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The Bordeaux Wine Company Brochure

The Bordeaux Wine Company Brochure

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Published by bordeauxwinecompany
Years ago, those born with a silver spoon in their mouth, were those whose father or godfather had bought them a case or two of vintage fine wine as a christening present, handed over with much aplomb on the child’s 21st birthday. Today, more people know and drink wine, and so selecting wine, whether for laying down or drinking, is no longer considered to be a pursuit for experts.
For centuries wine lovers have stored and bedded down wine in anticipation of consumption when it reaches its ‘optimum drinking age’. Another reason for this exercise is to purchase wine whilst modestly priced, before it matures and the prices increase.
It is now common knowledge, the longer one holds onto wine and as the availability decreases, the prices rise and, of course, the better the wine tastes as it reaches its ‘optimum drinking age’.
This is a concept we are all familiar with, one that is also used by many investors in alternative markets to achieve financial gain.

7-11 Cavendish Place, London W1G 0QD
Switchboard +44 (0) 20 7291 3600 Facsmile +44 (0) 20 7291 3601
www.bordeauxwinecompany.com
© All Rights Reserved 2009
the bordeaux wine co.
Years ago, those born with a silver spoon in their mouth, were those whose father or godfather had bought them a case or two of vintage fine wine as a christening present, handed over with much aplomb on the child’s 21st birthday. Today, more people know and drink wine, and so selecting wine, whether for laying down or drinking, is no longer considered to be a pursuit for experts.
For centuries wine lovers have stored and bedded down wine in anticipation of consumption when it reaches its ‘optimum drinking age’. Another reason for this exercise is to purchase wine whilst modestly priced, before it matures and the prices increase.
It is now common knowledge, the longer one holds onto wine and as the availability decreases, the prices rise and, of course, the better the wine tastes as it reaches its ‘optimum drinking age’.
This is a concept we are all familiar with, one that is also used by many investors in alternative markets to achieve financial gain.

7-11 Cavendish Place, London W1G 0QD
Switchboard +44 (0) 20 7291 3600 Facsmile +44 (0) 20 7291 3601
www.bordeauxwinecompany.com
© All Rights Reserved 2009
the bordeaux wine co.

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Categories:Types, Brochures
Published by: bordeauxwinecompany on Aug 25, 2011
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08/13/2013

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A Case for Wine Investment
the bordeaux wine co.
 
 “Demandwas expectedto be muted due tothe economic recession,the drop in the value o Sterlingagainst the Euro and orecast o anordinary vintage... Now, however, aterMr. Parker has issued such generous ratings,British wine traders are expecting that prices owines such as Château Pétrus and Château DucruBeaucaillou, will soar... Prices or a case o Château LateRothschild were trading at £3,200 by the end o the week aterMr. Parker gave it a score in a range o 98-100 out o 100, up rom£2,000 at the start o the week... Sudden economic concerns are out thewindow... the investment wine market is showing a hint o condence.”
 
Jenny Wiggins
(Financial Times)
4 May 2009
“The Success o wine as an investment is mainly down to scarcity –the market ocuses its attention on the top 20 or so chateaux o Bor-deaux and wines rom this region have quantity limits in place eachyear. Moreover, supply is ever diminishing as they are being consumed.For consistent perormers, the rst growths o Bordeaux are the drivingorce behind the sector. Late-Rothschild, Mouton-Rothschild, Latour,Margaux and Haut Brion. For rst-time investors, Bordeaux wines arethe equivalent o the FTSE 100 blue chip companies and are a goodplace to start.”
The Independent,
Sunday 11 April 2010
Introduction
 Years ago, those born with a silver spoon in their mouth, werethose whose ather or godather had bought them a case or twoo vintage ne wine as a christening present, handed over withmuch aplomb on the child’s 21st birthday. Today, more peopleknow and drink wine, and so selecting wine, whether or layingdown or drinking, is no longer considered to be a pursuit or experts.For centuries wine lovers have stored and bedded down wine inanticipation o consumption when it reaches its ‘optimum drinkingage’. Another reason or this exercise is to purchase wine whilstmodestly priced, beore it matures and the prices increase.It is now common knowledge, the longer one holds onto wineand as the availability decreases, the prices rise and, o course,the better the wine tastes as it reaches its ‘optimum drinking age’. This is a concept we are all amiliar with, one that is also used bymany investors in alternative markets to achieve nancial gain.
“Any wine lover will tell you that wine is to be drunk andenjoyed. We at Bordeaux Wine Company certainly agree orthe most part, but even the most romantic wine lover will tellyou that the best wines now command the same respectand admiration as works o art. Combining business withpleasure can be a ne balance but with wine we eel it’s aworthwhile venture, one we enjoy greatly and you can too!”
 Arlene A King, Head Wine Buyer,
Bordeaux Wine Company 
 
1
“Traditionally, there have been three powerul reasons orinvesting in wine. First, there is the stunning return oncapital rom the rst growths o the leading Bordeauxhouses. Second, there is the portolio diversication benetbecause o the near-zero correlation with debt and equitymarkets. And third, or British investors there is the scalrule that wine is treated as a wasting asset by the InlandRevenue and thereore not subject to capital gains tax. Nowanother actor can be added to the mix: the momentum romthe wealth creators and afuent middle classes in Russiaand Asia. For this reason, there has been a surge o privatebanks, wealth managers, hedge unds and asset man-agement groups recommending wine investmentto the high-net-worth clients... In the past15 months the market has gone upbetween 25 and 45 per cent.”
 
Christopher Silvester,
(Evening Standard)
12 March 2008
 “Arguably, there has neverbeen a better time to startdealing, prices are high,supply is low and wine hasrarely been seen as such ahot investment.”
 
Guy Woodward
(The Observer)
 23 July 2007
“The key to success isthe choice o wines.Experts say that the topBordeaux “rst growth”wines, such as Late Roth-schild, Latour and HautBrion, are the saest bets.”
 
 Alicia Wyllie
(The Sunday Times)
24 November 2002
 “It is usually better to storethe wine in a proessionalcellar, known as a bondedwarehouse. The addedadvantage is that winestored in this way is exemptrom duty and local taxes.”
 
Judith Prescott
(The Sunday Times)
14 October 2001
“Take advice rom peoplein the industry. Buy thebest, in the best vintages.Stick to rst and “super”second growth Bordeaux…”
 
Christopher Burr 
(The Independent)
17 September 2000
“Pay attention to the whimso American journalist Rob-ert Parker, who gives winesa score out o 100.”
Smita Talati
(Evening Standard)
14 July 1999
Press on the Market (An Unbiased View)
 
Bordeaux
The Wine
Bordeaux is situated in an almost-perect viticultur-al region on the west coast o France and benetsrom the ultimate marketing tool – the Château-based classication system that was establishedalmost 150 years ago.Bordeaux is home to the world’s greatest wines,thanks to the combination o unique landscape and1000 years o winemaking experience. Bordeauxhas over 118,000 hectares o vines, more than inthe whole o Australia. The diverse soil types, romclay to gravel and limestone, are ideally suited togrowing the region’s seven dierent grape varieties, which include the world-renowned Cabernet amily,Merlot and Sauvignon Blanc which were all originallyborn in Bordeaux. Through local skill, perected over centuries andthe innovation o today’s growers, the blending othese varieties create a range o wines unparalleledin their quality and diversity. There is something or all palates. Whether you are getting together with riends,enjoying the sun on a summer’s day, or simplyunwinding in the bath at the end o a hard day,Bordeaux can provide the perect blend.
The History
Bordeaux, the capital o the ancient kingdom o Acquitaine was once populated by Romans, andor 300 years was also occupied by the British, who have continued to worship its wines ever since.Bordeaux reds or Clarets, as the British call them,have remained the most popular wine despitepolitical upheavals and Anglo-French wars. It keptthe European smuggling raternity busy during thelate 18th and 19th centuries. Such Châteaux asLate and Margaux began producing wine in the17th century and are considered to be amongstthe best wines in the world today. Wine production in Bordeaux is governed by strictregulations known as ‘The Appellation Laws’ or ‘AOC (Appellation d’Origine Controlée)’. Introducedto control the quality and production o its mostprized export, these laws are very strict, notallowing the Châteaux to increase in size or gratrom vines rom other regions, keeping their winesrare and ensuring a continual diminishing supply.In 1855 Napoleon III introduced what is knowntoday simply as ‘The Classication’, putting all the wines into a classication system on the groundso quality. These ranks are known as ‘Growths’, with the 1st Growth (Premier Grand Cru Classe;)being the highest honour and 5th Growth the lowest. The ‘Classication’ is still upheld today by ‘The Appellation Controlée’ laws and supported by theEC regulations.
 23
Buying Today or Tomorrow’s Market
 The aim o bedding down ne wine is to secure wine o limited production and supply which will beincreasingly dicult to nd in tomorrow’s market.Over the last quarter o a century ne wines haveproven to be a consistently stable, high yieldingand low risk investment. Moreover, records goingback many decades show that ne wine hasremained generally unaected by stock marketfuctuations and interest rate changes. Traditional wisdom is to buy ‘rst growth’ Bordeaux,also known as ‘Blue Chip’ wines. These are the likeso Late-Rothschild, Latour, Haut-Brion, Mouton-Rothschild and Margaux, also Le Pin, Pétrus andCheval Blanc.Other wines to consider rom the Bordeaux regionare the ‘second growths’, better known as the‘super seconds’, these are estates that have proventheir quality over more recent years. These are thelikes o La Mission-Haut-Brion, Leoville Las Casesand Montrose.Buying wine rom a good vintage year rom oneo Bordeaux’s top Châteaux usually limits risk, asthey are consistent in quality and there is always ademand. While this approach has proven to beprudent over the years, there are alternatives, whichcan be just as rewarding but more speculative.
‘En Primeur’ (Wine Futures)
 Another good alternative that can be considered when selecting wine to lay down, is to buy at the‘En primeur’ stage. This is wine still in the barrel(undergoing the aging process), beore bottled or released on the open market. It is also reerred toas ‘wine utures’ because the wine is bought in ad- vance at a xed price. It usually works out cheaper but no one knows how well the wine will mature.*‘En primeur’ tasting takes place every year inBordeaux either at the end o March or the rst week in April. For example, the ‘En primeur’ tastingo the 2001 vintage took place in March 2002.Most wines sold this way are classied growths or  wines rom very well known Châteaux. ‘En primeur’sales account or approximately 3-5% o the totalBordeaux wine production. Opting or ‘En primeur’ wine is speculative but some see it as the only way to acquire vintage Bordeaux at aordable prices.*As proo o ownership, an Allocation-conrmationcerticate will be issued.

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