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Friday, 15 July 2011

Bordeaux Wine Trading Company highlights dangers of buying en primeur

One very obvious lesson from the convictions in the Bordeaux Wine Trading Company Ltd and International Wine Commodities Ltd is how ideally suited en primeur is to fraud. It is indeed a gold plated vehicle for fraud. Had Craven and Hayble been really clever rather than merely greedy, particularly Craven, they could well have covered their tracks and disappeared with a substantial portion of the £1.2 million looted from investors.

Curiously only this week I received a query from a potential investor (TG) who had been contacted by Worldwide Wine Investments Ltd (WWI), who are based at Luminous House, 300 South Row Milton Keynes, MK9 2FR. Although set up in March 2007 the company traded as Clearpoint Trading until 15th October 2010, when it changed its name to Worldwide Wine Investments Ltd. The registered office was also changed from 145-157 St John Street, London EC1V 4PY.

From the company's website it is clear that they have made rapid progress since October 2010 – 'we are a unique high-end wine investment brokerage specialising solely on the crême de la crême Bordeaux wines making you the best returns possible'.

TG explained that Worldwide Wine Investments had offered him: 'Lafite Rothschild 2010 @ £11,500 per case (9ltrs), Mouton Rothschild 2010 @ £7,400 per case (9ltrs). Prices include all taxes and import to the warehouse.

They take 5% of profit on resale.

Sounds very reasonable?'

My response to TG:


'If you look at wine-searcher you will see that Worldwide Wine Investments price for the 2010 Lafite-Rothschild (WS: £11675) is lower than any price shown. Similarly with the Mouton 2010 (WS: £7639).

Although it may look reasonable and a good deal, you might wonder how a newly set up company is able to offer lower prices than its competitors given that it is highly unlikely that it will have been able to buy direct from Bordeaux. Instead will have had to buy from its UK competitors.'

TG told me that the sales staff had told him that they had between 160 and 210 cases of 2010 Lafite. I assume this must have been said in jest as even a major player like Berry Bros & Rudd are thought have had only around some 200 cases of 2010 Lafite to offer to their customers this year en primeur. The amount of 2010 en primeur wine the First Growths have released this campaign is significantly less – probably the smallest ever.

The WWI claims 'Bordeaux Vintage Wine, The 100% Tax Free Tangible Asset'. Not sure that HMRC would agree!

I have emailed Geraint Jones, a director of Worldwide Wine Investments Ltd, inviting him to comment.

15 comments:

  1. I bought a case of Haut Brion earlier this year from Worldwidewine investments ( en primeur ).
    I paid using a credit card.
    I'm hoping this is going to be a good investment ?
    Doy you think this is a safe company to deal with and what protection of my investment do you think I have ?

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  2. Anon. I would not buy from Worldwide Wine Investments. Paying by credit card should give you protection if it goes sour. What vintage did you buy and how much did you pay please?

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  3. Jim,just wondering if you're aware of a company named bordeaux cellars? (www.bordeauxcellars.com) They're saying that they can offer a guaranteed return of 12% per annum. They're top of my google search, yet they're not mentioned at all on your website... does this mean they're new?

    I would appreciate your feedback.

    CP

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  4. Jim are you aware of Boltons Investments Ltd they cold called me?
    www.boltonsinvestments.com

    ReplyDelete
  5. Anon. I am aware of Boltons Investments Ltd. What did wines did they offer you and at what price please?

    ReplyDelete
  6. Anon – recent question comment. I wouldn't buy from this company.

    ReplyDelete
    Replies
    1. This comment refers to Bordeaux Cellars.

      Delete
  7. Anon(14.9.12): I can't comment unless you supply the prices quoted. Thanks

    ReplyDelete
  8. They Offerd me a Mouton Rothschild 1998 X12 for £7,850 Aprently it will be held in Ehd?

    ReplyDelete
  9. Are you sure you have the price right? If you look at wine-searcher you will see that it can be bought from £2900 for a case of 12. Remind me please who quoted this price and was it on a cold call?

    ReplyDelete
  10. Yes thats the price they gave me and it was a cold call 2 months ago Boltons investments ltd
    have you had dealings with this company before?

    ReplyDelete
    Replies
    1. Anon. Please can you provide me with further details about your dealings with Boltons Investments. Thank you.

      Delete
  11. Some dealings but never a price so out of kilter with the normal market price.

    ReplyDelete
  12. Dear Jim,

    As this has been brought to my attention now, I would invite you, or the editor of this blog, to remove the comments anonymous (20 Sept 2012) has posted about us unless he/she/they are able to provide evidence of (1) cold calling (absolutely false as we do not do cold calling (2) We store at EHD (information of our storage facilities are online...we do not use EHD); (3) we priced £7850 for Mouton Rothschild 1998...
    This is obviously a ludicrous attempt to spoil our name; please refer to our website where we CLEARLY state our position and marketing strategy on pricing.
    You will see price is in fact one of our strongest USP...Wine Searcher consistently rates our services 5 stars out of 5 and our prices are very often the most competitive in the UK.
    In addition, we do not charge any upfront commission at all which make the last statement posted by this anonymous not only false but libelous, false and potentially discriminatory.

    I look forward to your earliest response to remove this thread or we will be forced to act upon this to make you disclose the identity of this blogger.

    Regards,
    Vincenzo Tagliavia
    CEO, Boltons Investments

    ReplyDelete
  13. Dear Jim,

    As this has been brought to my attention now, I would invite you, or the editor of this blog, to remove the comments anonymous (20 Sept 2012) has posted about us unless he/she/they are able to provide evidence of (1) cold calling (absolutely false as we do not do cold calling (2) We store at EHD (information of our storage facilities are online...we do not use EHD); (3) we priced £7850 for Mouton Rothschild 1998...
    This is obviously a ludicrous attempt to spoil our name; please refer to our website where we CLEARLY state our position and marketing strategy on pricing.
    You will see price is in fact one of our strongest USP...Wine Searcher consistently rates our services 5 stars out of 5 and our prices are very often the most competitive in the UK.
    In addition, we do not charge any upfront commission at all which make the last statement posted by this anonymous not only false but libelous, false and potentially discriminatory.

    I look forward to your earliest response to remove this thread or we will be forced to act upon this to make you disclose the identity of this blogger.

    Regards,
    Vincenzo Tagliavia
    CEO, Boltons Investments

    ReplyDelete