131: Wine, Whisky and Champagne: Buy, Sell or Hold? With Gary Boom, Founder and CEO of Bordeaux Index

Money Maze Podcast

Business, Investing, Management, News, Business News

4.8 • 216 Ratings

🗓️ 14 March 2024

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

In May 2021, we turned our attention to an investor dilemma – Should we view wine as a proper asset class? And how should we think about the wine industry, unmodernised for so long, but ripe for change!

A disrupter emerged in 1997, in the shape of Bordeaux Index, set up by Michael Spencer and Gary Boom.

In this conversation we learn about the shifting sands of supply and demand. We discuss global climate impact and some of its advantages for the wine industry.

We discuss wealth creation and the continued thirst for luxury wines, champagnes and whiskies.

Gary also explains where new and exciting wines are emerging, why he’s re-assessed the emerging English opportunity set, and how they’re embracing digital transformation via their new LiveTrade platform (which was rebranded & expanded this year).

Gary discusses the impact of their technology in helping bring liquidity and transparency to wine trading - reflecting on his previous life at ICAP - and why increasing numbers of investors are building portfolios in the wine & spirits world.

We then assess the key question; where might there be money to be made in this fast-evolving market?

And aside from the investment implications, who doesn’t like to sample lovely wine?! No one wants to finish their lives observing wistfully, as Ernest Hemingway once did, that “my only regret in life is that I didn’t drink more wine!”

NOTE - This episode was recorded in late 2023, prior to the re-launch of their LiveTrade product in early 2024.

The Money Maze Podcast is kindly sponsored by Schroders, Bremont Watches and IFM Investors.

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Transcript

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0:00.0	We'll be launching the extended version of Live Trade, where you will be able to put on any wine for sale onto our platform, and anyone will be able to bid against that wine.
0:10.7	You will now have a complete portfolio, and you will be able to, let's say you store with another wine merchant, you will be able to send us your portfolio, then log on to our website. It'll come up as a virtual
0:22.4	portfolio as if you've stored it with us and you will be able to trade. This has never been
0:27.6	done before. So this is not only putting the man on the moon, this is building a base.
0:32.6	Welcome to the Money Maes podcast. I'm Simon Brewer and Will Campion and I have created this show to explore
0:39.2	and unravel some of the mysteries surrounding the investment business. You can keep up to date by
0:44.0	visiting Moneymayspodcast.com and please sign up to our newsletter to ensure you won't miss a release.
0:50.4	If you enjoy this show, please subscribe and we'd love you to tell a friend or colleague about it.
0:55.3	Thank you for listening.
0:57.3	In May 2021, we turned our attention to an investor dilemma.
1:02.5	Should we view wine as a proper asset class?
1:05.3	And how should we think about the wine industry for too long, stuck in a technology-absent world of old-fashioned merchants and
1:12.2	indifferent service, but ripe for change. And along came a chief disruptor in the shape of Bordeaux
1:18.1	index through its co-founders Michael Spencer and Gary Boone. And in that conversational wine tour,
1:23.8	we had one of our most popular episodes. Two years later, and the landscape of the world of
1:29.0	wine, whiskey and champagne, both trading and investing, has continued to evolve rapidly, both from
1:34.6	a demand and supply perspective. And I hope today we can learn what is happening in both demand and
1:40.2	supply, how and where it's evolving, we've had a glut in Bordeaux, how technology is allowing
1:45.7	for more efficient execution, why increasing numbers of investors are building portfolios,
1:50.4	and where might there be money to be made for the canny investors? And reduced to its core,
1:55.8	who doesn't simply like to drink lovely wine? And no one wants to finish their lives wistfully regretting,
2:02.5	as Ernest Hemingway said, my only regret in life is they didn't drink more wine. With that,
	...

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