BurgundyStreet

I’m so exhausted at the amount of people that tell me “China is the future, man!”  Jumping on the China bandwagon is like those twits that all of a sudden hated merlot back in 2004 because of that movie Sideways.  

Thing is, these people have a point.  I don’t know how immediately valuable speaking Chinese would be, because any person doing business in China already speaks English, and from what i hear, there are hundreds of dialects, takes years to master, let alone write.  

But showing an effort to learn another man’s language whether in business or in life, goes a long way.  At least the effort.  So i have been looking at this Rosetta Stone program for speaking Mandarin for the last year, and the more stories i write about Hong Kong auctions, or how Asia will be the new monster consumer of wine, i click back onto RosettaStone.com and contemplate just how much pain/effort this will take.  BurgundyStreet is looking for a good reporter/blogger for the Hong Kong area, and speaking Chinese will soon be a must for us here.  

So after Vinexpo CEO Robert Beynat, said “Asia is the future” adding that Hong Kong would become an important gateway because it is “right in the middle of the Asian markets.”  I decided to purchase the program.  The figures released by Vinexpo found that between 2009 and 2013, wine consumption in Asia will increase by 25%, reaching nearly 1.3bn litres. By 2011, the Asia-Pacific market is set to be worth more than US$6 billion.  

Any serious player in the global wine business (or any business) will one day make this decision as well.

BREAKING: Acker Merrall & Condit’s President and Auction Director, John Kapon said: “We made a very strong start to 2010 with mind-boggling results in our two-day sale, indicating the strong demand and continued growing interest in Hong Kong and Asia for top quality, rare wines of impeccable provenance.  We are thrilled with the amazing prices achieved for the personal collection of Henri Jayer from Martine Saunier.  We saw particularly strong participation by Hong Kong, mainland Chinese and Taiwanese buyers, which set new world auction records, and there was also very active bidding online.

“The excellent result sends a very clear message: The wine market in Hong Kong is extremely robust. Not only has Hong Kong consolidated its position as the regional hub for fine and rare wines, it is continuing to claim its rightful place on the world wine stage. Already Hong Kong has overtaken London as the world’s second most important wine auction center after New York. We predict that in 2010, Hong Kong will go further and become the world’s leading wine auction center. We now look forward to our sales on 26-27 of March and the giant May Sale on 28-29, which will be the largest wine sale ever conducted in Asia and one of the largest in history.”

Sotheby’s has just set the tone of the year with incredible numbers in their latest wine auction in Hong Kong.  The highlight, a six-liter bottle of Chateau Lafite 1982 fetched HK$363,000 or USD $46,700, nearly twice its presale high-estimate.

The auction lasted ten hours, and 800 lots tallied HK$52.9 million, beating Sotheby’s own forecast of HK$40 million.  To drink while bidding, was the Louis Roederer Blanc de Blanc 2003 and Haut Brion 1998.  Online bidders drank none of the two.

It’s hard to pass up a good sip of wine, and China knows what that means.  Australia’s largest trading partner wants a taste of its wine industry.  They plan on making a ton of investments across the $26 Billion sector, like owning local wineries, equity interests in wine and beverage groups.  All owned by the Chinese government.

Interesting thing about that:  the Chinese government are really acting like capitalists.  Australian wine sales have grown from $1.5M to about $94M last year.  It’s growing at a rate of over 50% per year, and growth is continued to remain like this again this year too.  The Chinese have seen a good investment, and they want in.

The 2007 Mouton Rothschild label was revealed the other day.  It was designed by French sculptor Bernar Venet.  We took a look around his website and to be quite honest we weren’t that impressed.  He has an odd video playing on his homepage about him pushing over steel structures.

Anyway, we haven’t been impressed with the latest labels that the Chateau has been getting recently, and this is no exception.  The Baroness must feel pretty lucky to pay these artists in the very wine and vintage they are designing.  It explains why Picasso even accepted the ‘82 request.

“The swell of a barrel while the arcs evoke chalices rooted in the earth and open, like vinestocks, to the precious gifts above” was the chateau’s explanation for the label.

Okay……  Regardless, speculation of the ‘08 Mouton label has been heating up on eBob’s forum, and has completely overshadowed the ‘07 announcement.  Most of the theories indicate that the ‘08 label will be done by a Chinese artist, as the Chinese people deem the number 8 VERY lucky.  Also, it would be a very smart and strategic move for Mouton to make this decision.  Lafite is a very popular wine in Asia, and traded very heavily in Hong Kong, and if Mouton were to make the ‘08 label in Chinese, or with Chinese characters, would certainly be a move to solidify Asia’s very important position in the wine world.  Me thinks the Chinese wine investors would like it.

Hong Kong is becoming more and more important in the international auction world, with Acker Merrall & Condit leading the field, and Sotheby’s claiming the region is its most important wine centre.

As the 2009 season draws to a close, Acker is outdistancing its competitors there, realising US$21.3m from four live auctions and one internet-only auction.

China figures large in Acker’s priorities – in 2010 it plans six or seven live auctions in New York and six live in Hong Kong.

Rival auction house Zachys’ four 2009 Hong Kong sales grossed US$18.8m.

Sotheby’s three Hong Kong sales grossed US$14.3m. It plans four sales there in 2010, ‘though depending on demand that number could increase,’ it said.

After Sotheby’s 3-4 October auction, where 99% of the buyers were Asians, Serena Sutclife, head of the international wine department said, ‘Hong Kong has become Sotheby’s most important wine centre, ahead of very successful
auctions in New York and London.’

Christie’s sole 2009 sale to date generated US$4.06m. A second sale is to take place on 28 November. The 374 lots are valued in excess of US$5.2m.

Dates for 2010 sales have not yet been established, but typically they take place in May and November. The sales involve live and online bidding.

Bonhams held ‘a very intimate’ auction of 90 lots in May, selling all of them and generating US$261,931.

The next sale, on 27 November, features 512 lots, high-estimated at US$2,147,435.

On Monday night, 228 bottles of 1982 Lafite worth US$877,000 were stolen by thieves who bound and gagged a warehouse guard in the city’s New Territories sector.

While collectors have snapped up Lafite at auctions, counterfeiters have filled retail shelves with ersatz versions. Members of the wine trade say Hong Kong has more 1982 Lafite than Bordeaux produced that year.

SOURCE

Powered by two Sotheby’s auctions, Hong Kong gained further clout in the international auction market last weekend.

Sotheby’s sold 100% of two American collections, generating US$7,889,340, far above the pre-sale high estimate of US$6,130,436.

Ninety-nine percent of buyers were Asians, and 79% of the lots brought prices above the top estimates.

The high point was the record-setting US$93,077 paid for an Imperial (six-litre bottle) of 1982 Château Pétrus.

Serena Sutcliffe MW, who heads Sotheby’s international wine department, said Asian buyers represented 99% of buyers in the 3-4 October sale.

‘Hong Kong has become Sotheby’s most important wine centre, ahead of very successful auctions in New York and London,’ Sutcliffe said.

Sotheby’s introduced live online bidding with a live video and audio feed in its Hong Kong this season; online bidders sought 56% of consignments offered.

The house’s opening autumn auction in New York mirrored the comeback of the blue-chip American market, which experienced low prices during the economic downturn much of the year.

That Aulden Cellars/Sotheby’s sale, on 25-26 September, brought $3,347,798, just beyond the $3.2m projection.

Again 1982 Château Pétrus led the way, with a case fetching $54,450 ($35,000 high estimate).

Zachys realized $4,179,636, a hair over the high estimate, in its 12 September auction. This sum, reflecting 99.3% of lots sold, was the most it has generated in its US auctions since May 2008.

The biggest earner was six bottles of 2005 Romanée-Conti, Domaine de la Romanée-Conti (high-estimated at $40,000), which fetched $52,800.

SOURCE

It seems the wine market is beginning to rock again, and Acker is leading the way, again. Here is Acker’s report delivered to us straight from Hong Kong:

Hong Kong – Acker Merrall & Condit’s third Fine and Rare Wine Auction of 2009 was held in Hong Kong today (19 September) and achieved fantastic results, realizing nearly HK$50 Million (US$ 6.4 Million), with 100% sold. Together with its March and May auctions which totaled HK$72.5 Million (US$9.32 Million), Acker Merrall & Condit’s sales in Hong Kong so far this year have achieved an impressive total of HK$122.5 Million (US$ 15.7 Million).

Over 1,100 lots were offered at this highly successful sale featuring over 8,300 bottles of some of the world’s greatest wines and champagnes, including the largest selection of highly sought-after Burgundy from Domaine de la Romanée-Conti ever to appear at auction in Asia. Bidding was intense throughout the sale in a packed saleroom of over 300 bidders at the Island Shangri-La Hotel. There was also active bidding over the Internet as well as by absentee and phone bids from collectors around the world.

“We are thrilled by the market’s enthusiastic response to the sale today which achieved strong prices at all levels, continuing the trend we saw in New York last week,” said John Kapon, Acker Merrall & Condit’s President and Auction Director. “The sale today is a clear indication that the wine auction market has bounced back significantly and there is a continuing strong demand for fine wines of superb quality and rarity. Fine and rare wine is clearly the first luxury good to recover the quickest, and we are most excited about our next two sales on October 28th in New York and November 7th in Hong Kong. Hong Kong is now arguably the fine wine world’s most important market, and we look forward to further developing our business in Hong Kong and also to strengthening Hong Kong’s position as the wine capital of Asia. We also are looking forward to our first exclusively Hong Kong Internet-only auction to take place in the second half of October, which we consider an important step in continuing to expand our presence here in Hong Kong.”

Leading the sale was a superlot of 12 consecutive vintages (1990-2001) of Domaine de la Romanée-Conti Assortments, including the 2001 vintage which was last vintage that the Domaine ever made in 12-bottle assortments, realizing HK$2,541,000 (US$325,769) after spirited bidding.

Other standout lots included a case of 1990 La Tâche in banded, original wooden case fetching HK$580,800 (US$74,462), and Romanée-Conti included 3 magnums of 2005 Romanée-Conti selling for HK$580,800 (US$74,462), both of which are World Auction Records for these wines in these formats. Of the rare large format DRC offerings, a Jeroboam of 1985 Romanée-Conti achieved an impressive price of HK$435,600 (US$55,846).

The sale also presented a remarkable selection of blue-chip Bordeaux, including a massive collection of the best Bordeaux of the past 25 years, offering an extraordinary opportunity to acquire some of the best Bordeaux of our lifetime. Highlights included a case of 1989 Château Pétrus realizing HK$338,800 (US$43,436), 6 bottles of 1961 Château La Mission Haut Brion in outstanding color and condition selling for HK$145,200 (US$18,615), 12 bottles of 1989 Château Lafleur in original case bringing in HK$217,800 (US$27,923).

Of particular note was an exceptional collection of ancient French treasures, which had never before left France until being offered for auction in Hong Kong. Among the true rarities were 12 bottles of 1945 Château Latour in their original wooden case which realized HK$266,200 (US$34,128) (illustrated right), and 12 bottles of 1959 Château Latour, also owc, which sold for HK$266,200 (US$34,128).

A superlot of 150 bottles of Salon Vintage Champagne 1996 sold for a remarkable price of HK$363,000 (US$46,538), highlighting another sale full of strong demand for the world’s finest bubblies.