The wine market has various levels of interest for those who wish to benefit from the possibilities of wealth generation, but equally as important for wealth preservation.

There are those that focus on the strong secondary market demand; generally relying on the lucky consumers who at their pleasure, indulge in the world of fine wine. After time and careful cellarage these wines are ceremoniously brought out of their subterranean world, decentred and consumed in the majestic moment that has been anticipated since it was bottled. These wines are priced according to market conditions; in whatever moment they are consumed.

Then there are those that target wines that are to be left and admired only for the inscription on the label that dresses the bottle (and the imagination) to resist temptation that eventually (out of curiosity) is broken – delivering its notes and flavours of ‘time’ that have been left dormant for so long, but washed away in an instant! Such experiences cost small fortunes! These wines truly are valued (like beauty) in the eye of the beholder.

Of course, like anything that is consumed from a finite supply, pressure increases on the availability of remaining stock. Since the dawn of time, such commodities have been sought after in the same fashion as today. As time passes, of course trends occur, but there will always be one dominating source; in the wine market that source is Bordeaux.

The difference in today’s fine wine market when comparing for example twenty years ago, is that ‘new’ consumers will want to broaden their experiences. In today’s ‘global’ environment, access to the vast supplies of wines from all corners of the world is becoming easier and with this is a growing appreciation to the quality available. In turn the realisation that each region has its own unique style and price becomes more apparent to these ‘new’ consumers. And, whilst Bordeaux Claret may appear expensive, the acceptance of the power and precision these wines offer is over time becoming clearer.

In today’s demanding (high-end) consumer market, quality is paramount to achieving successful sales. This is no more recognised than in Bordeaux. It seems even in the most demanding years, the Bordelaise combine their knowledge and expensive technological aides to create excellent wines year after year. This however comes at a cost; actual production levels have been falling in the past ten years in their search for perfection. Where the norm used to be 25,000 cases (12/75) per vintage – from First Growth properties, we now see an average production of 12-15,000 cases.

Pause for thought then………….. The below graph (Source: Wikipedia) indicates the population growth since 1800. The global population is expanding at its fastest pace since the 1960’s and is expected to continue for some time. This combined with recent data (Some Key Facts) from the Cap Gemini RBC World Wealth Report 2013 …………..

investment-wines

Some Key Facts

  •     Investable wealth of HNWIs is expected to grow to US$55.8trillion by 2015
  •     Geographic Wealth Allocation of HNW is Globally

30.4% – Asia-Pacific
30.2% – North America
26.5% – Europe
6.1% – Latin America
6.8% – Middle East and Africa

  •     HNWI Allocations to Investments of Passion Globally

31.6% – Jewelry, Gems and Watches
19.0% – Luxury Collectables (Cars, Boats, Jets, etc.)
16.9% – Art
8.0% – Sports Investments (Sports Teams, Race Horses, Sailing, etc.)
    24.2% – Other Collectables (Inc Wine)

  •     32.7% of HNWIs were most focused on wealth preservation, whereas 26.3% were most focused on wealth growth

Hopefully you just may get the picture!!!!!!!!!!