Mr. Berghaus has turned his passion for wine into a profession. However, until he was 18, he didn't really like the juice of the vine. Born in the UK, he had the idea for this business model when he wanted to invest in wine himself but couldn't find a supplier in Germany.

Mr. Berghaus, what have you done recently?

I bought an engagement ring for my girlfriend at the beginning of the year. We're getting married next year. We also always treat ourselves to an excellent bottle of wine on our anniversary. This year we treated ourselves to a red wine from the 2000 vintage from Domaine Anne Gros in Burgundy. This is my personal favorite region. We both love good wine and like to sit in front of a glass and analyze the taste, color and development of the wine together.

Where did you meet? At a wine tasting, for example?

Not quite. We met on a hike with friends along the Rhine from Cologne towards Düsseldorf. A mutual friend invited them. In the evening, I had actually planned a wine tasting for the group of friends. She then joined us.

Where does your interest in wine come from? Do you come from a family of winegrowers?

No, but two generations ago a relative of mine married into a winemaking family in France. They have long since sold the vineyard, but there is still an emotional connection to this region. Regardless of this, my family has always had a strong affinity for wine. We liked to spend our vacations in beautiful wine regions, in France, Italy or in Georgia, where viticulture originally comes from.

And that's where you got the spark?

No, not directly. Of course I was allowed to try wine once. But to be honest, I wasn't particularly enthusiastic about it until I was 18.

What happened then?

We had a cooking group with friends from the neighborhood. We cooked dishes from different countries there. I had the idea that we could also try wines from the respective countries. I found it really exciting to taste wines from exotic regions like Morocco and see how they differed from Italian or French wines. These voyages of discovery sparked my interest and I began to get more and more involved with the subject of wine.

Drinking wine is one thing, investing in wine is another. How did you come up with the idea of setting up a business model with wine investments?

I actually wanted to open my own wine depot. I was born and raised in the UK. Such investments have a long tradition there. A relative has been investing in wine for many decades and got me interested in this form of investment. I then looked for a provider in Germany, but couldn't find one. So it was a personal "need" that prompted us to set up the company.

Why didn't you look for a British provider?

It was the time of Brexit. There were a lot of hurdles back then, especially in terms of logistics. I also didn't want to invest in British pounds because of the currency risk.

Can you explain the business model to me? You buy wine, but not for consumption, right?

That is correct. There are wines that have a high increase in value over time. With an investment horizon of ten years, returns of between eight and ten percent per year may well be possible. The upmarket wine market has grown with this development over the last few decades.

Why is the profit margin so high?

The offer is limited. Only a limited number of bottles are bottled per vintage. Over time, the number of bottles decreases because many wines are consumed. At the same time, the wines continue to mature and thus gain in quality.

What criteria do you pay attention to when compiling the portfolios?

Our customers' portfolios consist primarily of wines from four regions: Burgundy, Champagne, Bordeaux and Tuscany. The wines from these regions have been established and well-known on the world market for many decades. However, we also have wines from Piedmont and from selected wineries in Spain and the USA in our depots. In total, our portfolios contain wines from 50 to 60 estates that are in high demand and for which we have historically observed a high increase in value. On average, our customers invest around 35,000 euros in a portfolio. However, we also have customers who invest 5,000 or more than 100,000 euros.

That doesn't sound like rocket science. Theoretically, I could buy the wines myself and store them in my cellar!

If you want to set up the whole thing as a professional investment, it is unfortunately not that easy. It starts with the fact that you have to pay VAT as a non-commercial buyer. This puts you at a liquidity disadvantage. We buy the wine at the net price and store it tax-free in the duty-free warehouse in Geneva. VAT is only payable by the end consumer who drinks the wine. In the bonded warehouse, the wine can also mature under ideal climatic conditions. You cannot guarantee this if the wine is stored in your cellar. Of course, there are also buyers who purchase private stocks. However, if you want to sell it on the wine market or at the big auctions, you will have to prove that you have stored it optimally in order to generate maximum proceeds. Apart from that, the wine market is very closed. You can't just drive up to the coveted wineries and buy a few cases. Some of the wines are sold before they have even been bottled.

What did your parents say?

They totally welcomed it. They were delighted that I was pursuing my passion. I think every parent is happy.

Did you also have other plans for the future?

No. During my business studies, I also looked around in other industries - for example, I did an internship in Singapore in the public relations department of an automotive group - but even there I enjoyed spending my free time with wine. Singapore has a thriving food and wine scene - it was a very interesting insight into a completely different consumer market.

Singapore is not exactly known as a wine-growing region.

Not that, but there are many wealthy people who like to drink high-quality wine. At some point, I ended up at the wine events in the Private Members Clubs. These are private clubs where like-minded people meet and discuss certain topics.

Where do you see the future of wine? Climate change means that certain grape varieties can no longer be cultivated. For example, it doesn't look good for the Rheingau Riesling.

Unfortunately, that is the case. Climatic changes are leading to lower yields and a change in style. In Burgundy, hailstorms occur more frequently in summer, destroying part of the harvest. Or there is late frost in April, which prevents or restricts flowering. But there are also very hot years in which the grapes can burn. The wine regions have to adapt to the climate. Some winegrowers practice targeted canopy management by not pruning the foliage, or pruning it very little, so that it can provide shade. New grape varieties are also permitted in Bordeaux, such as Touriga Nacional. This is a grape variety from Portugal that can cope very well with heat and drought.

Wine is now even grown in Scandinavia. Is this the future?

It is of course interesting to see where the journey is going. In the south of England, there are now also very good sparkling wines that can easily compete with champagne in terms of taste. In Canada, the Niagara Peninsula region has long been known for its ice wine. I have also drunk some very good Pinot Noirs and white wines from Canada. But of course these so-called cool climate wines are not yet so well known. Perhaps that will change in the future. Incidentally, the northernmost vineyard in Germany is in Keitum on Sylt.

Thank you very much for the interview.

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About the person:

Tristan A. Berghaus is the managing partner of Berghaus & Cie. The company specializes in wine as an investment. Berghaus & Cie. creates wine portfolios for its clients, consisting of wines that promise a high return. These are stored tax-free in Geneva's duty-free port. They can also handle the sale on request. Their clients are private individuals, family offices or institutional investors looking for an addition to their portfolio.