Premier Cru: Asian demand will encourage wine growth

Fine wine investment advisory company Premier Cru is predicting 2010 growth will be led by heightened demand from Asia.

 The specialist firm said while fine wine was not immune to last year's downturn, with some top sellers' values dropping by as much as 40 per cent, the market has picked up as much as 20 per cent since October 2008 .

Premier Cru founder Paula Golding is predicting a further 20 per cent uptick over the year to January 2011.

She said a low-risk investment might be a Mouton 1982, currently valued at £13,000 and expected to fetch at least £17,000 by January 2011.

A vintage classed as low to medium risk might be a Mouton 2003, valued at £2,500 and estimated to be valued at more than £3,500 by January 2011.

Ms Golding warned those wishing to dabble in fine wine investing to ensure purchases are made through a reputable supplier with vast experience in this specialist market.

She said: "While the traditional markets of America and Europe are recovering after being out of the market for the past 18 months, Asia has picked up the slack and is leading the demand for investment-quality wines.

"Returns on wine investing are influenced first and foremost by demand - good vintages attract more buyers, and since there is a strictly finite quantity, reducing as the wine is drunk, prices tend to rise.

"Given that Asian consumers are predominantly buying to drink, the supply-and-demand dynamic remains very much in place."