China’s Thirst Grows! Out With the Old and in With the New?

From: Premier Red Fine Wine Ltd
Published: Tue Jul 06 2010

According to many investment experts, the fine wine market is the home for your capital, especially if consistent returns are what you are looking for. Wine has shown regular profitability for a good many years, if not decades, and has been attracting a significant number of new followers over the last decade.

Presumably these are individuals who are tired of more traditional, often substantially more volatile areas such as the stock market and property, people who feel the need to add an alternative angle to their portfolio. The wine market offers a haven for what may be considered "The Pure Investor", ( " ) someone who is prepared to shun excitement and the dreamy returns offered by so many advisers for the surety of a solid double digit return with one of the oldest tangible assets on offer. The hook line, if there needs to be one, is the tax free status that wine enjoys due to its place among what are known as "wasting chattels", products that have less than a fifty year shelf life.

For many their first port of call when entering into an involvement with what can surely be considered the most liquid asset of all are the first growth Bordeaux from France. Unrivalled for centuries in terms of quality, quantity and choice French wine ( ) has produced growth figures which no other market can compete with for at least the past three decades. Records before that period are not detailed enough to be useful for in-depth analysis but it is known to have been used as an area of capital growth for over a century which should put any nagging doubts to rest over the markets durability.

Lesser known is the underlying strength and untapped potential contained within the New World, ostensibly comprising U.S.A., Australian and Chilean wines with an appreciative nod also given to South Africa and New Zealand. The U.S.A. produces some wines of undoubted quality but, like Chile, cannot support an investor’s portfolio through a lack of depth at the top end. Screaming Eagle is a wine of class and distinction but apart from maybe three or four other releases which merit consideration American wine of the quality necessary for growth is not available in abundance.

South Africa and New Zealand are producers who will most likely merit serious consideration in future years but at this time they are conspicuous only because of their potential.

Australia, on the other hand, is showing very promising signs indeed, both in terms of the quality of its wines and their performance on the secondary market. A market still in its infancy when compared to the longevity the French has already experienced, Australian fine wine ( ) is making huge inroads also partly due to the recognised and revered wine critic, Robert Parker Junior, who has lavished praise upon a number of Australian wineries and his ardent followers must have taken heed of his words as the price of wines such as Standish and Two Hands, among others, has shown some great price movement over their two most recent vintages.

Whilst this is a market in its ascendancy, it should be remembered that expert advice should always be sought before potentially dipping a toe in any new area. Premier Red Fine Wines, ( ) based in Richmond Upon Thames, have been trading the leading wines from both France and Australia. Their success can be attributed to the time and patience they afford every individual when they first consider sampling what the wine market has to offer. Mid or long term strategies are explored and explained with special attention paid to diversification within the market itself and building portfolio which is representative of both Western and Eastern exits. With China definitely in line to become the final and, undoubtedly, largest component of the secondary market it will prove beneficial to accommodate wines which have been, or are currently being, marketed primarily in that part of the world. Premier Red Fine Wines ( ) are ahead of the game in this regard having recently expanded their trade arm to welcome Chinese consumers and retailers in their own backyard.

Should you decide that consistency and growth are priorities for the coming decade the wine market will probably be your first port of call and maybe that call should be to Premier Red Fine Wines. ( )

For more information visit Premier Red Fine Wines at or phone +44 (0) 20 8334 8360

Press Contact:
Enzo Giannotta
Premier Red Fine Wine Ltd
Parkshot House, 5 Kew Road
Richmond-Upon-Thames TW9 2PR UK
+44 (0) 20 8334 8360
Company: Premier Red Fine Wine Ltd
Contact Name: Enzo Giannotta
Contact Email:
Contact Phone: +44 (0) 20 8334 8360

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