Why invest in wine?

What are the many advantages of investing in wine?

1. Investment diversification :

   Investing in wine can be a way to diversify an investment portfolio, especially if coupled with other alternative investments such as art or precious metals.

2. Profitability potential :

   Wines generally increase in value over time, allowing the resale of the bottles to realise a capital gain. Investing in wine can be a source of long-term profitability, especially if you choose rare, high-quality wines that have the potential to appreciate.

3. Physical placement :

   Unlike many other financial investments, investing in wine involves the purchase of tangible, secure, high-performance assets that can be stored and enjoyed physically. Like art, if your investment does not appreciate in value, you have the opportunity to consume, to enjoy the investment. This can be a source of satisfaction for some investors. We are convinced at U'Wine that certain vintages are true masterpieces of the winemakers and that it is important for wine lovers to be able to taste these nectars.

4. Low risk investment :

   While there are risks in any investment, investing in wine is relatively low risk, particularly if one chooses wines of high quality and established reputation as these are goods that are subject to little fluctuation.

5. Personal pleasure :

   For some investors, investing in wine is primarily a matter of personal enjoyment. They enjoy tasting good wines and appreciate the process of acquiring and storing these wines. It is also an opportunity to build and finance a cellar for their children and/or grandchildren.

For a successful investment in wine, it is important to be accompanied by a cellar management company with knowledge of wine and its market to help you select the right wines to invest in: this is our case. We will select the best wines for you to invest in. If you are passionate about the world of wine, this will allow you to enjoy your collection, consume some of it if you wish, while benefiting from a financial return and enjoying the U'Wine Experience.

Wines of great renown: a safe bet.

To have a chance of realising a capital gain, it is advisable to acquire bottles that are rare because of the small quantity produced and/or their age and whose quality is recognised by wine lovers and professionals. What are the advantages of investing in recognised wines?

1. Market confidence :

   Exceptional wines (grands crus, premiers crus, crus classés, etc.) are wines with a constant demand on the market, which contributes to their stable value. These wines have a stable supply and a demand that often exceeds it. Gradually, the bottles are bought and therefore become rarer as they are consumed by wine lovers and investors. As a result, the value of these bottles increases continuously, and they can be resold later at a much higher price than the original purchase price.

2. Recognised expertise :

   Wineries renowned for their expertise and quality such as Châteaux Lafite-Rothschild, Mouton-Rothschild, Margaux, Haut-Brion are renowned throughout the world and make some of the most sought after masterpieces in the world. It is a true indicator of wine quality.

3. Performance history :

   Wines with an established reputation often have a strong performance history and rarely experience depreciation.

4. Ease of resale :

   It is generally easier to resell proven and established wines on the market as demand is strong. This is a real advantage for investors looking to make a short-term profit. Wines with an established reputation often have a strong performance history and rarely suffer depreciation.

Apart from the scarcity of wines on the market, other parameters can influence the price such as the region from which they come. Wines from the Bordeaux region (Saint-Emilion, Pomerol, Pessac Léognan, Margaux, Saint-Julien, Pauillac, Saint-Estèphe, etc.) are particularly prized throughout the world. These appellations are among the best known in the world. The grand crus of the Burgundy region are also highly sought after, both in red and white. The most sought-after domains are Romanée-Conti, Domaine des Lambrays, Clos de Tart... Other regions are also very much in demand, such as the Rhône Valley and the Loire Valley.

Another factor specific to the wine market that can lead to higher prices is the presence of numerous classifications that list the best wines. This is particularly true of the Grands Crus Classés of Bordeaux, with the official classification of Bordeaux wines of 1855. The wines listed are generally among the most expensive bottles on the market.

Wines from little-known estates: exceptional added value

If investing in well-known estates allows you to ensure a capital gain, investing in estates that are not yet much sought-after can increase performance. Indeed, if professionals, critics or collectors discover excellent wines from unknown estates and decide to promote them, the prices of these bottles will quickly explode.

Why investing in wines with a lesser reputation maximises value?

1. Lower purchase price: less desirable estate wines are generally cheaper to buy, which can make it possible to buy more.
2. Valuation potential: if a wine with a lesser reputation gains popularity or is recognised for its quality, its value can potentially increase significantly, which can result in a large capital gain for the investor.

However, it is essential to bear in mind that the so-called Rising Star wines at U'Wine are less well known to the general public and have a more volatile growth potential than wines with an established reputation (Famous Second and Legends). It is therefore possible for the value of these wines to explode or to grow only slightly. It is therefore important to carry out thorough research and seek advice from our experts before making any investment decision: that's what we are here for!

Our tips for investing in wine

Buy your wines "en primeur" or "en allocation":

The purchase of "en primeur" wines is a Bordeaux speciality which consists of pre-ordering wines from the previous harvest. These wines are still in barrels and will only be delivered by the estates two years later, after they have matured and been bottled. We take advantage of this period, which takes place in the last week of April, to buy these wines and the advantages are very interesting, so don't hesitate to have a look at our article “Why buy en primeur/allocation?”.

Investing for the long term:

It is important to bear in mind that the value of a wine changes according to how long it is kept. It is therefore essential to invest in wines for ageing, which have the advantage of improving with time spent in the cellar. These are wines that develop their aromas and continue to evolve as they age in the cellar. The value of these wines reaches its peak when the wine is at its ideal age and when all the elements are balanced and in perfect harmony. It is then wise to sell the bottles to recover the highest possible value or to taste them. Investing in wine is a long-term investment, which needs to last between 5 and 8 years minimum to hope to realise an interesting capital gain. As an example, our clients who have subscribed to our Mandat de Cave INVEST offer have benefited from an average performance of 4.6% net per year over an investment period of 6.5 years.

Diversification of your portfolio :

Another extremely important piece of advice is to keep in mind that, as with any investment, it is advisable to diversify your portfolio to reduce the risk of loss. When investing in wine, it is therefore advisable to select different regions and vintages to protect your investment against changes in market trends or climatic hazards. To limit this kind of risk, we advise and support you in your investments.

Make an appointment with our team

International opportunities:

Wine investments can be made in many countries around the world, offering diversified investment opportunities on a global scale (Italy, California, South Africa, Germany, ...).

In conclusion, investing in wine is interesting in the medium and long term and presents little risk due to its nature and tangibility. Moreover, investing in wine is generally a pleasure investment that allows wine lovers to taste certain bottles throughout their investment.