Tuesday, 1 February 2011

Asian wine investment 'not evenly spread'

Asian wine investment is not evenly spread across the market, but is concentrated on a small number of specific wines, one expert has noted.

Chris Smith, investment manager at the Wine Investment Fund, explained that because of this, while the fine wine market rose by around 40 per cent last year, many Lafite vintages increased 60 to 100 per cent.

This, he explained, wine investors can use to their advantage and time purchases and sales appropriately.

While reports have commented on the huge surge in wine investment from Chinese buyers, Mr Smith also remarked that other Asian 'tigers' such as Singapore and Korea are also keen investors.

However, he explained that "sales of Bordeaux to China have doubled every year since 2005, overtaking the UK and Germany to become the number one destination for exports of Bordeaux by volume".

In addition, as 80 per cent of Asian buyers drink these wines, Mr Smith noted that this is "good news for the investment market because it means that the dynamic of falling supply as the wine is drunk continues to operate".