“Wine offers a safe yet profitable haven for your capital, with very low correlation to the stock market.” - Forbes
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*Past performance is not a reliable guide to future returns. The value of your investment may go down, as well as up and you might get back less than you originally invested.
This bespoke portfolio from Cult Wine Investment is exclusively available to Chip users from two investment grade regions – Bordeaux, and Champagne.
Cult Wines' representative portfolio has posted a total return of 69.5% over the past 10 years and an 18.8% return over the past 12 months.
Available to investors at £1,320. Cult Wine Investment uses Liv-ex (The London International Vintners Exchange), the global marketplace for wine trading, to determine the value of your wine.
Invest in 1 of 500 portfolios of French wine. Containing 3 bottles of Rare Vintage Champagne and 12 bottles of fine red from two Historic Châteaux; Pontet Canet and Beychevelle.
Having only been made in 12 vintages since its inception in 1976 and produced in tiny quantities, Rare champagne certainly lives up to its name.
The estate traces its roots back to the original Heidsieck & Co in 1785, Florens-Louis Heidsieck set out with the ambition of creating a cuvee worthy of a queen - which he achieved after wowing Marie Antoinette in 1788.
Rare Champagne today is produced by legend Régis Camus, whose meticulous winemaking has made him IWC Sparkling Winemaker of the Year an unprecedented eight times.
Rare stands as its own entity, very much like Dom Perignon does to Moet et Chandon, representing their ‘prestige cuvee’. Rare’s current price indicates strong investment potential with back vintages also trading at significant mark-ups.
Only around 2,000 bottles are produced per vintage, compared to 500,000 bottles of Krug and 7 million bottles of Laurent Perrier.
An estate boasting an especially impressive château, Beychevelle was once owned by the Great Admiral of France in the late 1500s. Ships that passed his château along the River Gironde were required to lower their sails as a mark of respect.
Centuries later, Château Beychevelle is a good representative of modern, internationally-focussed château ownership, with considerable investment into their production processes making them a global force in wine production.
With Japanese firm Suntory involved in the ownership and strong links to China, this has resulted in growth and interest from Asian markets, which is promising for Beychevelle as an investment asset.
The history of Château Pontet-Canet dates back to the early 18th century. After Guy Tesseron’s acquisition of Château Pontet Canet in 1960, it produced a string of excellent vintages. In the late 1990s, the wines began gaining international recognition with their 1994 vintage regarded as a renaissance for the estate, putting them in the spotlight.
In 2004, the family began to experiment with biodynamic farming practices, sustaining the land with natural materials, soils, and composts. Chemical fertilisers and pesticides are forbidden in order to ensure excellent soil fertility and Breton draft horses work the vineyard.
This Château’s wines have gone from strength to strength and are growing in popularity all the time. Their average Parker Score (a trusted authority in wine for over 30 years) beats that of world famous neighbours Mouton Rothschild.
Purchases of Pontet-Canet have returned 18% since the start of 2021 (measured until end-March 2022).
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Purchases of Beychevelle have returned 47% over the last 5 years (measured until end-March 2022)
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Purchases of Rare Champagne have returned an average of 34% since the start of 2021 (until end-March 2022).
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In times of market turmoil, investments in fine wine are fairly insensitive to the macroeconomic context.
Over the last 30 years, fine wine has seen a compound annual growth rate of 10%*.
Every vintage is limited to a certain number of bottles due to geographical constraints, weather conditions and production methods. As wine is cellared or consumed vintages become more scarce.
Global consumption of wine is growing. This increases scarcity, which in turn makes fine wines like these more valuable.
Selected investment grade wine tends to appreciate with age. This makes it a good option for medium- to long-term investment.
Cult Wine Investment’s comprehensive insurance policy fully covers your investment. More information can be found here about how Cult Wine Investment protects your wines.
Fine wine has historically been a stable store of value due to its degree of separation from the markets.
The Liv-ex Fine Wine 100* has risen by 270.7% over the two decades from July 2001 to July 2021, outperforming the S&P 500 by 8 percentage points over the same period. Sotheby’s Wine Index, meanwhile, has consistently outperformed the S&P 500 since 2005, with performance converging only briefly in 2021.
The Sotheby’s Bordeaux Market index outperformed the S&P 500 from 2005-2019.
*The London International Vintners Exchange—commonly known as the Liv-ex—is the benchmark for the fine wine market.
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Chip has partnered with industry experts Cult Wine Investment to bring you this exclusive wine portfolio. Founded in 2007, Cult Wines expertly blends heritage, unparalleled expertise and an unwavering passion, to revolutionise how consumers buy, sell, invest in and collect fine wines.
Cult Wines in numbers:
- 83 Countries in their global network of clients
- £240,000,000 worth of assets under management
- 1,250,000 bottles of wine under their care in the UK
Cult Wines' portfolios have performed strongly through 2021 and into this year, with a 5 year compound annual growth rate of 8.61%.
In 2018, the second most expensive bottle ever was sold at auction. A 1945 ‘Domaine de la Romanée-Conti' in 1945 sold for $558,000.
According to Knight Frank's luxury investment index 2021, investment-grade wine has risen 13% in price in the first half of the year, making it the frontrunner of all luxury investments including Scotch whisky and Hermès handbags. Wine consumption in the U.S hit 1.1 billion gallons last year.
Chip works with Cult Wines who provide a full-service storage, independent valuation and care for your wines. Wines are securely stored in a bonded warehouse in the optimum environment for fine wine storage, by carefully regulating temperature, humidity and other microclimatic factors.
In times of uncertainty and high inflation, investors are turning to assets like fine wine due to their proven track records of solid returns and non-correlation with the stock market.
Fine wine offers less volatility than other more traditional investments as the two forces of age and scarcity help protect its long term value.
People drink more fine wine than ever before. Asian markets (including China, Japan, Hong Kong and South Korea) have seen massive growth.
“Sotheby’s is seeing some of its highest sales ever in Asia with Asian buyers representing 63% of sales of total fine wine auction sales in 2018”. In Western economies, restaurant and leisure reopenings post-covid have buoyed the market.
Cult Wines have a state-of-the-art London City Bond warehouse. Storing your wines near London, a global wine trading hotspot, increases your chances of selling it at the right time for the best returns.
Proper wine storage and location influence quality and hence value and ease of sale.
Rigorous security mechanisms are in place to ensure the premise is secure and theft proof.
Wines are stored in wooden cases in a bonded warehouse in the optimum environment for fine wine storage, by carefully regulating temperature, humidity and other microclimatic factors.
Bottles are individually padded, and warehouses are structurally reinforced to limit vibrations.
As a client of Cult Wines, you may request images of your wine (cases and bottles) at any point.
Wine investing works in a similar way to traditional investing, where instead of stocks or property, your assets are fine wines. Wine is a physical asset with intrinsic value. As fine wine is left over time it becomes more desirable as the quality is almost always improving with age, which adds value.
As fine wine is consumed, certain vintages become more rare, pushing the price up further as more investors seek out what bottles remain in circulation.
They have a track record of delivering strong returns with a greater degree of stability than traditional markets during times of market turbulence. Of course, as with all investing, you can lose money and past performance does not guarantee future results.
Cult Wine Investment is the world's leading fine wine collection and investment management company. Combining a love of fine wine and market-leading industry knowledge with the latest technology, Cult Wine Investment analyses and unlocks the market for clients around the world.
Headquartered in the UK, Cult Wine Investment was founded in 2007 and has offices in Canada, China, Hong Kong, Singapore, and the US supporting clients in more than 70 countries.
You need to be over 18 years of age to invest in wine.
Cult Wine Investment are experts in their field, drawing on extensive research, wine knowledge and proprietary technology to uncover ongoing opportunities across the expanding global fine wine universe.
Less than 1% of all wine produced worldwide may be considered investment grade. All wines must meet the company’s investment grade criteria and are certified with full provenance.
Cult Wine Investment uses Liv-ex (The London International Vintners Exchange), the global marketplace for wine trading, to determine the value of your wine. Liv-ex offers a comprehensive database of wine sales and allows Cult Wine Investment to buy and sell wine in the same way as a financial services exchange.
If you’ve decided to sell, offers for your wine will be communicated to you by Cult Wine Investment along with the current Liv-ex market price so you can make an informed decision.
At any time during the first 5 business days following the 1 year anniversary of the delivery date of your wines, you may ask Cult Wine Investment to value the assets and to arrange for the sale on your behalf. In doing so, this appoints Cult Wine Investment as your agent and authorises them to perform any acts it may consider necessary or desirable in order to facilitate such a sale, whether by auction, private bargain, cash offer or otherwise.
You may place a reserve sale price on your portfolio 2-5% below the Liv-ex price should you wish to complete a sale faster. Once a price is agreed Cult Wine Investment anticipates a sale period of 30 days, but this can vary depending on market conditions. You can cancel or refuse a sale at any time while Cult Wine Investment is looking for a buyer.
Cult Wine Investment provides full service, storage and care for wines until they are ready to be sold. Wines are stored in wooden cases in bond (IB) in a bonded warehouse just outside of London in the optimum environment for fine wine storage.
Temperature, humidity and other microclimatic factors are carefully regulated. Bottles are individually padded, and warehouses are structurally reinforced to limit vibrations. Rigorous 24/7 security is in place to ensure the premise is secure and your investment is fully protected.
Cult Wine Investment buys as much wine as possible directly from the wine producers, or on allocation from appointed agents or Negociants, thus dramatically reducing the opportunity for fraud.
They also run a risk profile on every case of wine added to the inventory. Any wine that falls outside the risk profile undergoes a rigorous inspection by their expertly trained specialists to ensure authenticity. They regularly carry out additional authenticity checks using specialist equipment and training
Wine is an investment market like any other. So prices can go both up and down and past performance is not indicative of future performance, but fine wine can be an excellent portfolio diversifier. Cult Wine Investment states they have returned 171.8% since inception (31-10-2009). Fine wine has consistently offered investors double-digit returns year-on-year, and demand from emerging markets is set to ensure continued, and significant, price appreciation opportunities. As an asset class, fine wine has outperformed more established commodities including gold, equities and property. According to Liv-ex, fine wine has outperformed all major financial markets so far in 2022, and during 2021 returned on average 19.1%.
In relation to the wines in this first portfolio, purchases of Beychevelle have returned 47% over the last 5 years (measured until end-March 2022), and purchases of Pontet-Canet have returned 18% since the start of 2021 (measured until end-March 2022). Champagne continues to be a highly sought-after luxury asset, with the Champagne 50 sub-index finishing the year 2021 up 40.0%.
Chip is bringing wine investing to our platform for the first time to give our users the chance to invest differently and build real wealth. With our partner Cult Wines, we are offering unique wine portfolios built specially for Chip users with a much lower barrier to entry (wine investing with Cult Wines usually starts at £10,000+, but through Chip this will be from c. £1,000-£2,000), to open up this booming market to all.
Chip will offer you a specially curated wine portfolio that you will own outright. Once the wine portfolio is live, you’ll access a link to buy either via email or the Chip app. You will then be taken to a dedicated area on the Cult Wines website to open an account with them to complete the purchase, check your portfolio and manage your investment.
The first bespoke portfolio offered through Cult Wines to Chip users will contain 3 bottles of Rare Champagne (2006), 6 bottles of Château Beychevelle (Bordeaux 2019) and 6 bottles of Château Pontet Canet (Bordeaux 2019) valued at (est) £1320. This is not a fractional share offering and you will own the bottles outright.
The price of our first portfolio is estimated at £1320. There is only one portfolio available per customer. We are delighted to offer this bespoke portfolio to you at this specially negotiated price exclusive to Chip customers. Until now, Cult Wines have required a minimum investment of £10,000. Please note the price quoted here is an estimate based on current Liv-ex market value.
Cult Wine Investment will value, insure and store the wines for you until they are sold. Wine must be kept for a minimum period of one year, after which you can instruct them to sell it on your behalf. You will have a window of 5 business days in order to instruct the sale, if you decide not to sell during this window you must keep your wine for a further six months until you can decide whether to sell again.
Cult Wine Investment will send back your original investment and any profits, less any fees owed.
Chip users will be charged Cult Wine Investment’s standard 2.95% annual management fee. Fees will be calculated monthly and accrued. These will be deducted from the proceeds of your final sale amount. No fees will be charged until your wine is sold.
No. Fine wine should be considered a medium- to long-term investment, so please consider this carefully before you invest. Generally, Cult Wine Investment advise a minimum 2-5 year horizon for their portfolios in order to benefit from a typical market cycle, with an optimum term of 5-10 years, but when you exit is up to you. There is a minimum hold time of 1 year and it typically takes 30 days for the selling process to complete.
Cult Wine Investment’s comprehensive insurance policy fully covers your investment. More information can be found here about how Cult Wine Investment protects your wines.
Unfortunately, this isn’t possible. Wines are stored securely in optimum conditions at a bonded warehouse until they are sold. However, if after a year you decide you want to enjoy your wine rather than sell it, Cult Wine Investment can send it to you (delivery charges apply). Users may request images of their wine at any point.
Unlike Whisky investing, you are not investing in wine during the cask ageing process. You are investing in wine after it is aged, bottled and ready for sale. This ensures the wine you are buying is investment grade in optimal condition.
Portfolios consist of investment grade wine from, typically; Bordeaux, Burgundy, Rhone and Champagne in France, Tuscany and Piedmont in Italy, and emerging regions such as Napa Valley in the USA. They are always on the lookout for the highest quality wines that they believe will appreciate in value and offer investors a good return.
Whilst stored in a government bonded warehouse, there is no duty or VAT applied to the wine. Fine wine is considered a “Wasting Chattel” by HMRC, whereby the asset’s predictable life does not exceed more than 50 years determined at the date of acquisition, and therefore is generally considered Capital Gains Tax exempt. Chip cannot give tax advice or comment on individual tax circumstances and tax treatment may change. If in doubt please consult an independent tax resource or a tax professional.
Cult Wines Ltd. The Clockwork Building, 45 Beavor Lane, London W6 9ARReg Company No. 06350591 | VAT No. GB 129 9514 84 | AWRS No. XVAW00000101625.For more information, please visit www.wineinvestment.com or find Cult Wine Investment on LinkedIn, Twitter, Facebook, or Instagram
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