March 17, 2023

How to invest in wine?

Wine investment is a very good way to diversify your portfolio but like all the investment you need to DYOR (Do Your Own Research) on the wine market. You need to approach wine investment with caution and knowledge. Read the following steps before you start considering investing in wine:

Educate yourself: Much like the cryptocurrency world and market you’ll need to learn more about and familiarize yourself with the wine industry; the history of the wine industry (old world and new world), market trends and the indicators of this market (WD Bordeaux 100, …).
Know your taste in wine: We like to say that to discover the world of wine you need to taste and try as many as you can! There are several hundred wine regions with thousands of appellations and as many wines in which you can invest. A word of advice: choose where you want to focus your wine investments. For example: rare vintage wines, Bordeaux, Burgundy, Champagne, …
Build your wine collection: Wine is a risky investment because it is an investment you can drink! Start building your wine collection by purchasing bottles of wines you think will increase in value over time. If you don’t really know where to start, you can ask the BTC Wine team by mail or directly in the chat. After purchase, store your wine in a safe place (and try not to drink it).
Store your wine properly: This is probably one of the most important steps! To invest in wine, you need to have a safe place to store your wine investments. It could be a traditional wine cellar (be careful with humidity, temperature, and brightness), an electric wine cellar (example: Eurocave), or you can ask the BTC Wine team to store your wines in our private warehouses (fee-based service).
Monitor market trends: Learn about factors that can impact the value of wines: weather, news, supply, demand, winery reputation, and market trends.
Professional advice: Consult our wine investment experts or you can directly go to our wine cellar located in Bordeaux, France to talk with wine professionals.

Important information: Investing in wine will not make you rich quickly. The wine market can be volatile and there are no guarantees of returns. It’s important to be patient: be a new holder of prestigious wines.

What is wine investing?

The most general definition of wine investment is the following: wine investing is the practice of buying bottles of wines or original wooden cases/cartons and holding these wines with the expectation of generating a profit over time. There are different factors that can impact the value of wine such as rarity, age, vintage, reputation of the appellation, etc…

Wine investors may purchase wine as an alternative asset class to diversify their portfolio or as a hobby. One of the greatest success stories of a wine investor is Michel-Jack Chasseuil who owns the most prestigious private wine cellar in the world (more than 50 million euros of wine).

Beware, wine investment is considered as a complex world and risky venture-capital that requires significant knowledge to be successful.

Why Invest in Wine?

Investing in wine can be an attractive option for several reasons:

Potential for high returns: Fine wines from reputable vineyards can appreciate significantly in value over time. In fact, some of the most collectible wines can yield returns of 5-20% per year.
Limited supply: Unlike other investments such as stocks or bonds, wine is a finite commodity that can only be produced in limited quantities. As a result, the supply of rare, high-quality wine is constantly decreasing, which can drive up their value over time.
Tangible asset: Wine is a physical asset that can be stored and displayed, which makes it an appealing investment for those who appreciate the aesthetic and sensory qualities of fine wine.
Diversification: Adding wine to an investment portfolio can provide diversification, which can help to mitigate risk in the event of a downturn in other markets.
Enjoyment: Investing in wine can also provide the opportunity to enjoy and learn about different varieties of wine, as well as the history and culture of wine-making regions.

It's important to note that investing in wine requires expertise and due diligence. Investors need to research and carefully select reputable vineyards and producers, and properly store the wine to maintain its quality and value. Additionally, wine investments can be illiquid and subject to fluctuations in demand, so it's important to have a long-term investment horizon and to understand the risks involved.

How do I start investing in wine?

Investing in wine can be a complex and challenging process, but here are some general steps you can take to get started:

Educate yourself: As we said in the first part, start by learning as much as you can about wine and the wine market. Attend tastings, read books and articles on wine investing, and join wine clubs or online forums to get more information and insights.
Determine your budget: Wine investing can require a significant upfront investment, so it's important to determine how much you're willing and able to invest.
Choose a reputable wine merchant: Work with a reputable wine merchant or broker who has expertise in wine investing and can guide you through the process. Look for a merchant who has a proven track record of selling investment-grade wines. Our company BTC Wine is part of a traditional wine trading on the « Bordeaux place »: Lasserre & Papillon. Check out « Our services » => « Lasserre & Papillon ». We are competent in this domain, and you can contact our wine experts by mail so that they can advise you (« Our services » => « Contact us »).
Invest in quality wines: Focus on investing in high-quality wines from reputable vineyards and producers. Look for wines that have a proven track record of appreciation in value and are in high demand from collectors.
Consider storage: Proper storage is crucial to maintaining the quality and value of your wine investment. Choose a storage facility or invest in a wine cellar that has the right temperature and humidity control, as well as adequate security.
Monitor your investment: Keep track of the value of your investment over time and be prepared to hold onto it for the long-term. Remember that wine investing can be subject to market fluctuations and demand changes, so be prepared to be patient and adjust as needed.

It's important to note that wine investing can be risky, and it's important to consult with a financial advisor before making any investment decisions.

What is the best wine to invest in?

Investing in wine can be a daunting prospect, but there are some tips to help navigate the process.

The first step is to establish a budget and focus on quality rather than quantity. Investing in a few high-quality bottles is often more profitable than buying large quantities of cheap wine.

We recommended to focus on wines from renowned vineyards, famous vintages, and prestigious wineries. Here are some examples :

Exceptional wines from traditional wine regions:
The « 10 + 1 first growth » in Bordeaux (Haut-Brion, Latour, Lafite Rothschild, Château Margaux, Mouton Rothschild, Cheval Blanc, Ausone, Figeac, Pavie, Angelus and Petrus).
The great producers of the Rhône Valley: E. Reynaud, E. Guigal, Paul Jaboulet, Château de Beaucastel, …
Burgundy 1^er Crus and Grands Crus.
And more with Champagne, Italy, Spain.
Today, wine investment is opening to new wine regions:
Loire with famous wines like : Dageuneau, La coulée de Serrant, Clos Rougeard, Huet, Clos Naudin, …
Jura : Château Chalon, Domaine Overnoy, Gavenat, …
Languedoc Roussillon: Grange des pères.
And more with wines from the new world (Australia, California, …).

These wines are typically in high demand and are more likely to increase in value over time.

Investing in wine en primeur or purchasing wine before it is bottled and released to the market, can be an effective strategy. This approach allows investors to take advantage of lower prices and can result in better returns.

Storing wine properly is also critical to preserving its quality and value. This means maintaining consistent temperature and humidity levels to ensure the wine ages properly.

Finally, it's essential to view wine as a long-term investment. Many wines can take years or even decades to reach their full potential and peak in value. Investing in wine requires patience and a long-term commitment.

Investing in wine carries risks and uncertainties, and it's crucial to conduct thorough research and analysis before making any investment decisions. However, by following these tips, investors can increase their chances of success in the world of wine investing.

Investing in Bordeaux wines.

Investing in the wines of Bordeaux can be a good long-term investment strategy for those who are willing to be patient and knowledgeable about the market. Bordeaux is one of the most famous wine regions in the world and is known for producing some of the most highly sought-after wines.

Key tip:

Buy en Primeur: One way to invest in Bordeaux wines is to buy en primeur, which means purchasing the wine while it is still in the barrel. This can be a good way to get access to highly sought-after wines at a lower price.

Contact BTC Wine team to buy Bordeaux Wine en primeur.