Wine Investment - Frequently Asked Questions


1) Where Is The Wine Stored ?

2) How do I know i am getting what i paid for?

3) Is the insurance comprehensive?

4) Does wine ever go down in value?

5) What if your company goes bust?

6) Is this kind of investment really tax-free?

7) Is there a minimum investment level?

8) How long do I have to hold onto the wine to make a decent profit?

9) What happens when I want to sell my wine?

10) Do you have a referral system?

11) How long have Cult Wines been operating?


1) Where Is The Wine Stored ?

Your wine is stored at London City Bond in Tilbury, Essex.
The largest and oldest bonded warehouse in the UK, your wine is stored in perfect conditions with constant temperature control. By storing you wine here, it will have excellent "provenance" and therefore will command the best value when the time comes to sell. With the vast majority of the UK wine trade using LCB, delivery and shipping costs are greatly reduced, savings which are passed on to the client.


2) How do I know i am getting what i paid for?

When your wine reaches the bonded warehouse it is checked with regard to not only the wine but also the original wooden case from the chateau.

We only deal with OWC wines with full provenance and we check every case to ensure the wine is sufficiently into the bottle neck. If as a client you would like to see the wine we can arrange photos or visits so that you can check the condition yourself.


3) Is the insurance comprehensive?

The insurance on your wine covers the asset for full replacement value at the time of any incident.

How much does the storage and insurance cost?
If you choose our full investment management package, the cost of insurance and storage for 5 years is charged at 5% (1% per annum).


4) Does wine ever go down in value?

Naturally, there are examples of individual wines dipping in value over the short term. However, provided you stick to buying wines from the very best Chateaux and from 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.

The credit crunch towards the end of 2008 did affect wine prices, but in nowhere near the same level as other equity classes and financial markets. Although prices dropped in the very short term by 20-30%, by the end of 2009 the vast majority of the blue-chip wines that our clients invest in had surpassed their pre-level prices.


5) What if your company goes bust?

Your money is not invested with Cult Wines but in the wine itself so your investment is perfectly secure.


6) Is this kind of investment really tax-free?

Storing your wine in bond means there is not VAT or import duty to pay. We sell all our clients wine in bond so there will not even be tax to pay on the sale. For further guidance from HM Revenue & Customs, please visit: http://www.hmrc.gov.uk/bulletins/tb42.htm


7) Is there a minimum investment level?

There is no set minimum wine investment, but the best investment wines (First Growths) will cost on average £3,000 per case. We can cater for all levels however, and would encourage you to give us a call to discuss starting a portfolio from as little as £1,500.


8) How long do I have to hold onto the wine to make a decent profit?

We would recommend that you hold onto your wine for a minumum of 3-5 years, to make the best returns in the market. However, it isn’t unknown to be able to make superlative returns in 6-18 months 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 really isn’t a set length of time you have to hold on to your wine, as long as we are doing our jobs and keeping a close eye on your stock and market trends we will inform as and when the best time is to sell whether that be 6 months or 10 years after purchase!


9) What happens when I want to sell my wine?

On receipt of a written instruction to sell a client's wine we guarantee to sell that wine for the best possible market price. We have a fantastic record of achieving the highest returns for our clients 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.


10) Do you have a referral system?

Yes we do. If you refer any of your friends, family or colleagues to Cult Wines you will receive a fantastic bottle of drinking wine of your choice or a discount off your next purchase depending on which you prefer!


11) How long have Cult Wines been operating?

Cult Wines is now in its third year of trading and in that time has built up a substantial client base as well as a respected position within the industry. We are one of the leading companies in this market and our fees, prices, analysis and management cannot be matched.