Fine Wine Vintners Ltd – another meteoric rise

I'm very impressed by how quickly a number of new companies have been able to establish themselves as movers and shakers in the fine wine sector. Take, for example, Fine Wine Vintners Ltd. From their website (http://www.finewinevintners.co.uk): 

'As one of the UK’s leading fine wine traders we are ideally positioned to assist clients to identify and acquire wines with the greatest potential to appreciate. We combine financial discipline, market insight and wine knowledge to optimise returns.'

'Access to Rare Stock

We have established a network of negociants, merchants and traders throughout UK and Europe. These relationships give us the opportunity to secure and dispose of stock in as cost-efficient manner as possible. Quality Control The unfortunate reality is that the wine industry, like so many other luxury goods, is subject to counterfeit and the supply of inferior stock. To combat this we insist all our suppliers provide us with provenance and verification of all stock. All of our stock is subject to this process. Almost all the wines we trade are OWC (Original Wooden Cases).'

'Re-Sale
Fine Wine Vintners has the network of contacts throughout the UK and Europe to arrange the re-sale of your wines at a moments notice. Ordinarily, we advise our clients when to take profits or when we believe optimal yields have been achieved. Naturally, care and attention is taken in order to ensure that best prices are achieved. Structuring your Investment. How your portfolio is structured depends greatly on the size of your traditional investment portfolio and your net worth. Initial investment and the length of term of the hold are very important as it will determine what we can recommend to you. Fine Wine Vintners generally advises new clients to dip their toe in the market with anything from £4,000 to £25,000 for individual portfolio and £50,000 to £250,000 for an independent fund or collective investment portfolio.' 

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Company history

Fine Wine Vintners Ltd was incorporated on 4th June 2009 as Fine Wine Investments Ltd. The company's name changed on 12th October 2009 to Fine Wine Vintnors Ltd and then changed (when someone realised that 'Vintnors' was a mispelling to Fine Wine Vinters on 16th November 2009. Again a mispelling but corrected on 24th November 2009, so company is currently registered as Fine Wine Vintners Ltd. The sole director is Bradleigh Anthony Caley, who has a Bromley post code. Their website mentions top Bordeaux wines as well as some top-end Australian wines.

My advice

Despite the claim to be 'one of the UK's leading wine traders' Fine Wine Vintners Ltd have no track record, so I would not buy wine from them, especially if they offer Bordeaux en primeur. Buying Australian wine for investment is a lot more speculative than top Bordeaux and certainly not a choice for a wine investment beginner.

If wine investment was regulated in the UK, then claims like 'as one of the UK’s leading fine wine traders' would have to have a more solid basis.

Careless words could cost you dear

Advice from Investment News here does not look too clever this weekend: Nouveau World Wines Ltd were raided by the fraud squad on Thursday (see here) and Morgan Aston Ford Ltd are facing the threat of being struck off – see below. MAF's accounts have been overdue since 24th April 2008 and the company return has been overdue since 4th February 2009.

Investments News - Thursday 2nd October 2008

Is fine wine investment a real alternative?

Thursday 2nd October 2008

Over the last twenty years or so there has been a great deal of interest in alternative investments with wine one of the more prominent additions to the conversation. But is wine investment really a reliable way to invest your money or is it a very specialised market to be wary of?

A quick look on the internet to see how many companies will actually help you to invest into wine and give you advice will show you how popular it is. In the eyes of some people it is seen as a hedge against falling markets and weak economies because fine wines will always attract interest from all corners of the globe. But do not just assume that wine prices go up and up because they don’t and like any other investment arena there are trends which come and go – if you get these wrong you could be in trouble!

So why not check out the array of wine investment guides on offer by clicking here with names such as Nouveau World Wines, Morgan Aston Ford and Aston Lovell all prominent in this sector. Do not forget, a fine wine may not just be for drinking!

http://www.financialadvice.co.uk/news/5/investments/8071/-is-fine-wine-investment-a-real-alternative.html

From Companies House website (6.2.2010)

Morgan Aston Ford Ltd

Status: Active - Proposal to Strike off
Date of Incorporation: 07/01/2002
Country of Origin: United Kingdom
Company Type: Private Limited Company
Nature of Business (SIC(03)):
5225 - Retail alcoholic & other beverages
Accounting Reference Date: 28/02
Last Accounts Made Up To: 31/03/2006 (TOTAL EXEMPTION SMALL)
Next Accounts Due: 24/04/2008 OVERDUE
Last Return Made Up To: 07/01/2008
Next Return Due: 04/02/2009 OVERDUE
Last Members List: 07/01/2008

02/03/2010 FIRST GAZETTE

19/08/2009 COMPULSORY STRIKE OFF SUSPENDED (DISS16(SOAS))

21/07/2009 FIRST GAZETTE

Nouveau World Wines Ltd: six arrested in wine investment scam

Six people were arrested today by fraud squad officers investigating a wine investment scam.

Two women aged aged 40 and 32 and four men aged 40, 65, 30 and 34 were held during raids in east and south east London. One of those arrested is understood to be 34 year-old Daniel Snelling.

The move came after Scotland Yard detectives were alerted to a large-scale specialist wine fraud. Investigators believe victims have handed over thousands of pounds to invest in specialist Australian wines. Once the money was taken the “investors” were told the wine had been laid down to increase in value as it aged, but it did not exist.

Detective Chief Inspector Robin Cross, who leads the fraud squad, said the arrests followed a lengthy inquiry, codenamed Operation Iceman.

 

The senior officer said: “This kind of investment fraud is becoming far too common. People from all economic backgrounds are being targeted and persuaded to invest in what appears to be a sound financial opportunity.

"We would advise those considering investing money, whether it be a small or large amount, to do their research and be sure that the companies or individuals they are dealing with are reputable and legitimate.”

The arrests were made at two business address and several homes in Docklands, Sidcup and Bexley. The six were being held at an east London police station on suspicion of money laundering offences.It is understoond that they have now (5th March) been released on police bail.

Set up in September 2004 Nouveau World Wines Ltd offered Australian boutique wines as an investment – often powerful Shirazes. Wines sold to investors included 2007 Molly Dooker Carnival of Love Shiraz, 2005 Two Hands Aphrodite and 2005 Greenock Creek Alice's Shiraz. 

As well as London offices Nouveau World Wines Ltd claimed to have offices in Hong Kong and Melbourne, Australia. 

On NWW's website, which has now been taken down, the company explained that: 'all the fine wines from Nouveau World Wines are sourced through out wine regions across the new world market, namely Australia, Argentina, California, Chile, South Africa and New Zealand. Each vine yard comes with a good trading history in fine wine. The wines are mostly stored in reputable bonded warehouses in perfect storage conditions or stored at the original point of production within in the vine yard. Most wines are available in original wooden cases unless stated.'

Wine investment companies offering Australian wine have a poor history. Australian based Heritage Fine Wines and Wine Orb both collapsed spectacularly in 2005.   

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This is a combined report sourced from a Press Association report by Chris Greenwood, Press Association's crime correspondent from story on Kent News ­www.kentnews.co.uk

www.kentnews.co.uk/kent-news/Fraud-squad-arrest-eight-for-alleged-wine-scam-newsinkent33446.aspx?news=local
+ With my additions on 5th March 2010.

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My comment 

So far the company involved has not been named nor have those arrested. I have, however, received a number of messages recently from concerned investors who had bought various Australian wines for investment and who were having difficulty contacting the company. 

I'm delighted to see further evidence that the police forces are now taking wine scams seriously. I remain amazed that so many people are prepared to invest in something they probably know little about from companies they know even less. It is not as though the sums are small I have been contacted by people who have written cheques for over £100,000 for wines that never existed – all on the basis of a cold call!

I'm particularly pleased to see police action in the lead up to the 2009 Bordeaux en primeur campaign, which will surely be heavily hyped and demand for the top wines may well out strip demand. En primeur, where you pay for wine two years before it is delivered is a brilliant bespoke vehicle for potential fraud.