Correct storage of investment wines is crucial, for two reasons:
Firstly, wines should be stored ‘under bond’ to avoid paying excise UK duty and VAT on the wine, which cannot be reclaimed.
Secondly, provenance is key to a wine’s future value: fine wine has to be stored in quite specific conditions.
Professional storage with Berrys currently costs £10.80 per case per annum (although Cellar Plan customers benefit from lower rates) and this would be in Berrys’ temperature and humidity controlled facility. The storage charge also includes insurance at full market value.
The logistics of buying and selling are relatively simple, though it is important to note that the transaction costs are considerably higher than those for stocks and shares, for example. A merchant’s buying price for a case of fine wine will usually be 10% to 20% lower than their selling price, this margin depending on prevalent demand for the wine in question and the merchant’s stock position at the time. This is a major reason for wine being a long-term investment.
Berry Bros. & Rudd are merchants, and subject to market conditions and the wine in question we will either make an outright offer to buy customers’ wines that are stored with us or will offer to sell the wines on a broking basis basis on our online wine trading platform BBX (our website can boast over 120,000 unique visits per month). Our customers are collectively one of our key suppliers and we are of course happy to buy wine back from our clients as we can be absolutely confident of its provenance.
Customers are by no means bound to sell to us, and we can arrange delivery to an outside bond (with written instructions) if their wine is sold elsewhere. That said, experience shows that our buying prices are correct and our customers can be absolutely sure of our financial health (in short, we pay our bills).
Demand for fine wine is growing. The price rises that we have seen for the very best, driven largely by the super-wealthy and the ‘new’ markets of the Far East, etc, are the ones that have grabbed the headlines, but it is important to note that these are not the only wines that are selling. The number of potential new wine lovers, drinkers, buyers and connoisseurs in this increasingly wealthy and sophisticated world is unbounded.
Read more in our investment pages
To discuss this further, please contact our Fine Wine Department.
9.00am to 6.00pm Monday to Friday
Tel: 44 (0) 1256 340123
Fax: 44 (0) 1256 340149
Email: Fine Wine Enquiries