Wine Banking

It all depends on the size of the estate, the region, the quality of the crops… The cost generally ranges from €500k to several million euros. However, the best estates can be worth tens of millions of euros.

Running a wine estate requires good knowledge of the sector and can be tough because of bad weather and diseases. Your project must be carefully considered.

Whether you are building a collection for your own consumption, for resale or as a heritage, you should not expect short-term return. The objective should rather be to accumulate assets.

Buying or selling a domain is a long and complex process, making professional advice invaluable. An expert will have a solid understanding of the local market (price per hectare, recent transactions, etc.) and will be able to audit the entire domain, looking at parameters such as the grape variety composition, the quality of the terroir and the cellars, production capacity and the distribution channels.

Start by identifying your objectives. Are you they purely investment-driven? Is this your passion? Both?
Next, set a budget and a time horizon, selecting wines based on your personal preferences.
Magnums and regular bottles are the better choice, as is conserving them in wooden cases for optimal long-term preservation.

If it is an investment choice, choose age-worthy wines for their high ageing potential. Those with the greatest potential include the more prestigious appellations. There are also hidden gems that will be the great wines of tomorrow. Focusing on them today is a guarantee of long-term success.

If your choices are based on your love for fine wine, your personal taste will be the deciding factor. A world of delightful and distinctive wines from around the globe awaits!

Wine is uncorrelated to other asset classes, making it a diversifying element for your portfolio. It is also a way to combine your financial goals with enjoyment. As with any market, liquidity risks and/or the risk capital loss exist, making expert advice a must.