2016 wine market report - Sotheby's Wine

2016 WINE MARKET REPORT RETAIL & AUCTION

NEW YO RK LO ND O N H O NG KO NG

SOTHEBY’S WINE RANKINGS TOP 10 PRODUCERS WORLDWIDE PRODUCER 2016 Domaine de la Romanée-Conti

2015

TOTAL (USD) 2016

1

1

12.2M

Lafite

2

3

5.0M

Petrus

3

5

5.0M

Mouton Rothschild

4

2

4.4M

Latour

5

6

3.8M

Henri Jayer

6

9

3.2M

Haut Brion

7

8

2.5M

Palmer

8

36

2.4M

La Mission Haut Brion

9

22

2.3M

Margaux

10

4

2.1M

Domaine de la Romanée-Conti retained the No 1 ranking for the fourth consecutive year Posting an impressive

18% increase in sales to $12 million

This follows a 16% increase in 2015 and a 24% increase in 2014 Domaine de la Romanee-Conti sold more than double its nearest rivals Lafite & Petrus La Mission Haut Brion & Palmer make their first appearance in the

TOP 10

on the back of their “Direct from the Winery” sales in New York & Hong Kong

Haut Brion, Latour, Petrus & Henri Jayer all showed an increase in sales of over

50%

Margaux & Mouton Rothschild both held single owner sales in 2015 which accounts for their change in ranking this year 2

2016 WINE MARKET REPORT | SOTHEBYSWINE.COM

SOTHEBY’S WINE RANKINGS TOP 10 PRODUCERS BY REGION

Bordeaux

2016

2015

Burgundy

Lafite

1

2

Domaine de la Romanée-Conti

Petrus

2

4

Henri Jayer

Mouton Rothschild

3

1

Leroy

2016

2015

1

1

2

3

3

7

Latour

4

5

Leflaive

4

5

Haut Brion

5

6

de Vogüé

5

6

6

2

7

12

8

4

9

8

10

17

Palmer

6

15

La Mission Haut Brion

7

8

Dujac

Margaux

8

3

Georges Roumier

9

7

Coche-Dury

10

9

Méo-Camuzet

Cheval Blanc

Yquem

Armand Rousseau

Henri Jayer, Leroy & Coche-Dury all saw sales increase by over Méo-Camuzet enters the

3

TOP 10 for the first time


100%

SOTHEBY’S WINE RANKINGS TOP 10 PRODUCERS BY REGION Champagne

Krug retains the

NO 1 ranking for the

3rd year in a row

Both Sotheby’s Champagne and R&L Legras (the house that makes Sotheby’s Champagne) enter the

TOP 10 for the first time

on the back of very strong retail sales 4


2016

2015

Krug

1

1

Dom Perignon

2

2

Salon

3

6

Bollinger

4

4

Pol Roger

5

5

Louis Roederer

6

3

Taittinger

7

10

Moet & Chandon

8

12

Sotheby’s

9

N/A

R&L Legras

10

N/A

United States

2016

2015

Screaming Eagle

1

2

Harlan

2

1

Masseto

Opus One

3

11

Colgin

4

Sine Qua Non

Araujo/Eisele

2016

2015

Ornellaia

1

5

2

5

Bruno Giacosa

3

1

5

Gaja

4

3

5

3

Giacomo Conterno

5

2

6

20

Sassicaia

6

6

Dominus

7

17

Antinori

7

12

Marcassin

8

9

Soldera 8

4

9

6

Luciano Sandrone

9

7

10

15

Romano dal Forno

10

18

Heitz Robert Mondavi

Italy

BUYERS WORLDWIDE

Asian buyers became even more important in the market with a 4% increase, representing 56% of worldwide sales, at the expense of American buyers who decreased 5 points to 28%. At Auction on a worldwide basis:

• European buyers bought 28% of the lots with 17% of the value

• Asian buyers bought 48% of the lots with 58% of the value 5


By value, Asian auction clients purchased

97% 43% 41%

in Hong Kong in New York in London

By value, Latin American buyers bought

10% 7%

of New York auction sales of New York retail sales

BUYER VALUE MAP $1M+ $100-999K Less than $100K

BUYERS WORLDWIDE TOP 10 COUNTRIES

Aggregate

%WW Sales

Hong Kong

$ 25,540,723

34%

2

United States

$ 16,348,564

22%

3

United Kingdom

$

7,839,458

10%

4

China

$

6,598,039

9%

5

Taiwan

$

5,704,488

8%

6

Mexico

$

2,429,089

3%

7

Switzerland

$

1,759,573

2%

8

Japan

$

1,557,887

2%

9

Thailand

$

1,223,286

2%

10

Canada

$

1,082,334

1%

Ranking

Country

1

Total

We sold wine to buyers from

93%

49 countries

This is the first time we have included the ranking of each country—it makes for an interesting read!

6


#1 IN GLOBAL WINE AUCTION SALES 2016

Worldwide sales increased

22% over 2015

Leading the market for the 2nd year in a row with sales of

$74M

17,989 lots sold in 27 auctions, with an average lot value of $4,047

10 Single-Owner Sales Over 50 events and tastings in 12 Cities Buyers from 38 countries 33% of bidders new to Sotheby’s 18% of lots sold online 51% of lots sold exceed high estimate

7


AUCTION MARKET SALES BY LOCATION

NEW YORK

$34 M

HONG KONG

$22 M

LONDON

$18 M

WORLDWIDE

$74 M

New York sales increased

29% largely

due to the William I Koch sale

London sales were light in the first half pre-Brexit, but rebounded very strongly post-Brexit with

55% of the sales

coming between September & December

Hong Kong sales also reflected a stronger second half representing

8


60% of sales

AUCTION MARKET LEADERS IN SINGLE OWNER & WINERY DIRECT SALES 2016

2015

2014

2013

2012

SINGLE OWNER

38%

$36M

$26M

$15M

$20M

$17M

MULTI OWNER

26%

$34M

$27M

$29M

$34M

$44M

WINERY -52% DIRECT

$3M

$7M

$21M

$4M

$4M

22%

$74M

$60M

$65M

$58M

$65M

10 Single Owner Sales represented over

40% of sales,

led by the William I Koch sale

Winery Direct sales were over

$3M with the sales of

Palmer in Hong Kong and La Mission Haut-Brion in New York Both categories highlight the importance of provenance when offering wines for sale in today’s market

9


AUCTION MARKET LOTS SOLD & AVERAGE LOT PRICING London sold the most lots at

7,156

4,509

with an average lot value of

with an average lot value of

a 5% increase over 2015

a 42% decrease over 2015

$2,424

New York sold

5,149

total lots with an average value of

$6,133

a 48% increase over 2015

10


Hong Kong sold the fewest lots at

$4,516

AUCTION MARKET BIDDING METHODS NEW HONG YORK KONG LONDON

OVERALL

2015

Absentee

56%

56%

69%

66%

64%

BID Now

22%

10%

26%

17%

16%

Saleroom

22%

34%

5%

17%

20%

Online bidding via BIDNow represented of sales in London,

26%

22% in New York & only

10% in Hong Kong

As always, saleroom attendance in Hong Kong was strongest with lots purchased at

34%

Absentee bidding represented the highest level of purchases with

11

69% in London


AUCTION TOP 10 LOTS TOP LOTS OF 2016 Price

Ranking

Description

Sale Location

1

$ 394,787

1 Barrel (225 L) Palmer 2015 with Private Visit & Dinner

2

$ 343,000

10 Bottles Château Mouton Rothschild 1945

3

$ 306,675

12 Bottles Richebourg, Henri Jayer 1978

London

4

$ 235,000

1 Magnum Unique Crystal Decanter Louis XIII - European Edition

London

5

$ 189,498

1 Magnum Unique Crystal Decanter Louis XIII - Asia Edition

6

$

6 Magnums Vosne Romanée, Cros Paratoux, Henri Jayer 1989

New York

7

$ 159,250

1 Methuselah Romanée Conti, Domaine de la Romanée-Conti 1991

New York

8

$

12 Bottles Richebourg, Henri Jayer 1976

9

$ 147,000

12 Bottles Montrachet, Domaine de la Romanée-Conti 1978

New York

10

$ 134,750

1 Magnum Unique Crystal Decanter Louis XIII - Americas Edition

New York

10

171,500

156,745

$ 134,750

12 Bottles Vosne Romanée, Cros Parantoux, Henri Jayer 1996

Hong Kong New York

New York

first time Sotheby’s auctioned a barrel as Futures/En Primeur

The top lots were very diverse, coming from: Bordeaux, Burgundy, and Cognac; and

8 out of 11 lots were bought by Asian buyers

12


HONG KONG 4 JUNE 2016

London

$394,787 equivalent to $1,316 per bottle – this was the

from each sale location: London, New York & Hong Kong

DIRECT FROM THE CHÂTEAU AND THE CELLARS OF MAISON MÄHLER-BESSE & FRANCK MÄHLER-BESSE

Hong Kong

The highest value lot of the year was the barrel of Palmer 2015 which achieved an exceptional price of

CHÂTEAU PALMER

寶瑪酒莊珍釀酒莊直遞及MÄHLER-BESSE 與 FRANCK MÄHLER-BESSE 窖藏

SOTHEBY’S WORLD RECORDS RECORD-SETTING WINE AUCTION

$22M The Cellar of William I. Koch Sold May 2016 in New York ANY FORMAT BOTTLE

$310,700 Jeroboam of Château Mouton Rothschild 1945 Sold February 2007 in New York A STANDARD (750ML) BOTTLE

$232,692 Château Lafite 1869 Sold October 2010 in Hong Kong MOST EXPENSIVE LOT

$1,609,776 Romanée-Conti vertical 1992-2010, Domaine de la Romanée-Conti Sold October 2014 in Hong Kong

13


THE GREATEST WINE AUCTION EVER WINES FROM THE CELLAR OF WILLIAM I. KOCH

$22M Set Record for a wine collection sold at auction. Estimate: $10,628,650 – 15,128,650

sold, a 100% sell through 2,729 lots a ‘White Glove’ Sale Sale lasted

27 hours over Three Days

Buyers from

Over

23 Countries

20,000 Bids

740 Participants

14


AUCTION & RETAIL MARKET WORLDWIDE SALES BY REGION Bordeaux

2016

2015

52%

46%

Burgundy

34%

40%

Champagne

3%

4%

Italy

3%

3%

United States

3%

2%

Other

3%

2%

Rhône

2%

3%

Worldwide, Bordeaux increased its share of sales, increasing to

52% from 46%

It represented 62% of sales in both London and Hong Kong, but only 40% in New York It represented

45% of retail sales

Worldwide, Burgundy decreased to

34%

from 40% The rest of the market remained stable

15


AUCTION & RETAIL MARKET To illustrate the effect of the value of sales of Bordeaux vs Burgundy in each market, refer to the following comparisons:

BORDEAUX VS BURGUNDY AUCTION

Sales in New York

Sales in Hong Kong

Bordeaux

40%

63%

63%

Burgundy

47%

23%

26%

RETAIL

Sales in London

Sales in New York

Sales in Hong Kong

Bordeaux

46%

42%

Burgundy

26%

43%

16


AUCTION & RETAIL MARKETS AVERAGE BOTTLE PRICES Auction

17


2016

2015

Change -8%

Burgundy

$ 1,018

$ 1,109

Bordeaux

$ 397

$ 483

-18%

Spain

$ 360

$

413

-13%

Champagne

$

351

$ 500

-30%

Italy

$

313

$ 345

-9%

United States

$ 309

$ 609

-49%

Rhône

$ 279

$ 395

-29%

Retail

2016

Burgundy

$ 203

Bordeaux

$

181

United States

$

Italy

2015

Change

$ 220

-8%

$

216

-16%

169

$

144

17%

$

120

$

79

52%

Rhône

$

102

$

70

46%

Champagne

$

73

$

87

-16%

Spain

$

67

$

52

29%

2017 WINE AUCTION CALENDAR NEW YORK SALE DATE

CONSIGNMENT DEADLINE

25 February

Closed

25 March

Closed

19-20 May

17 March

17 June

7 April

9 September

30 June

21 October

11 August

11 November

24 August

2 December

22 September

LONDON SALE DATE


22 February

Closed

22 March

Closed

26 April

22 February

10 May

3 March

14 June

7 April

12 July

12 May

20 September

21 July

18 October

11 August

15 November

15 September

13 December

12 October

HONG KONG SALE DATE


1-2 April

Closed

10-11 June

7 April

2 September

10 July

30 September - 1 October

10 July

8-9 December

2 October

18


CONTACT US WORLDWIDE

NEW YORK AUCTION

NEW YORK RETAIL

SERENA SUTCLIFFE MW 26 years Honorary Chairman +44 (0)20 7293 5050 [email protected]

CONNOR KRIEGEL 7 years Head of Auction Sales +1 212 606 7050 [email protected]

PAUL TORTORA Assistant Vice President +1 212 606 7050 [email protected]

SACHA AUSTIN Vice President +1 212 606 7056 [email protected]

JAMIE RITCHIE 27 years Worldwide Head +1 212 606 7050 [email protected]

MIKE HOAGLAND Assistant Vice President +1 310 786 1894 [email protected]

SIMON HERRIOT 6 years Specialist +1 212 606 7050

ELI RODRIGUEZ 10 years Vice President +1 212 894 1990 [email protected]

[email protected]

NICHOLAS JACKSON 5 years Assistant Vice President +1 212 894 1845 [email protected]

LONDON STEPHEN MOULD 37 years Head of Wine, Europe +44 (0)20 729 3 5046 [email protected]

JAMES REED 20 years Director +44 (0)20 7293 5014 [email protected]

DAMIAN TILLSON 17 years Director +44 (0)20 7293 5851 [email protected]

CLAIRE COLLINI 17 years Director +44 (0)20 7293 5041 [email protected]

CAROLINE SHEPHERD 15 years Specialist +44 20 7293 5045 [email protected]

FRÉDÉRIC GUYOT DU REPAIRE 11 years Deputy Director +44 (0)20 7293 5047 [email protected]

HONG KONG

HONG KONG AUCTION

ADAM BILBEY Head of Wine, Asia +852 2822 8157 [email protected]

MICHELLE CHAN 7 years Director +852 2822 8173 [email protected] 19


PAUL WONG Deputy Director +852 2822 5541 [email protected]

HONG KONG RETAIL VIVIAN LIANG Retail Sales +852 2822 9001 [email protected]

LOUIS CHIU Retail Sales +852 2822 9002 [email protected]

VICTOR RABOT Retail Manager +852 2822 9001 [email protected]

SELL WITH SOTHEBY’S WINE • #1 worldwide with auction sales of $74M. • Worldwide market leader for single owner and winery direct wine auctions. • Direct access to the world’s most affluent and active wine buyers. • We make selling wine at auction easy: - We provide a free evaluation of your wines, together with a proposal of how to maximize the value of your collection. - We arrange the inspection, packing and shipping to our temperature controlled warehouse. - In New York and Hong Kong, we offer consignments for auction or direct purchase by our retail business.

BUY WINE AT SOTHEBY’S WINE • At auction in New York, Hong Kong and London. At retail in New York and Hong Kong. • All wines are carefully inspected (and tasted, when required) by experienced specialists to check condition, provenance and authenticity. • We provide advice on wines for investment, laying down or current drinking. • We offer cellar management services.

EVENTS AT SOTHEBY’S WINE • Organization of wine tastings and dinners for corporate events and private clients. • Advice on what wines to pair with a dinner, pour at a large event or party, on the serving temperatures, decanting and glassware. 20


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