The winery adheres to the most natural methods throughout the production process, crafting authentic and exclusive wines that exude a distinct sense of identity. With a strong commitment to sustainability and reverence for the environment and soil biodiversity, Adega do Vulcão minimizes the use of chemical additives, emphasizing natural fertilization methods to stimulate the soil, enhance microbial activity, and improve soil fertility.

In the cellar only endogenous yeasts are used. Maturation & fermentation happens in cement tanks, untreated oak barrels and clay. The goal is to create wines that are an authentic expression of the land that produces them.

Our heritage vineyard project with Adega do Vulcão offers investors a fixed gross IRR of 4.69%. This is made up by two components:

A fixed lease back of 4% per year and the revenue from the buy back after 10 years with a conservative premium of 10% (equal to 0.69% Gross IRR per annum after deduction of carry)

Investment example:

An investment of €1,000 in January 2024 will have an expected cash pay out from lease income of €400 for the duration of 10 years. At the same time a total management fee of €150 is payable. Adding an estimated €85 sales premium (85% of €100 Sales Profit) means that after 10 years the value of the investment is expected to be €1,335. This represents a Net IRR of 3.23%

Investing in a vineyard can be an enticing prospect. In general, investing in natural assets can be seen as a relatively stable, long term investment that has a positive impact on your overall portfolio risks.

Diversification: Investing in a vineyard diversifies your portfolio by adding a tangible and potentially uncorrelated asset class to traditional investments like stocks and bonds.

Stable Income: A well-managed vineyard can generate income from grape or wine sales. Especially premium and rare wines have seen a significant value appreciation over the past years.

Potential for Appreciating Asset: Vineyards, if well-maintained and located in a desirable wine-producing region, can appreciate in value over time, making them a potentially profitable long-term investment.

Passion and Lifestyle: For individuals passionate about wine and viticulture, owning a vineyard can offer a unique and fulfilling lifestyle, combining work and leisure.

Adega do Vulcão vineyards carry out all viticulture activities relating to the production, processing and sales/export of quality white wines.

The volcanic origin gives the terrain some specific properties, especially the volcanic crust in Pico island (the “lajido” or lava flows), as well as the sandy areas with volcanic ash deposits in Faial island. These unique terrains, combined with the influence of the sea, the latitude and the dedicated manual labor create unique wines with distinct characters.

Currently the winery offers three different premium wines:

Ameixâmbar is crafted from the distinct volcanic soils of Faial, where Adega do Vulcão is the only active grape producer, and Pico islands. This unique blend features native grapes from the Capelinhos area on Faial, where the volcanic ash eruption occurred in 1957, and from the lava fields of Criação Velha in Pico. The result is a perfectly balanced wine, showcasing the individual 'uniqueness' of each terroir. Ameixâmbar is meticulously fermented and aged in a state-of-the-art, refrigerated, egg-shaped cement tank, ensuring a truly extraordinary taste.

Pé do Monte DO Pico, a distinguished wine, is meticulously crafted from native grape varieties grown in ancient vineyards aged between 70 and 80 years. Pé do Monte DO Pico won the Portuguese best wine of the year 2023 from the prestigious Revista de Vinho. Cultivated in the historic lava flows of Criação Velha, these vineyards boast low yields with high concentration, ensuring unparalleled quality. Following a careful grape selection process, the harvest is promptly transported in small 20kg cases to the 'adega' (winery) and undergoes processing in a vertical press with inertization. The wine experiences pre-fermentative maceration and is subsequently fermented in refrigerated egg-shaped cement tanks, followed by 9 to 11 months ageing on lees.

Terra Brum is a single vineyard wine from carefully selected old vines cultivated in the Solar Terra Brum vineyards, situated in Areia Larga, Pico Island. The vineyard, with roots dating back to 1796, was passionately developed by its first owner, Morgado José Francisco da Terra Brum, for the production of exceptional wines. After decades of inactivity, the Solar Terra Brum owners partnered with Adega do Vulcão to restore the heritage of this historic vineyard and restart producing a Terra Brum wine.

Your investment goes towards a lease back model, in which Ridge Invest TWO GmbH purchases various vineyards in the Azore Islands. The vineyard will subsequently be leased back to Adega do Vulcão for a yearly lease fee of 4% of the investment value & sold after 10 years (Please refer to “The Returns” section for details.)

The ownership of a vineyard typically involves facing market and climate risks. The wine industry is particularly vulnerable to fluctuations in market conditions, climate variations, and natural disasters, all of which can impact crop yields, revenue, and contribute to the challenges of pests and diseases. Our vineyard in Portugal takes a proactive approach to minimising these risks. We exclusively cultivate indigenous grape varieties, employ impactful and sustainable practices, and produce a premium, not mass-market, wine. This strategic choice reduces our dependency on yield and safeguards against market price fluctuations.

Additionally, operational challenges, including significant upfront costs for establishing operations, planting vines, and infrastructure development, are effectively mitigated through our uptake agreement with Adega do Vulcão. All operational expenses are covered and access to crucial skills such as vineyard management, viticulture expertise, winemaking, and agricultural practices is given. Adega Vulcão proudly collaborates with a reputable winemaker and maintains a robust network of local partners, providing year-round support for our operations.

Your investment is facilitated by a bond issued by Ridge Invest TWO GmbH, with the bond proceeds reserved for the acquisition of vineyards in the Azores Islands.

This bond adheres to German regulatory standards, ensuring compliance and oversight. To optimize efficiency and maintain low management fees, we leverage two innovative approaches:

E-Securities: In 2021, the German regulator introduced e-securities, enabling the issuance of bearer bonds. Fully regulated and supervised in a Central Securities Register, e-securities provide a secure and efficient framework for modern financial products. For further insights, refer to BaFin's expert article here.

Tokenization: We tokenize the asset and store it on the decentralized polygon blockchain to facilitate the storage, allocation, and exchange of all our financial products, including bonds. This approach is fully regulated in Germany, ensuring safety, trust, and exceptional efficiency at an affordable cost.

As an investor in the Ridge Invest TWO GmbH bond, you'll benefit from the typical features of this investment class, including regular interest payments (4% per annum, paid once a year), payback at the bond term's conclusion (estimated minimum premium of 10%), and the flexibility to trade or sell the bond.

This translates to an anticipated annualized gross return on investment of 4.69% over a 10-year period.