The storage dilemna
Investing in wine is rarely a compulsive decision.
Just like the acquisition of a property, the decision to invest in wine comes after multiple pros and cons have been pondered, after comparing available investment models, seeking advice from friends, and understanding the benefits of storing wines offsite instead of keeping them in your private cellar, precisely in that property you just acquired.
After all, you spent time and effort selecting the vendor, choosing the most appropriate racking system, and finally deciding on a central table, with comfy leather chairs, to host private tastings and amaze your close friends. Why in the world would you then go and store wines out of sight?
The benefits of storing in bond
Our investment model is designed to create value. Real value, not just theoretical value.
It all starts with accessing and negotiating hard for the most coveted wines at the best price. Storing offsite, in bonded warehouses, will offer you a hands-off, hassle-free solution and the direct financial benefits from VAT exemption.
But at the other end of the investment lifecycle, it all comes down to the capacity to resell the wines. Wines need to be easily accessible, and the purchase made logistically attractive for buyers.
This is where the difference is the most impactful. Wines professionally stored and managed are trade ready. They sit within the secondary market ecosystem and can be made immediately available for sale and collection. The outcome is very different if you park your private yacht in your courtyard instead of keeping it safe in the harbor warehouse. For the same product, buyers will prefer the vessel ready for sea vs. one that comes with additional costly logistics.
The timeline for returns in wine investment is typically in the 7-to-15-year bracket. Benefits can be substantially superior post 15 years, considering well-crafted wines can age well up to half a century. Many things can happen during that time. Life may treat with a child or two, and you will need to move to a bigger house. Chances are you will get a promotion and relocate to Singapore. What will you do with your private wine cellar ? Drink it all before you go ?
We all know moving wines around can do harm and devalue the product. Having your investments in the hands of a trusted third party is one concern less. You can sleep at night, wherever you are in the world, knowing your investments are safe and continue to increase in value.
Don't forget to enjoy wines
Are these reasons to give up on your private cellar ? Of course not. While your investment wines mature away from temptation, you can focus on filling your private cellar with ready to drink back vintages and younger wines that do not necessarily require aging before being enjoyed… wines from all regions, of different types, to pair with your favorite home cooking and entertain your relatives and friends.
Remember, investment grade wines represent a very small portion of global production. The vast majority, even some of the most sought-after wines, offer limited if no financial returns at all. They fulfil the ultimate objective of all wines, which is to deliver pleasure. These wines also require love and care. They will best live up to your expectations if stored in a temperature and humidity-controlled environment. And this is where your private cellar plays in.
Opt for the hybrid solution
Investing in wine doesn’t mean you need to give up on enjoyment. Third party in bond storage facilities and private cellars work well in parallel. The latter is the gatekeeper of your daily pleasures, while the first allows you to build wealth and heritage. Your home cellar is your garden of Eden, a world of temptation that knocks your friends off their feet at the mere sight of the labels. On the other hand, your investment portfolio is your family treasure, secretly kept off site like jewels in a Swiss bank.
