Bottling Fine Wine, With Notes Of Data | PYMNTS.com

Giving Traders More Confidence

One of the reasons behind traders’ previously low confidence in wine trading marketplaces was a lack of objective, transparent and trackable data on factors like pricing and scarcity, he added.

Statistics by any source – including data on certain varietals’ pricing, or how many bottles of a wine were left unconsumed in the world – was formerly provided by those selling the bottles. That represented an inherent conflict of interest and, perhaps unsurprisingly, prices were often inaccurate as sellers inflated metrics to make their sales seem more appealing or rare.

“The key thing about our data is [that] it’s independent data,” Maxwell said. “It’s also standardized and [has] some quality control elements, so that traders can trust [it] and know what the state of the market is.”

The platform offers a pair of data tools designed to deliver real-time pricing and availability information – or a lack thereof – to traders.

One tool, the Liv-ex Wine Identification Number (LWIN), assigns a unique, seven-digit numerical code to each type of wine being traded on the platform. In addition to reducing confusion over product names, the code numbers refer to the wine’s producer or brand and originating grape or vineyard – all to help traders track wine without worrying about whether they might be following the wrong variety.

Liv-ex then pairs LWIN numbers with its other data tool, the Wine Matcher, designed to enable users to track pricing and scarcity data on up to 5,000 different LWIN numbers at one time. It tracks current and historic price points, too, allowing users to upload a list of desired bids or offers on certain varietals, then finds matching wines that can be purchased for the submitted offer. Lastly, it makes such suggestions to users.

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Bottling Fine Wine, With Notes Of Data | PYMNTS.com.