bsas2015
TRANSCRIPT
The Opportunity in the
Wine Market
Managing A Life Lived Well
Jennifer Williams-Bulkeley AIWS20 Park Plaza, Suite 400
Boston, MA 02116617 990 6840617 948 2147
#wineassetmgr
Copyright 2015 AOC Investment
Advisors - All rights reserved
www.wineassetmanagement.com
Lifestyle
Asset
Demand
0
5
10
15
20
25
30
35
40
NorthAmerica
Asia-Pacificex. Japan
Japan Europe Latin America Middle Eastand Africa
GlobalAverage
ALLOCATIONS TO INVESTMENTS OF PASSION (%)
Other Collectibles - Wine, Coins, Antiques
Alternatives Sports Investments
Alternatives Art
Alternatives Luxury Collectibles
Alternatives Jewelry, Gems & Watches
2
Art Market $58 billion
Collectible Cars $12
billion
Investment Grade Wine Market $10
billion
31 year change Q3 ‘12 to Q3 ’13, Art, -3%, Furniture -2%, Chinese 3%, Jewelry 3%, Watches 4%, Wine 3%, Cars 28%, Stamps 5%, Coins 10%, Index 8%
Lifestyle Asset
Supply
Wine – Growing
Demand, Rare and
Regulated
4
Global wine market is valued at $200
billion
Lack of transparency, barriers to entry,
specialist knowledge
Auction house revenues for wine
$400 million
US demand for wine up 34% since 2000
Source: International Organization of Vine and Wine, IWSR. Demeter Group
5
THE
OPPORTUNITIES
Exposure to the
MarKET
6
Direct Investing
Private Equity Funds
Vineyards
Public Markets
Actionable Analysis
Content
Applications
Luxury/
Lifestyle
What Wine is Fine?
% of Wines Offered by Region on Liv-ex
Argentina Portugal Bordeaux RedBordeaux White Burgundy Red Bugundy WhiteUSA Aus RhoneItaly Spain ChampagneChile NZ SFRGermany Alsace
7
Burgundy, Bordeaux, Italy Champagne, Niche Rhone, California
The further from the vine, the
lesser the wine
Most liquid and transparent wines,
UK, France or exchange traded
Current and back vintages
Investment
Grade Wine
8Source:Liv-ex
At a cyclical low point in traditional five year cycle
Supply diminishing, 2010 the last great vintage in Bordeaux,
Burgundy at historical low yields
Shift in market focus from Bordeaux to Italy, Champagne,
California
Market as measured by the Liv-ex 100 peaked in June 2011 and
has since pulled back
New trading platforms emerging helping transparency
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100
120
140
160
180
200
220
240
260
280
300
320
340
360
380
Jan
-03
Jan
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Jan
-05
Jan
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Jan
-07
Jan
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-09
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-10
Jan
-11
Jan
-12
Jan
-13
Index Value (Dec 03 = 100)
Investables
S&P 500
Liv-ex Investables vs. S&P 500
Trading
Exchanges
Advice and Access
10
11
Property /
private equity
TECHNOLOGY
12
Actionable Analysis
Picture Processing
ProductPoint of
Sale
APIsDirect to
Consumer
Market
OUTLOOK 2016
Year of the consumer
App, apps and more apps
Actionable analysis and content
Lifestyle assets
Life IS short, live well
Regional diversification continues
2015 Bordeaux vintage surprises to the upside
2006 vintage turns 10, sleeper, drinking well now
13
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FINE WINE
VALUATION AND
PERFORMANCE
15
SAMPLE STATEMENT
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Lafite Rothschild
2009
17
DRC, romanee Conti
1999
18
Dom perignon
1988
19
Vega sicilia
2004
20
Domaine Leflaive
2001
21
Screaming eagle
2005
• Wine and Spirits Education Trust Diploma graduate - 2012
• Wine investor – 10 +
• Portfolio manager – 5+
• Research analyst – 10+
• Investment banker – 3+
• Lived in London for 13 years
22
JWB’s ExpErtisE
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Jennifer Williams-Bulkeley AIWS20 Park Plaza, Suite 400
Boston, MA 02116617 948 2147