Can you make money from wine?
February 1, 2010
I’m half way through completing a year long course in Financial Analysis and Portfolio Management so the next topic is of some interest to me:
(Click above link to read full Fin24 article)
I have some friends who have dabbled in some wine investment funds in the UK and they have made some good money out of it. In fact one or two of my friends aren’t even wine drinkers and even they bought some Bordeaux First Growths for investment purposes.
With Kanonkop having recently sold 600 bottles of their Black Label Pinotage 2006 for R1000 en primuer - it begs the question: is South Africa ready to enter the En Primeur market? do we have the wines for it? do we have the market presence for it?
What do you think? What wines could you see being sold en primeur in South Africa?
Posted in SA Wine Industry
February 1st, 2010 at 2:17 pm
Well shedon I think that the Meerlust rubicon may have the potential to be sold en primuer as it only comes out when the the Rubicon standard is met. So some years the vintage is not available, which will enable investors to purchase the Rubicon one year en primuer when it eventually reaches bottling. its value should increase as a specific year of rubicon may well be the last few a few years to come.
Unless im getting it completely wrong hmmm?
February 2nd, 2010 at 9:57 am
En primeur is a Bordeaux marketing gimic aimed at improving their cash flow off a high demand! There are a couple of brands that could warrant it in SA, like De Toren, Columella and a limited release Kanonkop, but we are not quite there yet. I prefer to test drive my wine purchases!
February 3rd, 2010 at 6:36 pm
En primeur sales in the classic European regions are driven by the tasting notes and scores of the particular critic/writer/publication who a buyer follows. The tastings usually take place in the spring following the harvest and are based on barrel samples which may not even resemble the final blend in bottle. Investment funds are like to follow scores and individuals the notes of the critic to which their palate is calibrated. Prices are usually set by the chateau owners once the scores are published (which is why Robert Parker is considered so powerful).
To get to the point though, imo en primeur campaigns are possible in any region, anywhere in the world, once this relationship between taster and consumer is established.
February 4th, 2010 at 10:44 pm
Absolutely you can make money with wine.The thing is you must invest in blue chip wines that have a track record for exponential growth. The first growths for sure and then followed by some important burgundies if you can get you hands on em’. It’s a long term investment though and you must be sure of perfect and documented provenance.