Fine wine broker launches in Australia

Taking the lead from strong Hong Kong and the Asia Pacific results, fine wine investment funds and broking will soon emerge in the local market as alternative investment options.

Premier Grand Cru already has 1,000 clients locally and internationally, providing expert opinion on wine investments from the Bordeaux & Burgundy region, storage, the resale of investment wines and assistance with portfolio development.

After four years, Premier Grand Cru fine wine brokers will soon launch in Australia, offering investors alternative investment opportunities which director of Premier Grand Cru, Justin Alexander said provides better returns than other common investments vehicles.

"During the Noughties, wine investment returns exceeded those of equities, commodities and property.

"There is an ongoing rise in demand globally for investment-grade wine, and we're seeing an average growth of 15% per annum on investments in Bordeaux Premier Grand Cru for example."

The launch of The London International Vintners Exchange (Liv-ex) in 1999 brought transparency to wine investing and trading where investors can access two wine price indices based on these transactions, typically used to measure general price developments for the fine wine market.

"It is this index that has returned 15% per annum over the last 10 years, which is why wine investment is seeing such a trajectory amongst serious investors."

China is following this trend with its first wine investment fund due to be launched soon, which Alexander said is impacting on prices with bottle sales for rare wines reaching the $200,000 and over range.