Scandeat Spanish Wines – An Alternative Investment

Diversification Benefits
Fully Insured & Secure
Low-Risk Opportunity

 

 

Investing in wine has been around for centuries but only for a select few. Now we want to open up this lucrative market to individuals interested in buying Spanish wines together with us at an early stage in the winemaking process. This presents an alternative investment that can be both an inspiring and profitable experience.

The Spanish wine industry is today considered the most interesting worldwide* and we only work with selected top producers so you can be sure you’re purchasing a premium product with a strong resale value. In addition all our wines are fully insured and stored in producer cellars or in our own bonded warehouse, providing you with security and peace of mind. Therefore, this presents a wholesale model with attractive returns, even to the most risk-averse individual.

We believe that the average return of a 2-5 years investment will be around 18-24% per annum and we can guarantee a 12 month buyback** scheme with a 7,5 % net yield.

 

Why Spanish wine?

Today we have an office in Madrid and warehouse outside Barcelona which gives us unique local and national trade possibilities. We have built trusted relationships with some of the most interesting producers in Spain since we started working there seven years ago. These relationships are what set us apart from other online wine businesses and are part of the reason we are able to offer premium wines at substantially discounted prices.

Based on the present rate of production most of our selected producer partners are not meeting the very large volume demand from traditional Swedish importers and that gives us an opportunity to offer unmatched top value wines with market leading prices to buyers in Sweden, both private and restaurants.

 

Why wineries need investors 

Wine needs to mature and our wines have an average ageing period of 2-3 years. Maturing wines is a capital intensive business and more and more producers choose to sell wines during the maturation period at wholesale rates. Selling a percentage of their yearly production wineries can cover their operating costs, allowing them to keep the remaining percentage for their own brands and development of their properties whilst enjoying a mutually beneficial business relationship.

This is where Scandeat Spanish Wines comes in.

We contractually agree a price to buy large quantities which provides the Bodegas with the funds they need to operate.

 

 

How co-investing with Scandeat Spanish Wines works:

  1. Production: We only work with the finest producers who have a proven record of producing premium and often awarded wines, which offer a much stronger resale value.
  2. Broker negotiations: Scandeat Spanish Wines buys premium wine in bulk at discounted prices, wholesale rates. When the wines are bottled they are delivered to our own maintained and secure warehouses.
  3. Private investors: Each share starts from €2,610 onwards depending on the specifics of the wines. One share includes roughly 337 litres in barrels or tanks or 450 bottles of 75cl which is equivalent to one pallet with 75 cases.

Wines are bought in bond which means without alcohol tax and VAT.

A certificate for your participation is issued directly after payment. This certificate is your guarantee and has the same binding legal status as a lending agreement.

Like ageing wine this is an unhurried investment. This needs to be considered by investors who require ready access capital.

Scandeat Spanish Wines offers three investment possibilities based on the wine and its ageing period we contractually agree to purchase from producers.

  1. Scandeat Spanish Wines 0012 – 12 months**
  2. Scandeat Spanish Wines 0024 – 24 months
  3. Scandeat Spanish Wines 0036 – 36 months

After completed ageing period and bottling, wines will be transported to our secure warehouses and put on the market. We currently sell online to private customers and to restaurants in Sweden. With growing volumes we plan to enter new markets.

 

Get your share in Scandeat Spanish Wines >>

 

Don not hesitate to contact us for any questions or thoughts regarding Scandeat Spanish Wine investment:

Founder/CEO
Stefan H Gahlin  
stefan@scandeat.com
Mob:0725-007112

 

*Read international wine critic James Suckling’s comments about Spain in our online Magazine BonV
**Our 12 months buy-back guarantee is only issued for our 0012 share and participation.

 

 

Additional market information.

 

 

The Swedish wine market today

Systembolaget total sales of wine in 2022 was 21,2 billion (SEK) with online sales of 3,4%.

The total online sales is very hard to estimate with many foreign web shops that don’t declare their sales in Sweden according to alcohol regulations. The Swedish e-commerce association states that approximately 4% of all alcohol sold in Sweden is bought online.

Systembolaget expects that the online sales of wine in Sweden will increase to 10-15% in the next three to five years. That is an increase of more than 2 billion (SEK) in online sales, the biggest market change in Swedish alcohol monopoly history. And naturally it’s only here Systembolaget is exposed to direct competition in price and quality.

The average price of wine in Sweden is 109kr per liter and is estimated to increase to 115kr per liter in a few years.

 

 

Försäljning per kategori miljarder kronor

 

The twenty largest importers stand for 65% of all sales at Systembolaget.

The Swedish importers are unique in the world because they deliver to a state monopoly and purchase very large volumes from international producers, mainly bulk wines that are used for BIB (bag-in-the-box) which stand for 55% of all wine sales in Sweden.

The largest suppliers to Systembolaget create revenues from their operations as high as the largest food producers in the country, which may seem a little strange for intermediaries who do not produce anything themselves, however they have no expensive stores to manage, a minimal number of employees and therefore make tens of millions in profit every year.

A good deal for a few, but a bad deal for many winegrowers who are forced to sell their grapes at a very low price and those consumers who appreciate a good quality wine at a reasonable price.

 

Största leverantörer

 

Where does the money actually go when we buy our wine at Systembolaget?

In Sweden, the tax (among the highest in the world) is around 45% and only 15-20% goes to the producers, a little-known fact to most people.

Example of where our money goes when we buy a normal bottle of wine:

1. The supplier’s price to Systembolaget: SEK 46.30 (including the producer’s price).

General surcharge from Systembolaget: SEK 6.81 (14.7% of SEK 46.30)

Surcharge product group from Systembolaget: SEK 5.40 (wine)

Total price: SEK 58.51

2. The alcohol tax is added

The alcohol tax for 75 cl of wine is SEK 20.62 (alcohol tax SEK 27.49/litre)

Total price: SEK 79.12

3. VAT is added to the price.

The VAT will be SEK 19.78 (25% of SEK 79.12)

Total price: SEK 99

 

Sålda liter per prisnivå

 

The online wine market today

Many of the private online wine businesses experience increased sales but battle with high costs and low margins and often even negative results.

Key problems are:

  • High purchase prices due to small volumes of individual brands
  • High transport and storage costs due to hundreds, many times thousands of brands in stock
  • High delivery expenses due to demand for free home delivery in Scandinavia

 

Tomorrow’s online wine market

We believe that a future successful online business must focus on purchase of larger volumes of fewer brands and much more cost-effective transportation, storage and delivery alternatives.

 

The opportunity 

The global wine market is growing fast and countries like China and India, where wine consummation was almost zero per capita just 10-15 years ago, are increasingly buying more wines. Based on the growing demand and the present production rate, many producers are not meeting its demand for Spanish wines.

Producers are currently fighting high interest costs and inflation like many other global businesses and they are seeking alternative investment solutions to expand and modernise their wine production. One way to do so is to sell wines that are still ageing in barrels or bottles in their cellars. Many quality wines are aged between 2 and 5 years and billions of euros are locked up in dark cellars in Spain.

Spain has more land under wine cultivation than any other country in the world but its growth has been relatively slow as during the Franco era it was forbidden to water the vines and there was no government support at all for the winegrowers. However, in the last two decades, the Spanish wine industry has seen significant growth and in the last 5-7 years a new generation of creative winemakers are making wines that is getting international recognition and rewards, making Spain the most interrelating wine country in the world today.

Over the last years we have proven that we can offer Spanish quality wines at a better price than Systembolaget and their suppliers through well established personal connections and by optimising transport, storage and our own expenses. Now we want to purchase larger volumes at an early stage in the winemaking process and by doing so, be able to offer even better prices than before, thus putting us in a position to seriously challenge all other Scandinavian online players including Systembolaget on Spanish wines.

 

 

 

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