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Back to news listCorking rewards for investors who know their wine
How are your investments doing, if you don’t mind me asking? Does a morning reading of the ups and downs of shares, commodities and currency markets leave jangled nerves?
Then how about a spot of wine? Increasing numbers of investors are turning to the bottle – I mean as an investment of course. And – particularly at the top end of the market – there have been corking rewards.
Surging interest in wine has had dizzying effects. A growing number of wealthy individuals and investment funds have been pushing prices at the top end of the market to record levels. And much of the demand has come from Asia – particularly China.
Consumption of wine in China alone has more than doubled in the past five years. A report by KPMG this week identifies the Chinese as increasingly brand conscious and says China is set to be the world’s largest luxury market. China and Hong Kong together already make up the world’s largest volume importer of Bordeaux wines.
Of course there are only so many top vineyards in Europe and the amount they can produce is finite. The mushrooming demand for wine in China is leading to a redrawing of the industry with major European wine houses developing operations in China, Chinese businessmen investing in French vineyards and expansion and development by China of its existing wine industry.
In the past few days, Moët Hennessy has announced it will be producing sparkling wine in China; Spanish company Torres has announced an expansion of its Everwines sales operation in China and a Chinese wine has taken a top award at the London International Wine Fair.
In a joint venture deal with a Chinese state-owned company Moët Hennessy – part of the LVMH luxury goods group - will produce wine from a 67 hectare site in the north-west of the country. The company says the first wines could be ready in three years, that they will be the first sparkling wine in China made according to traditional French methods and could be sold under the Chandon label. The Chinese mainland is already the company’s biggest market for Cognac and the Champagne market is growing every year.
China is making concerted efforts to raise the quality of its own industry. The Decanter World Wide Wine Awards announced yesterday at the London International Wine Fair gave a wine from China top place in a significant category: the Red Middle East, Far East and Asian over £10 Trophy.
Chinese companies buying vineyards in France are not only profiting from production but also gaining expertise. Interestingly Torres and Moët Henessy have both highlighted education of the Chinese market through their new ventures. Sauternes producer Chateau Guiraud recently announced the opening of two storage cellars for its wines in China, with the aim of giving its sales teams ready access to stocks for tasting and education.
With burgeoning demand, the top end of the market is likely to stay strong, but may become increasingly expensive to enter.
Savvy investors, however, are likely to find an increasing range of opportunities for profiting as China’s love affair with wine matures.
The Telegraph
By Alison Brown
19 May 2011
Ian Dodd, SurreyI was utterly thrilled to receive £13,000 into my account this month, having invested £5,175 with Albany less than a year ago.
November 2010
K OlivierI have recommended Albany Portfolio Management to many of my friends and that is testimony in itself as I do not do that lightly. I will continue to highly recommend them as I found them to be honest and hard working with a cutting professional edge sadly lacking elsewhere in the industry
E PrzygrodzkiI have found dealing with APM to be hassle-free, offering time and sound advice to the wine novice which I certainly am. The recent invitation to lunch at Brooklands [APM's storage facility] was a real treat...
E Przygrodzki...It is good to be able to put faces to the names of those we are dealing with and very interesting to be able to visit the 'caves' where our wine is stored. It was also rewarding to meet some of the fellow investors. A real cross section of people from all walks of life.
B GlassI discovered Albany Portfolio through a favourable article in Moneyweek. From the outset the team have been most helpful in advising me in this new area of investment for me...
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D RicciardiI have always been interested in wine mainly as a drinker, but also interested in its history, so after some very good detail from Albany I invested in Chateau Latour. I received a very nice certificate with all of my details on it and all of the relevant numbers. In that time, 2 years my investment has doubled which I am very pleased about
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A FishleighI have been impressed by the advice received from my advisers in Albany Wine who combine a "gently gently" approach with professional fine wine expertise which has been very much appreciated. I would recommend them to other wine investors.
E PrzygrodzkiI was recommended APM by a friend and have now passed on my recommendations to my own friends as the number one company to use if you wish to invest in wine. The company has a sound backing offering the confidence an investor needs.