Wine Investment

Question 1

Because of what did the wine investment become increasingly important?

List 3 bulletpoints!

Answer 1

1. ) en primeur sales in Bordeaux
2. ) chinese wine consumption
3. ) seen as safer investment than stocks & shares

Question 2

Name a risk of buying wines for investment!

Answer 2

1.) prices can fall - seen in Bordeaux

Question 3

Which 5 regions started to become famous after Bordeaux if it comes to wine investment?

Name 5!

Answer 3

1. ) Burgundy
2. ) Piemont
3. ) Tuscany
4. ) California
5. ) Champagne

Question 4

Where are these type of wines are going to be sold?

Name 2 possibilities!

Answer 4

1. ) secondary market

2. ) at auctions

Question 5

Which possibilities are given for the consumer to purchase wine investment wines?

Give 3 possibilities!

Answer 5

1. ) en primeur (producer or retailer)
2. ) auctions
3. ) wine clubs (screaming eagle)

Question 6

List 6 important businesses that are engaged in the wine investment trade!

Answer 6

1. ) retailers
   e. g. Cult wines (UK, China, Shanghai)

2.) broker services

3. ) trading exchanges
   e. g. Liv-Ex (UK)
4. ) portfolio management
   e. g. Amphora, Cult wines

5.) wine investment funds
= no need of knowledge

6.) auction houses

Question 7

1.) Which is the leading city if it comes to wine investment or trading?

2.) Which city is the competitor?
Why?

Answer 7

1.) London

2. ) Hong Kong
   
   • abolishing duties = trading hub of Eastern Asia

Question 8

1. ) Give one key example of an famous auction house!

2. ) Which bottles did they sell at which price point?

Answer 8

1.) Baghera wines Geneva auction and trading

2.) 855 bottles + 209 magnums of Henri Jayer
= 34,5 million CHF

Question 9

1. ) What could be a risk if we talk about buying wines at an auction?
2. ) How would auction houses prevent this risk?

Answer 9

1. ) Was it stored under right condition?

2. ) detailed investigations for storing it appropriate

Question 10

1.) Name a huge risk for the whole wine investment scene!

Give 2 examples!

2.) How want the big chateaux per example prevent that?

Answer 10

1.) Frauders !!!

e. g. Hardy Rodenstock (Thomas Jefferson wines)
e. g. Rudy Kurniawan (Domaine Ponsot)

2. ) Counterfeiting techniques
   e. g. destroy bottles after drinking