Fine Wine Investment-Brochure

8/6/2019 Fine Wine Investment-Brochure

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An Introduction to Structured

Fine Wine Investments


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Fine

Wine InvestmentsInvestment in Fine Wines is not new. In fact

those with expert Knowledge of the best vintages

and top Chateaux of Bordeuax have been

exploiting this sector for hundreds of years.Over the last quarter of a century Fine Wines

have proved to be one of most consistently

stable, high yielding, low risk investments in the

world.

When investing in Fine Wines you should rely on

expert advice.

We at Premier Cru, together with some of the

worlds leading experts in this field are able to

offer you a complete service in the purchase,storage management and eventual sale of your

Fine Wine Investment Portfolio.


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InvestingInFine Wine

Portfolio Capital Investment Portfolio Income Portfolio Retirement Plan Monthly Savings Plan School Fees Plan Wedding Plan Mortgage Repayment Portfolio

Capital Investments start from 5,000.There is no upper limit, subject only to

availability. Additional investments can

be as low as 1000 and can be invested at

anytime during the year.

Monthly Investment Plan5000 initialinvestment and 150 per month, and canbe enhanced at anytime.

Income Portfolio minimum investmentof 10,000.

The first Rule of economics states that where

an item is in limited supply, and the demand is

greater than the availability, its value

increases.

In 1855 Napoleon III effectively started the

Fine Wine Index when he classified the

wines in Bordeaux from 1 to 5. He based hisdecisions on the quality and prices realised by

each Chateaux wines over the previous 100

years or so, giving Fine Wines a pricing history

as far back as 1755. This classification still

governs the methods and limits the levels of

production of these world famous wines and is

vigorously up held today by the Appellation

Controlee laws, supported by EC directives.

The weather plays a major part in determining

the quality of the grapes and eventually thewine itself. On average only 4 or 5 years out of

each decade rates high enough to create a wine

suitable for investment. As conditions change

each year, they create a vintage of unique

character. It is these changing conditions that

gives these wines their rarity value.

Out of over 4000 Chateaux in Bordeaux, only

the top 50 reach the standards we demand. For

a quality investment the wine must be from the

best vintages of the top Chateaux.

Records that go back over 250 years, show that

Fine Wine has remained the steadiest form of

investment in the world, generally unaffected

by general elections, stock market fluctuations

and interest rate changes. With our unique

combination of expertise in Fine Wines, Tax

Law, investment management and market

requirements, we are able to structure

individually tailored personal investmentportfolios.


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Worlds Greatest

Tax Free

Investment Tax FreeUnder current UK taxation rules NO TAXES

are paid on gains as long as you do not trade

the wines on a regular basis.

Table wines (fortified wine or port) are

considered a wasting asset (life expectancy

less than 50 years) and such is not charged to

capital gains tax.

Wine is also considered a chattel and as

such is charged to Inheritance Tax

accordingly. There is no charge to Income

Tax as wine is not an income baring

investment.

Our clienteles Fine Wines are purchased

under bond and stored in a UK Government

bonded warehouse, and as such benefits from

being VAT and Duty free.

Fine Wine has consistently outperformed all

other forms of recognised investments.

Fine Wines as an investment have many

advantages over building societies, unit trusts,

and equities such as:

Tax Free Portability Low Risk Underlying Stability Decreasing availabity against an

increasing demand

Consumable Individually Tailored Easily Realisable

Demand in Fine wines has been growing

annually as more investment minded people

become aware of the opportunities brought

about by simple supply and demand.

Investment in top class FINE WINES FROM

THE BORDEAUX REGION have shown

greater returns and less volatility than any

other recognised market.

You may know some of the wordls greatest

wines, such as:Chateau Petrus, Chateau Cheval Blanc,Chateau Lafite-Rothschild, Chateau Margaux,

Chateau Haut-Brion, Chateau Latour, Chateau

Mouton-Rothschild.

These wines have not only given hours of

joyous drinking pleasure, but also substantial

returns for those who own them.


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Benefits

Personally tailored Portfolios by expert advisors. Personal ownership of a tangible asset.

Each portfolio is fully managed. Regular valuations and newsletters- including Auction updates. Complete flexibility over investment. No early redemption penalties. Partial/Full encashment without charge. An opportunity to invest in something other than the stock market or building society;

Completely tax free on all capital growth.

We advise our clients to store their wines in our Trustee Accounts held within UK Customs

controlled Bonded Warehouse, for the following reasons:

Recorded Personal Ownership. Wine maintained in optimum conditions. Wines cannot be removed from bond without owners written consent. Insured at full replacement value. Personal trust account. No VAT. No Duty. Proved provenance, vital to its value when sold.

Index to Following Pages

Premier Cru Performance graph. Premier Cru portfolio, valuation and example of management. Trust Account letter from Octavian. Article from Evening Standard (more press available upon request). Client Guide:

o Market Historyo Liquid Assets Investing in Fine Wineo Fine Wines The Worlds Best Tax Free Investmento Supply and Demand, The Reasons for Growtho Finite Productiono Which Wines?o When Do You Sell Your Wines?o What Protection is there?o What are the Charges?o The Wine Bottle At a Glanceo How do You Sell Your Wines?o CHRISTIESo Cellaro Premier Cru


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TAX FREE RETURNS

18.73% COMPOUND AVERAGE ANNUAL GROWTH

10,000 Invested in January 1990 - Value at 1st July 2007 169,845.00

MANAGED FINE WINE PORTFOLIO

FT All Share Index

Managed Unit Trust

Managed Life Assurance FundUK Building Society

UK Retail Prices Index

Jan-04

68,959

28,184

22,519

19,40316,104

15,412

Jan-05

71,197

32,075

24,534

21,05816,318

15,985

Jan-06 Jan-07

89,760 122,935

39,145 45,694

29,480 32,420

24,517 26,84316,566 16,798

16,338 16,927

Telephone: 020 8905 4495 or 07000 FINEWINE

email - [email protected] website - http:\\www.premiercru.com

The above graph is based on financial results from 1/1/1990 - 01/07/2007 as supplied by Micropal of Standard & Poors, and shows the best returns averaged from the 10 top producing life assurance companies.

Assuming an Offer to Bid price at UK basic rate tax. Wine indices calculated using actual sale values achieved.

January 1990 - July 2007

Jul-07

169,845

49,150

33,975

28,11616,948

17,356

S&P LF Fd Balanced Managed

S&P UT Fd Balanced Managed

FTSE All Share

Managed Fine Wine Cellar

UK Retail Price Index

UK Savings 2500+ Invmt net

Average

Annual

Return

18.73%

10.13%

7.69%

6.47%

3.25%

3.40%

Jan-90 Jan-91 Jan-92 Feb-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Dec-04 Jan-06 Jan-07 Jul-07

170,000

160,000

150,000

140,000

130,000

120,000

110,000

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0


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Premier Cru Fine Wine Investments

Original Investment

Current Value

Profit To Date

Clients Current Total

Purchase Cost Price New Growth

Date Cases Size FINE WINES PURCHASED Price per Case Value To-Date

May-00 1 B CH. MOUTON-ROTHSCHILD 1998 845 845 2,100 2,500 195.86%

1st Cru Classe Pauillac

May-00 1 B CH. LATOUR 1998 826 826 1,800 1,900 130.14%

1st Cru Classe Pauillac 41

May-03 1 B CH. LYNCH-BAGES 2000 615 980 1,000 62.60%

2nd Cru Classe St.Estephe

May-03 1 B CH. DUCRU-BEAUCAILLOU 2000 685 820 865 26.28%


May-03 1 B CH. LATOUR 2002 820 2,700 2,700 229.27%


May-03 1 B CH. LAFITE-ROTHSCHILD 2002 775 2,450 2,600 235.48%


May-03 1 B CH. MARGAUX 2002 775 1,900 2,100 170.97%


Nov-04 1 B CH. HAUT BRION 2003 1,530 2,000 2,200 43.79%

1st Cru Classe Graves

Average annual growth since 1994 38.19%

15,865

534.60%

2,500

Valuation Report April 2008

original wines have been traded to maximise profit

see following pages for history


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Sale - May 2000Purchase

Price Price Profit

Cases Size FINE WINES SOLD Per Case Total Per Case Total Taken

1 B CH. HAUT-BRION 1985 460 460 1,250 1,250 171.74%


1 M CH. LATOUR 1988 425 425 1,050 1,050 147.06%


1 B CH. PICHON LALANDE 1986 325 325 850 850 161.54%

2nd Cru Classe Pauillac

1 B CH. LAFLEUR 1988 625 625 1,550 1,550 148.00%

Pomerol

1 B CH. CHEVAL BLANC 1989 500 500 1,200 1,200 140.00%

1st Grand Cru Classe St Emilion

1 B CH. LEOVILLE-BARTON 1989 165 165 500 500 203.03%

2nd Cru Classe St.Julien

Total Sold 6,400

Repurchase - May 2000Cost

Price

Cases Size FINE WINES PURCHASED Per Case Total

1 B CH. MOUTON-ROTHSCHILD 1990 1,300 1,214 1,214


1 B CH. HAUT-BRION 1990 1,575 1,575 1,575


1 B CH. MOUTON-ROTHSCHILD 1998 845 1,640 2,100 1,640


1 B CH. LATOUR 1998 826 826 1,800 826


3 B CH. CALON SEGUR 1998 165 165 265 495

3rd Cru Classe St. Julien

1 B CH. CLINET 1998 585 585 400 585

Grand Vin de Pomerol

Total Repurchased 6,335

History of Cellar Investment


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N.B. Difference in sale and repurchase of 65 returned to investor

Sold - May 2003Cost Current Sale

Price Price Price Profit

Cases Size FINE WINES SOLD Per Case per Case Per Case Taken

1 B CH. MOUTON-ROTHSCHILD 1990 1,300 1,214 1,300 7.08%


1 B CH. HAUT-BRION 1990 1,575 1,575 1,950 23.81%


3 B CH. CALON SEGUR 1998 165 495 630 27.27%

3rd Cru Classe St. Julien

Total Realised 3,880

Repurchased - May 2003Cost

Price


1 B CH. LYNCH-BAGES 2000 615 615


1 B CH. DUCRU-BEAUCAILLOU 2000 685 685


1 B CH. LATOUR 2002 820 820


1 B CH. LAFITE-ROTHSCHILD 2002 775 775


1 B CH. MARGAUX 2002 775 775





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Sold - Nov 04Cost Current Sale

Price Price Price Profit

Cases Size FINE WINES SOLD Per Case per Case Per Case Taken

1 B CH. CLINET 1998 585 585 480 480 -17.95%

Grand Vin de Pomerol

1 B CH. MOUTON-ROTHSCHILD 1998 845 845 1,100 1,050 24.26%


Total Realised 1,530

Repurchased - Nov 04Cost

Price


1 B CH. HAUT BRION 2003 1,530 1,530





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Our Ref: LAG/jmr/10079602

12 July, 1996

Premier Cru Fine Wine Investments Ltd34 Orchard DriveEdgwareMiddlesexHA8 7SD

Dear Sir

RE: PREMIER CRU FINE WINE INVESTMENTS LTD CLIENT TRUST ACCOUNT

We confirm that the wines held in this account are the property of individual clients and cannot beremoved by Premier Cru Fine Wine Investments Ltd, except with the specific written authority from theclient.

All correspondence should be directed through Premier Cru Fine Wine Investments Ltd.

Yours sincerely,

Laurie GreerDirector

CARRIED IN ACCORDANCE WITH THE ROAD HAULAGE ASSOCIATION (1991) CONDITIONS OF CARRIAGE COPIES AVAILABLE UPON

REQUEST

OCTAVIAN LIMITED EASTERLAYS GASTARD CORSHAM WILTSHIRE SN13 9PP

TELEPHONE 01225 810735 FACSIMILE 01225 811369

REGISTERED IN ENGLAND No.2536658 REGISTERED OFFICE P.O.BOX 21 RIVERSIDE HOUSE CHARLTON MEAD LANE HODDESDON HERTS EN11 0RG ALL GOODS STORED IN

ACCORDANCE WITH UNITED KINGDOM WAREHOUSE ASSOCIATION CONDITIONS OF CONTRACT COPIES AVAILABLE UPON REQUEST ALL GOODS


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Client Guide

Investing In Fine Wine


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Market History

The drinking and worshipping of wine goes back before our knowledge. It emerges with civilisation itself

from the East.

It was in fact the Romans who brought the first vines to France at about 500 BC, and planted in Bordeaux

at approximately 50 AD. There has been much speculation about the quality of Roman wine, which is

quite well documented. It apparently had extraordinary powers of keeping, which in itself suggests that

even then it was good. The great vintages were discussed and even drunk for longer than seems possible;

there are records of a wine made in 121 BC being drunk when it was 125 years old.

The most consequential move in history was when the Romans took their vines to Gaul, by the time theywithdrew in the fifth century from what is now France, they had laid the foundations for almost all the

greatest vineyards of the modern world. Unlike the Greeks, the Romans were not limited to earthenware

and amphoras to store their wines in, they had barrels not dissimilar to modern barrels and bottles not

dissimilar to modern bottles.

Shakespeare was also a great lover of wine, and left some of the most descriptive tasting notes of the 17th

century.

Late in the 17th century someone discovered the cork. Bit by bit it became clear that wine kept in a

tightly corked bottle lasted much longer than wine kept in a barrel as it had been, which was likely to "go

off" at any time after the barrel was broached. It was also discovered that wines kept in different sized

bottles also aged in a different way, acquiring what is known as a bouquet.

The Wine trade was booming and Bordeaux wines were being exported all over the world. In fact ships

were measured by the number of tonnes of wine they could carry.

In 1855 Napoleon III effectively started the "Fine Wine Index" when he classified the wines in Bordeaux

from 1 to 5. He based his decisions on the quality and prices realised of each Chteaux wines over the

previous 100 years or so. Apart from one change in 1979 when Chteau Mouton-Rothschild was

promoted from a 2nd growth to a 1st growth wine, nothing has ever changed.

In fact the laws he put in place in 1855 are vigorously upheld today and controlled by the Institut

DAppellations dOrigine (explained later in this brochure) and upheld by EC directives.


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Liquid Assets

Investing in Fine Wines

People have been investing in Fine Wines for hundreds of years. However until now, like Fine Art and

Antiques, you would either have to be an expert on the subject or be prepared to make expensive mistakes

when entering the market purely for monetary gain.

Premier Cru was formed with the specific intention of offering structured investments to ordinary people

with little or no knowledge of Fine Wines.

The idea of creating an investment company of this kind came in 1992 when one of the founder members

of Premier Cru was introduced to a "National Insurance Contributions" tax avoidance scheme utilising

Fine Wine. Due to the stability of the wine markets, it was possible to offer prospective clients a guarantee

that they would receive 100% of quoted values. Other companies had been using Gold and Diamonds.

However, fluctuations in those markets often caused clients to sell at a loss making the whole scheme

pointless. Although we were not interested in NIC avoidance, a Tax Free Stable Market seemed the

perfect basis for an investment.

Research started mid 1992 and in mid 1994 we launched our first "Investment Portfolio" (a recent

valuation is at the back of this booklet). Our development team which has over 60 years combined

experience in the Financial Services and Fine Wine industries have designed the plans taking all the best

benefits of standard investment policies and removing the common drawbacks of those policies. No up-front or exit fees, no early redemption penalties or dealing charges, no capital gains or income tax. In

doing so, we have created what is now generally considered to be the most tax efficient and fully flexible

range of investment plans available in the open market today.

For you the investor, a Fine Wine should have the following attributes; be from a limited production, be

produced under strict regulations, be from a recognised system of classification, and have a complexity of

taste and longevity that improves its quality with age.

When investing in Fine Wines the quality, purchase price, quantity, Chteau and vintage are of primary

importance, and once bottled the atmosphere, temperature and condition of its storage is equally as

important.

Like all investments there has be a market to sell to, and there is none better than the universal wine

market, where too many would be purchasers are chasing a forever diminishing level of quality stock.


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Fine Wines

The Worlds Best Tax FreeInvestment

Fine Wines have consistently outperformed all other forms of recognised investments.

Records that go back over hundreds of years show that Fine Wine has remained the steadiest form of

investment in the world, generally unaffected by individual country recession, interest rate changes,

general elections and stock market fluctuations. With our combined expertise of Fine Wine vintages,

market availability, requirements, conditions, and tax laws, we are able to structure 'tailor made'

portfolios to provide for:- an income, repay a mortgage, supplement a pension or simply be used for

capital growth to mature at a specific time.

Fine Wine as an investment has many advantages over other structured investments such as unit trusts, life

assurance, investment bonds and equities as it benefits from the following attributes:

Tax Free

Easily Realisable

Increasing Rarity

Decreasing Availability

Increasing Demand

No Penalties For Early Encashment

No Dealing Charges

World-Wide Portability

Stable Investment Base

Consumable

Low Risk

Offers Diversification

Non-Correlated to the stock market

Demand has been growing annually as the worlds inhabitants are introduced to the exclusivity andcomplexity of Bordeaux wines whilst more investment minded people become aware of the opportunities

brought about by simple supply and demand. Over the past five years or so, the Far Eastern buyers have

come into the market with some force. They are not buying wines to keep and sell on, they are buying

them to drink, and are rapidly reducing the world stocks.

Investment in top class Bordeaux Wines have shown greater returns and less volatility than any other

recognised form of investment and can start from as little as 1,500.

Some of the most common Premier Crus we use are; Chteau Lafite, Chteau Latour, Chteau Petrus,

Chteau Margaux, Chteau Cheval Blanc, Chteau Mouton-Rothschild, and Chteau Lafleur to name but a

few, which have not only given hours of joyous drinking pleasure, but also substantial returns for those

clever enough to own them.


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Supply and DemandThe Reasons for Growth

Three main factors that make Bordeaux wines the most

exclusive, famous and sought after in the world.

WeatherGrapes, like all other fruits depend on ideal weather conditions to produce a good, sweet, juicy crop.

France, like England has erratic and unpredictable weather. A truly magnificent wine can only be

produced in ideal weather conditions. From the time the vine starts to bud in late April to the harvest in

September or October, every drop of rain, every hour of sunshine and every degree of heat has its eventual

effect on the quality and character of the wine. Hence the special uniqueness of each Vintage.

The beginning of April sees the beginning of the years crop with the first signs of life as the vine buds.Within 10 days of this the leaves have formed. A frost at this time of year would damage the crop thus

reducing the total amount available. It is against the law to protect the vines with coverings, and you will

often find the villagers out on a cold spring night using heaters and flamethrowers to warm the air and

protect the buds.

The vine flowers in early June and must go on for 10 - 14 days for good grapes to form. Heavy rain now

could be fatal to the expected crop.

If the flowers escape rain and frost, grapes take their place. In August the grapes turn colour to red or

translucent yellow. The ripening process will now begin and last for about 100 days. It is during this time

that the weather will have its greatest effect on the wine, and will actually change the eventual taste and

character of the vintage produced.

A vine left to grow unmanaged would spread across as much as one acre of land, however the fruit of such

a large vine will not produce a great wine. To concentrate all the vines energy into making a smaller

amount of a better quality grape the vines are regularly cut back almost down to their main stem. In St.

Julien (where wines such as Chteaux Beychevelle and Leoville-Barton are made) one vine produces

only enough juice for half a bottle of wine.

History has shown that only 3 or 4 vintages out of every 10 are of a high enough quality to be used as an

investment wine.


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Appellation ControleeA French phrase, which indicates the wine to which it is applied, has been produced under the strict

supervision of the Institut DAppellations dOrigine, and has been made from grapes grown in a specific

area of France. The first Appellation was set up in 1936 in Chteauneuf-du-Pape. Since then the system

has been extended throughout France and now covers some 30% of total wine production, including the

wines made in the west.

The Institut dAppellations dOrigine will initially measure and define the area to be included in the

particular Appellation and thereafter has authority under French law, reinforced by EEC directives, to

regulate the grape varieties that may be planted, the maximum amount of grapes produced, the method of

pruning, and often the precise wine-making techniques to be employed.

The Objects of the system are:- To maintain and enhance quality and to maintain the special

characteristics of the wines of a particular area. Wine produced under the authority of the Institut

dAppellations dOrigine are entitled to display the term Appellation Contrle on their bottle labels as

an indication that the contents is wine of the best quality and from a limited supply.

They also limit the amount of labels each vineyard is allocated to only enough for 177 cases of wine per

acre of land, for each vintage. Any wine that may be left over after all the labelled bottles are full is sold

under a secondary label, or blended with another wine.

Age and QualityAs soon as the wine is ready to drink stocks start to diminish. Wines good enough to be used as an

investment will usually have a life span of 40-49 years, some may last even longer. An excellent wine will

take approximately 5-7 years (average) before it has matured enough to be drinkable, however most

connoisseurs will wait until the wine has reached its optimum drinkable level, usually when the wine is

approximately 12-18 years old. The wine will then carry on maturing in the bottle getting better and better

as the years pass, right up until the end of its life when it will quite suddenly, (in comparison to its life

span) 'go off'. Or as it is better known in the wine world as 'Over the Hill'.

As we all know, an increasing demand (due to increasing quality and rarity) together with a decreasing

supply (due to consumption) creates the basis for a very successful and stable market.

With our panel of experts we are able to predict when specific top class wines will mature and when they

will reach the end of your prime drinking life. We are able to offer structured investments, with varying

degrees of risk, to mature at specific times.


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Which Wines?

All investments demand knowledge and expertise. We at Premier Cru pride ourselves on our knowledge

of taxation, market conditions and forces, and the intricate rules of supply and demand. When we structure

an investment portfolio, our panel of wine experts will recommend Fine Wines that should show the bestreturns, coupled with the appropriate level of risk over your chosen period of investment.

We are able to structure tailored portfolios of Fine Wines at the most competitive purchase price. The

purchase price of Fine Wine will vary up to 20% from stockist to stockist.

Only the Top 30-60 of the registered 4000 Chteaux in the Bordeaux region reach the standards we

demand, for quality, underlying stability, limited availability, historical and forecasted investment growth.

When Do YouSell Your Wines?

As with any investment there will be an optimum time when you would want your money to mature, to

meet the costs of say a Wedding, School Fees, Mortgage Repayment, Retirement or that world cruise.

If the market is trading high on a particular wine you own, we will write or telephone to inform you of the

increase in value, with any recommendations to sell and replace with a younger vintage at a lower price,

thereby increasing your stock without cost and protecting your original capital outlay. As the winesbelong to you at all times we will need signatures from yourself or your beneficiaries to carry out the sale.

Unlike almost all other investments, there are no penalty charges for an early encashment; we do however

recommend a minimum investment period of three years.

You will receive regular valuations and newsletters, keeping you abreast of current market conditions and

ongoing prices.


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What Protection is there?

You physically own the wines, not shares or units of investment.

There have been some high profile court cases in the past where wine stockists who offer a

storage facility have gone into liquidation and clients wines - not stored in individual accounts -

were deemed the assets of the company and sold by the receivers . We overcome this risk by

giving each client an individual account, inside our Private Trust Account with Octavian

Warehouse in Corsham, Wiltshire. In this manner the wine belongs to you at all times, and

can only be removed from bond with the companys signature andthe your signature or

that of a beneficiary in the event of death.

Octavian has special equipment to monitor the atmospheric temperature and humidity. The

conditions must be perfect so the wines can mature properly and realise maximum profitability

(see Christie's Ullage Chart ) thus protecting this valuable investment against deterioration. The

wines are fully insured for their full replacement value, both in storage and in transit.

The overall benefits of our system are:

Insured at full replacement value.

Wine maintained in optimum conditions.

Recorded personal ownership.

Wines cannot be removed from Bond without owners written consent.

No VAT. No duty.

NB. If you decide to store your wines personally, please be aware that the conditions in which

your bottles are kept will reflect on its value. Like any consumable rare product it must be

stored in the correct conditions and carry full provenance.

What are the Charges?

For arrangement of the portfolio, ongoing documentation, specially reduced Bond charges,

insurance, professional advice and full management, annual charge is 1.5% of the original

purchase price. Storage is currently 9.02 per case per annum.

No Dealing Charges on sale - unless sold at auction

No Administration Charges for an 'Income Portfolio'

No Early Encashment Charges

Investment Top-up without charge Partial Encashments without charge


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high fill: normal fill. Level of young wines. Exceptionally good in wines over 10 years old.

into neck: can be level of fill. Perfectly good for any age of wine. Outstandingly good for a wine of 10

years in bottle.

top-shoulder: normal level for any claret 15 years old or older.

upper-shoulder: slight natural reduction through easing of cork and evaporation through cork and capsule.Usually no problem. Acceptable for any wine over 20 years old. Exceptional for pre-1940 wines.

mid-shoulder: probably some weakening of the cork and some risk. Not abnormal for wines 30/40 years

of age. Estimates usually take this into account.

Lower-mid-shoulder: some risk. Low estimates, usually no reserve.

Low-shoulder: risky and usually only accepted for sale if wine or label exceptionally rare or interesting.

Always offered without reserve and low estimate.

Below low-shoulder: not acceptable for sale unless a rare sort of bottle. Wine will usually be

undrinkable.

CHRISTIE'S

History of a Wine Bottle - At aGlance

Capsule

BORDEAUX

Level/Ullage descriptions

and interpretations revised

descriptions

high fill

into neck

top-shoulder

upper-shoulder

mid-shoulder

lower-shoulder

low-shoulder

below

low-shoulder

Interpretations

see notes

below

1

2

3

4

5

6

7

8


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How do You Sell Your

Wines?

Through Premier Cru Fine Wine

Investments LtdSince 1992 we have built a network of leading brokers & stockists all over the world, who buy wines on

behalf of clients. You will have the choice of two prices.

1. A spot price will be given if you need to sell your wines at short notice, and you would usually receivepayment within 48 hours.

2. The best price can be achieved by broking your wines throughout the wine world through our networkof stockists and private buyers. This type of sale will usually take 3 -8 weeks.

By AuctionIf you wish to sell through an auction house, we will prepare the necessary paperwork and see to the

technicalities. The auctioneer's commission is usually around 10% of selling price, and the proceeds

should reach you six weeks after sale.

Please see Christies details on the next page.

Private SaleThere are many private cellar owners who regularly advertise for Fine Wines to purchase. We are able to

furnish you with the necessary information. We are also approached directly for specific wines and we are

able to introduce you to a private buyer.

For the Wine DrinkerWines can be withdrawn for consumption at any time. You will however need to pay the VAT and Duty,

again we will help prepare the paperwork. It is important to remember VAT is only charged on the

original purchase price of the wine, regardless of its value.


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Buyers premium

Please note that there is a premium of 10% payable on the final bid price.

Bidding

Bidding will be at duty paid-paid prices at per dozen bottles or per lot, or as otherwise indicated.

Options to buy parcels

In this sale the buyer of the first lot of any one wine will, at the discretion of the auctioneer, have theoption to take further lots of a similar bottle size.

Wine available in bond

Overseas and trade buyers wishing to take wine in bond may do so if the wine is so available and

instructions are given at the time of sale. Bidding will also be at duty-paid prices but duty will be deducted

from the invoice. The buyer will be responsible for any in bond transfers, deliveries or clearances.

Wine sold in bond only

Bonded transfer certificates will be issued upon payment. United Kingdom purchasers will be responsible

for duty, clearance, delivery and any other charges applicable from the date of sale.

V.A.T.

Wines subject to Value Added Tax, currently 17%, are indicated with a (or if in bond and deliveredduty-paid).

V.A.T. paid by buyers resident outside of the E.E.C. is refundable on proof of exportation within 9 months

of purchase.

Delivery (duty-paid only, U.K. mainland)

The carriage charge for all deliveries lying within cellars within the U.K. mainland is 6 per case or part

case plus V.A.T

Wines lying at Christie's are available for collection only, after payment, providing that 24 hours' notice is

given.

Not less that an entire lot can be delivered to one address.

Classifications

Classifications in the text are for identification purposes only and are based on the official 1855

classification of the Mdoc and other standard sources.

Chteau-bottled wines in mixed parcels are indicated by the initials C.B., Bordeaux-bottled wines by B.B.,

English-bottled and London bottled by E.B., L.B. or the name of the bottler if known.

Release of Lots

The issue of Christie's official Delivery Order will constitute delivery.

Ullages and corks of old wines

Wines are described in the catalogue as correctly as can be ascertained at time of going to press, but

buyers of old wines must make appropriate allowances for natural variations of ullages, condition of

cases, labels, corks and wine. No returns will be accepted.

CHRISTIE'S


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Plans

Capital Investment Plan3 years or longer - Minimum investment 5,000

Annual Investment Plan3 years or longer - Minimum investment 5,000

Income Plan5 years or longer - Minimum investment of 10,000

School Fees PlanMinimum investment of 5,000 or 5,000 plus 2,100 annually

Must start 5 years before school fees are payable. Withdrawals once a term

Wedding/Engagement Plan3 years or longer - Minimum investment 5,000

Retirement PlanMinimum investment 10,000 plus 500 a month. Minimum term 5 years.

Additional investments may be made into any plan at any time. The minimum additional investment is

2000 there is no maximum. Investments in excess of 1,500,000 will need to be spread evenly

throughout the market, to keep prices stable, and will take up to 2 weeks to fully invest.

Minimum recommended term for all plans is 3 years (unless specifically arranged with head office).There is no maximum investment period. A cellar of Fine Wine can be managed and 'turned' for

generations without further capital expenditure. All wines can be placed in trust.


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Documents

Fine Wine Investment-Brochure