BSAS2015
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The document discusses the growing global wine market, which is valued at $200 billion, and opportunities for investment in wine as a lifestyle asset. It notes that demand for wine is increasing, especially in Asia and North America, while supply is diminishing due to low yields. The summary outlines various investment opportunities in wine, from direct investment and private equity funds to public exchanges, as well as the growth of technology applications and analysis tools in the wine industry.
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BSAS2015
- 1. The Opportunity in the Wine Market Managing A Life Lived Well Jennifer Williams-Bulkeley AIWS 20 Park Plaza, Suite 400 Boston, MA 02116 617 990 6840 617 948 2147 #wineassetmgr jwb@aocadvisors.com Copyright 2015 AOC Investment Advisors - All rights reserved www.wineassetmanagement.com
- 2. Lifestyle Asset Demand 0 5 10 15 20 25 30 35 40 North America Asia-Pacific ex. Japan Japan Europe Latin America Middle East and Africa Global Average 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
- 3. 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
- 4. 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
- 6. Exposure to the MarKET 6 Direct Investing Private Equity Funds Vineyards Public Markets Actionable Analysis Content Applications Luxury/ Lifestyle
- 7. What Wine is Fine? % of Wines Offered by Region on Liv-ex Argentina Portugal Bordeaux Red Bordeaux White Burgundy Red Bugundy White USA Aus Rhone Italy Spain Champagne Chile NZ SFR Germany 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
- 8. Investment Grade Wine 8 Source: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 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Index Value (Dec 03 = 100) Investables S&P 500 Liv-ex Investables vs. S&P 500
- 12. TECHNOLOGY 12 Actionable Analysis Picture Processing Product Point of Sale APIs Direct to Consumer
- 13. 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
- 22. • 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
- 23. 23 Jennifer Williams-Bulkeley AIWS 20 Park Plaza, Suite 400 Boston, MA 02116 617 948 2147 @tangiblemgmt www.tangiblemgmt.com jwb@tangiblemgmt.com