WineFi Weekly

Welcome to the seventh edition of WineFi Weekly👋
📅 May 6th 2024

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WineSyndicate

We are pleased to announce that, on the request of several of our clients, we are launching an investment syndicate that will allow accredited investors to gain exposure to managed portfolios of fine wine and rare spirits at a fraction of the cost of owning the individual assets outright.

For regulatory reasons, further information can only be provided to investors upon self-certification as sophisticated or high-net-worth. You can sign-up for early access at syndicate.wine

Darksquare Capital Partnership

We are excited to announce that WineFi and Darksquare Capital are collaborating to provide portfolios of fine wine to their customer base.

Darksquare allows accredited investors to gain exposure to a variety of alternative assets at a fraction of the cost of owning those assets outright. To put this in perspective, you can gain access to a 6-figure portfolio of fine wine from just £5000.

For accredited investors looking to gain exposure to the wine market without the overhead of owning 100% of a portfolio outright, this could be the solution for you. Stay tuned for the announce date this month!

Bordeaux Royalty amongst Splint high achievers

For the second month in a row, a WineFi collection listed on Splint has been listed as one of the top performers. Our Bordeaux Royalty collection saw a 6% increase in April - a testament to our Investment Committee's ability to source sought-after assets at attractive valuations.

There are still some “Splints” available, so if you would like to be able to gain exposure to wine as an asset from €50 then use the link below to sign up.

Use code WINEFI50 for a €50 bonus when signing up

What’s happening in the wine investing world?

First few Bordeaux En Primeur releases

It has been a week defined by significant price drops. In an attempt to reignite the EP market, producers like Lafite (down 31.7% compared to last year), Leoville Las Cases (down 40%), and Pontet-Canet (down 26.7%) have slashed their release prices.

As mentioned last week - this was our prediction coming into this En Primeur Campaign. The tale yet to be told is whether the market views these price cuts as a return to the old status quo, where the En Primeur release was the way to access high-quality wines at the best possible price.

If the market does see value in these lower prices, we predict that there will be an echo throughout the wider Bordeaux market, giving renewed energy to older vintages that have weathered a troubling last few years.

A hidden gem, or skewed data

The Liv-ex has reported that a Rioja has outperformed any Bordeaux wine in both trade volume and trade value over the past 2 weeks - despite the first few Bordeaux En Primeur releases taking place.

Does this mean it's a good buy? Or have you missed a trick by not buying earlier?

The answer, as is often the case with investing, is it's not that simple.

Firstly, there have been two large purchases of La Rioja Alta in the last 2 weeks. One for 122 cases, and one for 150. These have skewed the numbers, and may not reflect wider market sentiment.

Secondly, increased volume doesn't necessarily mean increased prices. The wine has traded down 6.67% over the last 6 months, and has only just returned to its release price of around £420 per case.

On the other hand, earlier vintages of the Gran Reserva 904 are now almost unanimously trading above their release price. The 2011 is showing increased demand, and is only just returning to release price so there could still be value here.

The takeaway (if there is one) --- just because a wine is making lots of noise, that doesn't automatically make it a good investment. But it may well be.

Do the research (or let us do it for you).

_{Source: Liv-ex}