An increasingly critical factor to
ensuring the maximum sale value is achieved upon exit, is the
provenance of the wine.
In order to maximise provenance, wine should be stored in bond (IB),
in original wooden casing. This ensures that the case is stored in
optimum conditions, because bonded warehouses in the UK will offer
specialized conditions for fine wine, both in terms of temperature
and humidity. Perhaps more importantly though, bonded warehouse are
subject to stringent rules regarding the traceability of wine in
order to ensure no foul play in relation to wines being removed from
bond before tax is paid. What results is an audit trail for any
every case stored in bond, following the movements of the wines
since delivery to the UK – providing a solid method for tracing
provenance.
Other issues that will affect the market value of a case of wine
are:
Non-OWC
Wines that remain in their original wooden casing are the most
desirable, as they will almost always carry superior condition to a
non-OWC case. Non-OWC cases are usually either an original case but
with a new lid replacement or a cardboard case.
Duty paid (DP) cases
A case of investment-grade wine that has been removed from bond and
had the Excise Duty and VAT paid, will almost always command an
inferior price to one that is still held under bond. The simple
reason for this is that even DP cases have had £1.81 Duty and 20%
VAT paid on them, they are less attractive from a buyer’s
perspective, as they do not carry the traceable provenance of an IB
case.
US strip label stock
Any wines imported into the USA require the importing firm to place
an importing sticker onto each bottle – known as a strip label.
Naturally, wine that is exported to the USA is far less attractive
to buyers from other regions of the world, as the wine has already
made the journey half way around the world, with little-to-no record
of transportation climate or conditions.
Soiled/damaged stock
Cases or bottles can often become ‘soiled’ for various reasons. With
older wines, label damage can be expected, and funnily enough the
staining of labels can often occur naturally as a result of correct
humidity/climate for optimal storage. To ensure that a case will
carry the maximum premium for exit sale, when initially buying wine,
it is important to check all labels and capsules are in perfect
condition, wine levels are into the bottle neck (top shoulder is
acceptable as a minimum for certain wines) and the case is original
wood.
In the last 12-months, provenance
has become increasingly paramount, as the major Châteaux have begun
to implement Prooftag technology in an effort to combat the rising
number of counterfeit wines coming from the Far East. The new
technology means that ‘tagged’ bottles can be validated and traced
upon request.
Lafite’s private cellar auction in October 2010, highlighted the
importance being placed on wines with provenance. The auction, held
in Hong Kong, saw the majority of lost sold for 50-100%+ above the
market price at the time (see table below).
Many believe this extraordinary price premium was commanded by
bidders, placing particular emphasis on the provenance of the stock
as well as the guarantee of authenticity and quality of the product.
The
scrolling trades below are brought to you in association with the
London International Vintners Exchange
