2010 proved to be a record breaking year for wine auctions with the global industry totaling over $405 million USD. The leader of the pack once again this year was Acker Merrall & Condit. 2010 also marked the first year the Hong Kong market overtook the United States in sales figures. This solidifies Asia as the fine wine market leader – a trend that is likely to continue for the foreseeable future.
As the year was winding down, one sale in particular stood out: The Historic Wines from the Collection of Graham Lyons Part II at Zachys. The immaculate provenance promised by this cellar had been established by the initial sale of Mr. Lyons’ collection in April 2008. This Lyons sale appeared to benefit from increased participation by Asian bidders and seemed to serve as a catalyst for these same bidders to diversify their palates. While historically Asian buyers have concentrated on Bordeaux and, more recently, Burgundy, this sale saw the same buyers demonstrate strong interest in Rhones, aged White Burgundies, and German wines, among others. Lyons’ wines from Domaine Leflaive were particularly sought after: hammer prices for the twenty-seven lots offered were regularly two to three times higher than normal sale levels.
The Lyons auction resulted in many new price records, and while there were no deals to be had, we were very happy with what we purchased and only wish we could have bought more from this collection. This sale aside, we were able to secure numerous wines at excellent prices during the last auctions of the year: a few stand outs included a magnum of 1937 Krug Extra Sec for $3200 and an original wooden case of 1989 Lafleur for $833 per bottle, both tremendous bargains in this market.
Hong Kong sales by Acker, Zachys, and Sotheby’s gave the 2011 season a strong start – much stronger than we anticipated. No particular wines stood out, but the majority of lots offered sold several increments higher than the average sales in November and December with the Andrew Lloyd Webber sale at Sotheby’s seeing the highest results. Zachys tested Hong Kong bidders’ appetite for California wines at various price points with a large offering from the Bacchus Partners investment fund. This risk seemed to pay off as the wines all sold, further demonstrating interest from the Asian market in exploring wines outside the standard Bordeaux and Burgundy.
The intensity of these recent Hong Kong auctions was likely bolstered by the impending Chinese New Year. As wine becomes more ingrained into Chinese culture it is playing more of a role in the annual holiday – both from the consumption and gift-giving standpoints. The auction houses timed their sales perfectly and are wise to not have any further sales until March giving the market time to regroup after its festive spending.
On the topic of gifts, it seems that among the Chinese certain specific wines such as 1982 Lafite Rothschild have quickly become very prestigious items to give and receive. Inevitably, many people will feel that these bottles are too expensive to open and therefore may be likely to re-gift these wines. If this proves true with any frequency, excessive handling and fluctuation in storage conditions – especially in areas with hot climates – may eventually compromise the integrity of these wines. This could cause a future crack in the top tier of the market as drinkers begin questioning the quality of wines presented to them. We predict that provenance will only play a more substantial role in the future of this global market.
Kind Regards,
David Beckwith, Robert Bohr and Ned Benedict
Grand Cru Wine Consulting is a leading independent fine & rare wine advisory firm. Services include acquisitions, liquidations, cellar management and private sommelier events.
