Andrew Basset, director and founder of the Australian Wine Index (AWI), discusses why investing in wine, particularly Australian wine, may be a good bet for investors going into the second half of 2011 on CNBC.
Wine investment has risen to A$30 million over the past two decades in Australia, and interested continues to climb. Basset argues that Australian wines can compete in quality and demand with leaders in the market such as France and that growing interest, particularly in the Asia Pacific region.
According to Bassett, Australian wine is extremely undervalued, and AWI was established in 2000 to address the problem by responding to increasing demand in the Asia Pacific Region. Its services, based out of Singapore, include assistance with purchasing of wine and providing logistical support and advice to investors and dealers in the region and beyond.
The focus of AWI is in opening up the market to quality Australian wines that may not have the established vintage pedigree required to make it onto Australia’s more seasoned fine wine indices. This way, Bassett contends, more Australian growers and winemakers are represented while the world gets to enjoy even more fine wine from the region, making it a win-win for everyone, and one that investors are recognizing.