Earning money by investing in wine is possible!
The “en primeur” marketing of the great 2019 Bordeaux vintages is in full swing. Should we crack up or prefer to buy shares in Groupements fonciers viticoles (GFV)? Le Revenu advises you on how to invest in the French vineyard by combining pleasure and return.
Why shouldn’t this tangible and reassuring asset also be part of your estate? If you have neither the knowledge nor the financial means to manage a wine business directly, there are two investment options: buying “en primeur” and the Groupements fonciers viticoles (GFV).our advice to make your investment in wine a success.
Buying a futures policy: almost guaranteed profits?
The sale of “en primeur” wine refers to the marketing of great classified growths in the year following the grape harvest. The wine being matured in barrels is not delivered in bottles until two years later, i.e. in the spring of 2022 for the 2019 vintage.
This practice is very popular with wine lovers and informed investors because it allows them to obtain rare wines, often under sales quotas, even from the best wine merchants, at attractive prices.
The “en primeur” marketing of the great Bordeaux vintages of 2019 is in full swing, after a slow start due to confinement. Two good reasons to crack: 2019 is a very good year and prices are down sharply, sometimes by more than 15% (Carillon de l’Angélus*).
There is no guarantee that your divine bottles will increase in value, but experience proves that this is often the case. Favour safe, “affordable” values: Château Lagrange (32 $ ), Château Cantemerle (25.5$), Château Haut-Marbuzet (38 $), Château Latour-Martillac (29 $).
Winegrowing land groups (GFV): an investment for “enthusiasts”.
The criterion of appellation is also essential for an investment in a Groupement fonciers viticoles (GFV): it is apparently tempting to acquire an unpretentious vineyard whose price seems attractive and to play a catch-up effect.
In fact, this is a bad calculation, as the price of a hectare of vines shows. While AOP vines (protected designation of origin) have gained more than 200% in twenty-five years, those without AOP have remained almost stable over the period.
In legal terms, the GFVs are civil companies that bring together a limited number of natural persons, whose purpose is to acquire and manage plots of vines.