Langton's - Market Reports

The current wine investment market is influenced by many factors, including brand definition, economic conditions, vintage variation, past market performance and buyer confidence. Langton’s regular quarterly Market Reports distil these factors into leading-edge market opinion and analysis.

First Quarter 2002

Langton’s first auction of the 2002 season, held in Sydney at the Hotel Inter Continental, saw volume of bidding increased resulting in much higher clearance rates than expected. Prices firmed up almost right across the board on the back of a more positive outlook. Buyer enthusiasm for blue chip wines – especially Classified Australian – illustrated strong sentiment for wines with regional or winemaking provenance. The cult wine scene, however, continues to unscramble as more speculative buyers drop out of this overvalued market, essentially propped up by unrealistic reserves and the realization that these wines are now quite difficult to flip into the US and Asian markets. This is entirely consistent with the world cult wine scene where prices have dropped by as much as 50-60%. Interestingly recognized vintages of Torbreck and Fox Creek seem to have crossed over into the more traditional market with values holding up very well.

Grange prices remain solid, underpinned by good volume of bidding. Barossa Valley Shiraz also performed extremely well – Rockford Basket Press 1998 attracting a record $147.55! Wynn’s John Riddoch which has performed badly for three years and which was appropriately devalued on the retail market in February found buyers at healthy values. Henschke Cyril Henschke – which seemed to have stopped for some months during the middle of the 2001 season – revived with all lots finding buyers at very respectable prices. Even Lake’s Folly found enough interest to find willing buyers – albeit at modest price levels.

Classified wine attracted excellent levels of bidding especially good vintages. Star performers included 1998 Bowen Estate Cabernet Sauvignon ($39.73) 1992 Cape Mentelle Cabernet ($70.37) 1990 Craiglee Shiraz ($59.02) 1991 Henschke Hill of Grace ($261.05) 1996 Jasper Hill ‘Georgia’s Paddock ($90.80) 1996 Leeuwin Estate Art Series Chardonnay ($81.72) 1990 Moss Wood Cabernet Sauvignon ($170.25) 1986 Penfolds Grange ($419.95) 1990 Penfolds Grange ($567.50) 1997 Pierro Chardonnay ($70.37) 1994 St Hallett Old Block Shiraz ($45.40) 1991 Wynn’s John Riddoch Cabernet Sauvignon ($90.80!) 1992 Yarra Yering Dry Red No.1 ($62.43).

1998 Balnaves Cabernet Sauvignon ($27.24) 1997 Best’s Bin O Shiraz ($43.13), 1999 Crawford River Riesling ($31.78) 1998 Fox Creek Reserve Shiraz ($102.15) 1996 Glaetzer John’s Blend Cabernet ($45.40) 1996 Grant Burge Meshach ($79.45) 1997 Hanging Rock Shiraz ($31.78) 1994 Houghton’s Jack Mann Dry Red ($47.67) 1998 Kay Brothers Amery Shiraz ($44.27) 1983 Lindemans Bin 6600 Reserve Shiraz ($40.86) 1995 Maglieri Steve Maglieri Shiraz ($40.86) 1984 McWilliam’s Mt Pleasant Lovedale ($49.94) 1996 Plantagenet Shiraz ($31.78) 1995 Rosemount Balmoral Syrah ($52.21) 1997 Stefano Lubiana Pinot Noir ($28.38) 1998 Torbreck Descendant ($107.83) 1996 Vasse Felix Heytesbury Cabernets ($51.08) all attracted above average volume of interest resulting in solid prices.

The small imported section of the catalogue also attracted intense interest with most lots attracting the higher end of estimates. Highlights included 1989 Ch Haut Brion ($658.30) 1986 Ch Margaux ($442.65) 1982 Ch Mouton Rothschild ($1021.50) 1982 Ch Petrus ($2497.00) 1989 Hermitage JL Chave ($215.65) and 1975 Ch d’Yquem ($737.75).

The first Melbourne silent bid wine auction for 2002 held in March offered over 5000 lots of fine Australian and imported wine. The number of absentee bids broke all previous records and overall prices remained strong further supporting and following on from the strong sale success of the previous Sydney auction.

Buyers are becoming more savvy and selective about vintage quality when bidding. This was highlight by the soft demand for the 1995 and 1997 vintages.

Hot Parkerised wine brands experienced a further fall in demand from the previous Sydney auction. Prices for these wines have fallen 50-60% and we do not at this stage expect the market to recover to the previous price levels for sometime. The market is now pricing these wines at more realistic values.

Single and small quantity wine lots under the $25.00 mark are becoming gradually more difficult to sell. Increasingly, the secondary market seems to be attracting buyers who are interested in purchasing a minimum of 6 bottles/12 bottles wine lots.

Prices for Australian Chardonnay from the 1980’s vintages are dropping and demand is sparse as many of these wines are now way past their drinking window.

Shiraz remains the focus of the investment market, however WA Cabernet is not far behind and prices seem to be creeping up, especially for Cullen.

The average invoice expenditure for this sale grew around 10%. The future looks very positive. A very fine start to the 2002 season.

March also saw the launch of the new Langtons Australian Wine Index, developed in association with Access Economics. The Index supports all the overall signs, which point to a strengthening secondary Australian wine market.

Some highlights

1996 Diamond Valley Close Planted Pinot Noir $71.00
1999 Giaconda Chardonnay $190.00
1992 Howard Park Cabernets $96.00
1990 Moss Wood Cabernet $141.00
1959 Penfolds Bin 46 Grange $1684.00
1990 Penfolds Grange $568.00
1996 Rockford Basket Press Shiraz $104.00
1997 Torbreck Runrig $353.00
1990 Wendouree Shiraz $140.00

Second Quarter 2002

Over 1400 lots were sold at the Sydney auction held in April including several lots of imported wine.

Overall market sentiment is buoyant with all blue chip stocks selling within auction estimates. Wines from ordinary vintages attracted a low level of interest, a trend which will become increasingly apparent as the pool of high quality wine gets deeper.

The imported section attracted an excellent level of interest especially for Bordeaux and Champagne.

Some highlights

1994 Bass Phillip Reserve Pinot Noir $250
1992 Cullen Reserve Cabernet Merlot $110
1999 Giaconda Pinot Noir $100
1987 Henschke Hill of Grace magnum $520
1994 Moss Wood Cabernet Sauvignon $130
1995 Moss Wood Cabernet Sauvignon $140
1994 Mount Langi Ghiran Langi Shiraz $80
1998 Noon’s Reserve Cabernet Sauvignon $140
1996 Penfolds Bin 389 Cabernet Shiraz $38-42
1990 Penfolds Bin 90A $220
1986 Penfolds Grange Shiraz $390-420
1998 Punter’s Corner Spartacus Shiraz $42
1990 Rockford Basket Press Shiraz $100
1998 Rockford Basket Press Shiraz $90-95
1998 St. Hallett’s Old Block Shiraz $45
1998 Wendouree Shiraz $140
1955 Wynns Michael Shiraz $550
1990 Wynns John Riddoch Cabernet Sauvignon $120
1999 Ata Rangi Pinot Noir $70
1998 Felton Road Block 3 Pinot Noir $110
1982 Chateau Margaux $820
1945 Chateau D’Yquem $2000

Blue chip stocks performed extremely well during the month of May, many outstanding vintages attracting the high end of estimates. Grange prices – always a good market indicator – remained robust with good levels of live and absentee bidding. Imported wines, particularly 1982 Bordeaux did extremely well adding real value to the overall sale total.

Although prices were strong in many areas, the overall sentiment appears to be realistic. The cult wine scene is deathly quiet with virtually no activity. This is likely to continue for the foreseeable future. Torbreck Run Rig and Noon Reserve Cabernet nevertheless found buyers at near top value.

Attendance and absentee bidding levels were very good allowing a free moving quick sale.

Some highlights

1990 Barossa Valley Estate E & E Black Pepper Shiraz $80
1999 Cullen Cabernet Merlot $75-80
1990 Henschke Hill of Grace $400
1997 Jasper Hill Emily’s Paddock Shiraz Cabernet Franc $120
1999 Majella Malleea $50
1995 Moss Wood Cabernet Sauvignon $130-160
1990 Mount Mary Quintet $210-230
1998 Noon’s Reserve Shiraz $130
1996 Parker Coonawarra Estate 1st Growth $70
1996 Penfolds Bin 389 Cabernet Shiraz $40-44
1954 Penfolds Grange Shiraz $14,000
1971 Penfolds Grange Shiraz $600
1976 Penfolds Grange Shiraz $440
1990 Rockford Basket Press Shiraz $115
1998 Torbreck Runrig $330
1998 Wendouree Shiraz $112-130
1997 Dry River Pinot Noir $80
1982 Chateau Margaux $750
1982 Chateau Lafite $770
1982 Chateau Mouton Rothschild $850

One of the largest catalogues produced by Langton’s Melbourne was our May catalogue with over 5000 lots for sale. The catalogue included wines for all buyers and hence the demand was enormous with a lot of new buyers entering the wine auction game. Experience shows that catalogues with a large variety of wines on offer attract a lot of interest.

A number of interesting imported wines were up for sale and the positive response for these wines highlighted how Australian wine buyers are becoming more educated and savvy about wine from around the world. It is also interesting to note that at the same time wine imports are up.

Giaconda is now Australia’s most expensive Chardonnay and its performance is not only extraordinary but is defying all Parker criticism. Buyers are spread out all over the globe and cannot at this stage get enough, a wine to follow closely.

Wines with condition problems are getting harder to sell and provenance is becoming an increasingly important issue and buyers are requesting detailed information on the wines for sale.

The result was positive with solid prices and a high clearance rate.

Some highlights

1992 Giaconda Chardonnay $125.00
1960 Penfolds Grange $1592.00
1986 Rockford Basket Press Shiraz $125.00
1998 Majella Cabernet $51.00
NV Rockford Black Shiraz $115.00
1989 Chateau Le Tertre Roteboeuf $284.00
1997 Cote Rotie La Mouline Guigal $455.00
1989 Josmeyer Hengst Tokay Pinot Gris Vendage Tardive $141
1990 Solaia $317.00
1996 Kistler Hyde Vineyard Chardonnay $125.00

The market remained sound in June with strong bidding for high quality vintages – a trend that will continue. Prices generally hit between low and high estimates – illustrating market resilience. Grange attracted the usual support although curiously the 1996 vintage struggled to find buyers. High quality Bordeaux continues to attract significant buyer interest – reflecting a scenario of short supply.

1996 Elderton Command Shiraz $60
1997 Fox Creek reserve Shiraz $70
2000 Giaconda Chardonnay $130
1997 Grosset Polish Hill Riesling $49
1994 Henschke Hill of Grace Shiraz $260
2000 Jasper Hill Emily’s Paddock Shiraz Cabernet Franc $110
1988 Jim Barry The Armagh Shiraz $120
1999 Kay Bros Amery Block 6 Old Vine Shiraz $50
1999 Mount Mary Quintet Cabernets $120
1988 Penfolds Bin 95 Grange Shiraz $290
1990 Penfolds Bin 95 Grange Shiraz $470
1997 Pierro Chardonnay $50
1996 Rockford Basket Press Shiraz $90
1995 Wendouree Shiraz $80
1998 Dry River Pinot Noir $70
1986 Chateau Margaux $560
1986 Chateau Lafite-Rothschild $460
1982 Chateau Pichon Longueville Lalande $320
1982 Chateau Leoville Lascases $420

Third Quarter 2002

Langton’s July auction attracted solid support with a high level of absentee bidding. Clearance rates however dropped as buyers looked for value in the market. Blue chip stocks – especially Barossa Valley Estates, Brokenwood Graveyard, Henschke Hill of Grace, Henschke Mount Edelstone, Penfolds Grange, Rockford Basket Press, and Wendouree Shiraz – performed extremely well illustrating the point that ultra-fine Australian Shiraz eclipses almost everything at the moment.

Clonakilla Shiraz Viognier –once on the fringe – has established excellent market credentials in recent times and draws exceptional interest. Greenock Creek’s Seven Acre Shiraz managed to find buyers but really by the skin of its teeth. Grosset Rieslings also struggled. Lake’s Folly has rather hit rock bottom with only a modicum of support. Torbreck’s 1998 Run Rig found a buyer at $340 showing that the cult wine scene has some hope or life in it albeit for only a few labels. The market for stellar Bordeaux and Burgundy is extremely hot with some prices seemingly out of control. 1978 Richbourg Domaine de La Romanee Conti which made $1270 a bottle rather reflects the current mood.

Some highlights

1998 Barossa Valley Estates E&E Black Pepper Shiraz $65
1996 Bowen Estate Cabernet Sauvignon $30
1995 Brokenwood Graveyard Vineyard Shiraz $75
1998 Clonakilla Shiraz Viognier $53
1998 Cullen Cabernet-Merlot $80
1996 Hardy’s Eileen Hardy Shiraz $50
1996 Henschke Hill of Grace Shiraz $300
1994 Moss Wood Cabernet Sauvignon $110
1996 Orlando St Hugo Cabernet Sauvignon $36
1998 Parker Coonawarra Estate Cabernet Sauvignon $70
1990 Penfolds Bin 707 Cabernet Sauvignon $120
1971 Penfolds Bin 95 Grange Shiraz $570
1998 Penfolds RWT Shiraz $100
1986 Wynns John Riddoch Cabernet Sauvignon $80
1997 Ata Rangi Pinot Noir $70
1926 Chateau Petrus (Bordeaux Jeroboam) $10,000
1989 Chateau Petrus $2100
1995 Chateau Cos d’Estournel (Double Magnum) $1500
1986 La Tache, Domaine de la Romanee Conti $620

The Melbourne July Silent bid auction offered over 2800 lots. The catalogue was comprehensive including an outstanding range of ultra fine Australian wine including a full set of Penfolds Grange 1951-1997.

This non-attendance sale, post end of financial year, delivered a higher than expected result. International interest was very strong due to the set of Grange offered and demand overall was strong.

Generally, prices for blue chip Australian wines remain stable; however blue chip Shiraz brands are still the market favorites and outperforming all other varieties.

The 1998 vintage is performing strongly across all regions and brands.

Overall, cash is still flowing strongly into the wine investment market, in a bear share market it seems asset pools such as wine benefit enormously due to its liquidity, stability and return.

Some highlights

Set of Grange $191,816.00
1995 Bass Phillip reserve Pinot magnum $454.00
1998 Best’s Thomson Family Shiraz magnum $252.00
1990 Henschke Hill of Grace $45600
1995 Leeuwin Estate Art Series Chardonnay magnum $182.00
1998 Penfolds RWT $251.00
1991 Rockford Basket Shiraz magnum $284.00
1983 Chateau Lafleur $477.00
1999 Ruchottes Chambertin Monopole, Clos Des Ruchottes, Domaine Armand Rousseau $257.00
1990 Cote Rotie La Turque Etienne Guigal $568.00

The market remained steady in September with a high volume of bidding and a very good clearance rate. The demand for early Granges was strong pulling up prices to both record and near-record values. Later Granges, particularly from the 1990s, are holding up their values although the sponge in the market has become drier. High quality Shiraz vintages continue to bathe in the limelight with exceedingly strong interest from both local and overseas buyers.

Coonawarra also performed well – right across the board. Wynns John Riddoch has really enjoyed a renaissance over the last few months – albeit at more realistic value. The cult wine scene, however, drags along the bottom with few takers. Vendors are unrealistic about the market interest for lower ranking labels of Greenock Creek, Torbreck and Fox Creek etc. Although they once enjoyed the reflected glory of Roennfeldt Road, Run Rig and Reserve Shiraz respectively the market has become wiser and more careful.

The most important thing, however, to note about the market is that it is ticking along well. Must have and good vintages are being swallowed up at healthy values. Certainly the wine auction market has become more refined in the last 5 years. Anything without credible producer provenance, vintage reputation and track record will perform sluggishly on the secondary market.

Some highlights

1992 Elderton Command Shiraz $55
1996 Fox Creek Reserve Shiraz $68
2000 Giaconda Chardonnay $110
1991 Grant Burge Meshach $75
1990 Henschke Cyril Henschke Cabernet Sauvignon (Double Magnum) $1000
1998 Henschke Mount Edelstone Shiraz $68
1991 Jasper Hill Emily’s Paddock Shiraz $120
1995 Leeuwin Estate Art Series Chardonnay $110
1996 Moss Wood Cabernet Sauvignon $170
1990 Mount Mary Quintet Cabernets $260
1959 Penfolds Bin 49 Grange Shiraz $2100
1960 Penfolds Bin 49 Grange Shiraz $1550
1961 Penfolds Bin 95 Grange Shiraz $1100
1962 Penfolds Bin 95 Grange Shiraz $1000
1963 Penfolds Bin 95 Grange Shiraz $900
1990 Rockford Basket Press Shiraz (Magnum) $280
1998 St Hallett Old Block Shiraz $48

Fourth Quarter 2002

Langton’s implemented its online wine auction system in the fourth quarter. Our investment in the internet has had a profound effect on the culture and nature of our wine auction business.

In single sweep the playing field has changed and the heart beat of the auction process has not even murmured. Our existing membership has taken to the new technology and information-rich site with an unexpected ease. The sheer force of uptake took us all by surprise. As a result of this response another server was installed to handle the traffic. Over 75% of our participating buyers are using www.langtons.com.au to place their bids – a convincing vote that we abandon our live auction format and concentrate on the electronic future.

The first online sale which closed on October 7th was a great success. The new sale format has created a completely new bidding environment. Buyers are now employing a synthesis of live and Silent Bid strategies. Although the auto bid system is central to winning lots, many members are now enjoying and preferring the chasing game, often bidding furiously until the final seconds of a sale closing.

A traditional auction format could not handle this level bidding and the prices achieved are a result of this increased competition. The overall market is very solid with strong volume of bidding.

Old vintages of Australian wines with historical significance are performing well, particularly those in outstanding condition. Highlights included 1996 BVE Black Pepper Shiraz $90.00, 1994 Katnook Estate Odyssey $94.00, 1997 Leeuwin Estate Art Series Chardonnay $108.00, 1996 Majella Cabernet Sauvignon $52.00, 1994 Moss Wood Special Reserve Cabernet $115.00, 1996 Mount Mary Pinot Noir $88.00, 1950 Mount Pleasant Kings Paddock 111 $602.00, 1965 McWilliams Old Hill Hermitage $95.00, 1974 Penfolds St. Henri $69.00, 1981 Penfolds Grange Magnum $1602.00, 1982 Chateau Latour $1022.00 and1978 Domaine de la Romanee Conti La Tache $2441.00

Langton’s Sydney online auction closed on October 21st and attracted a similar response. The catalogue comprised over 2000 lots – a record offering from Sydney – largely because the time constraints of the Live Auction format. The clearance rate was outstanding – further illustrating the benefits of the online format.

The cult wine scene attracted a glimmer of interest. 2000 Giaconda Chardonnay $150 Greenock Creek Roennfeldt Road Cabernet Sauvignon $303, 1990 Henschke Hill of Grace $386.00,1998 Jasper Hill Emily’s Paddock $122, 1996 Katnook Odyssey Cabernet Sauvignon $67, 1990 Mount Mary Quintet $252, 1952 Penfolds Bin 1 Grange (Clinic) $21951, 1961 Penfolds Bin 49 Grange $3000, 1998 Rockford Basket Press Shiraz $102, 1985 Ch Petrus (Magnum) $1822 and 1976 Ch d’Yquem $552.

Langton’s Melbourne Online Auction, which closed on November 11 attracted heavy traffic for imported wines especially recognised Bordeaux and Burgundy vintages. These wines are becoming more difficult to find and buyers have become increasingly price insensitive.

1998 Pegasus Bay Unfiltered Pinot Noir $68.00, 1989 Chateau La Mission Haut Brion $421.00, 1995 Chateau Leoville Las Cases $342.00, 1990 Armand Rousseau Chambertin Clos de Beze $624.00, 1997 Domaine de la Romanee Conti Le Montrachet $1033.00, 1989 J.F. Coche Dury Les Rougeots Meursault $325.00, 1990 Paul Jaboulet La Chapelle Hermitage $404.00, 1990 Chateau Rayas Pignan Chateau-Neuf-du-Pape $290.00, 1999 Tenuta Dell Ornellaia Ornellaia $227.00 and 1999 Joseph Phelps Insignia $183.00.

Penfolds Grange magnums escalated in value during Langton’s Sydney Online Auction, many vintages breaking records. Cult wines are performing erratically and only vintages highly rated by Robert Parker Jr. perform well.

As a result the price differential between vintages is significant. Vendors need to be realistic about prices – or the wines will not sell. Blue chip Australian Shiraz continued to perform extremely well. The 1995 and 1997 vintages, however, continue to experience sluggish demand. Interestingly the 1992 vintage – perceived as a lesser year – is swinging upwards with increased bidding.

Highlights include 1990 Barossa Valley Estates E&E Black Pepper Shiraz $86, 1996 Bass Phillip Premium Pinot Noir $471, 1995 Clarendon Hills Astralis Shiraz $141, 2000 Giaconda Chardonnay (Magnum) $471, 1998 Jim Barry The Armagh $120, 1990 Mosswood Cabernet Sauvignon $146, 1979 Penfolds Grange (Magnum) $3001, 1986 Penfolds Grange (Magnum) $1701, 1990 Wendouree Shiraz (magnum) $426, 1990 Yeringberg Cabernet $71, 1989 Ch Haut Brion $1011, 1982 Ch Lafite Rothschild $701, Ch Lafleur $606, 1959 Ch Latour $1602 and 1982 Ch Petrus $2201.

Overall demand ensured a good clearance rate in Langton’s Melbourne Online Auction – held on December 9th. Volume of bidding continued strongly with a very impressive flourish of interest towards auction close. The Grange Magnum market – which spiked in the previous Sydney sale – remained at an all time high despite the relatively long offering of stock.

Emerging classics such as Bests Thomson Family Shiraz, Clonakilla Shiraz-Viognier and Domaine A Pinot Noir drew plenty of interest clocking in strong results. The imported wine market continued in a positive direction.

Highlights included 1999 Bass Phillip Premium Pinot Noir $204.00, 1996 Bests Thomson Family Shiraz $99.00, 1997 Clarendon Hills Astralis $192.00, 1994 Clonakilla Shiraz Viogner $93.00, 1999 Cullen Cabernet Merlot $95.00, 1994 Dalwhinnie Shiraz $73.00, 1998 Domaine A Pinot Noir $52.00, 1990 Hill of Grace Magnum $1021.00, 1995 Houghton Show Reserve Shiraz $69.00, 1978 Mount Mary Quintets $255.00, 1966 Penfolds Bin 389 $147.00, 1960 Penfolds Grange $1365.00, 1979 Penfolds Grange Magnum $3753.00, 1986 Penfolds Grange Magnum $1898.00 and 1990 Penfolds Grange Magnum $2166.00.

The fourth quarter of the 2002 Season will be remembered by Langton’s for the successful launch of its internet wine auction service – which comprises live time bidding – and plenty of wine investment information. Overall auction results have become firmer, volume of demand has increased and the entire auction process has become more efficient and user friendly.

Langton’s database (free access) of wine auction prices can be found at Wine Tools/Price Guide on this site.

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