Wine As An Investment – How Does This Work And What Should The Winemakers Focus On?

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Many people are constantly seeking ways to make their money grow. There are a wide variety of ways that they attempt to do this. From gambling to investing in the stock market or simply putting money into a high-interest earning savings account at the bank; there are many ways to put some money aside and then hope that the investments pay off in the form of more money in the future. One type of investment that a lot of people may not know about is wine investing.  Anyone who is a fan of fine and rare wines may be very interested in finding out how they can take their love of wine to a whole new level and use it to make extra money. (You can visit Roberson for a great quality selection of fine and rare wines).

wine grape investing

How Wine Investments Work

When people want to invest in things other than the traditional types of investments like real estate, bonds and stocks, they often look toward things like fine art, rare coins, trading cards and even wine.  Fine and rare wines that are used as investments can both be bought and then resold at a profit, or individuals may instead choose to invest in a wine fund by purchasing shares in a winemaker that produces high-quality wine.

It is important to remember that when people look to purchase wine to resell, they do not turn a profit right away.  Instead, they often need to store the wines until their value has properly appreciated.  Therefore, investors have to often put a bit of money into the investment while storing the wines and then wait for the profits from sales in order to pay themselves back once the wines are sold.  This is one of the few drawbacks of wine investments.  Unlike putting your money into an account or a bond that will generate guaranteed interest earnings from the beginning, it may take a bit of time before your investment into wines pays off.

Choose Your Investment Wine Wisely

There are thousands upon thousands of winemakers around the world, all making their own form of unique wine that ranges in price from low and affordable to very expensive.  However, if you are planning on investing in wine, you want to focus in on the perhaps 250 or so winemakers who are actually creating wine that is of the calibre of investment wine.  Also, though investment wines can be made throughout the world, the vast majority of these wines are made in the Bordeaux region in France.

What Winemakers Should Focus On

Winemakers interested in creating the best possible investment wines should focus upon the quality of the grapes used in the wine, including, of course, how the grapes are grown and processed into wine.  Proper soil conditions, rains and other growth factors are important for a winemaker to be aware of in order to produce the best grapes for the best wine.

Investment wines have the ability to hold their quality and taste over long periods of time.  The aging of the wine should make it that much more valuable, thanks to the texture and taste of the wine as it matures.  Winemakers must also be aware that if they are planning on creating investment quality wines, they will be held to a high level of scrutiny from experts who will determine the actual quality of their wine.  From the time the grapes are harvested to when they are placed in barrels, a premier winemaker must be able to work with only the highest quality crops to get the most valuable end product.

Winemakers who know they already create an excellent product but would also like to expand their businesses can look to investors to help them in whatever areas they need, from better infrastructure to increased distribution.  Investors who are smart about where they put their money will be able to confidently provide these winemakers with the funds necessary to grow their businesses while sharing the profits that are earned from the improvements made over time.

John McCallan is a business writer interested in the wine industry. He writes about fine and rares wines available at Roberson Wine and loves sharing opinions with other experts online.

(Photo courtesy of Lee Coursey)

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