Investment opportunities come in all shapes and sizes. And in some instances, they come packaged in bottles!
When thinking about investment opportunities, most people tend to think about stocks and bonds.
- Of course, these are traditional investments.
- But there are also alternative investments.
These include assets like private equity, real estate, farmland, collectibles, wine and more.
Over the last 5 years, according to the Liv-Ex Fine Wine Index, investment grade fine wines have appreciated nearly 50%!
Additionally, over the last year, the value of fine wine has increased 19.6% while the S&P 500 has fallen 14.6%. (Data from November 2022.)
So, how do you actually add wine to your portfolio?
In this article, we take a deep dive into Vinovest, a wine investing platform open to anyone over the legal drinking age in their country of residence.
What Is Vinovest?
Vinovest got its start in 2019.
Its mission is to democratize wine investments for all investors.
The company uses proprietary data models along with their team of expert sommeliers to determine which bottles of wine have the greatest potential to appreciate.
With this data, they purchase wine on behalf of their clients, who can sell or drink their wine at any time.
One of the key benefits of investing with Vinovest is gaining access to their network.
Instead of buying investment grade wines at market value, Vinovest is able to secure off market deals.
Clients also appreciate the fact that Vinovest handles the storage, transportation, authentication, and insurance of the wine.
Despite being held by Vinovest, should a client ever want to have their wine, they can have it shipped right to their home to store, drink, or sell.
Vinovest is open to all investors who are over the legal drinking age where they live.
The minimum to get started is just $1,000!
How Does Vinovest Work?
Vinovest has a simple 3 step process.
- After opening an account, you will answer a few questions about your goals, risk tolerance, and personal information with their 1 minute questionnaire.
- Vinovest will then get to work building you a portfolio of investment grade wines. These wines are 100% owned by you. This portfolio typically takes Vinovest 2-3 weeks to finalize.
- Once your portfolio is built, you are able to watch your investment change in value over time. You can also sell or drink your wine at any time.
For those that have additional questions, you can schedule a 1:1 conversation with a Vinovest expert.
In addition to a managed portfolio, you are also able to purchase cases or individual bottles on your own through their marketplace with a trading account.
Vinovest Account Plans
Vinovest currently has 4 investment options: Starter, Plus, Premium, and Grand Cru.
These plans are managed accounts.
- Minimum: $1,000
- Annual Fee: 2.85%
The starter plan is great for those looking to participate in wine investments without a major initial cost.
The Starter plan offers investment access to storage and insurance as well as guaranteed 100% authenticated wines in great condition. Perhaps the greatest benefit is the access to their algorithm that builds an expert crafted portfolio.
- Minimum: $10,000
- Annual Fee: 2.70%
The Plus account comes with everything from the Starter plan plus access to exclusive wines. These members also gain access to Vinovest portfolio reviews.
- Minimum: $50,000
- Annual Fee: 2.50%
The Premium account includes everything in the Plus account with a few extra benefits:
- First, these members gain access to a higher tier of rare wines as well as wine futures.
- They also receive invites to Vinovest wine tastings and events.
- And finally, they also have a few additional options when creating their portfolio.
- Minimum: $250,000
- Annual Fee: 2.25%
A Grand Cru account comes with everything previously mentioned as well as quarterly insight reports and access to Vinovest’s advisory council.
Managed vs Trading Account
To get started with Vinovest, you will choose one of the plans as mentioned above.
This will kick start a managed account.
This account is managed by Vinovest which includes determining which wines to add as well as when to sell.
A trading account is also something all Vinovest members can participate in.
Here, members can buy and sell wines individually on Vinovest’s marketplace. Managed and trading accounts are two separate accounts.
The Vinovest marketplace has no minimum, except the cost of the actual bottle of wine.
A key benefit of the trading account is that there are no lockups – you can buy and sell a bottle of wine on the same day with no penalty.
For managed accounts, depending on the account plan you choose, you will pay an annual fee starting at 2.25%.
The annual fee covers storage and insurance. You will also pay an early liquidation fee of 3% if you withdraw your funds within three years.
For trading accounts there are three fees:
- The first is a 2.5% transaction fee for buying wine.
- The second is a 1% transaction fee for selling wine on the marketplace.
- And finally, there is a 1.5% storage fee.
What Is Whiskeyvest?
The company has had success with its wine offerings and has found a similar demand with whiskey investments.
Whiskeyvest is a new segment of the business that Vinovest is offering investors.
So, in addition to wine, inventors can add blue chip whiskey investments to their portfolio.
This option is still being built out, but investors can reserve their place now!
Is Vinovest Safe/Legit?
Vinovest is a legitimate wine investing platform.
Each of the wines in your portfolio are 100% yours. Should the company be dissolved or fail, the wine is still yours.
At that point, the storage facilities will contact you to either continue storing wine or ship it to you.
Vinovest has partnerships with storage facilities throughout Europe and the United States. At any time, you are able to request a tour of any of the facilities.
The company undergoes multiple annual audits from their insurance providers and an independent third-party auditor that works with bonded warehouses.
The company is not regulated by the SEC because they do not sell securities.
Wine investments have historically been reserved for the ultra wealthy.
Today, Vinovest is changing that.
With this platform, investors everywhere can get started with just $1,000.
In addition to the storage and insurance of the wine, the company also uses data and their team of experts to determine which bottles of wine have the greatest potential. In other words, investors do not actually have to know anything about wines to get started!
That being said, you should know about wine investing and have a passion for wine before investing.
Be sure to check out our full beginner’s guide to wine investing here to learn more!