by Wine Owners
Posted on 2014-11-19
by Wine Owners
Posted on 2014-11-10
Created by Wine Owners* exclusively for Knight Frank, The Knight Frank Fine Wine Icons Index (KFFWI Index) reflects a representative basket of the world’s 40 most iconic wines, drawn from key regions of production. Up to 5 vintages of each wine are included.
The KFFWI has delivered growth of 230% over the last 10 years. Looking at the last 7 years growth has been 115%, 43% over 5 years and 8.5% over the last 3 years.
Given its role as the world’s largest fine wine region of production, Bordeaux is strongly represented with 14 wines, encompassing all of the First Growths. The performance of any fine wine index since Bordeaux’s peak in June/ July 2011 will reflect – and be depressed by - the very significant falls experienced since then.
Those highs were driven by unprecedented demand from China in the years leading up to 2011. Speculation overtook the interests of an orderly market, with brokers betting on which wines would become the next recognised brands in the Chinese market, creating an investment bubble.
Since the bubble burst, First Growth declines have averaged -28%, with certain wines halving in value, for example Lafite 2005 has fallen by -48.6%.
Volatility creates buying opportunities in any market, and wine is no different. When sentiment is negative, markets will tend to overshoot as they readjust. Whether we'll see a recovery this year or next remains to be seen. At some point in that timeframe sentiment towards Bordeaux will improve as prices bottom.
It may take the remainder of 2014 for market positions to unwind. Prices will start to firm up as and when channel inventories start to deplete. Calling the bottom of a market is notoriously problematic, but back vintages are looking more interesting than at any time in the last 4-5 years.
Other fine wine regions have performed exceptionally well over the last few years, notably Burgundy. Top burgundy has averaged 63.5% growth over the last 5 years, and 34% over the last 3 years. Scarcity of supply of demanded wines is a key driver of future value, and Burgundy has suffered a string of short vintages since 2010, a factor that is likely to lend support to current pricing levels of new releases.
The top 20 performers over the last 12 months reflect the increasing the growing interest in northern Italy.
Bigger production volumes offer better market liquidity, to the benefit of Super Tuscan brands, and which Solaia and Masseto enhanced by distributing through the Place de Bordeaux.
Barolos and Barbarescos from 2010 - considered to be a great Piedmont vintage, have ignited interest in the region - and its similarities with Burgundy - small estates, fragmented ownership, mono-cepage (single noble grape variety) and scarcity - suggest there is future value to be achieved if same degree of general qualitative improvement seen in Burgundy over the last decade can be demonstrated.
The bottom 20 performers over the last year simply reinforce the decline of Bordeaux prices.
by Wine Owners
Posted on 2014-11-06
by Wine Owners
Posted on 2014-11-04
Coming up soon, Nick Martin will present Wine Owners’ Wine Management Platform (WMP) for wealth managers.
November 13 at 7pm at the Masi wine bar in Zurich
Courtesy of finteCH+innovation meetup hosted by Credit Suisse’s John Hucker.
With the massive growth in alternative tangibles held by High Net worth Individuals, wealth managers have begun to appreciate the need to offer services to help their clients track and manage their treasure assets in addition to the traditional service offerings.
Wine Owners (WO) has developed a wine trading platform that makes it easy to manage, track and self-direct. Since launching 15 months ago, WO now manages over £500M in wine with the Wine Management Platform (WMP) as a branded (white label) solution used by companies such as Corney & Barrow and The Wall Street Journal.
The company was recently featured in the Financial Times How to Spend It magazine.
The presentation will show how Wine Owners is addressing the challenges of trading tangible assets using a version of WMP developed for wealth and relationship managers, and the strategies open to them to justify integrating the WO WMP with their client-facing proposition.
For more information, click here.
To see the great companies that Wine Owners works with, click here.
WO recently deployed a platform in partnership with the Wall Street Journal: https://wsj.wineowners.com/home.aspx
WO has developed a version of WMP for wealth/ relationship managers that allows them to offer own-branded functionality for High Net Worth Clients.
If you are interested in attending this event on November 13th please click here to sign up. See you there!