Herbert Smith Freehills has advised Treasury Wine Estates on a very limited sale of Penfolds Magill Cellar 3 barrel of wine to the Blockbar marketplace to be traded through Non-Fungible Tokens (NFTs).
This is the first deal of this kind for Treasury Wine Estates and provides an opportunity for the global premium winemaking company to expand its products into the booming global crypto-asset market and to reach a new demographic of consumers.
Through the deal with Blockbar, a marketplace for luxury wine and spirits products, limited edition NFTs tied to a rare Penfolds Magill Cellar 3 barrel of wine made from vintage 2021 and subsequently the wine bottles, will be minted and traded on the Blockbar blockchain platform. The wine, when bottled, will ultimately be securely stored at a climate-controlled Blockbar facility in Singapore, taking the hard work for consumers out of cellaring luxury wine.
Each of the 300 bottles will be uniquely identifiable and tethered to a unique NFT which provides the holder with the right to redeem the individual bottle. The NFTs will be traded on the Blockbar marketplace in either USD or ETH (a cryptocurrency similar to Bitcoin). Following the wine release date, holders of the NFTs can redeem the bottle corresponding to their NFT for consumption.