Creativity and Asset Management: Alternative Investment in Wine

The high volatility of equities, bonds, and derivatives in the wake of recent crises has prompted investors to be creative and diversify their portfolios by turning to new forms of investment. These include the so-called emotional investments represented by art and wine. These investments are no longer just of interest to collectors, but also to private individuals looking to combine passion and profitability, asset management and creativity. This article aims to demonstrate the extent to which investing in wine can be an alternative to investing in more conventional vehicles. We begin by outlining the particularities of the wine market, its tax system, and regulations. We look at the factors to consider before investing in wine, analyzing the advantages and risks inherent in this type of investment. We also look at the different ways of investing in wine: investment in vines (Groupement Foncier Viticole) versus investment in bottles of wine. As a result, we could observe that wine does not yield greater returns than financial assets, especially when the volatility of returns and transaction costs are taken into account, but when the taxation aspect has been taken into consideration, wine is a good investment. Keywords Alternative Investments; Taxation; Wealth Management; Grand Cru; ethical investment; Responsible Investment; Collectibles, Wine.