chapelle Hermitage from Paul Jaboulet, Mas de Daumas Gassac as well as 2011 vintage port from Taylors.
A natural and planned extension of the wine club business was the investment wine market, as it presented itself on the back of the robust wine club structure, resources, knowledge and facilities. We partnered with seasoned expert Stuart McCloskey as our wine buyer to give us full access to the growers and allocations of the best Bordeaux investment wines available. With a sound reputation and a monthly paying client-base of over 200 wine lovers, all that was needed was a good En Primeur market to launch with a solid investment potential for the wines available from that start year going forward. The 2013 wines from Bordeaux that were presented to the investment market prior to bottling in 2014 were not in our view good enough and accordingly we waited for the much improved wines of 2014. These wines became available in the spring and summer of 2015 and these are our first substantial purchases from the fine wine market.