In the second of our 2011 Circulars, we herewith update you on our latest market-leading security enhancements, as well as our revised Insurance Policy details and charges.
Hong Kong is now the world's largest Fine & Rare Wine auction market by volume and value. Accompanying this accolade is an almost meteoric rise in the value of fine wine.
This in turn has forced all serious fine wine storage facilities to refocus their attention from not only providing excellent wine storage conditions, but to also providing the best wine insurance and physical wine security.
As the recognised international market leader, CWC is again showing the way through the following upgrades and enhancements.
CLOSURE OF CWC 2 & 3 and the OPENING OF OUR NEW FLAGSHIP, CWC5
Despite both CWC 2 & 3 both being awarded the world's first "Fine Wine Storage Certification" by the HKQAA, these facilities were deemed not to be up to CWC's ever stricter, exacting standards.
As such, and at substantial additional cost, CWC made the difficult decision to replace CWC 2 and CWC 3 with our new Flagship Facility, CWC 5.
CWC 5 not only combines all the climate control lessons learnt from being the world leader in Fine Wine Storage Conditions, but also incorporates state-of-the-art security upgrades to stay ahead of the incredible value increases of the top Rare and Fine Wines.
Central to this security upgrade is the construction of a dedicated Fine Wine Vault designed to meet international standards, and which will provide a secure location for all the most valuable wine stocks under our care.
CWC is pleased to report that CWC 5 is now fully operational, and that more than 30,000 cases of wine were transported under controlled conditions from CWC 2 & 3 to CWC 5 over the past 8 weeks with only slight disruption to our daily operations.
Should you have been negatively affected by this process through delayed replies or outstanding wine registrations, we apologise and promise that our usual high standards will return to normal very soon.
CWC INSURANCE COVER FOR 2011
Insurance Cover Summary
· Despite the dramatic rise in overall Fine Wine Values, CWC continues to be the only facility of its kind to offer not only individual bottle insurance but also combined cover for all wines under our care in the event of simultaneous Total and Catastrophic Loss involving all our facilities.
In short, CWC will be able to compensate our clients to a limited, albeit extremely high level for every bottle under our care in the extreme event that there is a total and catastrophic loss of every facility that we operate.
· Moreover, all wines stored with CWC are covered for breakage or violent theft up to their full Current Market.* (Subject to a policy limit)
Whilst the policy CWC have procured carries a deductible for each and every claim, in the event that you make a claim for loss or damage to your wine (providing this is, of course, for a covered risk or peril), then our Insurers and CWC together will reimburse you as if no deductible applied.
· Naturally, our Inland Transit Cover is equally comprehensive and generous, covering all wines in transit for breakage or violent theft up to a value of HK$25 million per conveyance.
*Please Note that "mysterious disappearance" and infidelity by CWC employees are not covered by this policy. There are also other exclusions, limitations and conditions that may reduce or exclude a claim. Please request a full copy of the policy for all details.
New Insurance Cover Rates for 2011
1. All wine valued at HK$19,999 per bottle or below will be charged at HK$0.40 per bottle per month as from 1 February 2011.
2. All wine valued at HK$20,000 per bottle or more will be charged at HK$5 per bottle per month as from 1 March 2011.
· This rate is calculated as 0.3% of HK$20,000 per anum - The lowest insurance rate for a specified high-value item that we are aware of.
· This rate is fixed and will not increase beyond HK$5 per bottle per month irrespective if the value of a wine is higher than HK$20,000 per bottle.
For example, should a bottle be valued at HK$50,000, the insurance cost will still only be HK$5 per bottle per month.
· Our insurance company has stipulated that all these high-value special bottles/cases must be carefully inspected and placed inside our newly constructed high-security vault.
· Given the extreme risk being placed on our insurance company, this is an absolute non-negotiable requirement from them in order to cover these wines to full current market value.
Crown Wine Cellars Limited
Address: 18 Deep Water Bay Drive
Hong Kong Island,
Tel: 2580 6287
Fax: 2580 6283