Fine wine usually enters your life by the glass, not via a trading screen — but the same bottles also earn a place in a serious wealth plan. Global demand is deep, and the most coveted labels have proved their resilience through different market cycles, as Jody Richardson from Cult Wine Investment explains. www.wineinvestment.com
Why wine belongs in a portfolio
“Investment rests on a few durable features. Prices are shaped by a market with its own cycle, driven by quality, reputation, limited production, and the ageing curve, rather than quarterly earnings. Historically, benchmarks such as the Liv-ex 1000 — which tracks a thousand wines from across the world — have been relatively stable during episodes that unsettled equities, including the global financial crisis and COVID-19. History does not guarantee future results, but it does help explain why many investors use wine for diversification.”
How value builds in the cellar
“How, then, does a bottle become more valuable? Three mechanisms do most of the work. First, improvement in a bottle. Fine wines are built to evolve, and as they approach an ideal drinking window, the demand heightens. Second, scarcity. Every cork pulled elsewhere reduces the pool of pristine stock, so well-stored cases start to command a premium. Third is desirability. Growing and evolving reputation, quality, and critic appraisals concentrate interest on the best producers and vintages.”
What to buy and how to build
“Build from regions rather than labels, looking at Bordeaux, Burgundy, and Champagne. For breadth add wine from Italy, USA, and Rhône, and include an allocation from the rest of the world like Spain, Chile, Germany, Australia, and Argentina. Selection also matters; not every wine is investment grade. Professionals weigh producer standing, vintage strength, credible critic scores, production volume, and evidence of active secondary-market trading. They also consider proximity to the prime drinking window and relative value within a peer set, rather than headline hype.”
Think years, not months
“Wine is patient capital, so plan exits around market depth and drinking windows, and remember, liquidity varies. Great names move readily, while niche can take time to sell. Independent benchmarks and valuations help momentum before you act. Practicalities protect value. Climate-controlled, bonded storage is non-negotiable if you want to ensure saleability on the secondary market. Condition and provenance are also critical, so keep audit trails complete. Wine investment operates in an unregulated space which offers flexibility but makes your choice of counterparties important. Work with reputable sources, and insist on transparency around ownership, fees, and storage.”
There’s a UK taxation advantage
“For UK-based readers there is an additional point when it comes to investing in fine wine, as many tend to fall under the ‘wasting asset’ rules for capital gains, which can mean profits are exempt from Capital Gains Tax for private individuals, subject to various criteria such as expected lifespan, as well as HMRC guidance. This should be checked with a professional adviser, but it is a meaningful feature of the market and part of the appeal to domestic investors.”
The next steps on your journey
“Formalise what you do for pleasure. Decide on the role wine should play, whether diversification, long-term growth or a family cellar. Set a budget that gives a selection, with a smaller allocation for discovery. Buy the best you can, store original cases in bond from day one, and track independent references as you review holdings over time. The reward is two-fold. You gain an asset that’s shown the ability to steady a portfolio, while retaining the pleasure of opening a bottle at the right moment. For people who already spend on the best wines, that blend of enjoyment and financial sense is the sweet spot.”
How investing has evolved
“The modern market access has improved hugely. Digital platforms such as CultX — a wine investment app and trading platform — now combine pricing data, execution, and storage, lowering barriers for global investors while making discovery within regions and vintages easier. For those who prefer a fully managed approach, fine wine investment specialists can facilitate the process end-to-end, from sourcing and portfolio construction to storage, reporting and eventual resale. This leaves you free to focus on the enjoyment and enlightenment that comes naturally with being in this exciting market.”
Disclaimer: This feature is for editorial purposes only. Best of Living supports mindful enjoyment of alcohol — please drink responsibly. For guidance, visit www.drinkaware.co.uk
