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BWI, Information Portfolio

01732 779 343 www.bwiltd.co.uk

Company registered in England, Company No. 03611673 VAT Registration No. 719280329

BWI Who we are...

Andy Lench became interested and involved in wine over 20 years ago, particularly Bordeaux Wines and the classified growths which make up the predominance of the most appropriate wines for investing in. Following this interest, Andy has established a highly successful business in the US which predominantly imports and sells classified Bordeaux wine together with wines of other French regions plus Italian, German and Spanish wines. This business includes En Primeur or wine futures from Bordeaux. Given the success of the U.S. business and enthused by his love of wine together with the benefits he has personally seen, Andy decided to establish a company in the U.K. to provide similar opportunities from a UK base. During the past 20 years Andy has monitored the significant growth in value of Bordeaux wines – both En Primeur and the older vintages. He has harnessed this growth in value with significant effect both personally and for private individuals. At the end of 2003, Andy was seeking to expand and develop BWI as the general market and appetite for wine was growing significantly. It provided an opportunity for Andy to work with his brother Robert, whom he appointed as Managing Director. Robert has built BWI significantly and the growth in clients and turnover has been at a rate of over 22% per year since his appointment. Robert had spent a 28 year career in the financial services industry during which he observed the vagaries private investors suffered as a result of investing in more recognised areas. This experience encompassed a range of financial services institutions, including as a main board director for a major firm of stockbrokers. During this career Robert observed the issues arising from the volatility evident in the more recognised investment asset classes and funds. At the same time, through a love of wine, developed with his brother, Robert observed the greater stability and unique opportunities arising from investing in wine. His background in financial services has been a key element in the growth and development of BWI and its range of services specifically directed to private clients. The combined expertise of Andy and Robert has encouraged them to create a highly personalised and effective opportunity for clients to benefit from investing in wine. The platform they have established significant financial substance due to the backing and liquidity of the parties to the arrangement. BWI therefore has the correct pedigree, personnel & financial stability to deliver a significant range of services to private clients on a long term basis, with ongoing advice and support.

Bordeaux Wine Investments Limited (BWI) was established by Andy Lench in 1998 following his success in the United States with his company Bordeaux Wine Locators. The were many reasons for this development, the main ones being to gain access to the UK market where significant stocks of older vintages were to be found and the general recognition of London being the centre of the secondary market for Bordeaux fine wine. A key element to establishing BWI was to create a Company that is specifically aimed at establishing wine opportunities for private clients who seek to buy, collect, consume and invest in fine Bordeaux wines.

BWI Ltd 01732 779 343 www.bwiltd.co.uk

BWI Wine Specialists The Team

Our passionate professionals are experts in wine, and are here to help you discover what the wine industry has to offer, from drinking to investment and broking your current cellar.

Simon Quinn Private Client Sales Manager

Simon is one of the most experienced members of the BWI team having 14 years experience working within the wine trade. His passion for wine started during his studies at university. On graduation he began his wine journey working with wine retailers whilst studying for his WSET examinations, up to Diploma level.

Following this, he worked for a well known, London based, broker and continued to develop his interest in providing a bespoke service for private clients within the business. Before joining us at BWI, he has specialised in selected areas such as Burgundy and Rhone.

Martin Lea Private Client Sales

Having graduated from University Martin spent two years travelling the further flung reaches of the World including a number of wine regions. These included the Barossa and Hunter Valley’s in Australia and Mendoza and the Aconcagua Valley in South America.

For us, Martin brings with him a varied and stimulating range of experiences from his previous roles in the commercial world. With 2 years retail experience Martin can offer advice on wines at either end of the price spectrum.

Martin has developed his love of fine wines and undertaken extensive training. This has culminated in achieving a distinction in the WSET Advanced Certificate. He is currently embarking on another leg of his wine education and has almost completed his WSET Diploma.

Simon’s passion for fine wine is as enthusiastic as ever. He has tasted En Primeur in Bordeaux each year since the 2000 vintage and has also visited many of the top domains of Burgundy.

Though his tastes are eclectic, his favourite wines are the reds of the Cotes de Nuits, in Burgundy and the whites of the Mosel, in Germany.

Contact Martin on 01732 779 343 [email protected]

Contact Simon on 01732 779 343 [email protected]

Our clients are at the centre of what we do, we relish in working closely with our clients, and over time develop our relationships, each client is unique and require different needs. With this experience we have built a range of services at different levels, enabling us to adjust to suit you. Here are just a few areas that we cover regularly:

Investing in wine

Taxation of gains from wine

Private Reserves

Cellar Management

Storage and Insurance One of our great strengths is the blend of skills within the BWI team, through experience, wine knowledge, investment and financial expertise.


BWI Investment Services

There are key criteria to consider when creating a wine investment portfolio. Fundamental is selecting the correct wines to achieve investment returns. Use the experienced team at BWI to advise you relative to the key criteria listed below:

• Wine is not usually an asset which returns a quick profit and we would normally advise a minimum investment period of between 3 to 5 years and preferably 10+.

• To maximise profits and maintain the highest level of provenance, wines should be purchased and stored under bond. This enables the buyer to purchase the wines in duty and VAT suspended status. They can then be sold on under bond, without duty or sales tax being charged.

• When buying for investment it is advisable to purchase the best you can afford. Broadly speaking, this means the top names, in the top vintages.

• Over the longer term, large format bottles can often outperform standard cases of 750ml bottles. This is an area where we specialise.

• Buying as futures (i.e. en primeur) is often the best time to get hold of the most sought after wines before they appreciate significantly. This also gives the buyer an opportunity to select the bottle format. This is the cheapest the quality investment wines will be.

• All wines which are of investment grade material are reviewed by independent critics such as Robert Parker ‘Wine Advocate’ and James Suckling ‘Wine Spectator’. The reviews and scores (out of 100 points) which these critics give can have a profound and dramatic effect on the value of a wine and should be taken into consideration.

• Past performance of a particular wine in previous similarly rated vintages can be a guide to some extent as to how a current vintage might appreciate.

• Certain wines have strong followings in particular markets around the world and can be subject to fashion and brand status.

• Provenance is important and stock sourced directly from the chateau carries a premium. Physical condition is very important, especially for the older vintages. Another area we specialise in.

Our terms and conditions can be reviewed at the following link: http://www.bwiltd.co.uk/terms.asp


BWI provides investment advice and services to private clients from our base in the UK. These services include: • Experienced and dedicated staff fully qualified to advise you

• Advising clients on the appropriate wines to meet their objectives

• Sourcing wines for clients

• Storage and insurance ‘under bond’ at our warehouse facility

• Managing client portfolios and cellars for re‐sale and realisation of

funds

• Broking of client wines

• Reinvestment recommendations

BWI Wine Investment Features


Features of Wine Investment

A defined amount is produced each vintage, per chateaux.

A reducing supply (once it is being drunk).

It has become an ‘international currency', significantly enhancing the re‐sale value.

A 200 year price history.

General points

You can invest as little as £2,500, up to whatever amount you want ‐ we give the same excellent service and advice for all investments.

Wine is a readily realizable asset but to achieve reasonable returns you should look to a minimum period of three to five years.

Wine has a demonstrable record of growth in value.

Wine values are less volatile than other forms of investment, barring cash deposits.

There is no charge to capital gains or tax on sale of wines.

Wine is a non‐income producing asset therefore income tax is irrelevant.

01732 779 343 www.bwiltd.co.uk Private Client Sales Team [email protected] [email protected]

BWI Case Study Back in 2004 Bordeaux Wine Investments took the opportunity to showcase their wine investment opportunities at the AIS (Alternative Investment Show) at London Excel. The show featured over one hundred exhibiting companies offering investments with potential for considerable financial rewards, where the appreciation of the investment base was as much in the pleasure of ownership as in the potential yield. One particular success story that came from this event was the 2003 En Primeur portfolio that Chris and Jessica Tiffin were advised to invest in by BWI Managing Director ‐ Robert Lench. Chris, a retired BA Captain, was looking for an investment which offered more than simply a financial return. Having retired from BA in 2001, Chris and his partner Marion spend a lot of time in their house in South Africa, which they have built themselves, whilst Chris engages his spare time teaching sailing. He has also just completed construction of a 'trike', based on a Kawasaki motorcycle. Chris admitted that his knowledge of fine wines was somewhat limited, and therefore found the idea of having BWI manage his investment very attractive. Having had a 'disastrous' experience with the stock market, Chris approached his investment with a certain degree of caution. After considering film and property as possible investment opportunities, Chris and his daughter, Jessica, decided to invest £19,479.96 and £17,955.32 respectively. The investment included a selection of wines from the top Bordeaux chateaux, including Margaux, Latour, Lafite Rothschild, Leoville Barton, Montrose, Pichon Comtesse Lalande, Leoville Poyferre, Calon Segur and Pavie. Unlike other previous investments, Chris liked the idea that he had something he could touch and feel, and if the investment did not prove to be a huge success, he would always be able to resell the wine, or even drink it himself! When in July 2006 BWI contacted Chris to give him an update on his investment, he had no idea of how well the wines had performed. Chris' investment was valued at £48,670.00 and Jessica's at £36,295.00 a profit of £29,283.04 and £18,339.68 respectively in less than 3 years. This reflected a 127% increase over the 3 years and Chris instantly contacted Jessica, who is currently travelling in Thailand, to tell her the good news. She immediately decided to spend some of her 102% gains in extending her trip! Having discussed various options with the BWI sales team, Chris and Jessica decided to let BWI broke the 2003 wines on their behalf and reinvest a proportion if their profit in the 2006 vintage.

Chris said “investing with BWI has proved invaluable for my family and, in particular, the advice and guidance they have given us has provided a fantastic return on our investment. We will certainly continue working with BWI, and believe that this route is a safer and more secure investment than stocks and shares”.


Jessica Tiffin

Wine and quantity

purchased

Total Buy

Price 2004

Total Sell

Price 2007

Calon Segur

(36 bottles) £1,050.12 £1,425.00

Leoville Barton

(48 bottles) £1,440.00 £3,120.00

Leoville Poyferre

(48 bottles) £1,440.00 £3,200.00

Pavie

(60 bottles) £4,975.20 £5,750.00

Lafite

(24 bottles) £4,440.00 £12,500.00

Margaux

(24 bottles) £4,650.00 £10,300.00

Total £17,955.32 £36,295.00

Chris Tiffin

Wine and quantity

purchased

Total Buy

Price 2004

Total Sell

Price 2007

Calon Segur

(36 bottles) £1,050.12 £1,425.00

Leoville Barton

(48 bottles) £1,440.00 £3,120.00

Leoville Poyferre

(48 bottles) £1,440.00 £3,200.00

Montrose

(12 bottles) £600.00 £1,125.00

Pichon Comtesse

Lalande (24 bottles) £1,249.92 £1,500.00

Lafite

(24 bottles) £4,399.92 £12,500.00

Latour

(24 bottles) £4,650.00 £15,500.00

Margaux

(24 bottles) £4,650.00 £10,300.00

Total £19,479.96 £48,670.00

BWI Case Study When Gordon Bailey first put his toe in the water, investing in fine wines, he placed himself squarely in the hands of Robert Lench, MD of Bordeaux Wine Investments Ltd. Like many self‐employed business people Gordon, who has run a number of businesses in the acoustic walling sector, had a limited pension, and investing in wine offered an opportunity to fill that gap quickly and effectively. Gordon’s initial investment was £10,000, however when he saw the level of return he quickly committed his early profits into purchasing more wine, followed by a further tranche of £32,880. “I have always enjoyed drinking wine”, commented Gordon, “although I am often as happy with a £10 bottle, as with an £80 bottle”. Gordon’s other interest is horse racing, which he follows with a passion. “I once did a round trip of 200 miles in the Copper Belt of Zambia, because one of our secretaries, who was going out with a trainer, tipped some horses that were running. We bet on 8 horses and 7 of them came in with a win or place. This became an excellent means of making money, until she had a huge row with her boyfriend and then we lost the lot. At least wine is not subject to the vagaries of young love!” said Gordon. As with many clients, Gordon, enjoys investing in wines because the product, unlike financial investments such as stocks and bonds, is one which can be seen, touched, smelled, and tasted, and his purchases have sparked an interest in wine, which now matches his interest in the turf. “My gold wedding anniversary is approaching rapidly, and I will have to make some more investments with BWI, if I am to buy my wife an appropriate gift for the event”.

“ I enjoyed wine”, said Gordon “but I knew nothing about the potential earnings that could be made from it, ultimately I was thrilled with the results”.


Wine Total Buy

Price 2004

Total Sell

Price 2007

Calon Segur £300. 00 £380.04

Gruaud Larose £228.96 £249.96

Lafite Rothschild £2,000.00 £4,500.00

Latour £2,100.00 £4,700.04

Leoville Barton £360.00 £669.96

Leoville Poyferre £300.00 £669.96

Margaux £2,050.00 £3,999.96

Mouton Rothschild £1,600.00 £1,800.00

Total £9,678.96 £17,779.48

Mr Gordon Bailey—Sale of 2003 Portfolio Purchased July 2004—Sold May 2007

Pontet Canet £285.00 £339.96

Sociando Mallet £195.00 £219.96

Rieussec £260.00 £264.96

BWI Case Study The attractions of investing in wine were completely unknown to Mrs Judith McLintic although investment generally was not. Having built a portfolio of buy‐to‐let property and managing her own self invested pension fund, Judith was seeking alternative investments. Her requirements included tax efficiency, ease of management and administration, and of course the opportunity to make money. Having been introduced to fine drinking wine over a few years by BWI, Judy became disposed to considering investing in wine. The benefit of tax free gains was very appealing to her, together with the ease of access to the wine with the total flexibility to encash at any time. Deciding to “dip her toe in the water” Judith took advice to invest in the 2003 wines as recommended by BWI. These wines were held at our bonded warehouse facility with Judith receiving full certification of ownership. We would normally advise a minimum investment period of between 3 to 5 years and preferably 10+. Judith relied upon the advice of the BWI Private Client Team before encashing and this proved to be highly profitable. Her return was 124% over 4 years, an impressive 22.47% annualised return. Wine, when purchased correctly, can offer excellent tax free returns to clients and the BWI Private Client Team provide a consistent, ongoing advisory service. For Judith, this culminated in advice to invest in the 2008 En Primeur wines. As you can see this has already delivered a stellar investment value return.

“ I never realised that there were such interesting, hassle free and tax free investment opportunities”.


Mrs J McLintic ‐ Sale of 2003 Portfolio Purchased September 2004—Sold June 2008

Wine Total Buy

Price 2004

Total Sell

Price 2008

Calon Segur £300. 00 £450.00

Gruaud Larose £229.00 £295.00

Latour £2,100.00 £7,250.00

Leoville Barton £385.00 £790.00

Leoville Poyferre £360.00 £800.00

Mouton Rothschild £1,600.00 £2,236.00

Pontet Canet £285.00 £450.00

Sociando Mallet £195.00 NOT SOLD

Total £5,454.00 £12,271.00

Mrs J McLintic ‐ re‐Investment Portfolio Purchased April 2009

Wine Total Buy

Price 2009

Current value

2009

Lafite Rothschild £7,920. 00 £20,500.00

L’Evangile £3,420.00 £3,550.00

Total £11,340.00 £24,050.00

BWI Private Reserves


Managing and running your own cellar, as your collection grows it can become increasingly time consuming. BWI can offer significant advantages through our Private Reserve Account. Our service includes cellar management, advice, broking, storage and insurance. It offers all the benefits of consolidation with cost efficiency and added services.

A key issue for our clients is ensuring their wines are stored correctly, both in optimum conditions and in their dedicated personal account. The advantages

Consolidation of wines for a client within one facility

Temperature controlled environment where wines are stored with full insurance at replacement value

It is from the Private Reserves that we operate additional services for clients, set up to suit their individual requirements, including; Personalised Cellar Management

For investment

For consumption

A mixture of the two

Advice on sales and purchases

Under specific direction ‐ i.e. Italian; within a price range; sourcing, say, 15 cases for drinking per year commencing in 4 years time; particular appellations; really any criteria the client establishes with us.


BWI Cellar Management


We can help, and provide added value. There are extensive reasons for buying wine. From drinking, celebrating special occasions and through investment... Whatever the reason our experts can support with advice and sourcing to meeting specific requirements.

Our clients have a range of reasons for buying special wines and we offer a range of services to respond to these, including:

Buying for special dates, occasions or anniversaries Eg. buying vintages for children or grandchildren to celebrate the year of their birth.

Buying cases each year from a particular Chateau.

A structured drinking cellar ‐ some of our clients like to build a collection of wines from their favourite regions to drink now and in the future, for example New Zealand whites and Spanish reds.

'A cellar for free' ‐ buying wines over a 10‐year period, then selling a proportion to pay for and contribute to the total cost of the cellar.

Geographic spread: a mix of New World and Old World wines


BWI Broking Services



At BWI our philosophy is to create a proactive advisory relationship with our clients. What is essential for this service is the ongoing advice we offer, on optimum times for selling your wines or advising of opportunities to capitalize on gains made. Our personal and competitively priced service is a key to many of our client relationships. Whether you have bought wine as an investment or with the intention of drinking it, you may be interested, at some point, in selling cases you own. BWI is able to offer a comprehensive broking service for your wines:

We will provide you with a valuation for each wine, based on our market knowledge and the condition of the bottles.

With your agreement to sell, we will then market the wines to our clients through the variety of channels available to us. These include, hand selling to clients we know to have a particular interest, targeted email offers and our website, which also feeds through to third party sites, such as Winesearcher.com, for additional exposure.

Our pricing strategy aims to be competitive in the market so we generally experience relatively high turnover of broking stocks for our clients. Other brokers may sometimes suggest higher sale prices but not deliver in terms of selling the wine quickly for you.

We are happy to broker wines stored with BWI or elsewhere (i.e. LCB, Octavian, other merchants), subject to the provision of documentary evidence that you are in possession of ownership.

The process of selling is kept as simple for you as possible. We agree fixed sale prices and upon your

acceptance of our Broking Agreement, we market these for you. You will be notified upon sale of an item and

having transferred the wines to us, will receive payment, minus our 10% sales commission, 30 days from sale

and after we receive payment from the purchaser.

Whether it is wines purchased via BWI or stock already held – speak to our Private Client Team to discuss the

service and pricing of your wines.

BWI Frequently Asked Questions


I don't know where to start, but want to invest in wine, what should I do? Our team of experienced wine specialists are here to help you. Whether you are new to wine and want to start a small investment, would like to purchase wine to drink, or are more experienced and require specific wines. We pride ourselves on being easy to approach. We can guide you through the process and answer any questions that you have.

What does In Bond mean? When a wine is stored In Bond the Duty and VAT has not yet been paid. This is ideal for investment wines, as they will also be stored professionally, ensuring the value of the wine remains at its premium. Bonded warehouses must be approved by HM Customs & Excise. Once out of bond the wine cannot return. See storage and insurance for more details.

Who is Robert Parker? Robert Parker is a wine critic who has influenced serious wine purchasers since the 1980's, after introducing his own way of evaluating the wines tasted through a point system. The wine regions that he covers are the Rhone Valley, Provence, Bordeaux and California. His publication ‘The Wine Advocate' also includes reviews of other regions, by the following critics:

Antonio Galloni: Italy Neal Martin: all regions Jay Miller: Oregon, Washington, Spain, Australia, South America and Vintage Ports. David Schildknecht: Germany, Austria, Eastern Europe, America's Eastern & Midwestern wineries, Alsace, Burgundy, the Loire Valley, Languedoc‐Roussillon, Champagne, New Zealand and South Africa. Mark Squires: Israel, Greece, Lebanon, Cyprus, Bulgaria and Romania.

Robert Parker devised a system to rate wines with scores out of one hundred: www.erobertparker.com

What is En Primeur? This is a method of purchasing wine before it has been bottled. Each year following the harvest the chateaux of Bordeaux release their new vintage ‘in barrel'; referred to as En Primeur ir futures. When purchasing En Primeur, the price quoted does not include Duty or VAT.

What happens after I've purchased En Primeur wine? Purchases of En Primeur are generally made one to two years before bottling (the exact time depends on the region). The most commonly offered En Primeur wine comes from Bordeaux, Burgundy and the Rhone Valley although many other regions, including some New World wineries, are following suit. Port is also frequently offer in the same way.

Once the wine enters the UK, it may be stored in bond or, after payment of taxes, can be delivered. 01732 779 343 www.bwiltd.co.uk Private Client Sales Team [email protected] [email protected]

BWI Frequently Asked Questions


Why purchase wine En Primeur? What are the benefits? Purchasing the wine at this stage opens up an investment opportunity, allowing an investor to buy the wine at the beginning of its life before the value of the wine rises. It is also often possible to request non standard bottle sizes, for example Halves, Magnums or larger formats. Buying en primeur offers the best assurance of provenance, as the purchaser can be confident of a wine's storage history from day one.

Do I need to know alot about wine before I purchase En Primeur? During the En Primeur season our team heads out to sample all the wines in Bordeaux to create our tasting reports. We obtain our knowledge first hand so our clients can rely on our evaluation of each wine in the vintage. BWI are leading specialists in buying, selling, broking and investing in fine wine. BWI can provide you with a high quality service. Offering the right advice, the right sourcing, at the right time ‐ delivered to you from our team of professionals. See our En Primeur section for the latest En Primeur wines available. Contact our team now for assistance and to answer your queries directly on: +44 (0) 1732 779 343

Where do you store the wines? We store at London City Bond Tilbury, a well established warehouse with over 130 years experience. We have our own chamber within LCB's Chill Store, a temperature controlled facility. See storage and insurance for more details.

Is the wine insured? Wine stored by BWI is covered by London City Bond's insurance policy, and is insured to full replacement value.

I purchased my wine inclusive of Duty and VAT, how long will it take to be delivered? This does depend on the wine you purchase, and where it is travelling from. It can be within 48hour but if it needs to be shipped from overseas, it can take considerably longer. Please discuss this with your BWI representative at point of order and have your postcode to hand. The delivery service we use is our storage facility, the delivery charge, days available and notice required for deliveries varies by postcode.

Why are some items listed as Duty Paid only? We have listed some items that have already been through the customs process ‐ once the wine is out of bond it cannot returned to In Bond. Alternatively the wine selected is a wine intended for immediate drinking, for example Arlaux champagne.

I bought my wine In Bond last year. I am now ready to receive the wine; how should I do this? Please notify the BWI logistics team, and they will create a sundry invoice for the duty and VAT and delivery on your wine. Once this has been paid your delivery will then be processed.


Limited edition - D’Yquem Nebuchadnezzar’s



Golden i “He who refuses to embrace a unique opportunity loses the prize as surely as if he had failed.” William James (American Philosopher & Psychologist, leader of the philosophical movement of Pragmatism, 1842‐1910)

Chateau d’Yquem is the king of sweet wines therefore with declaration of the outstanding 2007 vintage, BWI and BWL have again joined with the Chateau this year in their quest to achieve a second unique collector’s opportunity. Following the success and continuing demand from the historical event in 2006 offering the 2005 vintage in the very first 100 Nebuchadnezzar’s of d’Yquem ever made. Interest has continued to grow and all parties have been eagerly anticipating another superb vintage to qualify for the next release of 100 Nebuchadnezzar’s of Chateau d’Yquem. The next vintage considered to be worthy of this unique bottle format, is the 2007 vintage. 2007 saw perfect conditions for the Sauternes and Barsac wines leading to excellent wines produced in these appellations. This limited edition of 100 Nebuchadnezzar’s will have a unique investment value, potentially making each

bottle one of the greatest wine investments of our time. With this in mind, we believe that every limited

edition of Chateau d'Yquem 15‐Litre Nebuchadnezzar, will make a magnificent cellar centrepiece, not to

mention the inherent investment potential. Each bottle will be individually numbered from one to one

hundred and the numbers will be allocated by means of a draw that will take place at the Château. They will

be presented in a beautiful wooden display case bearing a brass plaque with the bottle number on the front.

In addition, a certificate will accompany each bottle purchased.

Nebuchadnezzar ownership will automatically qualify you for membership of the d’Yquem CENTUM CLUB, an

exclusive club created to mark the union between BWI, BWL and d’Yquem, for the production of this exquisite

wine in this special format. There are a number of benefits to the membership; naturally the first benefit is all

current members will be offered the first opportunity to acquire each succeeding vintage that is bottled in the

15‐litre Nebuchadnezzar, together with various exclusive offers relating to d’Yquem.

Once the current members have had this opportunity, the 2007 Nebuchadnezzar bottles will then be offered

to the public. If you would like to be considered prior to the general offering, or would like further

information regarding an opportunity to acquire a Nebuchadnezzar please make yourselves known to the

team at BWI as soon as possible.

Further information regarding this exclusive offer is available.

Bordeaux 2008

En Primeur Review

Each year the BWI team head off to Bordeaux at the beginning of April, to taste and experience the release of the next vintage, from the left to the right bank. Creating the BWI En Primeur review, each wine tasted by the team first hand, together with the people responsible for making them. An enviable task for some and a daunting task for others. We’ve taken a few interesting elements from this year’s En Primeur report, for a flavour of what we do. If you would like a full copy of this report, please drop us an email. If you would like to register for our full report next year, register with us online, at: www.bwiltd.co.uk

Bordeaux Wine Investments Limited Website www.bwiltd.co.uk Email: [email protected] Telephone +44 (0) 1732 779343 2 The Mews 16 Holly Bush Lane Sevenoaks Kent TN13 3TH

What is En Primeur? In a nutshell, the term ‘En Primeur’ refers to the practice, by many chateaux, of offering futures for a wine. That is to say, offering it for sale whilst it is still lying in barrel at the property. In Bordeaux, the previous year’s vintage (in this case 2008), is offered for purchase now, with delivery being two years later. Advantages of Buying En Primeur

In most cases, the lowest market price at which a wine will be offered is when it is offered En Primeur

It is the only opportunity for a buyer to specify the format in which his case of wine will be bottled. Increasing numbers of buyers are requesting large format bottles (Magnum and bigger), as it is widely accepted that wines mature more slowly, and perhaps better, in this way

It is possible that cases of wine may change hands many times during the course of their life in bottle. The best way to ensure your wine has not criss-crossed the globe is to buy En Primeur

Buying En Primeur from BWI We understand that when buying En Primeur it is vitally important to have confidence in the company you are buying from. Purchasing from BWI you can be safe in the knowledge that we are experienced traders in primeurs, with long established relationships with all our Bordeaux suppliers. BWI has been buying and advising in En Primeur successfully for 10 years – 2008 being the 10th anniversary of the company. We only buy primeurs from the most secure and trusted sources in Bordeaux. Primeurs purchased from BWI are documented separately from our own stockholdings with a clear audit trail and certification to identify ownership.

BWI Website: www.bwiltd.co.uk Email: [email protected] Telephone: +44 (0) 1732 779343 Fax: +44 (0) 1732 469 393 2 The Mews, 16 Holly Bush Lane, Sevenoaks Kent TN13 3TH England Email: BWI Private Client Sales Team [email protected] [email protected]

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The Effects of Weather The climate during the 2007 growing period was to have a profound effect on the vines going into the 2008 season. The quantity of embryonic bunches in a vintage is predetermined by the conditions during the flowering of the year before. Similarly, the vigour, with which the vine completes it’s cycle of growth, is determined by the period at ripening the previous vintage. The cool damp conditions during flowering in 2007 resulted in the vines producing lower numbers of proto-bunches for 2008. The equally poor conditions during 2007’s veraison (the moment when the grapes start to turn red) had the effect of reducing vigour. This meant that throughout the 2008 growing period, every stage happened slowly. July was to be an important month and one which later became largely overlooked, as everyone focussed on the disappointing Summer. July was cool but sunny and dry. During this important time, the grapes start to develop their phenolic ripeness (the compounds responsible for flavours and tannins). Without this fine period, the grapes may not have been in such a good position to capitalise on the later Autumnal sunshine, after Summer’s unhelpful conditions. Mildew was less of a problem this year than last. Partly, this was due to the smaller crop, making it easier for air to circulate and dry the bunches but also vignerons were better prepared and had sprayed in good time. Another effect of the slow and erratic flowering and fruit set was to be variable ripening, not only between communes or estates but even within bunches on the same vine. Green harvesting and canopy management were more important than ever, to ensure that the remaining small crop was allowed to ripen to it’s optimum. It was mid September by the time the weather changed for the better. After months of depression (in the weather systems and no doubt amongst the vignerons), warm sunny days arrived and were to stay right through until the very late harvests that were to take place towards the end of October and in some cases even into early November. It is no overstatement to say this was the shot in the arm that not only saved the vintage from the brink of disaster but actually allowed it to become very successful for those who had invested in the vineyard throughout the year.

Vines in snow at Chateau Rauzan Segla

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THE WINES

Pessac Léognan Le Clarence de Haut Brion Subdued aromas of baked bananas. Liquorice, blackcurrant and black cherry. Excellent concentration and extract. Balanced and focussed, with good depth and length. 10-12 years. 90-92pt Haut Brion Subtle floral notes. Plum skins coming through. Ripe tannins with good balance and more complexity than the La Mission. Gentle and refined, with a mix of red and black fruits and a hint of mocha on the finish. Not a blockbuster but should age gracefully for 20-30+ years. 93-95pt La Chapelle de la Mission Haut Brion Hints of cherry and roasted meats. Red fruits dominate the palate. Higher acidity than the Clarence. Drier tannins, too. As this settles down, it will resolve into a particularly elegant and feminine example. 10-12+ years. 89-91pt La Mission Haut Brion This is a little more open, exhibiting cherry conserve and floral notes. Less power than the Haut Brion, less austere too. Fresh fruit compote follows through from the nose to the palate. Creamier, more rounded and voluptuous. 15-20 years. 92-94pt Haut Bailly Currants with sweet oak and perfume on the nose. A fleshy, succulent palate that offers creamy-textured flavours of cherries and menthol. A medium bodied wine, with a restrained, long finish. 90-92pt Pape Clement A deep, saturated purple colour. Blackcurrant scented nose with roasted herbs and lead pencil. Concentrated black fruit flavours on the palate with excellent purity. Medium bodied with elegance and class. 91-93pt

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The BWI team tasting at La Mission Haut Brion

BORDEAUX WINE INVESTMENTS LIMITED ('the Company')

TERMS AND CONDITIONS OF SALE

Set out below are the terms and conditions of sale which shall apply to all contracts for the sale of wines by the Company to you to the exclusion of all other terms and conditions including any terms or conditions which you may purport to apply under any purchase order confirmation of order or similar document. PRICES Prices set out in any brochure, price list or any other literature of the Company are in pounds sterling excluding value added tax (VAT) and delivery charges and are for guidance purposes only. All prices are subject to change and should be checked with the Company at the point of order. On acceptance of the order the Company will confirm the price payable. PAYMENT Payment is required in full (including VAT and delivery charges if any) within 30 days of the date of invoice (unless otherwise agreed) prior to the wine being released to you. The Company reserves the right to cancel any order if payment is not received in full within thirty days of the invoice and interest shall be charged at the annual rate of 3% above the base rate from time to time of Barclays Bank plc. Such interest will accrue on a daily basis from the date on which payment become overdue up to the date on which the Company receives the full outstanding amount together with accrued interest. DELIVERY Arrangements can be made for your order to be delivered anywhere within mainland Great Britain. Details of delivery charges, times and availability can be obtained from the Company direct. TITLE All wines remain the property of the Company until payment is received in full. ORDERS i. All orders for wines shall be deemed to be an offer by you to purchase the wines pursuant to these Terms and Conditions. ii. Receipt of an invoice from the Company will constitute acceptance of your order pursuant to these Terms and Conditions. iii Any variation to these Terms and Conditions (including any special terms and conditions) shall be

inapplicable unless agreed in writing. RISK i. On the payment of invoices in full the risk in the wines ordered will pass from the Company to you

(with the exception of wines purchased En Primeur) and they will be available for immediate collection or delivery from the Company's storage facility at London City Bond Tilbury.

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STORAGE ii. Wines ordered will be held at London City Bond for a period of one month from the receipt of

payment of invoices in full, (with the exception of wines purchased En Primeur). After this period the wines ordered will be cellared at a charge of £7.60 per case per year (subject to change) payable when wines are collected, delivered or resold (as the case may be) in accordance with these Terms and Conditions.

CANCELLATION OF ORDER BY THE COMPANY i.(a) If payment in full has not been received by the Company within 30 days of the invoice date, or (b) Prior to such time limit you notify the Company that payment in full will not be made or (c) The wines ordered have not been collected or delivered (as the case may be) within three

months of payment being received in full, or (d) Prior to such time limit you notify the Company that the wines will not be collected or delivered

(as the case may be) The Company shall be entitled to send notice to the invoice address of its intention at the expiry of ten days from the date of notice, to deal with, sell or otherwise dispose of the wines ordered. ii. In re-sales of the wines where full payment has not been received by the Company (per i(a) or (b)

above) a credit will be made to offset any indebtedness you have to the Company including any accrued interest and storage charges (as applicable), less a 20% administration charge (plus VAT). In the event that the credit is insufficient to offset your full indebtedness the outstanding balance will remain payable by you and will continue to accrue interest at the rate set out in these Terms and Conditions.

iii. The existence of this right does not affect any other remedies that the Company may have against you. LIABILITY All warranties and conditions either implied by statue or otherwise are excluded from these Terms and Conditions. Provided that nothing shall restrict or exclude liability for death or personal injury caused by the negligence of the Company or affect your statutory rights as a consumer. FORCE MAJEURE The Company shall not be liable for any failure to meet its obligations under these Terms and Conditions occasioned by circumstances beyond its control. OVERSEAS ORDERS The time limits for exports stipulate that goods must be transported to a destination outside the EC by the last day of the third month following that which the goods are purchased or will be liable for UK VAT ASSIGNMENT The Company may licence or sub-contract all or any part of its rights and obligations under this contract without your consent. LAW All contracts made in pursuance of these Terms and Conditions are made under English Law and are subject to the non-exclusive jurisdiction of the English Courts. BANK DETAILS Sterling & Euro account details on order. Page 23