Former sommelier and industry consultant Erik Segelbaum doesn’t romanticize the business of wine collecting. Drawing from more than 30 years of experience, he believes the wine market is often misunderstood, pointing out that many collectors approach it as purely a financial mission and expect their bottles to appreciate in value over time.

Instead, he says the real significance of wine collecting lies in personal enjoyment, memorable experiences, and the stories behind each bottle. He cuts through the noise with one core message: “Every single bottle you acquire, you should expect to drink and never be able to sell.”

Segelbaum started out as a chef in a fine dining restaurant in Toronto, Canada. From there he moved to Philadelphia, graduating in 2005 with a BS in Culinary Arts and Hospitality from Drexel University. While in school, he spent three years as the chef de cuisine at Founders Restaurant at the Park Hyatt. 

He went on to help launch Hotel Victor in Miami, but with student loan debt mounting, he realized there was more financial stability on the wine and hospitality side than working as a chef. After passing his Introductory Sommelier certification with the Court of Master Sommeliers (CMS), he ascended the ranks to wine director at the hotel. 

In 2007, Segelbaum moved to Seattle to manage the wine program at Schwartz Brothers Restaurants, staying there for six years before taking a brief stint on a 644-foot yacht for MS The World. Then he came back to the East Coast to manage STARR Restaurants. All told, he’s managed some very large establishments in the industry, with businesses doing more than $100 million in revenue. Along the way he secured his Advanced Sommelier certification from the Court, along with specialist certifications for Champagne and Port. 

In 2018, Segelbaum started SOMLYAY, a wine consulting business comprising five components. Other than his work as a cellar consultant, his primary business is as a speaker and educator, including a role as national wine educator for the Smithsonian in Washington, D.C. He also has a wine club (GoodSomm), distribution company (SWIG partners), and is vice president of the United Sommeliers Foundation. Lastly, he is getting into the canned beverage market in 2026. 

The "Fool's Errand" of Speculation

Cellar consulting, which is primarily a word-of-mouth business, isn’t the main source of income for Segelbaum. But it is an opportunity to put his philosophy into action.

“If there was a foolproof formula to this, I'd be a millionaire right now,” he says, reminiscing about conversations he’s had with potential buyers. Speculation is a part of collecting, especially if you plan to resell a bottle, but there’s no great way to predict trends and it’s a lot easier to reflect once they materialize.

“The first time I had Clos Rougeard, I didn’t even know what it was, but I found it delicious,” he says. “It was allocated, but [only] $40 a bottle. Now good luck finding it for less than $250. Look at Marcel Lapierre Morgon—it used to be $20 a bottle, and now it’s $60.”

Listening to Segelbaum speak, one can see parallels between collecting wine and investing in stocks. Education can help you make informed decisions about value, but the wrong investment can crush your dreams of a big return if you’re not careful. Perhaps you buy a cult Napa wine too late and it declines in value. Or you simply buy wines from Bordeaux that don’t increase the way you thought they would—there’s a reason they call it an educated guess. 

“There’s no surety in this at all,” says Segelbaum. “Anyone who is playing on speculation needs to understand that they may end up with some delicious wine, but not something they can sell.”

When "Certain" Isn't Certain

Even the most popular wines can quickly go from easy investments to bottles that sit in your cellar. And that can be a difficult lesson for collectors, who often become enamored with the classic wines of the moment. 

“Wine is such a hyper-romanticized product,” says Segelbaum. “But industry professionals forget that while there is an artistic, sexy part, it’s a business. And in order to survive in this business, you need to be a proven operator at any level, whether you’re an hourly floor sommelier, corporate beverage director, collector, or anything in between.”

Through decades overseeing restaurant wine programs and managing corporate beverage portfolios, Segelbaum has seen firsthand how even the most prestigious wines can lose their luster. Wines from classic regions like Bordeaux, Burgundy, Barolo, and Napa often seem like a sure thing. But changes in taste, new competition, or shifting consumer behaviors can turn these certainties into disappointments. As with stocks, past performance is no guarantee of future success.

“If you look at the cult Napa wines, over the last 10 years the bottom has pretty much fallen out of the market,” Segelbaum says. “Buying Harlan for $700 and flipping it for $1,000 the next day doesn’t happen anymore. Buying Screaming Eagle for $2,000 and selling it in two years for $4,000 isn’t happening anymore. What’s certain isn’t certain.”

With shifting tastes creating fluctuating value, collectors need to think about how the marketplace truly works, rather than how they wish it worked. Many collectors buy wines with an expected, often overestimated, return. But as Segelbaum points out, the truth is that any appreciation is a bonus. Seeing 5X or 10X your investment is more akin to winning the lottery than investing. The only reliable return is in using the wine the way it was intended, shared with friends and family. 

“I tell collectors, if you're going to invest in wine because you think it's a great way to flip and make money, I wouldn't advise it," says Segelbaum. "You could be stuck with a thousands of dollars worth of inventory that you can't sell—that you also, by the way, have to pay to store. There is no guarantee that these wines will appreciate [in value].”

The Inefficient Marketplace

As much as buying wine can be like buying stocks, in some ways it’s more like cryptocurrency. “Wine is an incredibly inefficient marketplace; there is no easy way to connect buyers and sellers,” Segelbaum says. “There are 50 states that are basically 50 countries [with different laws] when it comes to alcohol. And if you're talking international, that is a whole other nightmare of legalities.”

He also points out that selling a bottle for the exact price you want takes extensive networking, a little luck, and a lot of patience. The process often demands more patience than most sellers have. “What a wine is worth is not what you can sell it for,” he says. “There is an inverse relationship to the speed of liquidity and the value you will get for that product. It is incredibly rare to be able to sell a wine through any avenue at full market value.”

Though wine is a difficult marketplace and a tough investment, there is a silver lining. Unlike stocks, wine is a tangible product that you can actually enjoy. “Collectors might end up with some really delicious wine, but they might not be able to sell it,” Segelbaum says, although he doesn’t think that’s a bad thing. “I tell investors all the time—the worst-case scenario is you've got a bunch of wine to drink or gift. I'll take those odds.”

That gives new meaning to the term “return on investment.” As a consumable asset, you can hedge your bets. If things go the way they seem in the short-term, sell the asset for a premium. If not, open it and share with friends and family—it’s a win-win.

The Real Reason We Collect

Segelbaum is a wonky, business-savvy, analytical speaker with a neutral, measured disposition. But he took on a more reflective and more personal tone toward the end of our conversation, showing compassion for his clients and the emotional connections he’s made in the cellar. 

“I can tell a lot about somebody by what's in their wine collection,” he says. “I can get an idea of where they've traveled, or when they buy on spec versus buying it because they really love drinking it. Who is this person through the lens of their wine?”

That is the beauty of wine, the discovery of people and places through bottles. If you love it, there is no losing. You either discover a great story, or you have a great bottle to share or sell. "People should invest because they love wine,” says Segelbaum. “And if they happen to make some money out of it, great.” I couldn’t agree more.