Investments
What is an investment in wine?
The quality and rarity of a good wine appreciates over time - and so does its value. This is the principle behind wine investing.
You buy bottles of wine, and you store them to sell them later at a higher price.
In some cases, you may not even physically own the bottle of wine you purchased. You can have them professionally stored in specialized facilities for years. This way, your precious French wines are safe and sound until you make a profit!
If collecting and storing wine isn't for you, you can try investing in premium wine stocks and funds.
But if you want a simpler solution, you can use a wine investment company to buy and store your wines for you, without having to worry about building your own wine cellar.
Why invest in wine?
Investing in wine is a profitable alternative investment option for investors and wine consumers to diversify their portfolio.
In addition, quality wine has a low correlation with the gloomy global stock market.
Here's how:
The fine wine market has outperformed most global stocks and exchange-traded funds (ETFs), and is less volatile than real estate or gold. More importantly, it has delivered annualized returns of 13.6% over the past 15 years. What is investment grade wine?
Fine wines that have a chance to increase in value after about five years are known as investment grade wines.
Characteristics of investment grade wines
But how do you identify great investment opportunities like these?
You would know if the wine is worth your money based on these factors:
- Longevity: Do the best wines really improve with age?
To be worthy of investment, you need to know if a wine is worthy of aging or not. It must have the right mix of acidity, alcohol, flavor and tannins to gain quality as it ages. - Rarity: A wine intended for investment - such as the wines of Domaine Romanée-Conti - has an unusual quality and its quantity decreases with time. Limited edition wines are generally expensive and more valuable.
If you want to follow us on a trip to Burgundy to get to know its wines. - Critics' Ratings : High quality wines that are considered "classics" or equivalent a score of 95 on a scale of 100 by wine critics are worthy of investment.
- Pedigree : Investment wines are produced by highly regarded winemakers. Wines produced in the Bordeaux region, Burgundy, the Rhone Valley, Tuscany in Italy and other regions designated as "wine-growing areas" tend to be more valuable over time.
- Longevity : Investment grade wines reach their peak maturity at least 10 years after bottling, and can even age for more than 25 years.
- Price appreciation : The price of the wine should have appreciated over a period of 10 years or more.
But what if you invest in a new wine without a historical reputation at auction? How do you know if it's a good investment or not?
Check the price appreciation history of previous vintages from the same vineyard.
If it comes from an exceptional vintage and is produced in a famous region like Bordeaux or Burgundy, it has a good chance of appreciating in the future.
Our team of benchmarked value cellar experts can work with you to build an investment-worthy wine collection from an unparalleled inventory of fine and rare wines.
Whoever talks about investments in the world of wine is also talking about a cellar. Below are our solutions:
A wine cellar at home
We all dream of owning a beautiful wine collection, with the perfect bottle for every occasion. And while it will take years to build a "cellar" that will be the envy of all your friends, there is no better time than the present to start building the actual cellar in which you will keep it.
As with all aspects of home construction and interior design, trends in how and where to store your favorite bottles have evolved in recent years. Traditionally, walk-in wine cellars were underground rooms, due to the ambient temperature of the floor, lack of natural light and higher than normal humidity. While they remain in vogue, modern technology and clever design (as well as better construction techniques) mean that a wine cellar, a room, a "wine cellar pod", or even a wall, can be installed anywhere there's room.
Here's everything you need to know about creating a space for your wine collection that is sure to be legendary.
Wine rooms
As the name suggests, these are self-contained spaces, often existing "spare" rooms, equipped with the technology necessary to preserve wines in optimal conditions. In general, an enclosed room without natural light is the most cost-effective to prepare, especially for large collections. A consultation begins with a discussion of the collection: ideal capacity, and storage needs (wines for receptions, keeping of great wines, investment wines, etc.).
Next, we review the layout of the property and the area planned for the wine cellar installation, to determine what preparation work is needed, such as structural modifications, insulation, or electrical wiring, and we advise on the most appropriate air conditioning system. Then comes the fun part, when we ask about design and style preferences. Then we submit our design proposals to the client for approval.
We know that "Our clients today consider a well-designed cellar an essential addition to their home" but not everyone has the capacity to build a cellar. With modern technology and creative thinking, homeowners can create storage in their existing space, whether it's hidden behind shelves or underground in vaults, ensuring that the wine cellar not only looks great but also complements the rest of the property.
"Our clients often tell us that the wine cellar becomes the focal point at parties, and therefore a popular trend is to build them larger, often with a table in the middle for tastings or dinner, or using barrels to create a standing area. It is also becoming increasingly popular to install sinks in the cellar for washing glasses. In some cases, we've also seen owners connect the cellar to the property's audio-visual system for mood lighting and music."
Wine walls and wine cellar modules
Ideal for smaller properties and pied-à-terre homes, the wine wall offers all the benefits of a cellar or room, but without the need for as much space. Wine walls are proving to be one of our most popular installations. In the past 18 months, orders for wine walls have surpassed those for our cellars and wine rooms. Our wine walls can be four feet wide and up to 20 feet high, and can range in capacity from 150 to 1,000 or more bottles depending on the space available, as well as the arrangement of the bottles."
Too many bottles for one wall but not enough space for a cellar? Then think about a "wine cellar module".
These enclosed spaces are climate controlled like a bedroom or cellar, and are usually covered in glass. They are often integrated into kitchens or dining rooms.
Spiral cellars
The biggest innovation in wine storage is probably the classic underground cellar, but in a very modern form. A "spiral cellar", as the name suggests, is a circular storage facility dug into the ground. It can be installed under any first floor room and does not require an existing cellar or basement. The advantage of a spiral cellar is that it does not take up space. In fact, a spiral cellar creates a space you never knew existed.
Constructed of reinforced concrete, the rooms can store up to 1,900 bottles of wine. Solid concrete construction, built-in natural ventilation and proper positioning within the property create the right temperature and humidity for optimal cellar conditions. A range of door and cellar options are available, with the ability for customers to customize their cellar with additional elements such as stair treads and LED additions to enhance the design and make the cellar a stunning feature in the room.