Wine News

With the credit crunch looming large, 'alternative investments' such as fine wine are becoming increasingly popular. Figures from Berry Bros. & Rudd & Christie's Fine Wine Auction show a combined total of over two and a half million pounds worth of fine wine has been sold by these two companies in the past few weeks.

Berrys', the UK's leading independent wine merchant, has witnessed outstanding sales in the last few weeks, selling 1000 cases of 2006 Ch. Lynch Bages and 1000 cases of 2000 Dom Perignon Champagne, worth a combined total of one million pounds.

Christie's Bordeaux 2000 sale, held this week, saw bullish spending with the Ch. Lafite Rothschild 2000 making £10,925 per case and a case of Ch. Latour 2000 going for £9,200. Overall, the 'Highlights from a Superlative Millennium Vintage: Bordeaux 2000' auction realised a combined total of £1,654,775.

Historically great wines from great vintages have appreciated 10-15% per annum, so its no wonder investors are putting their money into alternative funds. And, with wine classed as a 'wasting asset,' any investment is free from capital gains tax.

Berry Bros. & Rudd's tips to investing in Fine Wine

o Deal only with established and reputable merchants like Berry Bros. & Rudd, but shop around for advice and prices
o Buy your wines ‘In Bond’ so Duty and VAT are not payable up front. This will maximise your investment by not having to pay these taxes
o Buy unmixed sealed cases, in original wood if possible, as these will be worth the most
o Expect to invest over a 5-year period, but be ready to sell if advised.
o Buy as close to the opening price as possible
o Buy parcels of five cases or more whenever possible
o Invest at least £5000 if you are looking for serious returns
o Don't blindly buy just the big names - they may have less profit potential. Listen to your wine merchant
o Make sure you know the provenance and storage history of any wine you buy as this will seriously affect the market price
o Take out insurance so your wine is fully covered at market price rather than the price you paid for it

Read Joss Fowler's Wine Market Update and have your say on Berrys' Fine Wine Blog.