A Conversation With A Wealth Manager.
- Daniel Ward
- 5 days ago
- 4 min read
This week, David Rowland, one of the Partners at Cellar Advisor, joined The Knightsbridge Group for an in-depth conversation on fine wine investment and how Cellar Advisor positions the asset class within a modern portfolio.
In the interview, David explores why fine wine continues to attract serious investors, the key factors that drive long-term value in the market, and the rigorous client-focused approach that sets Cellar Advisor apart. Whether you are new to wine investment or looking to deepen your understanding of the asset class, this is an insightful Listen and one we highly recommend
David, tell us about Cellar Advisor, and what you guys do?
At a high level, we act as a specialist advisory firm in fine wine. We work with private clients, family offices and intermediaries to help them build, manage and ultimately realise collections over time.
Importantly, clients are not investing into us or any fund. We operate purely as an advisor and execution partner, sourcing wines directly into the client’s name, typically held in bonded storage.
Our role is to bring structure to what is otherwise quite a fragmented market. That means data-led selection, disciplined portfolio construction, and ongoing management, rather than simply buying and holding wine.
UAE – Do clients here approach wine differently
It’s a blend of both, but the balance is slightly different to Europe.
In the UAE, clients still approach wine largely as a store of value and a collectible asset, much like our European clients. The difference is that many are earlier in their wine journey , typically younger, internationally minded professionals.
As a result, there is often a broader blend of objectives. Alongside investment, there is a real interest in education, access and the lifestyle side of wine, whether that’s learning about producers, visiting regions, or building a collection they can engage with over time.
Do clients buy to drink or to collect?
At this level, it’s overwhelmingly collection-led.
Most of the wines we deal with are too scarce or too valuable to be opened casually, so they naturally sit in the collectible category.
That said, the emotional element is important. Even if the intention is not to drink them, there is still a strong appeal in owning iconic wines, particularly from producers like DRC, Lafite or Krug.
International mobility – does it influence behaviour?
Very much so.
One of the reasons wine works well for UAE-based clients is that it is a globally recognised, transferable asset. It sits outside of any one jurisdiction and can be sold or moved internationally without friction.
So for internationally mobile clients, it fits neatly alongside other assets that are portable, discreet and globally priced.
Where is investment-grade wine stored? Can it be stored in the UAE?
Serious, investment-grade wine is almost always stored in bonded warehouses in the UK, most notably London City Bond.
This ensures:
Optimal storage conditions
Verified provenance
Independent custody and traceability
Wine can be stored in the UAE, but from an investment perspective it’s not ideal. You lose the benefits of bonded status, market access and institutional-grade storage, which are critical for both pricing and exit.
What returns are you seeing, and what drives value?
Over the past five years, the market has been mixed due to the recent correction, but over longer periods fine wine has delivered mid to high single digit returns, with certain segments achieving double-digit performance in stronger cycles.
What drives value is a combination of factors, but the key ones are:
Scarcity – supply only ever decreases over time
Producer and brand strength – global demand for top names
Vintage quality – particularly in Burgundy and Bordeaux
Liquidity – the ability to trade efficiently
Less obvious, but equally important, is market positioning. The best opportunities tend to come when pricing resets and sentiment is low, not when everything is already performing.
Biggest mistake people make?
The biggest mistake is approaching it without structure.
People tend to either:
Buy based on name alone
Or build collections with no real strategy behind them
Fine wine is a data-driven market at the top end. Without proper selection, you can end up holding good wines, but not necessarily the right wines from a performance perspective.
Liquidity – how easy is it to exit?
Liquidity is often misunderstood.
At the top end of the market, for the right wines, liquidity is actually very strong. Most trading is done through platforms like Liv-ex, which provide a global marketplace.
The key is selectivity. If you own:
Recognised producers
Strong vintages
Correct formats
then exits can be executed relatively efficiently.
If you don’t, that’s where liquidity becomes more challenging.
Where does wine sit in a broader portfolio?
Typically, wine sits within the alternatives allocation, alongside assets like art, watches or even certain property strategies.
For our clients, it tends to play a role as:
A diversifier
A store of value
And in some cases, a source of asymmetric upside
It’s not designed to replace core assets, but to complement them
Does wine offer unique advantages internationally?
Yes, and this is often overlooked.
Fine wine is:
Globally priced
Portable
Held outside traditional financial systems
It doesn’t rely on any single jurisdiction, which makes it particularly relevant for clients with international exposure.
It also benefits from being a tangible asset, which many clients increasingly value.
Where should someone start?
Start with structure, not wine.
That means:
Understanding objectives
Setting a clear allocation
Building a portfolio with balance across regions and styles
Then layer in quality. Focus on proven producers, strong vintages and liquid markets, rather than trying to be too clever too early.
If you would like to find out more and explore fine wine as an asset class then please click the butoon below and one of the team will be in contact.
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