• William Bailey

Is your fine wine portfolio being stored in the best place?

If you are not storing your portfolio here, you could be leaving a lot of profit on the table...

In this article we will explain how Vine works, discuss how they can help make you more money by trading fine wine and answer whether they will be suitable for you and your fine wine collection.

Veblen Wines have been storing their clients' fine wine collections with Vine International since 2012. They have made trading fine wine easier, safer and ultimately more profitable than was previously possible.

Vine International, in the opinion of Veblen Wines (based on trading fine wine for the best part of a decade), are head and shoulders above other fine wine storage and logistics solutions.

Vine International are a wholly owned subsidiary of the Liv-ex Fine Wine Exchange and are now a leading fine wine storage and logistics provider with their main hub based in Tilbury Docks, Essex, UK.

What all this really means for you as a private collector of fine wine, is that Vine International is a place you can store your collection in bond (or duty paid if you wish), in the best possible conditions (because keeping your case of Petrus 1982 in the garage next to the golf clubs simply won't do!) and be able to sell it quickly for the best price, as in the end, we are here to make profit after all is said and done.

Back in 2016, Vine International won two major awards for their pioneering ideas in this market. 1. the SIB Passport and no. 2. the Instant transfer initiative.

In dealing with many a fine wine collection over the years, it is all too clear that wine investors have not always been given the best advice regarding provenance and quality control of their wines by the merchants selling to them.

When Veblen Wines take on the management or selling of a portfolio the first step is to determine what condition your wines are in. Unfortunately it is true that between 10-20% of the wines held in private collections (bought from other companies) that Veblen have been asked to sell over the years have not been in perfect condition. This can range anywhere from a tiny mark on a label at best, or at the other end Non-OWC (original wooden case), raised corks (signifying a significant change in temperature during previous storage), low levels, half torn labels and the list goes on.

The condition that wine is in when sold can dramatically affect the eventual sale price from a few pounds difference to having no resale value at all. Needless to say, if you have built up what is supposed to be a formidable collection of fine wine, and when you go to sell there are no buyers due to your wine being in poor condition, we think that you may be less than impressed.

This is why the team at Veblen Wines believe the correct way to invest in fine wine is to eliminate this risk at source and keep the wine in one place stored in perfect conditions. Enter, Vine International...

In order to remove the risk of buying wine in poor condition, Vine's team rigorously check all wines sold on Liv-ex to ensure they meet the contract to which they were purchased.

For wines bought or sold under the SIB passport these conditions include;

1: “OWC” – It must be in its Original Wooden Case

2: The foil capsules on top of the bottle must be in perfect condition

3: The cork must be flush at the top of the bottle

4: The ullage (liquid level of wine) must be no lower than the base of the neck

5: The label must be in perfect condition

When you deal with Veblen Wines, you will always buy in excellent condition for investment and if you want the team to help you manage or sell your fine wine collection then the first step is that there will be a full condition check done on each case of wine. This is a great idea even if you don't intend to sell straight away, we recommend getting a condition report as soon as your case arrives in your storage warehouse to ensure that you are getting what you have paid for.

Get in touch via email info@veblenwine.com or call 01622 672 314 to discuss getting this arranged.

The other key benefit of Vine's service is that it is integrated with the Liv-ex Exchange.

This means ease of trading which in turn means selling more easily (if there is a good bid), potential to hit record trades and more profit for everyone. Sound too good to be true?

This is how it works...

Let's assume that your wine is managed by Veblen, stored at Vine International and has been approved for the SIB passport as described above.

You receive a call from your broker saying the wine has just been upgraded to 100/100 from a leading critic and the price has spiked by 50% overnight (not a bad call to receive right?!).

All it takes to lock in this profit is to agree the trading price and your broker will execute the trade for you there and then, setting a new record high for the stock, picking the peak in the price and locking in a cool 50% profit to your portfolio.

This is only possible because Vine is fully integrated with Liv-ex. Upon our trade desk conducting the trade on Liv-ex and allocating your specific case (each case is given a unique Unit ID), Vine International will automatically assign your case to the trade and that's it, trade done, profit made, time to look for the next stock.

If your wine was stored at another warehouse this simply would not be possible, the process would carry too many possible issues and we could quite possibly miss the trade.

When investing in any product, the saleability of that product determines its success as part of your portfolio. Thus, we believe the best option is to get your wine stored in the best place and be fully aware of the condition so that when the time is right, you can sell for the highest possible price.

Lastly, Vine International do not accept single, private accounts. If you want to enjoy the benefits of their service, your storage must be managed through one of their members like Veblen Wines!

Veblen's team will set up everything for you, and don't worry, you remain the owner of your wine collection and are in full control at all times - Veblen Wines just bridge the gap!

As an added bonus, not only do Vine International have one of the most attractive storage and insurance tariffs, you may also be able to get a free year of storage and insurance for your fine wine portfolio. Ask how by emailing info@veblenwine.com.

If you agree that storing at Vine will benefit you and would like to talk with Veblen Wines about getting your fine wine portfolio into the world's leading fine wine storage, understanding the condition of your wine and start securing greater profits, then reach out at info@veblenwine.com or 01622 672 314 and we will be happy to help!

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