Looks like we may get flooded with premium wine soon

markg · Post by **markg** » Tue Nov 22, 2005 3:12 pm

Seems as though the investors in failed Heritage wines may get most of their wines back (but not the value they paid for them)!! I think perhaps there may be a few people looking to sell and that may drive some prices down.

http://www.theaustralian.news.com.au/co ... 43,00.html

n4sir · Post by **n4sir** » Tue Nov 22, 2005 6:56 pm

That depends on what you mean by "premium wines" Mark - going by the write down of the valuation of the wine stocks from the $70 million paid to $38 million, it could either be:

- quality wines the investors paid almost 100% too much for, or ...
- rubbish bought on speculation hype as being the next Duck Muck, Australis, etc.

There's a good chance the majority could be the latter.

I'm interested in the comment that "Existing storage contracts, prepaid by investors and worth $3 million, will not be settled."

Does this mean the businesses storing these wines won't get paid? If that's the case, it must be awfully tempting for them to cut their losses and switch off the air conditioning over summer, frying the wines prior to delivery.

Looks like I'll be paying very special attention to your guaranteed provenance items at your auctions next year Mark.

Cheers,
Ian

Adam · Post by **Adam** » Tue Nov 22, 2005 7:37 pm

Nope, investors paid for 2 years of storage upfront for their wines, basically these contracts will not be honoured and they will need to find new storage and pay for it.

markg · Post by **markg** » Wed Nov 23, 2005 9:46 am

Bad luck about the storage, has it been kept temp controlled through the dispute resolution process ?

Adam · Post by **Adam** » Wed Nov 23, 2005 12:25 pm

I would hope so! but dont know...

Fortunately I didnt get burnt!

rednut · Post by **rednut** » Wed Nov 30, 2005 6:02 pm

My brother got stung to a fair tune by this. He keeps getting letters stating the resolution has been delayed and he has to pay another $1.75 or so for storage until it is completed. wa wa wa.

He got a letter the other day saying his 900 or so bottles of wine is now 350 - 400 if he's lucky...

For more info check these links...

http://www.heritagefinewines.info/files ... .11.05.pdf

http://www.heritagefinewines.info/

http://www.cellarit.com/content/About%2 ... 7133045227

markg · Post by **markg** » Thu Dec 01, 2005 10:48 am

rednut wrote:My brother got stung to a fair tune by this. He keeps getting letters stating the resolution has been delayed and he has to pay another $1.75 or so for storage until it is completed. wa wa wa.

He got a letter the other day saying his 900 or so bottles of wine is now 350 - 400 if he's lucky...

For more info check these links...

http://www.heritagefinewines.info/files ... .11.05.pdf

http://www.heritagefinewines.info/

http://www.cellarit.com/content/About%2 ... 7133045227

Wow, thats really rough.

Mike Hawkins · Post by **Mike Hawkins** » Thu Dec 01, 2005 1:14 pm

The only benefit out of this whole saga is that hopefully speculation in wine will decrease, and it will be left to the wine lovers to buy the good / hard to get stuff.

Mike

markg · Post by **markg** » Thu Dec 01, 2005 1:34 pm

Mike Hawkins wrote:The only benefit out of this whole saga is that hopefully speculation in wine will decrease, and it will be left to the wine lovers to buy the good / hard to get stuff.

Mike

Actually Mike, there are fewer speculators around these days. I think many people have realised it isn't worth it and put their portfolio into something morelikely to appreciate in value.

Mike Hawkins · Post by **Mike Hawkins** » Thu Dec 01, 2005 1:49 pm

I'll wait and see if that is the case. The changes to Pommie superannuation laws have me worried.

London Correspondent · Fri Dec 02, 2005 3:11 am

Be afraid..........be very afraid............... :twisted:

markg · Post by **markg** » Thu Dec 08, 2005 1:16 pm

Mike Hawkins wrote:I'll wait and see if that is the case. The changes to Pommie superannuation laws have me worried.

Not anymore they shouldn't - They have pulled the plug now on SIPPS as far as I am aware.

rednut · Post by **rednut** » Tue Dec 20, 2005 2:13 pm

Some more good new for Heritage Fine Wines Customers...

http://www.theage.com.au/news/Business/ ... 98856.html