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The Wine Market: Overview

99% of the world's wine production is not investment grade wine
Poor quality, over-abundance and early-drinking are factors that make these wines non-investment grade (most of the wines you find in supermarkets and wine shops fall into this category)

Two tier market

Oversupply of low-end wines

Very limited supply of the top wines due to strict zoning laws for the top vineyards (1st Growths)

EQUITY Wine Investment Packages focus exclusively on the top segment that is known as “fine wines”

The Fine Wine Market: Key Facts

Demand/supply imbalance supports prices

Ever growing demand. There are an ever-increasing number of high net worth collectors who want to own these wines - mainly from America, London, Japan, Singapore, Taiwan and Hong Kong as well as a rapidly increasing number from newer players such as China, Indonesia and Russia.

Extremely limited supply. The 1st growth chateaux only produce about 100,000 cases collectively each year.  The production capacity of these chateaux is fixed due to strict zoning laws enacted in 1855 which unable the chateaux to increase their vineyard size for the 1st growth wines.

80% of the investment grade wine are found in Bordeaux.

Fine wines improve as they age
Fine Bordeaux wine is an improving asset in that it becomes more attractive and valuable as it matures. Fine Wines from good vintages generally reach an initial maturity stage after 5 to 10 years and will remain stable or improve further for up to an additional 30 to 100 or more years or more before starting to decline.

Older vintages become rarer with time
As these wines age, they also begin to be consumed, which increases both the scarcity factor and demand, fueling higher and higher prices.


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