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The most cost-effective way to secure investable wines \| Limited opportunity	Johan Malan, 24 January 2023

Dear *|FNAME|*,

Our Vintage Investment Portfolio (VIP) is back with the ethereal 2020 vintage! Whilst 2018 and 2019 experienced a higher variance in quality, 2020 is the first vintage since 2017 to show consistent quality across the board.

'Similar conditions to 2017. The wines are elegant and already show great balance.' – Abrie Beeslaar, Kanonkop

'The Swartland in 2020 was awesome.' – Chris Mullineux, Mullineux and Leeu Family Wines

The 162-bottle, R100,000 VIP 2020 is the most cost-effective and efficient way to secure most of South Africa’s finest and most investable wines – and we only have 27 units left. Both the 2015 VIP and the 2017 VIP have seen average annual price growth of 18.5%.

A combination of continued critical acclaim over the past decade, many top producers experiencing export growth, and local producer-led inflation will lead to further increases on release pricing. But don’t only think investment. The VIP 2020 offers a superb addition to your wine collection, with terrific drinking ahead.

Fine wine continues to demonstrate its ability to build long-term value in volatile markets. Data from Liv-ex illustrates how the Liv-ex Fine Wine 100 (a measure of the most sought-after wines on the secondary market) outperformed the S&P 500 and Gold over a 20-year period.

Source: Liv-ex (Click on the chart to enlarge)

Executive summary

The VIP 2020 is a diversified, blue-chip portfolio of 22 of the finest and most investable South African wines from the 2020 vintage, unitised into 60 identical R100,000 portfolios.
Four years of professional cellaring is included in the purchase price, with no further costs. This constitutes a potential cellaring cost of R7 316 per portfolio – an effective 7.3% discount on the purchase price.
Considering the anticipated release prices of those not yet on the market, the value of the portfolio, including cellaring costs, totals R115 117 and an effective 13.1% discount.
The VIP 2020 offers flexibility in trading single wines or the entire portfolio at any time after release.
Investors are given access to Wine Cellar’s brokerage platform, the Strauss & Co Fine Wine Auctions, free investment advice, historic sales data, and market reports.
With 20 years of trading, Wine Cellar is the leader in South African fine wine, professional cellaring, and the secondary market. Secondary market sales grew to R40 million in 2022 across our brokerage and Strauss & Co Fine Wine Auction platforms.
The VIP includes: Boekenhoutskloof, Delaire Graff, Glenelly, Kanonkop, Klein Constantia, Le Riche, Leeu Passant, Meerlust, Mullineux, Porseleinberg, Reyneke, Sadie Family, Savage, Stark-Condé, Taaibosch, Thelema, Tokara and Vergelegen.