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The bounce came back into the Sydney market in October with a relatively high clearance
rate and good volumes of bidding. The recent events of September 11, a world economic
confidence breaker, did not cause a disaster in the fine wine market. The cult wine
market hit the wall but everything else carried on. The buoyant Grange market is
a palpable example.
The 17 lots included in October’s Coonawarra Barrel Series 5 live wine sale - meticulously
drawn from each winemaker’s best barrels - represented the ‘crème de la crème’ of
the 2000 Coonawarra vintage. The auction took place during Coonawarra’s Cabernet
Celebration weekend. Each barrel was offered as a single lot comprising a 20 x cases/dozen
parcel of each wine. All lots found buyers at premium values. The Parker Coonawarra
Estate Cabernet Sauvignon Barrel Series V 2000 achieved AUD$18,387.
After weeks of beautiful weather the morning of the auction saw rain clouds move
in over Margaret River bringing much-needed spring rains. While the overall conditions
were not particularly brilliant for an auction, the wet weather did not deter a
crowd of about 280 people who attended a pre-auction mini-retrospective tasting
of Cape Mentelle, Cullen, Devil’s Lair, Howard Park, Leeuwin Estate, Moss Wood,
Pierro, Plantagenet, Vasse Felix and Xanadu. The third Great Wine Estates of Western
Australia Wine Auction - comprising 580 lots including 11 barrels - exceeded overall
expectations, demonstrating the strong market identity of the Great Wine Estates
and the overall depth of the market. Barrels of 2000 Leeuwin Estate Art Series Chardonnay
and 2000 Cullen Cabernet-Merlot achieved AUD$19,295 and AUD$24,970 respectively.
Australia’s first ever-wine auction exclusively staged for a single Australian wine
- Penfolds Grange - was held on November 30. The Silent Bid Wine Auction ran for
two weeks and featured nearly 300 lots. Penfolds Grange celebrated its 50th Anniversary
in 2001. In 1951 legendary winemaker Max Schubert created Penfolds Grange Hermitage,
a wine that has become an Australian wine icon. The experimental 1951 vintage was
mostly given away by Schubert to friends and family and is now extremely rare. A
complete set of Penfolds Grange comprising 46 bottles from 1951 to 1996 and a bottle
of 1951 Penfolds Grange sold for record prices. The set sold for AUD$190,680, higher
than the previous record of AUD$176,000 set in November 2000, while the 1951 Penfolds
Grange Hermitage sold for AUD$52,211, higher than the previous record of AUD$46,620
set in April 2001.
The 2001 auction season was the busiest ever with more lots sold than ever before.
The market has been very resilient during times of economic uncertainty. We are
very optimistic about the 2002 season with the launch of our new website and plans
for a Shiraz Australia Auction late in 2002.
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This period saw a wide selection of wines on offer and record numbers of international
and domestic buyers. With price realisations at buoyant levels, Langton’s experienced
an extremely strong response from sellers.
Serious buyers, good levels of absentee bidding and an offering of 1200 lots ensured
a good overall result for the first sale of the quarter. The market remained firm
but finely balanced, with resistance to marked price rises.
The end of the financial year, the introduction of the GST and the enormous volumes
of wine sold in the previous 12 months, all contributed to a market change of pace
in June. Generally prices were at the middle to low end of catalogue estimates.
Defying the trend were Bass Phillip, Giaconda, Cullen, Wendouree and Moss Wood,
all of which experienced strong demand and high prices.
The Grange market was strong, with solid prices and stable demand. Every Grange
except 1951 was offered in June, with astounding prices achieved for pre-1960 vintages,
perhaps reflecting their inexorably increasing scarcity. Interestingly, prices for
one bottle of each vintage totalled AUD$77,000, against a going rate of AUD$110,000
for a complete collection with reasonable provenance (See Grange 2001 results).
Cult wines such as Duck Creek Duck Muck, Fox Creek Reserve Shiraz and Noon Eclipse
experienced strong but narrow interest. This may be a feature of the market for
some years. These wines are like dot.com stocks - highly vulnerable to fashion and
whim.
Langton’s live June sale comprised a staggering 1347 lots. A strong level of live
bidding created an exciting atmosphere and absentee bidding was also robust. The
market for blue-chip wines remained strong and clearance rates were high, although
prices generally fell between middle and low catalogue estimates.
Grange values remained steady, with excellent interest in top vintages. The auction’s
major drawcard, a 1951-1982 Grange set, attracted AUD$104,500 arguably representing
good value to the buyer. The rare Grange market is unpredictable and can lurch from
weak to strong.
This was the biggest live auction, in terms of turnover, that Langton’s has ever
held in Sydney, largely the result of significant offerings of Grange and plenty
of full dozens of high quality wine.
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Third Quarter 2000
Langton’s Sydney July sale comprised another large offering of 1246 lots. While
the market remained robust for blue-chip wines, overall price realisations for minor
or overvalued wines weakened. Penfolds achieved remarkable results, with a better
than 98% clearance rate. Wynns Coonawarra Estate, however, performed astonishingly
badly. The sponge factor seems no longer to be working for John Riddoch and Michael.
On the other hand, strong bidding soaked up all the Rockford Basket Press Shiraz
on offer.
Total value of the sale was slightly above average, showing the market’s overall
resilience. A large proportion of wine from commercial or little-known producers
did not find buyers, even when offered at low prices. This demonstrates the sophistication
of fine wine investors and indicates where the market is likely to go in the medium
term. As with art, the wine market is drawing a clear line between commercial and
fine wine. The former is being abandoned.
In August, the market strengthened with Langton’s Silent Bid Auction. The level
of supply was consistent with previous months and more than 3200 lots of fine Australian
and imported wine were on offer. Demand was firm and prices achieved were strong,
with most wines selling at the top end of catalogue estimates. The introduction
of GST had minimal impact.
A number of Australian classics were offered and the level of interest was extraordinary,
pushing prices way beyond estimates. Even with high-risk items (low levels, damaged
capsules etc) interest remained strong. Buyers continued to pay a premium for wine
in case lots, timber boxes and original cartons. Rightly or wrongly, these are considered
important indications that wine has been well cellared.
The market for rare Grange and Grange bottles signed by the wine’s creator, Max
Schubert, continued to astonish. Buyers paid huge premiums. A signed bottle of 1984,
usually AUD$170-AUD$220, fetched AUD$381. Investors desperate to complete or put
a set of Grange together are paying staggering prices for 1950s vintages. A bottle
of 1954 Bin 12 Grange fetched AUD$13,407.00! There are probably 30-40 complete sets
of Grange in existence. Overall, however, the demand and prices achieved for Grange
remained stable.
The impact of the Internet in enlarging and internationalising the market’s buyer
base became more apparent in this period. The launch of Langton’s Classification
III in September also increased buyer awareness, endorsing and confirming conventional
wisdom. Generally, wines included in the Classification experienced strong demand,
especially for older vintages. A 1984 Mount Langi Ghiran Langi Shiraz, for instance,
achieved a remarkable AUD$112.
The number of buy-at-any-price bids for the Mount Mary Quintet red was particularly
high. Volume of demand was also very strong for 1996 Clarendon Hills Astralis, 1981
Tahbilk Private Bin 68 Cabernet Sauvignon, 1997 Giaconda Chardonnay, 1994 Greenock
Creek Seven Acre Shiraz, 1958 Lindemans Bin 1320 Hunter River Burgundy, 1959 McWilliams
Richard Hermitage, 1990 Orlando St Hugo Cabernet Sauvignon, 1973 Leo Buring DWC
11 Riesling and 1996 Penfolds Bin 707 Cabernet Sauvignon. Bass Phillip Premium Pinot
Noir impressed, achieving AUD$133 for the 1990 and AUD$168 for the 1997. Cape Mentelle
cracked a century (AUD$100) for its Jimmy Watson Trophy winning 1983 Cabernet. Wild
Duck Creek’s 1997 Duck Muck fetched a bizarre AUD$419, making it the top-value wine
of the 1997 vintage!
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Fourth Quarter 2000
After an Olympic respite, the market flourished during Langton’s October sale in
Sydney. With over 1450 lots on offer, buyers sat through almost five hours worth
of live auction. The catalogue comprised an exceptional offering of high quality
Australian wine and a small but interesting collection of imported wine. Absentee
and live bidding were both strong resulting in one of the best overall results ever.
Grange, a market indicator, performed extremely well - with the 1990 vintage achieving
near record values. The clearance rate was very high, demonstrating a well-balanced
market. Sellers realistic about wine values have been rewarded by buyer enthusiasm.
Market sentiment was very positive. Buyer confidence was largely confined to recognized
producers and vintages. Wynns Coonawarra Estate enjoyed renewed interest after a
market revaluation at more realistic levels.
Sydney’s last sale of 2000 revealed an extremely buoyant market with a very high
level of international and local interest. Unlike the previous sale, which brought
very strong - almost speculative - results for top vintages, bidding was more balanced
over all vintages illustrating the ‘pull up’ effect of a seller’s market.
Interestingly the market for 1997 Penfolds wines was difficult, which we predict
will be a feature of the 2001 market. Wedged between the outstanding 1996s and 1998s
buyers are abandoning this reasonable vintage for better spoils. It also shows the
very strong trend of buyers seeking only top quality wines from top or good vintages.
Bargain hunters looking for cheap quaffing wine are an ever-diminishing force.
A concise and brilliant collection of 365 lots of classified Australian wine went
under the hammer in December to promote the Langton’s Classification of Australian
Wine III at Wine Australia. A world record price of AUD$176,490 was achieved for
the complete collection of Penfolds Grange 1951-1995 (1951-1988 signed by Max Schubert
its creator) only to be eclipsed the following year by yet another record price!
The catalogue also included rare formats and parcels of some of the most exquisite
Australian wines ever produced. The auction provided a great opportunity for serious
collectors and enthusiasts to add some very special wines to their cellars. Attendance
was moderate although bidding in the room was lively. A flourish of absentee bidders
pushed values along.
A very large selection of fine Australian and imported wine, over 3500 lots, made
up the final sale catalogue for the year 2000. Results highlighted the increasing
importance of condition and provenance. Requests for cellar condition reports increased
and a number of specific buying patterns have emerged. For instance buyers are willing
to pay more for wines with very high shoulder levels than those with damaged labels.
This is especially true for Grange.
Values for Grange across all vintages have risen and are achieving generally top
catalogue estimate values. Even the difficult vintages are once again achieving
strong values.
2000 set a new sale volume benchmark with over 40,000 lots sold, the vast proportion
within catalogue estimate. Overall the market in the fourth quarter has been strong
with demand still exceeding supply levels, with prices generally achieving mid to
top catalogue estimates.
The market outlook is positive, although gains on traditional, blue-chip wines are
likely to be modest in the medium term. The highest returns may well be achieved
by speculation in so-called cult wines. However, this strategy is fraught with danger.
While there is no doubt that the combination of Robert Parker Jr. reviews and fanatical
enthusiasm can skew the market, the effects are unpredictable.
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For more comprehensive results please search our database of Australian and imported
wine price realisations for over 40,000 vintages and 20,000 wines. Prices are updated
after every sale. They can be found in the Wine Tools section of this site at Price Guide.
To view Top 20 Results click on the Top 20 selection under Magazine.
All prices above are per bottle, include Buyer’s Premium and are in AUD$.
Andrew Caillard MW & Tamara Grischy
Langton’s
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