Storage & Provenance
Maximising the sale value of your wine
As the fine wine market has developed in recent years, and prices have risen, perfect provenance has become an increasingly critical factor in ensuring wine portfolios reach their maximum price potential at the point of exit.
Perfect provenance is highlighted by the success of recent ex-cellar chateau auctions, where wines across all vintages have achieved 50-100% more than their market value thanks to their proven immaculate origins.
As part of any wine portfolio management service it is crucial to do all that is possible from the point of purchase to maximise the eventual sale value of any wine. Here at Cult Wines we ensure that all steps are taken with storage and provenance to safeguard our client’s investments and increase the potential for maximum capital growth.
Fine wine storage
The easiest way to prove unquestionable provenance is to store fine wine portfolios in wooden cases in bond (IB) in a bonded warehouse such as London City Bond in the UK.
Such bonded warehouses provide the optimum environment for fine wine storage, by carefully regulating temperature, humidity and other microclimatic factors.
Bonded warehouses have often built up a trusted reputation over centuries in the UK and are also subject to strict rules, the result being an audit trail for every case stored in bond, which provides you with a solid method for tracing provenance.
In addition any wines stored IB are not liable for VAT or any other import taxes as they are considered ‘in transit’. A case of IB wine may change ownership multiple times without ever leaving the bonded warehouse that removes the risk of damage and disruption.
As an owner of IB wine you will hold certificates that proves your full ownership of the wine as a physical asset- a significant advantage over non-physical assets such as equities that hold no inherent value, other than the paper they are printed on.
Annual storage costs IB are between $5-$15 per case but as part of Cult Wines fine wine portfolio management service all storage costs including full insurance are included.
London City Bond
London City Bond (LCB) is the UK’s oldest bonded warehouse with over 3 million cases in storage servicing the drinks trade and investment wine industry.
LCB’s approval under strict protocol set by HM customs and revenue allows investors to store wine ‘In Bond’ thus deferring any excise duties including VAT and GST.
Auction and sales conducted on exchanges such as LIV-EX are facilitated under this regime, as stock does not have to be moved – a change in ownership is simply notified to LCB for the transactions to be completed. LCBs impeccable reputation permits them to include the extra benefit of ‘All Risks’ insurance of clients stock within their charges.
For more information on LCB please click here
Cult Wines fine wine investment service only builds and manages portfolios with immaculate provenance and storage to ensure maximum potential for capital appreciation for investors.
If you want to learn more about exciting wine investment opportunities please call our expert team on:
+61 (3) 9034 5255
Finally if you have not done so already create your free, no obligation wine investment account and receive your own personal login via email and access to Cult Wines client investment opportunities.