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| The Bacchus Bond ™ |
| Charles Skipwith - 24/11/2005 |
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A comparatively new approach in wine futures has evolved in the form of Bonds. This has come about to financially bolster winegrowers with their expansion plans as well as the consumer who benefits from cheaper wine costs. We take this one step further... |
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If you consider, for a moment, how much you spend on wine every week, you will be surprised when you relate it to the pricing of this offer. |
I am sure you will quickly realise the advantages of the scheme. For example : a modest 2 bottles @ £9.00ea/week= £18. For 52 weeks = £936. Over 4 years = £3,744. We ask for a payment of £3000 per bond. This ie. a saving of £744, or nearly 20%. The hidden advantage is that it bypasses any price increases that normally occur annually, thereby increasing the % rise in your saving. Both examples yield a total of 416 bottles.
THE CONCEPT…
is to give the opportunity to both the Bondholder (Investor) and the Grower to benefit in their own respective fields. The Bondholder would gain by receiving annual deliveries of wines from pre-selected chateaux in different growing areas, of South-West France, at trade prices enabling him to establish an interesting cellar at minimal cost. The Grower would have advanced access to capital to use for the development and enhancement of his enterprise.
Using this method as a starting point, an expansion plan is envisaged whereby other wine-growing areas of France, and elsewhere, are incorporated in the future so that they give the Bondholder the benefit of a wider range of high-quality and economically priced stock for his cellar. The wines offered would be selected by a well respected member of the wine trade thereby minimising the investor’s chance of erroneous decisions on wine choice being made. He would be looking for quality and longevity in the chosen wines and select the very best crûs within the price band on behalf of the Bondholder.
WHAT IS A BACCHUS BOND ?...
Bonds are spread over four years. Each Bondholder submits a one-off payment of £3,000 to the Bond Broker, at the commencement of the Bond Period. In return he receives a delivery of 8 cases, (each one a baker’s dozen) in the UK, annually during a 4-year period. These wines will come from 8 different wine-growing areas of the South-West thereby giving variety to the consumer. It should be noted that a realistic financial saving of approximately 25 – 30% on future price rises during the Bond Period., is made by this up-front settlement,
OTHER BENEFITS
* If the Bondholder wishes to buy further stocks of any wines in the range, he may do so, and benefit from a 10% Bacchus Bond fidelity discount. There would be a delivery charge.
* If the Bondholderwant to explore his investment’s provenance, a 10% discount can be gained on accommodation and meals at ‘Le Cros’, in the heart of the vineyards: www.saint-emilion-bedandbreakfast.com
* We, at Le Cros, organise Bacchus Break © long weekends in September and October each year, to introduce those interested, to all aspects of viticulture and vinification by means of château visits and wine-orientated dinners hosted by growers.Bondholders will benefit from a 10% discount on these events.
* A Cellar Ledger will be supplied to each Bondholder to record their appraisal on incoming/outgoing stocks as they mature.
* An annual dinner will be held, in London for Bondholders and a guest where they can meet and discuss wine with fellow vinophiles.
GUARANTEES.
Obviously some forms of guarantee will be expected. Weather plays a big hand in defining the quality of the end product. In some instances there may be adverse conditions that reduce the quantity of a year’s production. In the event of a Grower’s yield being reduced by 80% or more (as assessed by the Grower’s insurers), the Bondholder will benefit from a one-year extension to his Bond period from that particular Grower. This offer is finite and can be applied to one year only in the Bond Period. Should a property change ownership, a codicil shall be built into the conveyance whereby the Bond and any remaining stocks pertaining to it, are honoured by the incoming owner until that Bond’s expiration.
The Grower will physically store all Bondholdersstocks separately from other stocks that he might hold. This Bondholders stock will diminish as each year passes and as deliveries are made. The verification of stock will be audited annually by a representative of the Bond Broker.
MARKETING….
will be via media advertising in daily and weekend journals, brochures, press releases and Internet links. It is anticipated that offers will be taken up, predominantly, by the socio-economic ABC 1 category.
We welcome discussion on the scheme. We are sure that it will appeal to you, and we will be happy to answer any questions |
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