Wine Banking

Building up, extending or selling a wine collection is no easy task even for the most enthusiasts. And the same is true for selling or purchasing a wine estate.

Understand your needs

Whether you are trying to buy a wine estate or vintage wines, Societe Generale Private Banking can assist you with your project through a network of partners:

Real estate: our partners can help throughout the purchase or sale process.
Wine collection: our partners can help you build up, extend or sell a wine collection.

Michel Veyrier

When I became a wine estate dealer in 1991, I had no idea it would be such a demanding task! Almost 30 years later, I have the feeling that my training as an agricultural engineer and oenologist has given me the technical expertise to handle every type of wine estate. This has helped me gain the educational and psychological skills required to help families sell their vineyards most efficiently. A sale can be traumatising for wine-growers, especially when they have owned the estate for many generations. I’ve also allowed some acquirers to better define their project and motivations. Acquiring a wine estate can be complicated as it often implies changing jobs and relocating, on top of all the financial issues. Lastly, I’ve seen how important fiscal issues are for both the seller (tax on capital gains and reemployment) and the buyer, because there is much more to a purchase than the price, and the business plan needs to incorporate legal fees, additional investments and working capital. It’s a rewarding profession as all deals are different and you never get bored.

^{Michel Veyrier, Vinea Transaction network’s founder and Manager}

Thomas Hebrard

Investing in vintage wines incorporates, I believe, the fundamentals of a successful investment over the medium or long term. First, wine is an enduring asset. Man was drinking wine 3,000 years ago, drinks it today and will no doubt still be drinking it in another 3,000 years. Wine is part of our culture. It goes with our gastronomy. Wine is thus an enduring asset. Second, demand is growing. The type of wine we choose follows the evolution of our standard of living. The richer we get, the better the wine we drink, which means that the more rich people there are on this planet, the greater the demand for vintage bottles of wine. The buoyant growth in demand in China, for example, is only just beginning, firstly because mean purchasing power in China is continuing to increase and market penetration is currently still limited. Secondly because tomorrow’s economic powers are emerging countries that have not yet experienced their cultural (r)evolution vis-à-vis wine (India, Turkey, Brazil, etc.) Lastly, the production of different wines being finite, prices are naturally driven up. Some wines are becoming inaccessible (to all but the most wealthy) and demand is turning to other wines, thus creating investment opportunities in rising regions (such as France’s Rhone Valley or Languedoc). Get involved rather than investing. Bring added value to the wine sector rather than speculating. To undertake this type of meaningful investment, it is important to be accompanied by experts. This is what Societe Generale’s Wine Banking offer in partnership with U’Wine can provide.

^{Thomas Hebrard, CEO of U’Wine}

Why us ?

Long-term support: our partners will continue to assist you well after the project is implemented.

Save time: we help you select wine experts.

Step by step

#1

You discuss your requirements with your private banker.

#2

Your private banker introduces you to our partners who are all wine experts.

#3

They present the solutions they feel would best match your requirements.

#4

They help you implement your project.

Did you know ?

Five countries account for 50% of the world’s vineyards:

Spain (13%)
China (11%)
France (11%)
Italy (9%)
Turkey (6%)

Source : www.larvf.com

Questions/Answers

How much does a wine estate cost ?

It all depends on the size of the estate, the region, the quality of the crops… The cost generally ranges from €500k to several million euros. However, the best estates can be worth tens of millions of euros.

Who can purchase a wine estate ?

Running a wine estate requires good knowledge of the sector and can be tough because of bad weather and diseases. Your project must be carefully considered.

Why build up a wine collection ?

Whether you are building a collection for your own consumption, for resale or as a heritage, you should not expect short-term return. The objective should rather be to accumulate assets.

Important information

The content provided on this page is for informational purposes only and is not contractually binding. It is not intended to provide investment advice or any other investment service and does not constitute a personal recommendation, advice, or an offer from Societe Generale Private Banking to purchase, sell or subscribe to investment services and/or financial products and/or investments and/or transactions in pleasurable goods, such as wine. The information set out above shall not be considered legal, tax or accounting advice. Societe Generale Private Banking shall under no circumstances be held liable for any decision taken by a reader on the basis of this information.

All Societe Generale Private Banking entities reserve the right not to update or amend this document and shall accept no liability in this regard.

The wealth management and financial solutions, offers, products, pleasurable goods and activities mentioned on this page depend on each client's personal situation, the legislation applying to him/her and their tax residence. Consequently, the offer presented may not be eligible for implementation, adaptation or approval at all of the Societe Generale Private Banking entities and must comply with Societe Generale Group's Tax Code of Conduct. Furthermore, access to some of these products, services and solutions is subject to specific conditions, notably in respect of eligibility.

Please contact your private banking adviser to check that these offers meet your needs and are suited to your investor profile.

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