How Does Vinovest Determine the Value of My Wine and Whiskey Portfolio?

There are dozens of factors to consider when investing in fine wine and whiskey. The producer. The region. The historical performance. The age. But one factor matters more than all the rest - the price. 

In this article, we will explore where Vinovest gets its pricing data and how it’s used to determine the value of your wine and whiskey portfolio. 

Where Does Vinovest Get Its Pricing Data?

Vinovest uses wine pricing data from several public and private markets. One of the most well-known ones is Liv-ex, a wine analytics platform with millions of data points on wine prices.

Much like a good wine portfolio, though, Vinovest doesn’t put all its eggs (re: pricing data) in one basket. We work with multiple exchanges to get the most comprehensive and accurate picture of the fine wine market. Some of the other sources we use for data include:

• Wine Decider
• Winebourse
• Wineowners
• Biwine

In total, Vinovest uses more than a billion price points to calculate its wine prices.

How Are Wine Prices Calculated?

If winemaking is an art, then wine pricing is a science. Our source's process for calculating accurate wine prices involves several steps.

Step 1: Standardize the Data

Wine comes in multiple case formats and bottle sizes, and our sources standardize pricing information accordingly. Their data largely comes from recent sales, though competitive bids and asks are also utilized. Recent sale prices are valuable because they show exactly how much someone paid for a wine. Bids and offers provide additional insight into how people might be willing to pay.

Step 2: Remove Outliers

Occasionally, our sources receive extreme data. Some sources have wines listed far above or below their fair market value. If the data falls outside the acceptable range, Wine Decider removes it entirely.  

Step 3: Calculate Prices and Returns

After weeding out outliers, our sources use the remaining data to determine the current price of a specific wine. To calculate the return, Vinovest takes the difference between the current Wine Decider price and the original purchase price. That difference is expressed as a percentage. 

Step 4: Repeat and Refresh

Our sources constantly collect data to keep prices fresh and ensure an up-to-date view of the market. Most wine prices are updated on a monthly basis. 

How Are Whiskey Prices Calculated?

Our whiskey prices are updated on an annual basis. The value of casks is calculated per liter of pure alcohol (LA). For instance, an offer might be $50 per LA. A cask with 85LA would then be valued at $4,250 ($50 x 85). Other factors such as the distillery, age, and cask type can also impact whiskey prices.

EUS Distilling handles our American whiskey valuations. It is a contract distiller, rectifier, and whiskey storage firm with deep knowledge of the whiskey market and direct access to contract pricing. EUS Distilling contracts with third-party whiskey valuation firms to assist them. 

The Single Cask Company manages our Scotch valuations. The Scotch whisky broker, rectifier, and storage firm works with third-party whisky valuation firms to ensure accurate pricing. The Single Cask Company also has direct access to contract pricing and a unique insight into valuations as a brand owner and broker.