Special Report

Introduction to fine wine investment

Special Report 1
Table of contents
As fine wine gets older and rarer, it is expected to increase in
Fine wine investment in perspective 3 value. This is the premise of fine wine investment: buy wine when
it’s young, then sell it once it’s older and more valuable. Headlines
What is the allure? 4 are filled with stories of investors who bought wine at low prices
then sold it years later for thousands. The possibility that wine, a

How does fine wine investment work? 6 complex drink that fascinates many people, could earn a
substantial return, attracts many to wine investment.

The role of Liv-ex 10 The following pages outline the basics of fine wine investment:
how it works in practice, and the key trends that have defined the
Wine investment trends 11 market over the past 20 years.

How to get the right information? 17

Concluding thoughts – A virtuous circle 20

Special Report 2
Fine wine investment Treasure Assets: Past, Present and Future

in perspective Precious
57%
70%
jewelry
47%
Wine appreciation and collection is no new phenomenon - it has 41%
Fine art
been around for millennia. The ancient Greeks, Egyptians, pictures & 49%
paintings 44%
Phoenicians and Romans were all big traders of wine; Charles II of
30%
England famously had Chateau Haut Brion in his cellar. The Antique
37%
furniture
31%
writings of Thomas Jefferson provide perhaps the first evidence of
21%
a premium charged for older wine. In 1787, he wrote that the 1786 Precious
30%
metals
vintage for top Bordeaux wines cost 1800 livres per tonneau 24%

compared to 2000 livres for the older 1783. Wine

21%
28%
collection
23%
Today, fine wine has emerged as a popular alternative investment.
Fine art 20%
It is a common practice to purchase a few cases for consumption tapestry 26%
and resell all or part of the collection later. Research conducted by & rugs 22%

Ledbury and Barclays Wealth and Management in 2012 indicates Fine art
20%
24%
that 28% of high-net-worth individuals own a collection of fine sculptures
26%

wine. Some estimates suggest that it accounts for approximately 15%

Classic
19%
2% of the wealth of the world’s most wealthy people. automobiles
22%

21%
Coin
23%
collection
19%

18%
Stamp
17%
collection
14%

0% 25% 50% 75%

Percentage of respondents who own treasure assets

Key
Owned five years ago
Own now
Plan to own in five years time Source: Ledbury Research

Special Report 3
What’s the allure? Fine wine vs mainsteam assets in 2020

There are three main motivations for investing in fine wine:

Portfolio diversification, for its tangibility and liquidity, and
for enjoyment.

Portfolio Diversifier
As an alternative asset, fine wine has historically shown little
correlation to mainstream markets. When traditional markets fall,
fine wine tends to hold steady. This means that it can act as a
portfolio diversifier, reducing the overall risk of an investor’s
portfolio, delivering stability and growth, and protecting wealth.

This is pertinent in the current climate. In 2020, a turbulent year

for all due to the global pandemic, fine wine delivered welcome
stability. The Liv-ex 100 and the Liv-ex 1000 indices performed
better than the FTSE 100 and the DAX – evidence of the market’s
robustness during challenging times.

Tangibility
The tangibility of fine wine also adds to its investment appeal.
Physical assets are often perceived as offering a stable store of
value in uncertain times. Stock markets can crash, businesses can
close, and share prices can collapse – but tangible assets do not
cease to exist (unless, in this case, they are drunk and enjoyed). In
this sense, fine wine can be compared to real estate, but without
maintenance costs, and without being reliant on a single economy.
Fine wine can also be moved around and traded internationally.

Special Report 4
Fine wine can also be a tax efficient investment. As a ‘wasting’
Percentage of respondents for whom their treasure is priceless
asset – an item with a life span of no more than 50 years – most
fine wine is exempt from capital gains tax. Although wine can be
drinkable some 60 years later, most wine sales would not give rise
45% 44% 44% 39%
to a potential tax liability, meaning that investors can enjoy more
significant returns.

Passion investment
Despite the investment opportunities that exist, fine wine remains Antique Precious Fine art Wine
furniture jewelry sculptures collection
first and foremost a passion for many collectors. The latest report
by thinktank ARENI Global, The future of fine wine consumers
2021, said: “Looking at the overall numbers, it appears that fine
wine occupies a place of prestige in people’s lives, being used for 39% 38% 37% 30%
formal occasions, business occasions and gifting. A minority of
respondents— less than 30% in each country—said they bought
wine specifically as an investment.”

This clearly shows that there is more to fine wine collecting than Fine art tapestry Fine art pictures Classic Stamp
material returns. & rugs & paintings automobiles collection

“Wine is an example of people turning a

passion into an investment” 28%
21%

– Angie O’Leary, RBC Wealth Management - U.S.

Coin Precious
collection metals

Source: Ledbury Research

Special Report 5
How it works Routes to market

Accessing the market

Private investors can access the market via three main routes:
merchants (retailers), auction houses, and wine funds.

Fine wine merchants (retailers)

Auction
The most common route is to purchase cases through a reputable Bid or offer fine wine at an in-person
wine merchant. The collector becomes the owner of specific cases or online auction
or bottles of wine and can watch them increase – hopefully – in
value, until he or she is either ready to drink or sell them.

If the buyer chooses to sell the wine, merchants typically charge a

fee of around 10% to complete the process. Because the asset will
need to rise by more than this before the collector profits, wine is
considered a long-term investment, rather than something that
can be day-traded. Merchants
Collector becomes owner of specific
Auction houses
cases or bottles of wine
The second option is buying and selling wine at an auction. Well-
known auction houses like Sotheby’s offer in-person wine
auctions throughout the year. Charity wine auctions such as the
New York International Wine Auction (NYIWA) are also popular.
Auctions tend to specialise in old, rare wines but also in sales
direct from producers.

Whether for charity or profit, in-person wine auctions typically Wine funds
require buyers to pay commissions to the auction house (also Investor owns a percentage of wine
known as buyer’s premiums). Percentages vary widely, between portfolio, managed by investment fund
10%-30%. Auction represents an estimated 10-15% of the market.

Special Report 6
In the past year, online auctions have also gained popularity
through sites like VinFolio and WineBid. These sites generally
emulate the eBay format, offering time-limited auctions on a
continuous basis. Costs for buyers vary widely, from free to 20%.

Wine funds

The third main route is to invest in a wine fund – a model at its

apogee in the noughties – that has been seeing something of a
comeback recently. Typically, those investing in a wine fund own a
percentage of a portfolio of wine, rather than any individual cases
(although some funds allow redemptions to be payable in wine).
Wine funds are like investment funds in that they are managed by
fund managers who charge a management fee, and can identify
and access opportunities in the market.

One drawback of these structures can be the minimum capital

investment required, somewhat limiting them to the ultra-wealthy.
However, new wine investment companies are democratising wine
investment requiring significantly less money to get started. This
has been facilitated by advances in machine learning and artificial
intelligence. Our report, The Wine Business of Tomorrow, provides
a more in-depth overview of technological innovations driving
these business models.

Special Report 7
Storage Investment gains since release

Investment-grade wine should be stored safely and correctly to

  Armand
help protect its value. For long-term storage, this means holding
Mouton Rousseau
the wine in a cool, dark place with minimal disturbance. In some Sassicaia 2009
Rothschild 2000 Chambertin
(released
parts of the world, home cellar storage is the norm. In others, (released Grand Cru 2010
spring 2012)
spring 2001) (released
specialist warehouses exist to provide optimum storage
autumn 2012)
conditions for fine wine. Often, merchants will work with a
warehouse supplier to store wine on behalf of their clients. Cost at release
£1,580 £5,200 £1,050
(12x75)
The UK’s in-bond warehousing system has helped it to become a
global centre for fine wine trading. This is because wines can be Current Market
£19,850 £28,200 £2,220
Price* (12x75)
bought and resold by collectors “in bond’, i.e. with no taxes or
duties applying until the wine leaves the warehouse to be Cost of storage
consumed. This makes trading particularly efficient. (on average, £240 £108 £108
since release)

Costs Merchant selling

£1,961 £281 £207
fee (10%)
Other than the price of the wine, investors need to be aware of
additional costs such as transaction fees, storage, and insurance. Return on
investment 1017% 435% 81%
The costs differ depending on location, investment source (wine
after sale
fund, auction or merchant), and choice of storage solution.

In the UK, most wine merchants that offer professional (in-bond)

storage charge a flat fee per case per year between £9-£15,
including VAT and insurance. The table opposite illustrates what
this means in practice. It shows gains for three of the most traded
wines by value from Burgundy, Bordeaux and Italy since their
release, taking the buyer’s costs into account.

Special Report 8
Costs and market structure differ in other parts of the world.
Bonded warehouses are a popular solution in Switzerland, where
most estimate the storage costs based on the value of the assets.
Similarly, in the US, some warehouses charge a percentage of the
total value of the collection for storage; around 1.5%. So on a
collection worth $50,000, storage costs come in at $750. Other
storage providers charge anywhere between $18 and $30 per case
per month, with discounts usually available for larger volumes.

Renting a wine cellar is another solution, with prices varying based

on storage capacity. One popular storage provider in Hong Kong,
for instance, charges from 450 HKD monthly for a locker (10 cases)
to 5,980 HKD (200 cases). In most countries, the default option is
to pay any relevant taxes at the time of purchase, then store at
home or at other temperature-controlled storage facilities.

Those investing in a wine fund are also subject to charges.

These include one-off subscription fees in some cases, annual
management fees (from 1.5% to 2.5%), and performance fees
based on the appreciation in the value of the wine investment
that can amount to up to 20%. These charges cover storage
and insurance.

Special Report 9
The Role of Liv-ex
What is Liv-ex? Before SIB was introduced, it was impossible to know whether two
transactions for the same wine could be compared. One
Liv-ex is the global marketplace for the wine trade. It is an
transaction might be for stock in perfect condition; the next might
independent membership organisation used by the majority of
have damaged labels. If a merchant based a valuation on the
major fine wine merchants worldwide. It started in 2000 with 10
second, more recent transaction, there is a significant risk of
founding members. Today, more than 530 businesses worldwide
under-pricing. Standardising the data resolved this issue.
trade on its platform.
This new standardised valuation data, combined with increased
Membership is available exclusively to wine trade professionals
data sharing online from the early 2000s onward, brought
such as importers, distributors and retailers. They use it to price,
increased pricing transparency to the fine wine market. With it
buy and sell wine. No private collectors can trade on Liv-ex.
came trading confidence, greater pricing efficiency, and increased
liquidity in the market.
Standardised contracts and pricing
At the time of writing, there are a combined £80 million of
transparency committed bids and offers for wine on Liv-ex. All financial
Two important and related developments have contributed to the transactions are managed by Liv-ex, and all stock that is traded
growth and increased efficiency of the fine wine market in the past on the platform passes through Liv-ex hubs to ensure trades
two decades. are completed.

In 2001, the SIB (Standard in Bond) contract was introduced for

transactions on Liv-ex. Wines sold under this contract must be in “Informed markets create sophisticated buyers
perfect condition and stored in bond, among other conditions. who make purchase decisions based on real
This had the dual impact of increasing confidence in trading and and relevant data. Liv-ex plays a central role in
enabling accurate price tracking and valuations for wine. this process.”

– David Pearson, former Opus One CEO.

Special Report 10
Wine Investment Trends
The performance of fine wine is best reflected in indices that track
the prices of the most traded wines on the market. The fine wine market has experienced a number of cycles throughout
history. Over the past 15 years, prices have shifted several times.

The industry benchmark Liv-ex 100 dipped 20% during the financial crisis,
The Liv-ex Fine Wine 50 Index tracks the daily price movement of before climbing 70% by mid-2011 largely owing to the huge fiscal stimulus
the most heavily traded commodities in the fine wine market – the in China from 2009. Prices then fell from 2011 as buying in the Far East
Bordeaux First Growths. It includes the ten most recent vintages almost came to a halt. Weakened sterling contributed to a “Brexit” boost
and excludes En Primeur. to the market from mid-2016 as international buyers capitalised on
cheaper stock held in the UK.

The Liv-ex Fine Wine 100 Index is the industry leading In March 2020, the start of the Covid-19 pandemic led to small declines in
benchmark. It represents the price movement of 100 of the most fine wine prices, which then quickly recovered and gathered momentum
sought-after fine wines on the secondary market. Both the Liv-ex in the second half of the year.
50 and Liv-ex 100 feature on Bloomberg and Reuters terminals.

The Liv-ex Fine Wine 1000 Index is the industry’s broadest

measure. It tracks 1,000 wines from across the world using the
Liv-ex Mid Price. It comprises seven regional sub-indices: the
Bordeaux 500, the Bordeaux Legends 40, the Burgundy 150, the
Champagne 50, the Rhone 100, the Italy 100 and the Rest of the
World 60.

Special Report 11
 Index level (rebased at 100 in Dec '03)

50
100
150
200
250
300
350
400
450

Mar-04

Sep-04

Mar-05
UK pension reform
Sep-05

Mar-06

Sep-06

Mar-07

Sep-07

Mar-08 HK removes duty

Sep-08
Lehman brothers collapse
Mar-09

Sep-09

Mar-10

Liv-ex 50
Sep-10

Mar-11
Liv-ex 50 vs Liv-ex 100 vs Liv-ex 1000 indices since the beginning

Sep-11

Mar-12

Sep-12

Liv-ex 100
Mar-13 China gift giving ban

Sep-13

Mar-14

Sep-14
Liv-ex 1000

Mar-15
Robert Parker retires from Bordeaux
Sep-15

Mar-16
Brexit vote
Sep-16

Mar-17

Sep-17

Mar-18

Sep-18

Mar-19

Sep-19
25% US tariffs imposed
Mar-20

Sep-20

Mar-21
Special Report
12
Regional investment trends Liv-ex 1000 sub-indices: ten years

Wines from some regions have seen prices rise much faster than
others. Burgundy has been the main riser in the past decade -
insatiable demand for its top wines has driven prices into the
stratosphere. The Burgundy 150 index is up 136% over this period.

A second major theme has been the rise of Italy since 2016. It has
benefitted from rising interest, strong vintage campaigns, and
from being excluded from the 25% US tariffs which hit the market
in late 2019.

The Champagne 50 is another index that has consistently

delivered steady returns. It has risen 58% over the last five years,
driven by the brand power and prestige of the grandes marques
Champagnes, widely available stock, global distribution and
accessible price points.

Another interesting index is the Rest of the World 60, which tracks
the performance of top American, Australian, Spanish and
Portuguese wines. Its performance in the past year has been
supported by Vega Sicilia’s ‘Unico’, Penfolds Grange and Taylor’s
Vintage Port.

Although amongst the slowest risers, the Rhone 100 has delivered
consistent returns while also representing the cheapest entry
point into fine wine in the shape of Châteauneuf-du-Pape.

The broaderning base of the secondary market has attributed to

its stability and success over the last half decade.

Special Report 13
A broadening market Regional market share by value since 2010

“What’s happened in the last few years has been

this broadening into Italians, Rhone, California…”

– Robert Joseph (Leading wine expert,

consultant and producer)

Historically, classified growth Bordeaux dominated the fine wine

investment market. In 2010, Bordeaux accounted for 96% of trade
by value on Liv-ex, but the market has broadened considerably
since then. Many investment opportunities now exist in other
regions such as Champagne, Italy, the USA and elsewhere.

As the chart shows, trade for Burgundy and Italy on Liv-ex has
been on the rise, respectively reaching 20% and 17% market
shares by value. Although making up a much smaller share, the
USA and Rest of the World (ROW) have seen some of the largest
rises and now regularly find their wines among those most traded
each week. Champagne and the Rhône have kept their relatively
consistent share of trade for the past five years but, like the
broader market, there has been a dramatic increase in the
number of different labels from both regions that are now trading.

As for the future? New wines continue to enter the investment

market. A tremendous scope exists for further development and
potential opportunities in Spain, Australia, Chile, Argentina, South
Africa and Germany.

Special Report 14
Power 100: Which wines are most Brands were ranked using four criteria

important to the fine wine market?

The Power 100 is a list of the most powerful brands in the fine
wine market. The latest list, published in December 2020, reflected How much the wines changed in price from
the general shift in regional market share by value, with Bordeaux the beginning to the end of the period.
and Burgundy falling out of the rankings, and Italy, Champagne
and Rest of the World, rising. Italy saw the largest gain in the
number of brands represented, adding nine to reach a total of 17.
The total value and volume of each brand
Haut Brion was the only Bordeaux First Growth to appear in the
that traded during the period.
top 10. Leroy, the number one power brand, marks its third year
in the top five.

Top 5s historically The number of individual wines from each brand that traded. For
example, Mouton Rothschild is the brand; Mouton Rothschild 2010
Year 1st 2nd 3rd 4th 5th and Petit Mouton 2009 are two individual wines within their brand.

2020 Leroy Leflaive Gaja Sassicaia Penfolds

Armand Louis The average price of the wines within the brand.
2019 DRC Leroy Krug
Rousseau Roederer

Lafite Mouton
2018 Leroy DRC Margaux
Rothschild Rothschild

Lafite Mouton
2017 Margaux DRC Angelus
Rothschild Rothschild

Lafite Mouton
2016 Margaux Haut Brion Latour
Rothschild Rothschild

Special Report 15
2020 Power 100

Brand Rank Brand Rank Brand Rank Brand Rank Brank Rank
Leroy 1 Romanee-Conti 21 Jacques Prieur 41 Harlan Estate 61 des Comtes Lafon 80
Leflaive 2 Margaux 22 Opus One 42 Luciano Sandrone 62 Leoville Poyferre 82
Gaja 3 Joseph Drouhin 23 Montrose 43 Bartolo Mascarello 63 de Montille 83
Sassicaia (San Guido) 4 Pichon Longueville 24 Cos d’Estournel 43 Beaucastel 64 Jean Grivot 84
Comtesse de Lalande (Famille Perrin)
Penfolds 5 Armand Rousseau 25 Pol Roger 45 M. Chapoutier 65 Salon 85
Ornellaia 6 Lafleur 26 Henri Boillot 46 Keller 66 Dominio de Pingus 86
Dom Perignon 7 Latour 27 Comte Georges 46 Casanova di Neri 67 Robert Groffier 87
de Vogue
Haut-Brion 8 Vieux Chateau Certan 28 Taittinger 48 Pape Clement 68 Tua Rita 88
Masseto 9 Cheval Blanc 29 Screaming Eagle 49 Petrus 69 Gruaud Larose 89
Louis Roederer 10 Bouchard Pere et Fils 30 Pavie 50 Jean Louis Chave 70 Bruno Giacosa 89
Lafite Rothschild 11 Bollinger 31 Giacomo Conterno 51 Fontodi 71 Calon Segur 91
Vega Sicilia 12 Ducru-Beaucaillou 32 Leoville Barton 52 Dominus 72 Ponsot 91
Solaia (Antinori) 13 Jacques-Frederic 33 Pontet-Canet 53 Louis Jadot 73 Arnoux-Lachaux 93
Mugnier
Prieure Roch 14 Angelus 34 E. Guigal 54 Poggio di Sotto 74 Paul Jaboulet Aine 93
Georges Roumier 15 Tignanello (Antinori) 35 Biondi-Santi 55 Figeac 75 Quintarelli Giuseppe 95
Palmer 16 d’Yquem 36 Rauzan-Segla 56 Vietti 76 Smith Haut Lafitte 95
Mouton Rothschild 17 L’Evangile 37 Jean-Claude Ramonet 57 Etienne Sauzet 77 Les Carmes 97
Haut-Brion
La Mission Haut-Brion 18 Trapet Pere et Fils 38 Lynch Bages 58 Pichon Baron 77 Beychevelle 98
L’Eglise-Clinet 19 Faiveley 39 Ausone 59 La Conseillante 79 Henschke 99
Krug 20 Leoville Las Cases 40 Pierre-Yves 60 Le Pin 80 Caymus 100
Colin-Morey

Special Report 16
Fine wine investment:
getting the right information
News, reviews and insights
Critics

Many collectors and traders consider critic scores vital in

informing their buying and selling decisions. Historically, the
American critic Robert Parker, founder of The Wine Advocate,
yielded the greatest influence over the price of wine. Parker’s
power was such that a score ‘upgrade’ for a wine could result in
rapidly rising prices.

Since his retirement, greater attention is paid to a broader range

of voices, many of whom provide specialised coverage on key
wine regions. These include Neal Martin and Antonio Galloni at
Vinous, Lisa Perrotti-Brown MW at The Wine Advocate, Jane
Anson at Decanter, Jancis Robinson, James Molesworth at The
Wine Spectator, James Suckling and Jeb Dunnuck, among others.

Industry Insights

Many fine wine merchants offer regional reports with key market
trends and vintage overviews. Liv-ex’s blog and in-depth reports
are another source of information on the latest trends. These
reports and articles draw on transactional data, following the
trading trends of more than 530 wine merchants worldwide.

News websites like The Drinks Business, Decanter, Bloomberg and

the FT also provide regular coverage on fine wine investment.

Special Report 17
Valuations Valuation methods for collectors

A recent Liv-ex survey amongst its global merchant membership

revealed that price is the most important factor when deciding
whether to purchase any given wine. Nowadays there is a wealth
of pricing data online for investors to navigate, and various
methods for creating accurate valuations.

These options differ in cost, time and efficiency. They are Merchant services Cellar management tools
summarised below and discussed at length in our report, Merchants can provide Cellar Watch is a good
How to value fine wine. professional valuation tool for keeping track of
services for you. your wine portfolio and
Methods for private individuals
prices.
Many wine merchants offer portfolio valuation as a
complementary service direct from the market (Liv-ex). Speaking
to a trusted merchant is a particularly good idea when investors
have rare or damaged stock. They can advise on adjustments to
the Market Price. Private collectors can also use cellar Collectors
management tools like Cellar Watch, which was founded by Liv-ex
and is now owned by Vinous. These tools display price information
from the fine wine market, and allow investors to track wine values
in real-time.

One-off professional
valuations
Bespoke valuations are
available on request at
salesteam@liv-ex.com

Special Report 18
Methods for professionals
Valuation methods for professionals
Pricing information is also available for free online in sites like
Wine Searcher or Google. Anyone can open a web browser,
search for a wine, and note down the advertised price. As a rule,
this method isn’t recommended for non-professionals.
Experience is required to make good judgements about which
price points can be trusted, particularly for old and rare wines. It
can be impossible to find wine at the advertised price, making Free online searching Detailed online
that valuation inaccurate. Prices can be found free searching
on places like Wine Liv-ex provides more
Many wine investment funds appoint Liv-ex as their official valuer
Searcher and Google. sophisticated search
for access to Mid-Price data which is uniquely based on
tools.
transactional data – the most reliable source of valuation
information. Businesses can request one-off valuations from
Liv-ex by contacting salesteam@liv-ex.com.

Professionals also make use of web-based tools like Liv-ex’s Wine

Matcher which quickly add valuation information using actual Professionals
prices transacted on the fine wine market to wine lists. To
produce a valuation, one needs an Excel document with the wine
names and quantities.

Price valuations can also be automatically brought into a system

using APIs. This removes the need for any manual intervention.
Liv-ex’s pricing APIs bring prices directly into an Enterprise
Resource Planning (ERP) or similar system, displaying them List matching tools Automation
alongside your other product information for a wine. This is Tools like Wine Matcher Tools can be developed
available in multiple currencies. With automation services, price can convert your wine to automate the process
data can be accessed alongside stock information in one place. lists into price lists. of valuing wines.

Special Report 19
Concluding thoughts –
A virtuous circle
More than just a stable and diverse source of returns, fine wine
has long-enticed investors with its rich history and drinking
pleasure. These investors have, in a way, also played a vital role in
how the wine market functions at the top end.

Few producers have the finances to cellar large quantities of wine

for extended periods of time. By investing in wine, collectors make
it easier for buyers to find mature wine on the market. Without a
secondary market and the possibility of price appreciation, there
is little incentive for them to buy young wines, store them, and sell
them later. It is thanks to the mechanisms of this market that such
a healthy quantity of aged fine wine is readily available to anyone
willing and able to pay – not just those who had an allocation 20
years ago.

This report covered the fundamentals of wine investment: the

allure behind it, the biggest trends that have come to define it, the
routes to market, and some of the practicalities. Today, the
investment opportunities in fine wine are broader and more
diverse than ever before. And there is an ever-expanding pool of
active market participants taking advantage of these opportunities
and of the increased price transparency of the market. This is a
trend that looks set to continue.

Special Report 20
Liv-ex is the global marketplace for the wine trade. It has over 530
members from start-ups to established merchants and supplies
them with the data, trading and logistics services they need, to
price, buy and sell wine more efficiently.

Liv-ex was founded in 2000 by James Miles and Justin Gibbs. It

started with a group of 10 founding members in London, and a vision
to make fine wine trading more transparent, efficient and safe.

Liv-ex publishes the actual prices at which wines are transacted.

Its platform contains £80m of firm buying and selling opportunities
in around 16,000 wines. All are available to trade in real-time. Liv-
ex conceived the Standard-in-Bond (SIB) contract to assure stock
condition, delivery and faster payment and provide cost-effective
logistics and storage solutions. Its APIs can automate much of this
to further improve its merchant members’ gross profits.

For more information visit www.liv-ex.com1 or get in touch today2.

This article is provided for informational purposes only and does not amount to financial advice or advice as to
the value or likely future values of any of the wines it discusses. If you are valuing wine in the US, you will need to
consider that Market Prices are based primarily on European stockists and adjust for local conditions. You are
advised to carry insurance when providing valuations in certain circumstances, such as for divorces, financing
and loss adjusting. The market price should not be used to value wines in any financial instrument such as a
fund. The opinions expressed are subject to change without notice. Neither Liv-ex Ltd nor any of the authors or
editors of this newsletter accept any liability for the accuracy of its contents.

1 https://www.liv-ex.com
2 Email nicola@liv-ex.com

Special Report 21