Buying broking stock via Atlas
Atlas purchases wines from a number of companies across the UK and Europe but only from those merchants with whom we enjoy mutual trust and rapport.
Fine wine requires correct storage at all times as this can influence longevity and future value. We therefore only purchase wines from reputable sources. The majority of stock that we trade is physically available in the UK and where we do purchase wines en primeur, we are only purchasing via respected négociants or direct from producers.
Additionally, we broker wines from our private client reserves and purchase via Liv-ex, the online and voice trading platform for fine wine merchants. It should be stressed that the quality of previous storage and the condition of each individual case is established prior to broking.
All stock purchased by Atlas is checked upon receipt with our storage providers.
At Vine International, Atlas' storage provider, highly trained staff check and verify stock as it arrives in our temperature controlled reserves. Any issues arising are then relayed to Atlas’ office-based stock controller who then investigates the circumstance and brings it to a satisfactory resolution. In the rare instance where any stock fails to meet our exacting standards, it is returned to the supplier.
Atlas sells wine by the original case and avoids re-packed stock, loose bottles or cases which have been exported overseas.
Our wines are sold in bond, although we will offer well-stored, duty-paid stock when we can be assured by the quality of previous storage conditions. Re-packed cases and loose bottles are very much the exception to our model and will be flagged accordingly should we choose to offer such stocks. We do not handle any stock which has been exported to either Hong Kong or the United States as such travel can impact the overall quality of the wine and we do not deem this to be a risk worth taking.
Selling your own stock via Atlas
Atlas draws data from the industry leaders, Liv-ex, to set our own Atlas Market Price.
Efficient broking is only possible by defining an accurate market price. Some wines are more liquid and thereby more easily valued than others. To accomplish this task, we use the various prices tracked by Liv-ex and relate them to other pricing sources to then arrive at a definitive Atlas Market Price. While the Liv-ex Market Price is a good indicator of market conditions, it does not necessarily reflect the reality of trading as this data can include illiquid stock. The Atlas Market Price seeks to take into account current trends, liquidity and general positioning of the wine. We aim to make a margin of 10% on the transaction which is considered industry standard. Should a client be keen to recycle funds from a sale, we will be pleased to quote a better rate by negotiation.
Atlas’ broking system provides complete transparency for the client.
When agreeing a contract for sale, we market the wine at the prevailing Atlas Market Price, as described above. Less our standard margin, the Atlas Market Price provides a net proceeds level. We also look to agree a ‘reserve’ level with the client which may be between 5 and 10% lower. We do this so that the sale of the particular wine is not hindered by a fluctuating market.
As the market rises and falls, we simply take a fixed percentage on the eventual sale price. The price at which we sold is clearly stated on your ‘Sales Note.’ This system is efficient and transparent; if we sell for a higher value, you net a higher figure. Should the market fall below the reserve proceeds level, the case is suspended from sale and we will contact you to revisit the pricing.
Atlas data is updated daily to reflect market price movements as they happen.
Although the fine wine market is not considered to be notably fast paced, the Atlas Market Price is updated daily to ensure that each contract for sale moves in line with the market. All pricing data is made available within a client’s account online so that a client can gain a real-time view of the cash value of their holding. It is our aim to provide all of the details needed for you to understand the value and performance of your collection.
Our broking lists are circulate globally across our database of fine wine merchants and private clients.
We have invested considerable time and effort in extending our circulation list so that broking stocks are marketed to merchants across the globe as well as our ever-growing database of private clients. We also utilise the Liv-ex trading platform to increase the exposure of our stock.