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!

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

A recent message about Worldwidewine Investments

From: AD

Dear  Jim,

Thank you for your reply.

Worldwide Wine Investments contacted me saying that in anticipation of 2010 release they were eager to clear final 2009 lots. These were Lafite Rothschild at GBP 14000 and Mouton Rothschild at GBP 6800.

The prices seemed good and I gave credit card details for the Mouton. However, alarm bells rang when they gave some reason for wanting a check rather than Credit Card. (Apparently they have such a high turnover that only a certain percentage can be Credit Card.)

I read your comments and stopped the Card payment and told them I was not happy and would not proceed. I did not mention your site but they immediately told me that you were the only negative publicity that they had ever receive. They named you and said that you were banned from all UK websites.

Yesterday I received another cold call from a company European Fine Wine. I will not deal with them but wonder where they all get my name from.

**

My earlier response to AD:

Thanks for your messages and my apologies for the slow reply. For the reasons given on my investdrinks blog I would not buy from this company. I would be interested to know what business they were proposing.

Comment

The prices for the 2009 Lafite and Mouton are certainly keen. wine-searcher shows that the Lafite is available from £13950 with most merchants listing it at £14,500 and above. The cheapest price for the Mouton is £7400 a case with most merchants listing it between £7500-£8000.

Worldwidewine Investments Ltd changed its name from Clearpoint Trading Ltd on 15th October 2010.  Given their short trading history as an wine investment company, I'm a little surprised that they have access to these two wines at such keen prices. The 2009 is still at the châteaux and not due to be delivered until the end of this year or early next year.

As for me being banned from all UK websites this is meaningless nonsense.

I welcome any comments from the directors of Worldwidewine Investments Ltd.  

Regarding other companies contacting AD it may be that they agreed for their name to be passed onto 3rd parties. If this was not the case the Data Protection Act may be being contravened here.