Frequently Asked Questions
Like any financial market, the fine wine market is constantly fluctuating and is what is regarded as
a live open market, therefore prices can change on a daily basis.
Yes, you can. The wine market is one of the most tangible investments available and you as the
investor will be in full control of your investment. Obviously, we do not recommend that you drink
your wine as you will essentially be drinking away your profit. There will also be penalty charges if
you wish to take a case of wine out of bond.
Yes, you can. Your wine is stored in your own individual account, and you can book an appointment through your vintage associates’ portfolio manager to view your wine in person. You can also have a condition check on your wine throughout the duration of the investment on request.
New client will receive an application form from Vine containing a stock report and in addition will supply rotation numbers on each case of wine that you purchase. Each client will also receive an online log in to access their online personal account.
Accounts with Vintage Associates start at £10,000.
The London international vintners exchange is the global platform used by merchants and brokers
to buy and sell fine wine. As a trusted member of the exchange (of which there are fewer than
450) we are in a position to connect our clients directly with the exchange, giving us the
opportunity to buy and sell our clients wine when necessary. With daily updates, market reports
and up to date pricing, you can begin to see how valuable our partnership with Liv-ex is.
It is common knowledge that fine wines mature and become more profitable with age. With that in mind, the longer you hold your wine collection, the more profitable it should become. Our portfolio manager are given daily updates on the market through our data team, so have a vast array of information readily available to advise you on the best time to sell your wine. We recommend that you hold your wine for a minimum of five years, however due to the liquidity of the investment you are in complete control of when you sell. Please bear in mind that this market is driven by strict rules of supply and demand. This means that the longer you hold your investment for, the better chance you have of your wine being consumed, thus decreasing the supply and increasing the demand.
First you should contact your portfolio manager who will begin the process of liquidating your portfolio.
We will then look to Liv-ex for an up to date valuation on your portfolio and we will either look to
sell directly through the exchange or to other investors in order to achieve the best possible price.
Vintage Associates charge a 2% fee on the profits made upon liquidating your portfolio.
The cost of storing your wine at London City Bond Vine is included with in our management fee for the first five years. If you choose to continue to store your wines at LCB beyond the five years you will be charged £13.20 per case per year.
Yes, you can. Providing the cases are in good pristine condition and are stored at a reputable UK bonded warehouse, we would be more than happy to value your wine and make you an offer.
Buying and selling wines “under bond” have several benefits for both the buyer and the seller. It gives clarification that the wines are being stored in perfect conditions and it also ensures traceability. Wines that are stored in a government bonded warehouses are not liable to duty and VAT. Part of the agreement with the bonded warehouse includes insurance, which is regarded as the best protection within the sector.
The fine wine market is notoriously known for being a tax-free investment. Fine wine is regarded
as a food product and therefore falls under the umbrella of a wasting asset. This means that it is exempt from income tax and capital gains tax. This means that you will see 100% of the profits
made. However, each client should seek advice from a professional tax advisor especially if you
are new to the sector.
The fine wine market is notorious for the liquid nature of the investment, however when liquidating your portfolio, we would recommend a timeframe of up to eight weeks from the day you are looking to liquidate in order to generate 100% of the market value.
Wines are rated by a number of renowned critics; whose job is to test and give a rating from 0-100 on each vintage that is produced that year. It is widely known and trusted within the industry that anything bearing a score of 90 and above is sure to be a sound investment. The opinion of these critics are valued extremely highly by investors and collectors and therefore we will only offer vintages that have a score of 95 or above.
All of our client’s wines are stored at Vine storage at London city bond. This is the most sophisticated and temperature-controlled facility within the government bonded warehouse. The chamber is fully equipped with CCTV cameras as well as photo booths and professional photo equipment for condition checks and verification.
All wines held at London City Bond Vine are insured through Lonham group insurance. This policy is taken out by LCB on behalf of the client. The cost of insurance is free for the first five years and charged at 0.5% of the current market value every year thereafter.
Clients own their own wines. These wines are ringfenced at Vine. If Vintage Associates were to
cease trading at any time, clients would only lose the ongoing management and service that
Vintage Associates is obliged to conduct. The certificate of ownership ensures that the wines held
at Vine are a tangible asset to the investor and not Vintage Associates.
In short, this is the best way to ensure and maintain the highest sell on value as this is what collectors will look for when you come to sell your wine. we will only deal with cases that are unopened and sold in its original wooden casing to ensure the wine has been kept in the best condition.
Due to daily market fluctuations, we are unable to provide you with on the spot valuations,
however we provide all investors with yearly valuation reports. As part of your ongoing
management from your consultant, each client will receive a yearly update on the overall
performance of their portfolio and the market in general.
You do not need to have any knowledge on the wine market, that is why we are here. Vintage Associates works with a variety of investors and collectors alike, meaning we will provide you with everything you need to know about the fine wine market throughout the duration of your investment. We also have an open-door policy and are more than happy to meet with clients to further their knowledge on the sector itself and us as an organisation.
If you have any further queries or still have unanswered questions please do not hesitate to contact us.