Wine fraud 'worth' £300 million

Published: 16 October, 2008

Wine fraud has cost unwitting investors around the world up to £300 million in recent years.

Wine fraud has cost unwitting investors around the world up to £300 million in recent years.

Fraudulent wine schemes were just one of a number of issues debated at the Vinopolis' wine investment seminar last night.

Chaired by Robert Joseph, author of Bordeaux and its Wines, the evening unearthed differences of opinion as to whether it was the right time to invest as well as the heavy buying capacity of the emerging markets such as China and Russia, the issue of 'fakes' and the influence of Robert Parker over prices.

Jim Budd, renowned unearther of fraudulent wine schemes, began the session by saying that investment was a good idea if you are buying "the right wine at the right time and place, could be sure of the wine's provenance and could store the wine in your own account at a reputable bonded warehouse."

Budd said that now is not a good time to invest as prices are beginning to fall, especially in 2005 Bordeaux. Budd also branded buying en primeur "especially risky."

Peter Lunzer founder of the Wine Investment Fund, announced that the latest five-year tranche brought investors a 108% return after costs.

Managing director of Vinopolis, Rupert Ellwood, said: "I'm pleased that this was a success, everyone in the room took something away with them and we will undoubtedly hold another session soon."

The seminar was attended by fund managers, investors, wine collectors and wine experts.

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