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Global Markets Media - Wine Investment 2008

Global Markets Media - Wine Investment 2008. Peter Lunzer - December 2 nd , 2008. Wine Investment 2008. Outlook for Wine Investment in 2009. The key areas to consider regarding the prospect of predictable returns from investment grade wines. Assessing demand.

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Global Markets Media - Wine Investment 2008

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  1. Global Markets Media - Wine Investment 2008 Peter Lunzer - December 2nd, 2008

  2. Wine Investment 2008 Outlook for Wine Investment in 2009 The key areas to consider regarding the prospect of predictable returns from investment grade wines. Assessing demand. Any significant changes to supply. Key developments in the market. Rising stars of Bordeaux. Looking for signs of an overheated market. Finite supply for a Global Demand.

  3. Wine Investment 2008 Assessing Demand Constant and growing global demand for a finite and diminishing supply. Wine features very humbly among all the extravagances enjoyed by wealthy individuals: Lear Jet 60XR - £12,500,000. Sunseeker Yacht 105 - £4,900,000. Chateau Petrus 1990 - £28,500 per case; Chateau Lynch Bages 1990 - £1,500 per case. Demand for wines that have a brand. Consumers are looking to impress others as much as enjoy the content of the bottle: Brands such as Chateau Lafite are powerful and growing in popularity. The majority of producers have not achieved brand status. Demand from consumption. Who is currently buying fine wines to consume: Emerging Markets. Traditional Markets. Investment industry demand. What has been the influence of the Wine Investment World? Merchants offering advice or are actively involved in fund management. Investment advisers from City / financial backgrounds. Investment advisers from the wine world.

  4. Wine Investment 2008 Changes to Supply How much wine is there in the market place and how is the supply changing? Initial assumption of stock availability of investment grade wines - Estimate is between £6bn to £8bn globally. Annual contribution from a high quality harvest - Estimate is between £1.5bn to £2bn. Who owns the stock? Biggest single change to the market in the past 6 years has been the Chateau keeping back a higher than ever percentage of production - especially since the 2005 vintage which was in such short supply that prices rose steeply for longer than normal. What effect will there be from stock ownership altering from many individuals to a small number of large scale investment funds ?

  5. Wine Investment 2008 Key developments in the market There are a number of developments which will influence the future of wine pricing and availability. Emergence of new wine funds. Understanding why Bordeaux remains prominent compared to: Burgundy. Champagne. New World. Global transparency of pricing.

  6. Wine Investment 2008 Rising Stars of Bordeaux First Growths Château Lafite Rothschild Château Latour Château Margaux Château Haut-Brion Château Mouton Rothschild Second Growths • Château Rauzan-Ségla • Château Rauzan-Gassies • Château Léoville-Las Cases • Château Léoville-Poyferré • Château Léoville Barton • Château Durfort-Vivens • Château Gruaud-Larose • Château Lascombes • Château Brane-Cantenac • Château Pichon Longueville Baron • Château Pichon Longueville Comtesse de Lalande • Château Ducru-Beaucaillou • Château Cos d'Estournel • Château Montrose

  7. Wine Investment 2008 Rising Stars of Bordeaux Third Growths Château Kirwan Château d'Issan Château Lagrange, St.-Julien Château Langoa Barton Château Giscours Château Malescot St. Exupéry Château Cantenac-Brown Château Boyd-Cantenac Château Palmer Château La Lagune Château Desmirail Château Calon-Ségur Château Ferrière Château Marquis d'Alesme Becker Fourth Growths • Château Saint-Pierre • Château Talbot • Château Branaire-Ducru • Château Duhart-Milon-Rothschild • Château Pouget • Château La Tour Carnet • Château Lafon-Rochet • Château Beychevelle • Château Prieuré-Lichine • Château Marquis de Terme Fifth Growths • Château Pontet-Canet • Château Batailley • Château Haut-Batailley • Château Haut-Bages-Libéral • Château Grand-Puy-Lacoste • Château Grand-Puy-Ducasse • Château Lynch-Bages • Château Lynch-Moussas • Château Dauzac • Château d'Armailhac • Château du Tertre • Château Pédesclaux • Château Belgrave • Château de Camensac • Château Cos Labory • Château Clerc-Milon • Château Croizet Bages • Château Cantemerle

  8. Wine Investment 2008 Looking for signs of an overextended market Some prices from Liv-ex as at 30th November 2008

  9. Wine Investment 2008 Finite supply for a Global Demand!

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