FAQs

Frequently Asked Questions

1 What sets Cult Wines Investment apart? How would you describe your methodology?

Much more than an investment, Cult Wines expertly blends heritage, unparalleled expertise and innovative technology to open a world of possibility for clients, from returns to experiences. Utilising a top-down approach, with rigorous due diligence from our highly qualified investment committee, we build tailored to your personal objectives and investment goals. Clients benefit from exclusive access to premier wine producers, and in turn, highly sought-after wines, exclusive events and bespoke trips.

2 Can you tell me about your CSR / ESG initiatives?

Cult Wines is proudly invested in offsetting carbon emissions through dedicated projects around the world, championing sustainability, supporting ethical practices and actively contributing to the future of the wine industry with impactful initiatives. We are carbon neutral via a dedicated, accredited offsetting programme.

3 What services do you provide?

We offer a range of fine wine investment services including storage solutions (through our bonded warehouse in Melksham, UK) and the sourcing of rare and hard to find wines.

4 How does wine investing work – will you walk me through the process?

Investing with Cult Wines Investment is simple, we manage your investment from start to finish, advising and guiding you through the entire process. First, you decide how much you’d like to invest, you can start with as little as CAN$12,500. Once you have identified your parameters – your investment objectives, risk appetite and term – we'll build a separately managed, custom portfolio perfectly matched to your needs. Finally, you'll fund your account after which the wines will be allocated in your name and stored in our bonded wine facility. All of your wines and their performance can be tracked via our client portal.

5 Is investing in wine suitable for me?

Anyone who has the minimum required capital can invest in wine. As an alternative asset class, we recommend investing between 5-10% of your overall portfolio. Fine wine is an excellent diversification tool as part of a portfolio alongside other unrelated assets.

6 How is wine investment regulated?

Cult Wines is not a fund. Our portfolios are custom and separately managed for each individual client and therefore, it is not regulated by the Canadian Securities Commission.

7 What regions does Cult Wines invest in?

Less than 1% of all wine produced worldwide may be considered investment grade. Cult Wines portfolios consist of investment grade wine from, typically; Bordeaux, Burgundy, Rhone and Champagne in France, Tuscany and Piedmont in Italy and the New World such as Napa Valley in the USA. We continue to draw on our extensive research and wine knowledge to uncover ongoing opportunities across the expanding global fine wine universe. All wines must meet Cult Wines investment grade criteria and are certified with full provenance.

8 What are the recommended investment terms?

Fine wine is a medium to long term investment. Generally, we advise clients to set a minimum 3-5 year horizon for their portfolios in order to benefit from a typical market cycle, with an optimum term of 5-10 years.

9 How can I sell my wine?

Yes, it is your wine and you can sell it at any time. Our specialist trade and wholesale team are available to sell your wines on the secondary market whenever you like. They sell directly to the global wine trade as well as to private collectors and consumers.

10 How quickly can I liquidate my portfolio?

Typically, it takes 6-8 weeks to liquidate a portfolio. This timeline may be extended for larger portfolios or a portfolio containing wines of a very unique nature.

11 Where is the wine stored?

Cult Wines provides a full-service storage and care for your wines until they are ready to be enjoyed. Wines are stored in wooden cases in bond (IB) in a bonded warehouse in the optimum environment for fine wine storage, by carefully regulating temperature, humidity and other microclimatic factors. Bottles are individually padded, and warehouses are structurally reinforced to limit vibrations. Rigorous security mechanisms are in place to ensure the premise is secure and theft proof. As a client of Cult Wines, you may request images of your wine (cases and bottles) at any point.

12 How do you mitigate fraud and ensure provenance?

We buy as much wine as possible directly from the wine producers, the negociant or appointed agents, thus dramatically reducing the opportunity for fraud. In all instances, suppliers complete a ‘Due Diligence’ form including a trade reference which they are benchmarked against to establish a risk profile. If a bottle of wine falls outside that risk profile, for example a 20-year-old bottle – it undergoes a rigorous inspection by our expertly trained specialists to ensure authenticity. We regularly carry out additional authenticity checks using specialist equipment and training. In Cult’s history, and dealing with way over a million bottles of wine, there have been no fraudulent bottles. If somehow a fraudulent bottle were to make it through our security screens, we would replace it for you or give you your money back at the then prevailing market price.

13 How can I learn more about wine?

At Cult Wines we are passionate about wine, and passing on the knowledge and insights we have gained over the years. We’ve put together Wine Academy, a comprehensive resource with information on producers and vintages all so you can nurture your passion. As a client you will also have access to our client portal which allows you to access data on the wines in your portfolio.

14 What is the risk of investment in fine wine?

Wine is an investment market like any other, so prices can go both up and down. Since records began, fines wines have always had an inherent value. Based on the Liv-ex Fine Wine Investables Index (Calculated in GBP), since 1988 the CAGR over a ten-year hold has averaged 12.9% (low of 5.4% and high of 18.4%) reflecting the low-risk factor of this investment. 

15 How would my investment be taxed?

Every individual has their own unique tax situation and therefore, we suggest you seek tax advice.

16 Do I need to consider currency fluctuations?

Yes, as your wine is sourced in different currencies, in particular the English pound, there will be currency fluctuations.

Invest with us

Become part of a community inspired by curiosity and love of fine wine. Meet wine enthusiasts, passionate experts and like-minded investors.

 

Start investing