TIPS ON HOW TO SELL RARE WINES AND SPIRITS IN AUCTIONS

Auction Hammer

Source: https://www.winemag.com/

BY MELANIE YOUNG

September 18, 2018

Whether you want to downsize a prized collection or can finally procure an elusive bottle, here are expert tips on how to do it.

Global wine auction sales are on the upswing, according to specialists. Jamie Ritchie, head of Sotheby's global wine program, projects $90 million in sales by year's end, which would top the existing record of $88 million in 2010.

Though nothing has topped the Jeroboam of 1945 Château Mouton Rothschild that sold for $310,700 in February 2007 at Sotheby's.

If time is of the essence and you're comfortable with settling on a firm price, a direct sale may be the best choice. However, with an auction, the sky is the limit.

Like any major transaction, it's wise to comparison shop. The reputation and success rate of an auction house is paramount, along with the size and reach of its customer base.

Many houses have minimums based on the value of the wine lot, which can be one item or an entire collection. Also, the lot's size and value can affect the seller's fee, which ranges from zero to 18%.

It's the auction house's responsibility to appraise the wine and set a price. Munro stresses that sellers should submit important documentation well in advance, especially those with large collections.

Most auctions take place between September and May.

Bordeaux and Burgundy are more in demand but scotch and Japanese whiskies are both growing.

One example is the current offerings slated for t e coming 13th Oct. 2018 auction at Sotheby's New York. A bottle of 1926 Macallan Scotch is priced at $700,000 to $1.2 million, a new lot estimate record for Sotheby's.

Join auction house mailing lists, and review past online sales and recent catalogs to compare what's selling.

Another consideration is the buyer's premium to the auction house, which can range from 19.5-24%.

LUXURY AND PREMIUM PRODUCTS FOR BACARDY AND DIAGEO

Last week, at the 42nd Annual Impact Marketing Seminar, Bacardi North America regional president Pete Carr discussed the group recent acquisition of Patron Spirits for  $5.1-billion, a deal that lifts Bacardi from the fifth-largest spirits company in terms of U.S. market share to the second-largest.

Moving forward, Carr noted, 75% the company’s business will center on three brands, split between Bacardi rum at 22%, Grey Goose vodka at 26%, and Patrón at 27%.
Turning to Bacardi’s core rum brand, Carr used the occasion to unveil a revamped and expanded upscale portfolio, with new Reserva Añejo Cuatro and Gran Reserva Diez expressions set to join Bacardi’s Reserva Ocho and Reserva Limitada. “We’re placing a huge bet on rum premiumization,” said Carr. “Rum is the last category to premiumize, and we think there’s a $550 million category opportunity.”

Carr went on to detail efforts on several other top-performing Bacardi brands, including Cazadores Tequila and D’Ussé Cognac, and explained the turnaround strategy for Grey Goose, concentrated on plans to hold price, focus on the on-premise, and attract younger LDA and multicultural consumers to the high-end vodka franchise.

Meanwhile, Javier Ferrán, chairman of Diageo, spoke on the topic “Marketing Luxury Spirits In A Changing World.” According to Ferrán, several factors are set to drive luxury spirits growth in the coming years, including a consumer propensity toward “drinking better rather than drinking more,” and the ongoing rise of the middle class in emerging markets like Asia and Africa. He estimates that more than 700 million new consumers in emerging markets will be able to afford international spirits within the next decade.

He also noted the importance of consistently maintaining—and taking—price. “A key driver of perception of quality is price,” said Ferrán. “Luxury goods brand-building is a long-term game.”

Source: ShankenDailyNews.com