In addition to Denmark, where the wine is warehoused, the company also has offices in Sweden, the Netherlands, Italy, Switzerland, Denmark and England.So how do the RareWine executives manage to achieve such impressive results? The answer lies in assisting their investors to carefully select the wines they want to include in their portfolios.
Mads and Lars said they evaluate around 4,000 different wines per quarter, and make a decision on which wines to include in portfolios based on the average daily trading price on their platform, as well as Live-Ex, Winesearcher.com and other databases. “An important part of our evaluation process is authentication to insure the wine we purchase has not been counterfeited,” reported Mads. “We have one of the best authenticators in the world, as well as equipment that analyzes 200,000 high resolution pictures, so we can see eight layers of paper fibers. We can also compare the bottles with those in our trading house, because we have such a large selection of fine wine.
“However, we believe that for the next couple of months that the market will not have large demand, but then will go back up,” he continued. “Therefore, we bought lots of Champagne when prices were down. We know that the price of land in Champagne has gone up 25%, and we believe Champagne is under-valued. We only predict the future based on data.”