Wine and Whisky Investments
enable excellent returns
Invest with us in wine and whisky for stable, market-outperforming returns
Insights into the Wine and Whisky Markets
The Trading Potential of Fine Wine and Whisky
Tangible Assets in Times of Economic Uncertainty
Marc Schippke
Marc Schippke is a German-Swiss businessman and investor with a particular passion for fine wines and whiskies. In addition to his international investments, he focuses on exclusive, long-term investments in these markets, which he develops in a targeted manner.
In collaboration with James Woodhead, Marc creates tailor-made portfolios for collectors and investors. These offer high-quality investment opportunities in rare wines and whiskies that are prized for their exclusivity and performance.
James Woodhead
With over 14 years' experience in the global wine and whisky trade, James Woodhead has established himself as a leading specialist in fine wine and rare whisky investment. His unique approach combines in-depth industry knowledge with innovative, data-driven analysis. As a result, he provides his clients with exclusive and profitable investment opportunities tailored to elite collectors and discerning investors.
James' career spans several continents, where he has been instrumental in the growth and development of leading wine trading companies in Hong Kong and the UK. Since 2018, he has refocused on the UK market, using his extensive expertise to transform the industry and further expand his global network.
Key Career Highlights
12 years in the London financial sector
James gained extensive experience in fixed income derivatives trading, building a strong foundation in global finance before moving into the wine and whisky industry.
Founding Managing Director of Madison
As the founder of Madison Wine in Hong Kong, James developed the company into one of the largest wine trading companies in Asia, which was successfully floated on the stock exchange under his leadership.
Record-Breaking Sotheby’s Supplier (2018)
He played a key role in providing rare wines for a record-breaking sale at Sotheby's, further cementing his expertise and connections in the industry.
Forbes Recognition (2017)
James has been recognized by Forbes as one of the world's leading collectors and dealers of rare whiskies, distinguishing him as an authority in the global luxury market.
Fine Wine: Insights and Investment Strategies
Understanding Fine Wine
Fine Wine is a loose term to refer to the top wines of the world’s most prestigious producers.
Key Considerations When Choosing Wine
- Critics Point Scores
- Chateau/Domaine/Producer
- Vintage
- Region
- Historical Prices (of similar & standout vintages)
- Production Level
- Expected Drinking Window
Our Unique Approach
Over time, we have created an algorithm that considers all the above variables, producing a ‘perfect’ market price. This can, of course, be used to identify market imperfections and discrepancies. It can also help to highlight when a wine has reached its ceiling on the upside or the floor on the downside. Additionally, it produces a price per critics score, which is valuable information when making investment decisions.
Whisky Investment: Insights and Market Potential
The Rise of Whisky as an Investment
In recent years, whisky has climbed the ranks of alternative investments. It’s become a highly collectible asset. Whisky is a commodity that, over time, gets both better and— for any given age—scarcer, which tends to mean it becomes more valuable.Historical data shows that the average net annual return on 8-year-old malt whisky bought new and sold in the period 2013-2022 was 11.8% p.a. We deal in far older, rarer, and more exclusive expressions, ensuring greater returns with a higher success rate. High-quality and limited-edition whiskies, especially those from well-known distilleries, have the potential to appreciate in value over time. Rarity, age, and provenance can contribute to the increasing market value of certain whiskies.
Market Demand and Trends
The major independent whisky research analysts forecast continued steady demand growth, correlating with a worldwide demographic expansion in the number of whisky's principal customer base. The consensus is that global consumption will grow at around 2% per annum for the medium term. This gives the market an underlying bid, which is essential for investors.The global demand for high-quality and rare whiskies, particularly in emerging markets, has been on the rise. This increased demand can contribute to the potential appreciation of certain whiskies.
Investment Considerations
The industry, similarly to wine, finds it challenging to attract finance for its working capital needs. This again works in our favor, enabling us to buy parcels at a discount.Whisky investments can serve as a diversification tool in a portfolio, especially for investors looking to add alternative assets that may have low correlation with traditional markets.
Considerations When Choosing Whisky
- Distillery/Producer
- Bottling & Distillation Year
- Historical Prices
- Region
- Production Level
Ensuring Investor Security and Inventory Integrity: Our Strategy
How We Protect Investors and Inventory
The key to protecting investors and inventory lies in making purchases based on a set of flexible criteria. These criteria encompass relevant factors outlined as variables and considerations in our trading strategies. By purchasing the right products at the right price, the downside risk for any individual item is significantly reduced. The wine and whisky markets are not particularly fast-moving, allowing us to manage risk effectively.
Purchasing from Reputable Companies: All stock is acquired only from trusted sources.- Automatic Stock Checks: Every item is automatically checked upon arrival to identify any issues.
- Problem Prevention: Any flagged concerns are addressed promptly, ensuring smooth sales processes.
Comprehensive Storage Solutions
All inventory is stored in bond at London City Bond, a leading expert in wine storage, which guarantees a secure environment. Here are key aspects of our storage strategy:
- Live and Historical Stock Reports: Investors have access to detailed reports, including real-time pricing.
- Direct Shipping: Wine purchased is shipped directly to London City Bond.
- Insurance Coverage: All inventory is insured during transit and throughout the En Primeur process.
- Rigorous Standards: This ensures the highest quality provenance, respecting both the investor and the investment.
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Breakdown of Trading Strategies
Wine
High-frequency trading strategies target three inefficiencies:
• Lack of price transparency
• Logistical barriers
• Low working capital allows cash discounts
En Primeur
En Primeur trading involves buying Bordeaux and Burgundy before bottling. Initial prices are typically lower than future market prices, making it a way to secure limited wines (some properties produce as few as 200 cases).
Whisky
Indices provide insights into valuable single bottles.
• Buying older bottles like Macallan 25 Year Old offers consistent returns.
• New releases can be risky unless bought directly. They often rally at auctions before dropping back, which is the best time to buy.
• Building collections for future sales can yield profits, with data on historical prices highlighting trends.
Casks:
The aim is to buy casks and watch the spirit appreciate over time. As whisky ages, its value typically increases due to improved taste and rarity.
Key Insights on Fine Wine and Whisky Investments
Valuable Alternative Investments
Fine Wine and Whisky are not just luxury items; they are tangible assets that can appreciate in value, offering a hedge against market volatility.
Market Insights and Strategies
Utilizing data-driven algorithms and unique trading strategies, we identify market inefficiencies, ensuring optimal investment decisions for our clients.
Secure Storage and Provenance
All inventory is stored under bond at reputable facilities, guaranteeing the quality and authenticity of the assets while protecting investor interests.
Request a Consultation
At Wine and Whisky Merchants, we offer tailored investment strategies designed to meet your financial goals. Let our expert team guide you through the world of fine wine and whisky investments.
Case Studies: Strategies for Success
Investment in Springbank Whisky
Purchase: Acquired in 2019 for £56,000.
Outcome: Sold for £150,000, achieving a 166% tax-free return due to capital gains exemption in the UK.
Trade in Dom Pérignon 2008
Acquisition: 90 cases purchased at £610 per case in 2019.
Sales: Sold for an average of £1,150 per case over 24 months, effectively doubling the investment.
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Achievements and Contributions
- Record-Breaking Sotheby’s Supplier (2018)
Supplied wines for a record-breaking sale at Sotheby’s auction. - Forbes Recognition (2017)
Acknowledged by Forbes as one of the world’s top whisky collectors and dealers. - Rare & Exclusive Offerings
Created bespoke investment portfolios with rare, high-end wines and whiskies, targeting elite collectors.
Achievements and Contributions
- Record-Breaking Sotheby’s Supplier (2018)
Supplied wines for a record-breaking sale at Sotheby’s auction. - Forbes Recognition (2017)
Acknowledged by Forbes as one of the world’s top whisky collectors and dealers. - Rare & Exclusive Offerings
Created bespoke investment portfolios with rare, high-end wines and whiskies, targeting elite collectors.
Potential Deal: Springbank 1995 Samaroli
- Key Details:
Distilled: 1995
Bottled: 2022
Cask Number: 53
Total Bottles Produced: 267
Available Bottles: 10 - Financial Summary:
Purchase Price: £2,000 per bottle
Previous Selling Price: £4,800 per bottle
Offer Price to Clients: £3,500 per bottle - Profit Summary:
Capital Required: £20,000
Potential Profit: £15,000
Return Margin: 75%
Achievements and Contributions
- Record-Breaking Sotheby’s Supplier (2018)
Supplied wines for a record-breaking sale at Sotheby’s auction. - Forbes Recognition (2017)
Acknowledged by Forbes as one of the world’s top whisky collectors and dealers. - Rare & Exclusive Offerings
Created bespoke investment portfolios with rare, high-end wines and whiskies, targeting elite collectors.
Achievements and Contributions
- Record-Breaking Sotheby’s Supplier (2018)
Supplied wines for a record-breaking sale at Sotheby’s auction. - Forbes Recognition (2017)
Acknowledged by Forbes as one of the world’s top whisky collectors and dealers. - Rare & Exclusive Offerings
Created bespoke investment portfolios with rare, high-end wines and whiskies, targeting elite collectors.
Success & Global Expansion
- Managed his own wine and whisky trading portfolio with a focus on fine wines and rare whiskies.
- Played a pivotal role in launching one of the UK’s leading investment companies, growing assets to £10 million in just three years.
- Expanded his global network, securing clients and suppliers across UK, Europe, US, and Asia.
Achievements and Contributions
Record-Breaking Sotheby’s Supplier (2018)
Supplied wines for a record-breaking sale at Sotheby’s auction.
Forbes Recognition (2017)
Acknowledged by Forbes as one of the world’s top whisky collectors and dealers.
Rare & Exclusive Offerings
Created bespoke investment portfolios with rare, high-end wines and whiskies, targeting elite collectors.
Investment
Appeal
Tangible assets, such as fine wine and whisky, offer both stability and resilience, especially during periods of economic uncertainty. These assets tend to hold or increase in value when traditional markets face volatility. By incorporating alternative asset classes like these into a portfolio, investors can benefit from diversification, reducing overall risk while enhancing potential returns. Additionally, historical performance shows that tangible assets often outperform more conventional investments, making them an attractive option for those seeking long-term growth with lower downside risk.
