FAQs

Frequently Asked Questions

1 What is Cult Wines?

Cult Wines, founded in 2007, expertly blends heritage, unrivalled expertise and innovative technology to transform the fine wine industry for producers, wine enthusiasts, collectors, and investors alike. Through intuitive digital platforms, powerful data driven technology, deep personal knowledge, and an unwavering passion, Cult Wines is revolutionising how consumers buy, sell, invest and collect fine wines.

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2 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.

3 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.

4 What services do you provide?

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

5 Can you tell me about the merits of fine wine investing?

There are numerous benefits to investing in fine wine. Historically, fine wine has showed strong and consistent returns in addition to:

  • Safe haven: Fine wine offers a greater degree of stability than traditional markets during times of market turbulence.
  • A comparison between wine market performance and that of global equities shows that during periods of economic deterioration, wine has provided recessionary proof characteristics and performed significantly better.
  • Reliable returns: Fine wine has consistently offered investors double-digit returns year-on-year. Demand from emerging markets is set to ensure continued, and significant, price appreciation.
  • As an asset class, fine wine has outperformed more established commodities including gold, equities and property.
  • Supply & demand: Wine is a tangible asset, and supply & demand are a significant driver of price. As fine wine matures and improves with age, it becomes more desirable – and therefore valuable – over time, while the consumption of fine wines increases the rarity of certain vintages, pushing the price up as more investors seek out fewer bottles. Our relationships with the world’s most prestigious wineries provide clients with privileged access to these highly sought-after fine wines.
  • Low volatility: Fine wine returns become more consistent and less volatile the longer they are held. It can serve as a crucial buffer, and provides important diversification for an investment portfolio, which mitigates risk and reduces levels of volatility.

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

Investing with Cult Wines 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 S$20,000. Once you have identified your parameters – your investment objectives, risk appetite and term – we'll build a besopoke portfolio perfectly matched to your needs. Finally, you'll fund your account after which the wines will be allocated to your name and stored in our bonded wine facility. All of your wines and their performance can be tracked via our client portal, which also allows you to buy and sell wines.

7 Is investing in wine suitable for me?

Anyone who has the minimum required capital can invest in wine. Fine wine is an excellent diversification tool as part of a portfolio alongside other unrelated assets.

8 How is wine investment regulated?

Wine, along with other alternative and passion assets, are not regulated by the Financial Conduct Authority or the Securities Commission.

9 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.

10 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.

11 How can I sell my wine?

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.

12 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.

13 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.

14 How do we assure authenticity?

We buy as much wine as possible directly from the wine producers, the negociant or the appointed agent, thus dramatically reducing the opportunity for fraud. We also have a risk profile that we run on every case of wine added to the inventory. 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.

15 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. You’ll also find details on WSET courses and further education.

16 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. 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.

17 I already have a cellar, collection, investment – can I transfer it to Cult Wines?

We offer a portfolio transfer service here at Cult Wines. For more information visit the portfolio transfer section on our website.

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