Where will my wine be stored?
Abbots will hold physical stock of its wines, stored in a UK in a government-licensed, bonded warehouse. The two most important storage facilities are London City Bond and Octavian. By storing your wine here, it will have excellent "provenance" and therefore will be eligible for a straightforward sale. Your wine will be identified via a unique ‘rotation’ number. While held in professional storage, your wines are insured at full replacement value. Abbots will help you set up your own private account at one of these bonded warehouse facilities, regulated by HMRC (Her Majesty’s Revenues and Customs).
Can I view my wines?
As your wine is held in a personal account in your name, you will need to contact the bonded warehouse to arrange a viewing. Please provide at least 72 hours notice.
Can I take delivery of my wines?
Absolutely. Although you will incur excise duty and VAT which cannot be reclaimed upon resale. We would recommend keeping the wine in bond for investment purposes, as it will demonstrate to future buyers that the wine has been stored in optimum conditions – and therefore ensure its appeal to the widest possible market.
Do I need to be an expert to invest?
Absolutely not. Our experience and expertise is in identifying and sourcing wines which, in our opinion, have strong investment potential. We will gladly provide you with suggestions based on your requirements.
Does wine ever go down in value?
Naturally, there are examples of individual wines dipping in value in the short term. However, provided you stick to buying wines from the very best Chateaux and the best vintages, there will always be an upward trend on their value over the longer term. The market works on a supply-demand imbalance and with wines that improve with age – relative demand increases as supply decreases.
What are the risks?
Each wine dictates is own rate and increase in value. Like any traded commodity, wine can go down in value as well as up.
Is this kind of investment really tax-free?
Wine bought and sold under bond is not subject to Duty or VAT. This is due only when the eventual consumer takes the wine out of bond – at which point they become liable for the tax. Wine can also be exempt from Capital Gains Tax when it is classed as a ‘wasting asset’ with a life of less than 50 years (We advise you speak to your tax advisor about this).
How much do I need to invest?
We do not have a minimum investment level, but the nature of the product dictates that in practical terms, entry begins at around £3,000. The best investment wines (First Growths) will cost on average £5,000 per case. We can cater for all levels and would encourage you to give us a call to discuss starting a portfolio based on your planned level of investment, risk profile and term objectives.
How long do I need to hold onto the wine to make a decent profit?
We would recommend that you keep your wine for a minimum of 3-5 years to make the best returns in the market. However, it isn’t unknown for impressive short-term gains to be made if you invest in the right wines at the right times. The biggest returns in the short term are most often made on En Primeur wine. There isn’t a set length of time you have to hold on to your wine, so long as we are keeping a close eye on your stock and market trends. You will get more detailed advise on timing from your Portfolio Manager.
How quickly can I sell my wine?
You can sell whenever you like. The best wines of Bordeaux enjoy a ready secondary market.
On receipt of a written instruction to sell your wine, we guarantee to sell it for the best possible market price. We have a fantastic record of achieving the highest returns, and at 0% brokerage built into our wine investment management packages you receive every penny back. You will receive this by cheque or bank transfer, depending on your preference.
Abbots will either offer a fair market price for the wine or undertake to broker the wine into the market (a target price may be set, but Abbots cannot be liable to guarantee the level of return). Please note that while Abbots does not charge any additional commission for brokering client wine, a Liv-ex transaction charge will be passed on. Abbots clients are also free to sell their investment wines at auction or through any leading wine merchant.
What happens if Abbots goes into administration?
As your money is not invested with Abbots but in the wine itself, your investment is perfectly secure.
Do you have a referral system?
Yes we do. If you refer any of your friends, family or colleagues to Abbots you will receive a fantastic bottle of drinking wine of your choice or a discount off your next purchase.