Helping your finances mature like a fine wine
at vintage associates we offer private clients a route to investing in the lucrative fine wine market. We specialise in recommending investable grade wines from the top regions in the world, with the majority of our investors’ portfolios consisting of wines from Bordeaux, Burgundy, Italy, Champagne, and California.
Our mission is to provide our professional expertise, tools, and market insight to our clients, providing opportunities to build a profitable fine wine portfolio, tailored to each individual’s personal investment goals.
We continuously conduct an in-depth analysis of the market, providing clients with strong guidance on smart, profitable investment decisions, such as quality, price, vintage, rarity and demand.
We build trust and credibility with our clients through transparency and openness, which is why our fees are quoted before investment and all investment opportunities are accurately market valued. Investing at the right price is the key to a successful journey in fine wine.
Since 1988 the fine wine market has generated average returns of 12.4% p.a., outperforming most investments for the past 30 years, including traditional financial markets.
With the recent economic uncertainty, the low volatility and steady returns are what make this market so appealing during times of need. With uncertainty at the forefront of everyone’s mind, investors are turning to safe, tangible assets to hedge their risk. With demand for fine wine at an all-time high, it is the perfect time to step into this alternative investment class.
About Us
george and costas developed a strong bond and friendship during their early school years and have since become lifelong friends. Fast forward to 2019 and Vintage Associates was created.
“We had been working together in the fine wine investment market since 2015 and quickly recognised that, as an investment opportunity and business venture, the fine wine industry was the way forward due to it being low risk, stable and generating strong, consistent return on investment in a tax-free environment. Our challenge was then how we introduce the wine investment market into the 21st century and create a more transparent and inclusive opportunity for investors.”
With the emergence of cryptocurrencies and other trading platforms, George and Costas decided to create a wine investment company like no other.
“OUR CHALLENGE WAS HOW WE INTRODUCE THE WINE INVESTMENT MARKET INTO THE 21ST CENTURY AND CREATE A MORE TRANSPARENT AND INCLUSIVE OPPORTUNITY FOR INVESTORS.”
Before launch, it was agreed that Vintage Associates would only offer wine at the correct market value, keeping fees completely transparent whilst providing unrestricted access to the global wine trade marketplace, Liv-ex.
To date, Vintage Associates has millions of pounds under asset management, allowing us to offer clients favourable returns and a safe place to invest their capital.
Our Investment Guide provides the opportunity to expand your knowledge within the fine wine investments market, however, a consultation can also be arranged to discuss any further questions you may have before investing.
We look forward to supporting you!
Costas and George
The Fine Wine Market
How does it worK ? The wine market unlike traditional investments, works purely on supply and demand. The wines we recommend for investment are regarded as the highest quality in the world, with the production of these wines being extremely limited, there simply isn’t enough to satisfy the ever-growing demand.
Fine wine is also a consumable, unlike other a ssets such as Art and Gold, the number of bottles in circulation will decrease year on year, leaving the remaining few to become far more desirable and valuable; in turn attracting investment from HNWI, which has increased demand on an already limited supply chain.
To give context, some of the leading Châteaux in Bordeaux and Burgundy produce less than 2,000 cases per year. This demand grows exponentially as the market attracts new areas of wealth, but with production remaining static, it is easy to see how demand outstrips the supply of the most sought-after wines. Not only does the supply diminish, but the overall quality of the wine will also improve as time goes on, hence the expression “ageing like a fine wine”. This means that people are willing to pay more for better-quality wine, with the demand only increasing in the future.
The top end of the fine wine market is self-contained and to a large extent, divorced from financial markets, because it shadows the movement of wealth around the globe rather than being permanently attached to a single economy. In its simplest form, fine wine is a consumer good that will naturally be more expensive in the future and has historically always outperformed inflation. This unique characteristic means it is less susceptible to the fluctuations witnessed in conventional markets and more importantly, provides flexibility, as its appeal is less open to fashionable interpretation than other luxury collectables.
While luxury goods and markets are often led by fashion, fine wine seems to have a much broader appeal. In many countries, it signifies success, like an impressive property or exotic supercar that can be displayed as a status symbol in social or business circles. By broad-
casting success in this way, fine wine is given an extra dimension as an investment. The simplicity of the market also adds to its appeal as fine wine makes economic sense to investors –even those with no experience.
After the 2008 financial crisis, investors looked for areas to safeguard funds that were not directly linked to the financial markets and were therefore free of the exposure that traditional investors are often forced to endure. Investors were drawn to assets that would be less volatile and more sustainable over time.
‘IN ITS SIMPLEST FORM, FINE WINE IS A CONSUMER GOOD THAT WILL NATURALLY BE MORE EXPENSIVE IN THE FUTURE AND HAS HISTORICALLY ALWAYS OUTPERFORMED INFLATION’.
Critics that influence the market
Robert Parker is the most influential critic in the world. His opinion and rating of wine have a profound effect on both the pricing and the market demand for a certain vintage.
Although Robert Parker officially retired in 2019, his point-scoring system will continue to be used by all critics around the world.
An extraordinary wine of profound and complex character, displaying all the attributes expected of a classic wine of its variety. Wines of this Calibre are worth a special effort to find, purchase and consume.
An outstanding wine of exceptional complexity and character. In short, these are terrific wines.
An above-average to very good wine. Displaying various degrees of finesse and flavour as well as character with no noticeable flaws.
An average wine with little distinction except that it is soundly made. In essence, a straightforward, innocuous wine.
A below-average wine containing noticeable deficiencies such as excessive acidity and/or tannin, an absence of flavour, or possibly dirty aromas or flavours.
A wine deemed to be unacceptable.
Life Cycle
EN PRIMEUR
Buying wines En Primeur is the process of purchasing a wine before it has been bottled and released to the market.
READY TO DRINK
In short, the wine has fully matured and is ready for consumption.
CELLARED WINE
The period in which complex chemical reactions occur involving the tannins, sugars and acids that bring about maturity and add to the value of a wine.
The London International Vintners Exchange (Liv-ex)
“ investment wine even has its very own exchange. The London International Vintners Exchange (Liv-ex), which came online in 2000, shed some much-needed light on what had been a very opaque market. Liv-ex is now the industry standard for tracking prices of luxury wine and includes various indices which track the price performance of the top wines from each region”
Formalised exchanges have existed for anything from stocks and fuels to metals and goods for hundreds of years, however, it was not until the formation of Liv-ex in March 2000 that one was available to fine wine merchants. Liv-ex is no different from any other exchange; it provides an independent meeting place where its members, bound by a common profession, can come together to find out what is happening in their market and identify profit opportunities.
Today Liv-ex has members in 40 countries spread across six continents who use Liv-ex’s internet trading platform to check prices, spot
opportunities and match and settle trades. Members enjoy the considerable convenience and economy of transactions by pooling the world’s fine wine traders in one place, allowing them to better serve both their clients and the producers they represent.
Liv-ex guards its independence jealously. Its membership committee vets new members, sets rules and polices disputes. It has created a standard industry contract, the Standard In-Bond Contract (SIB), to codify the condition, tax status, payment, and delivery terms of transactions on its exchange. As in other markets, this contract has simplified the terms of trade, avoiding the expense and uncertainty of negotiating each bargain anew.
‘TODAY
LIV-EX HAS MEMBERS IN 40 COUNTRIES SPREAD ACROSS SIX CONTINENTS WHO USE LIV-EX’S INTERNET TRADING PLATFORM TO CHECK PRICES, SPOT OPPORTUNITIES AND MATCH AND SETTLE TRADES’
Trading is fully automated and secure, with transparency on trade prices. Its indices and data services inform trading decisions and provide benchmarks for price changes. All trades are anonymous, and Liv-ex operates as a central counter.
Vintage Associates’ affiliation with Liv-ex
We are a trading member of Liv-Ex, providing our investors access to every wine available on the platform. All wine investments will be 100% owned by the client and our investors have complete control over when and how they decide to sell their acquisitions. We have however developed a global network of suppliers, which include négociants who work directly with the leading wine estates to expand the available opportunities for our clients.
Most fine wines we trade on behalf of our clients will go through the Liv-ex platform, which ensures that all wines purchased are SIB approved, meaning that the wines have been kept in optimum condition since being bottled. All wines have been kept in their original wooden casing and go through stringent condition checks before being listed on the exchange.
By going through Liv-ex it ensures that our investors’ collection of fine wines is in pristine condition from the moment they are purchased. The condition of fine wine is paramount, as this will affect the overall value upon sale.
Ongoing Portfolio Management Service
we offer a complete portfolio management account service, which includes initial recommendations and timing the sale of your collection to maximise your returns.
When building a fine wine collection, the right wines must be purchased at the right price. Your portfolio manager will constantly keep you abreast of market conditions, and our online portal allows you to assess the performance of your portfolio whenever it is most convenient.
Our affiliation with Liv-ex means we have access to the most up-to-date pricing information, including charting tools which track the performance of the overall market and the historical performance of each wine. Using these functions, we can spot undervalued opportunities that have the potential to improve upon the overall market average.
WHAT’S INCLUDED?
Dedicated Portfolio Manager
Investment Strategy
Buying Recommendations
Online portal
Storage
Insurance
Condition Checks
Valuation Reports
Sale Upon Request
How We BUY
Our affiliation with Liv-ex gives our clients access to the world’s largest wine trading platform. Over £40m of stock is available to buy instantly, ranging from everyday drinking wine to old, fine and rare bottles.
With over 16,000 different products available from regions across the wine world, we can delight our clients with unparalleled choices.
For 20 years, Liv-ex continue to manage all transactions from purchase to delivery, ensuring that you receive your wine safely.
How We STORE
All our client’s wine is stored with Liv-ex at London City Bond (LCB). LCB is the perfect storage facility for investors and collectors to house their wines.
Liv-ex has a team that is highly skilled and experienced in every aspect of fine wine including delivery, handling, storage, and distribution.
Your wines will have comprehensive insurance coverage and every quarter we host meetings with our clients for an opportunity to view their fine wine collection.
How We SELL
We sell quickly and easily by offering your wine to the world’s largest pool of professional wine buyers – and their customers. Liv-ex stands behind every trade and manages transactions, so you don’t need to worry about unreliable buyers and complicated supply chains.
BENEFITS OF STORING ‘IN BOND’
Preserves Condition and Value of Asset
Fully Insured
Perfect Wine Maturing Conditions
Free from Duty & VAT
24/7 Maximum Security
We also have an extensive base of clients and other merchants who will be well-positioned to take advantage of any wine that is up for sale.
By recommending wines which have an extremely high demand and having various routes to sell, we can demand the highest possible price on behalf of our clients to maximise the overall return on investment. The process of selling is usually concluded within 4 weeks.
Online Portal
witHin a weeK of your wine arriving in bond, you will be provided with unique login details so that you can access your account through an online portal. The portal is a way of managing the progression of your portfolio from the comfort of your own home.
Important information on your wine will be provided, such as the name of the wine, vintage, bottle size, unique identification number (UID) and rotation number, which ensures the traceability and provenance of your wine while in storage. It will also log every trade, invoice and sale, meaning all documentation is stored in one place.
As well as checking the current market value of your portfolio, you will also have access to historical performance graphs, live offers/bids, last trade values, critic scores/tasting notes and high-resolution photographs.
You will have 100% ownership of the asset.
As a portfolio management service, we simply offer a direct route to the market and ownership is always with the client. Once the wines have been purchased and stored in your account, a certificate of ownership will be uploaded to your online portal, and this will state that you are the registered owner of your collection.
Tax Ownership of Asset
Fine Wine is notorious for being a tax-free investment. It is regarded as a wasting asset and therefore exempt from both capital gains and income tax.
The normal rules apply for inheritance tax, however, clients do have the option of opening ‘Gift’ accounts on behalf of loved ones.
The following information is based on UK law and is only applicable to UK Citizens and Residents.
Certificate of Ownership
CAPITAL GAINS TAX
Capital Gains Tax (CGT) does not apply to ‘wasting assets’, those whose predictable life does not exceed more than 50 years.
(Section 44(1) Taxation of Chargeable Gains Act 1992).
INHERITANCE TAX
Section 160 of the Inheritance Tax Act 1984 states that Inheritance Tax (IHT) is applied to the value of any property at the date of application, not at its original purchase value.
“It is clear that a wine cellar must be valued at its open market value for Inheritance Tax purposes at the time of the relevant occasion of charge”
(HMRC)
For IHT purposes a ‘wine cellar’ is any collection of wine forming part of an estate over the IHT threshold, no matter how it is stored or in what quantity.
Meet The Directors
co - founder and director Costas Achillea
Costas developed a keen interest in investments after studying accounting and finance at university. He began his career with one of London’s leading Foreign Exchange brokerages but quickly found that his real passion was within the world of fine wine investment.
With a keen eye for analysing trends and data, Costas began trading fine wine on behalf of his clients back in 2015, where he demonstrated skills that could maximise the performance of a wine portfolio whilst developing strong relationships with his clients. With a genuine understanding of people, his portfolio management is always tailored in a way that matches his clients’ individual needs.
Outside of the office, Costas is an avid golfer and is always happy to arrange a meeting on the course. He’s partial to a Cabernet Sauvignon with his all-time favourite being the famous Super Tuscan, Solaia. With Costas’s Greek heritage, he’d love to find a new Greek wine estate that is going to “take the market by storm” –however he’s still looking.
co - founder and director George Mottram
After studying business development, George joined a leading fine wine brokerage where he gained a valuable 10 years’ worth of experience in the sector.
He also has experience in property and financial markets, however, after much thought and deliberation, George realised he was looking for a safe and secure investment with steady returns to show his ever-growing client base. It was at this point that he decided to specialise in the fine wine investment market as he believed it offered a perfect blend of passion and opportunity.
Outside of the office, George’s three main passions are food, wine and football. If he’s not dining in a steak restaurant with a bottle of Merlot, you’ll quite often find him watching his beloved Tottenham Hotspur.
F.A.Q’s
WHAT HAPPENS TO MY INVESTMENT IF VINTAGE ASSOCIATES CEASE TRADING?
As per our terms and conditions, all clients’ wine is completely separate from business assets.
Once a client opens an account at London City Bond, the wine stored is completely owned by the client. Once the wines have been paid for, ownership and title are transferred over to the client and a certificate of ownership is provided as documentation.
If Vintage Associates were to cease trading at any time, clients would only lose the ongoing management and service that Vintage Associates is obliged to conduct.
WHAT HAPPENS TO MY INVESTMENT
IF LIV-EX CEASE TRADING?
Liv-ex is a trading platform which has no ownership over the client’s wine investments. If Liv-ex ceases trading, your investment with Vintage Associates will continue as normal.
‘YOU DO NOT NEED TO HAVE ANY PRIOR KNOWLEDGE OF THE FINE WINE MARKET, THAT IS WHY WE ARE HERE.’
HOW ARE MY WINES INSURED?
All wines held at London City Bond are insured through Lonham Group PLC. This policy is taken out on behalf of the client and the cost of insurance is included in Vintage Associates’ management fee.
If anything was to happen to your wine while in storage, you would be paid out at the current market value, or your wine will be replaced.
CAN I DRINK MY WINE?
Yes, you can. The wine market is one of the most tangible investments available and as the investor, you will be in full control of your investment.
As wine investors, we do not recommend that you drink your wine, as you will essentially be drinking away your profit. There is also VAT and Duty which is payable on any wine that is released from the storage facility.
CAN I SEE MY WINE?
Yes, you can. Your wine is stored in your account at the storage facility, which you can visit upon request. An appointment is required before your visit which will be arranged at a convenient time for you through Vintage Associates.
HOW LONG SHOULD I HOLD MY WINE FOR?
It is common knowledge that fine wines mature and become more profitable with age. With that in mind, the longer you hold your wine collection the more profitable it will become. Our portfolio managers are given daily updates on the market and have a vast array of information readily available to advise you on the best time to sell your wine. We recommend that you hold your wine for a minimum of five years, however due to the liquidity of the investment you are in complete control of when you sell.
DO I NEED TO KNOW MUCH ABOUT WINE?
You do not need to have any prior knowledge of the fine wine market, that is why we are here. You will be provided with an experienced portfolio manager whose role is to provide you with a handin-hand service from initial investment through to liquidation.
Sit back, relax, and let your portfolio increase in value over time.
Becoming a client
ACCOUNT OPENING FORM
We will require an account opening form to be completed in order to open your account with us. The information provided will be used to open your account at the storage facility and you can decide whether this is a personal, joint, corporate or gift account.
Accounts are usually open within 4 weeks, and you will receive login details to your online portal once your wines have arrived. You can then login and view your portfolio performance on the go.
TAILORED PORTFOLIO PLAN
Once your account opening form has been completed, one of our portfolio managers will start the process of building your tailored portfolio plan. Before doing so, a £500 deposit will be due. This will be deducted from your final invoice when making full payment for your investment. (Please note this is a non-refundable deposit).
Once completed, your portfolio manager will schedule a meeting to run you through the tailored plan. It is here where we will discuss the reasons why we have selected the recommended wines.
Due to us purchasing the wines from a live platform (Liv-ex), we cannot guarantee availability or price beyond the close of play on that day. It is recommended to liaise with your portfolio manager regarding payment dates before your portfolio is built.
PAYMENT
Payment in Full – this is the preferred payment method as it ensures the wines quoted in the portfolio plan are available at the price offered.
Deposit – 20% deposit must be paid on the same day to secure the availability and pricing. We can then allow up to a 14-day period to settle the remainder.
Unfortunately, we are unable to guarantee either availability or price unless we receive payment.
ACCOUNT OPENING FORM
This can be completed online, and your information will be used to open your account with us
TAILORED PORTFOLIO PLAN
Based on your account opening form, your portfolio manager will create a bespoke portfolio plan which will include the wines you are investing in.
PAYMENT
Once payment has been made in full, our trading specialists will purchase the wines on your behalf and your investment will begin.
Sópers House Sopers Road
Cuffley EN6 4RY
T: 0203 998 3486
E: admin@vintage-associates.co.uk
