TDN Weekend December 2016 Issue 9
Issue link: https://www.e-digitaleditions.com/i/1045316
Hammond points to several reasons for the market opening up – one being the growth in the online re- sources and apps available to investors. "There's a whole trading universe now, so you can view all of the wines and their value, and then go back and see their entire timeline," he says. "There's some very thorough software, and tools that make trading in the market more efficient. From that perspective, it has become more sophisticated, and in line with conventional in- vestments. "We put out information too, writing editorials on the various châteaux or analytical metrics, and really try to provide a backdrop, educating our clients, and in turn that builds our company. We went from a data- base of 2,000 to 50,000, with people reading our news- letter, purely on the back of offering interesting edito- rial information. "Then some of the other reasons for an increasing interest, Bordeaux has had two great vintages, 2015 and 2016, so that has created a growth cycle. A lot of newspapers are reporting on the excellent growth the market has seen as a result, saying that wine is a good place to put your money again, and that means more people wanting to be involved… All over the world, the wine market seems quite buoyant." Some speculators may think of buying 'en primeur' – purchasing wine in the barrel two to three years be- fore its release. The advantage is acquiring a vintage when it is younger, and therefore at a lower price, but the risk is that the wine does not end up as valuable as hoped. "What really confuses a lot of people, they have a wine in 2015, love it, then have another from a different year, and it's the same wine, just a different vintage, and they don't like it," says Hammond. "The vintage variations are enormous, so it really is key to work with a merchant who can guide you."