When considering the price trajectory of a case of wine and its suitability for selection in a portfolio, a variety of factors need to be addressed, with each carrying their own weight and importance within the market. Not all wine is made equal.

During wine investments infancy, a high-quality wine produced by a well-known producer, from an “on” vintage (a high-quality year for a region) would have constituted a smart investment. However, as the market has expanded and new regions emerged, the data surrounding fine wine has also increased exponentially. As such, a basic level of assessment is no longer enough to justify the purchase of a wine for investment.

When first reviewing a wine for investment, we have identified 8 key vectors that provide a preliminary round of analyse to eliminate unsuitable wines from our analytical pool. This initial rejection of wines tightens our pool and focus onto those cases that align with our investment philosophy. By individually evaluating wines within a disciplined methodology we are able to hone in on those picks that deserve a closer look amongst the swathes of options. Through a quantitative approach to finding relative value, we can interpret market information and find inefficiencies and opportunities that enable confident accountable investment.

Our preliminary review identifies the following criteria:

    • Brand Power
    • Drinking Window
    • Critic Score
    • Market Liquidity
    • Region Vintage
    • Price Volatility
    • Production Volume
    • Price History

The impact of these variables will fluctuate throughout the wine’s development and requires constant qualitative reassessment. Overlaying the current market sentiment and trends is key to remaining proactive, and ensuring maximum performance from your investment.