Wine-lovers sniff opportunity online
The lockdown has seen wine lovers rush online, says Chris Carter.
It has never been easier to buy fine wine without ever seeing it, let alone tasting it. And with most of us stuck at home, there has rarely been so much time in which to do it. It’s little wonder, then, that so many wine enthusiasts and collectors are turning to the internet in order to carry on indulging in their hobby.
That has been the experience of family-owned business Octavian (octavian.co.uk). Its vast wine cellar in Corsham, Wiltshire, has seen a keen uptake of its new MyCellar wine portal, launched last week, with a quarter of its customers logging on in the first few days. Around 250 items were for sale over that period, worth a collective £250,000.
Wine tastings by Zoom
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
“We know that many people have a little more time on their hands right now and may be interested in enjoying their wine collection,” says Vincent O’Brien, Octavian’s managing director. The new portal allows collectors to access information on the wines, share tasting notes and even track the value of their vinous investments. “Virtual wine tastings via platforms such as Zoom are having their moment and we are confident that the MyCellar portal’s more socially-orientated features will help raise spirits as collectors record their drinking experiences and share tasting notes,” says O’Brien.
Octavian’s cellars are huge, covering an area roughly equivalent to 11 football pitches. It needed to be big. The cellars, a former mine, served as munitions storage in World War II. For 30 years, it has stored fine wines in a carefully controlled environment so that they don’t deteriorate under light and heat, for example.
Liv-ex (liv-ex.com), a business founded in London by two stockbrokers in 2000, has offered an online “global marketplace for the wine trade” for a while. And its spin-off, Cellar Watch (cellar-watch.com), offers users a real-time view on the wine trade, as well as the ability to access information and track prices. So what is Octavian bringing to the party that’s new?
One of the most exciting features of Octavian’s new online portal is the “Exchange”. “The main differences [with Liv-ex] are that customers are able to trade directly with one another, not having to physically move assets from Octavian’s storage conditions and secure custody,” Octavian tells MoneyWeek. “Octavian is also the only one that shares the storage history with the buyer, giving more information on the wine and a higher level of authority.”
So, while “Liv-ex membership is for wine professionals only”, as Liv-ex states on its website (although anyone can pay to access its data and analysis), Octavian allows collectors and wine enthusiasts to buy and sell to each other – and “that may include some retail investors”.
It can make good tax sense to invest in wine. You can buy and sell your wine “in bond” through Octavian, meaning you avoid paying VAT and duty (if you succumb to your urge and later decide to drink it, those taxes will have to be paid). Not everybody brings wine onto the Exchange that is “in bond”, but “the majority of people do”, says Octavian. It’s something to be aware of as you trade from your sofa.
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
Chris Carter spent three glorious years reading English literature on the beautiful Welsh coast at Aberystwyth University. Graduating in 2005, he left for the University of York to specialise in Renaissance literature for his MA, before returning to his native Twickenham, in southwest London. He joined a Richmond-based recruitment company, where he worked with several clients, including the Queen’s bank, Coutts, as well as the super luxury, Dorchester-owned Coworth Park country house hotel, near Ascot in Berkshire.
Then, in 2011, Chris joined MoneyWeek. Initially working as part of the website production team, Chris soon rose to the lofty heights of wealth editor, overseeing MoneyWeek’s Spending It lifestyle section. Chris travels the globe in pursuit of his work, soaking up the local culture and sampling the very finest in cuisine, hotels and resorts for the magazine’s discerning readership. He also enjoys writing his fortnightly page on collectables, delving into the fascinating world of auctions and art, classic cars, coins, watches, wine and whisky investing.
You can follow Chris on Instagram.
-
8 of the best houses for sale with libraries
This week: the best houses for sale with libraries – from a five-storey Georgian townhouse in Bloomsbury, London, to a 15th-century property with a library in a medieval tower in Lozère, France
By Natasha Langan Published
-
Investors pull money from UK equities as government warns of “painful” Budget
The government’s post-election honeymoon period has been short-lived, and investors are shying away from UK equities as a result
By Katie Williams Published
-
Own your share of Darwin’s £275,000 First Edition
Advertisement Feature A one-of-a-kind opportunity to own a share in a 163-year old first edition copy of “On the Origin of Species” from only £50 through fractionalisation.
By moneyweek Last updated
-
Why now is a good time to buy diamond miners
Cover Story Demand for the gems is set to outstrip supply, making it a good time to buy miners, says David J. Stevenson.
By David J Stevenson Last updated
-
Collecting rare whisky: a £16m tipple served with froth
Features The market in rare whisky is looking very bubbly, says Chris Carter, with a 1975 cask of recently selling for £16m.
By Chris Carter Published
-
Classic car collectors step on the gas as prices rise
Reviews Prices in classic-car markets are starting to look frothy
By Chris Carter Published
-
Boom times for the collectable watch market
Features Vintage and collectable watches are setting records at auction. Chris Carter reports.
By Chris Carter Published
-
The $15m violins up for auction
Reviews Instruments from Antonio Stradivari and Giuseppe Guarneri – the “da Vincis of violins” – are fetching stellar prices at auction.
By Chris Carter Published
-
Collectables: the scramble for blue diamonds
News Coloured diamonds are securing bigger prices at auction, says Chris Carter
By Chris Carter Published
-
The race to put art on the moon
Features Two space cadets are hoping for a big pay day by putting works of art on the moon. Chris Carter reports
By Chris Carter Published