Top Tips and Trends to Watch for Asian Wine Collectors & Investors

Chateaux Management Group, a company which offers “bespoke” services to wealthy wine collectors in Hong Kong, China and Japan, has shared a few guidelines on the latest trends in wine investment.

The first question to answer, according to Benjamin Huneau, Managing Director of Chateaux Management Group should always be: Which type of wine collector are you?

Mr Huneau believes fine wine collectors can be roughly sub-divided into three basic categories, Pure Hedonists, Busy Entrepreneurs and Mature Investors.

Pure Hedonists enjoy drinking and sharing wine with friends and appreciate a great label but are open to new suggestions. This type of investor is motivated primarily by the pleasure of drinking and is willing to pay big bucks for a bottle of wine if it means something on a personal level.

Busy Entrepreneurs have some experience in wine but don’t have the time to source the best picks whilst at the same time wanting to get the best prices and access to the rarest bottles. The wine collection is a hobby that provides a welcome break from hectic business life with the primary motivation usually being that of investment.

Finally, Mature Investors are the most experienced in wine selection and can be extremely picky whilst at the same time wanting to seize the opportunities available in the market. Motivation for the Mature Investor can be either for drinking or investment or a combination of both.

Mr. Huneau said, “Fine Wine collecting is a lifestyle hobby so each individual’s style is involved. Some prepare for retirement with a collection they don’t intend to start drinking now, save for the occasional treat. Others focus on 8-10 wines they like best and disregard the rest. Yet others go for any truly good deal, provided the wine is great. And so it goes: when it comes to wine, everybody is different.”

The type of investor each individual is will determine what wines are sought after to build the collection.

Collecting wine is such a strong passion for some that even the most experienced can make mistakes such as stockpiling wines they don’t need, or even like.

Simple rules can ensure wines collected in a cellar are worth waiting for although in Mr. Huneau’s experience “I don’t know of one collector who hasn’t once adjusted his or her collecting strategy. One bottle, not necessarily an expensive one, is enough to change your whole vision of wine”

The most classic example is Bordeaux lovers discovering the charms of Pinot Noirs. Bordeaux is often a major part of any wine collector’s list. This is good, because the top domains have through centuries of experience reached something close to perfection but a sip of Burgundy Grands Crus “can change perspectives beyond expectations”, Mr Huneau said.

Another typical example is collectors switching to more white wines as they offer the widest spectrum or aromas and styles. Most amateur wine collectors focus on the most prestigious wines which tend to be reds from France, Italy, Spain and the United States.

The key to a collecting strategy is therefore flexibility and an open-mind.

To discover what kind of wine each individual likes, Mr Huneau recommends giving it time and attention. It often helps to focus on specific wines, for instance Chardonnays, to appreciate what type of wines they are and which are favored be it oaked, unoaked, French or Australian, etc.

Mr Huneau also debunked the flawed assertion that “wine always improves with age” instead reminding that wine improves until a certain stage, after which it slowly declines, losing its structure and aromas, and sometimes turns into something which is barely drinkable.

“To be more precise, there can be several good times when a bottle of wine is at its best, but with different aromas. Some wines are already good after a few years bottling, confirmed at our recent tastings of the best 2002 Echezeaux and Richebourg in Beijing and Hong Kong”

The key is to knowing when the wines will be drunk or if at all. Ultimately, any wine is made to be drunk. A conversation with a winemaker from a top domain such as Domaine de la Romanée Conti or the cellar master who looks after Dom Perignon will confirm this to the most skeptical amateurs.

It is also an almost inevitable fact that the most sought-after wines increase in price due to constantly increasing demand and limited supply making it attractive to build a collection with wines that, if purchased later, will be much more expensive.

This inevitably leads to the question; What are attractive vintages now?

Higher release prices for average vintages mean buying en-primeur might not be the best way to get good bargains right now. Amateur wine collectors might want to consider buying available, overlooked vintages which provide good value and great wines such as 1995, 96, 98 and 2000.

“With the focus on Bordeaux classified growths and a few exceptional Burgundies, some good bargains are also available in Champagne and Rhone, provided you select carefully” said Mr Huneau.

He added, “Since no two wine cellars are similar, each reflecting a different history, approach and the likes and dislikes of its owner, building a collection can take years. Knowing the wines you want to see in the collection, according to your investment profile, personal preference and life plan should help finding just the best angle to start – or extend – your collection.”

 Founded in 1998, CMG is a leader in wine collection and investment in Europe, Japan and Hong Kong, providing serious collectors and enthusiasts a ‘bespoke’ private wine collection service, offering “insightful” tips on best buys, and sourcing some of the world’s rarest and most coveted vintages.

Clients include high-level professionals, private banks, celebrities and family wealth managers. Based in Bordeaux and Hong Kong, CMG has been involved in fine wines since 1998 and launched the first Vintage Wine Funds in Asia, which recently earned a 73% return for investors on maturity after five years, representing an annual return of nearly 12%.

The group also manages a wine estate in Bordeaux.

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