Five years ago, fine wine was booming. It wasn't only that pandemic lockdowns had diverted disposable income away from travel and fine dining. Global interest rates were at historic lows, and many asset classes were offering low-to-no returns. But wine was being widely bruited as a rare asset class that was making money. At Uncorked, we started to get a new kind of customer. They didn't seem to know a lot about wine, but they had money in their pockets and wanted to drop lump sums on the blue-chip, top-end stuff. It took me a little while to learn their lingo. I didn't necessarily always handle these transactions well; I was once flummoxed when a customer asked me who regulated us. (For the record, the FCA does not regulate wine merchants. We regulate ourselves, so find yourself a bricks-and-mortar wine merchant you trust.)
Then the market changed. Interest rates went up, and simple cash accounts began to offer good returns. There was now an opportunity cost to holding luxury assets. Those new customers disappeared. Money moved out of wine triggering a prolonged price correction, which is where we find ourselves now. If you've been following our Unearthed offers, you'll have noticed there are some real bargains out there.
'Buy low, be very patient'
The drinks trade has recently gotten excited about an article by Michael Burry, the investment guru and former hedge fund manager who made a fortune predicting the collapse of the American subprime mortgage real estate bubble. (Mr Burry was portrayed by Christian Bale in the film 'The Big Short'.) In a fascinating September 11 article posted to his substack, Mr Burry argues that digital assets such as cryptocurrencies, 'but also our bank accounts, our investment accounts, our pensions, Social Security, health insurance' may become uniquely vulnerable in an era of AI and quantum computing. Against that panorama, he leans into the value of physical assets, and settles on one in particular: bonded fine wine. 'My eyes, ears, and every hair on the back of my neck perk up when I hear of formerly highly valued assets beset by a case of the doldrums.'
Mr Burry's wine investment advice is to buy low, be very patient, keep a diverse portfolio (within wine, and balanced with other investments) and buy only from reputable sellers. And while I'm not someone to consult for financial and investment advice (as my wife will definitely confirm) I'd probably add that you should only invest in wines you like, so that if the market tanks you'll have something nice to drown your sorrows in.
There are plenty of businesses that describe themselves as wine investment companies. At Uncorked we've never done that; we always describe ourselves as fine wine merchants. But those of you who trust us to store wine on your behalf know that our customer reserves portal offers market valuations and recent trade data (drawn from the Liv-ex wine marketplace platform) on wines in your reserves, and we're happy to price and list for resale wines you've bought from us and stored under bond. As the customer reserves built up over 32 years of trading mature, that's an increasingly large part of what we do.
Back to work
On the subject of bricks-and-mortar shops, it's a relief to see the City getting back to being properly busy. Over-the-counter sales were up a whopping 60% last month year-on-year, which goes some way to ameliorating the difficulties in broader trading. This followed an increase of 31% in August, though October's like-for-like numbers are more challenging since it was October last year when there was a noticeable step up in footfall. Finally, we're back to retail sales making up around 20% of our total. It's been a long, slow recovery from the pandemic!
What we've been drinking
Zoë treated herself to a bottle of 2020 Berliquet. As young Bordeaux from the concentrated 2020 vintage it needed decanting and food, but given that, it showed the flash and class of its owners (Chanel). It's worth noting that the price isn't that Chanel, though, at only £36.95 per bottle. Berliquet is a case in point of the slide in wine prices outlined above, and at £135 for a case of 6 bottles in bond, it's now incredibly good value.
Luis Pato is one of Portugal's top winemakers, and Niall was seriously impressed by 2021 Luis Pato Vinha Pan. This cool vintage Baga is peppery and floral, and slowly maturing (as the best Baga does) into something reminiscent of mellowing Bordeaux. Jabu got excited by the 2024 Newton Johnson Chardonnay Southend: high-energy oaked Chardonnay from one of South Africa's top winemaking spots, the Hemel-en-Aarde region.
I'm not sure what trouble exactly Dermot Sugrue had with his dreams, but Andrew toasted his daughter's birthday with the 2022 vintage of Dermot Sugrue's top drawer English sparkling wine The Trouble With Dreams. This South Downs sparkling wine is identifiably English (tight citrus, fresh green apple) but it has a depth of character that few English Sparkling Wines achieve.
I've been a big fan of the Rioja estate Remelluri for years, so it's great to finally have Remelluri in Uncorked. The 2017 Reserva is vivid and classy, with some very finely handled tannins. The style is not what's called traditional Rioja (long ageing in American oak as championed by López de Heredia and La Rioja Alta); the oak is French here, though it's less obvious. Long live the diversity of styles in Rioja, and this is beautifully done.
100-point sherry now by the bottle, in the shop!
Our recent Equipo Navazos La Bota no.130 de Manzanilla Pasada offer was a big hit, but some of you were disappointed we didn't have single bottles for sale in the shop. We do now! To recap, Equipo Navazos are premier independent sherry bottlers. Manzanilla Pasada is a finely poised category of Manzanilla in which the salty tang of a fresh Manzanilla begins to acquire the oxidative notes of an ageing Amontillado. The La Bota no.130 is an exceptional example, bone dry and intensely complex, and it was one of only 7 wines to score 100 points in this year's edition of Spain's pre-eminent wine publication, the Guía Peñín. I for one have never come across a Manzanilla-type sherry with this level of intensity before. Still available by the case under bond, it's now also available by the bottle in our Copthall Avenue store, priced £53.99 a bottle.
99-point 10-year-old aged Albariño, also now by the bottle in the shop!
We've shamelessly cherry-picked another top scorer from this year's Guía Peñín. The Pazo Señorans Selección de Añada is a unique wine, proof of concept that fine Albariño can age extremely well. Pazo Señorans are among Spain's best producers, and their recently-released 2016 Selección de Añada scored 99 points in the Guía Peñín. You might have noticed our August email offer. Still available by the case under bond, 2016 Selección de Añada is now also on the shelf at £66.95 a bottle.
C*******s is coming
We apologise for referencing so early the major festive event that will fall just before the calender flips over to 2027. It doesn't seem that long ago when we were trapped in the time loop of the 2026 perpetual summer heatwave. But we in the wine trade know too well that the-season-to-be-jolly-whether-you-like-it-or-not arrives quicker than you might think. So, remember: we deliver. We've made a fine art of corporate multi-drop deliveries. Individual bottles of Champagne delivered to a hundred clients, each with a gift message? Easy-peasy. Bring us your spreadsheets. I'm looking forward to an easy one myself this year, since Jabu has promised to do all the packing (thanks Jabu) but measured overall, we'll be very busy. Ho ho ho.
Delivery
Delivery costs are a frequent topic of discussion here at Uncorked. No one likes to pay for delivery (as evidenced by the number of orders just over our £250 threshold for free delivery, not to mention the customer who recently drove from Sheffield to pick up a small order!) but fast and reliable delivery is a cornerstone of modern retail. Our simple flat rate charge of £10 (£8.33 nett of VAT) has remained unchanged since 2015 but - believe it or not - prior to that it was £15. Back then, we passed on about half the cost of delivery but since then the costs of drivers and mail order packaging have risen substantially so that last year, delivery costs alone totalled £38k but we recovered only £13k on sales. The last thing we want to do is discourage you from ordering for delivery but with margins under intense pressure this needs a better balance. From 1 November, we propose to raise the flat rate charge to £15 (£12.50 plus VAT) and the minimum order for free delivery to £300 (£250 plus VAT). We hope you'll understand and we greatly value your continued support. And remember: we don't charge for deliveries within a 1 mile radius of the shop. We enjoy the exercise!
Storage
As those of you who buy wine in bond with us know, we can store wine on your behalf. We store customer reserves in the bonded warehouse LCB Eton Park, a state-of-the-art facility at Burton-upon-Trent. We invoice storage twice a year, and you can see our storage charges laid out here. We'll be invoicing storage for the period between August 2026 and January 2027 on 15 October, and any wine you have in storage with us on that date will be subject to the 6-month charge. If you withdraw any wines before that date then they won't be subject to the charge, so if you've been thinking about a reserves release, now's the time.
Champagne draw: and the winner is
Every month we run a prize draw, and the winner gets a magnum of Champagne. To enter, you need to be on our mailing list, and you need to make a purchase in store. Every purchase counts as one entry in the draw, so you improve your chances by making more purchases. Like my boss, this month's winner is a dapper man who loves cycling and likes to drink Bramaterra. Congratulations to Kyle P., who takes home a magnum of Roederer Collection.
Hope to see you soon on Copthall Avenue. /NT
