Oddbins Auction & Market ReportW549 March 2005IntroductionAfter the quiet start to 2005, possibly affected by the numerous tsunami appeals, the March Oddbins auction noticeably picked up in pace with better than expected clearance rates spurned on by the offering a special cellar of fine and rare Bordeaux and a pick up in sales of Penfolds Grange. There was also a welcome return of Wynns John Riddochs, Michaels and Wendouree Shiraz and shiraz blends to the sales sheets. Overall the market place is still a little soft and quite volatile with bidders bargain hunting at the bottom end of price guides and a general oversupply of some key wines from key vintages, adding pressure to pricing. Buyers are still running hot and cold over the Parker styled “super cult” wines and there was a softening of interest in current vintage wine styles. This trend is expected to continue into our April auction, so it has never been a better time to buy! What’s Happening With Grange?Grange sales for March returned to more normal levels with average clearance rates and renewed interest shown by buyers in the key vintages of 1986, 90, 94 and 96. Sales of the current Grange from the 98 and 99 vintages still remain soft due to good levels of supply in the secondary market and lack of consumption by consumers. Pleasingly the Oddbins Good Grange Index recovered 18pts from the January low, based mainly on good clearance rates and prices paid for 1990 and 1996 offerings, plus the renewed interest in the famed 1971’s and keen bidding on the Jimmy Watson Trophy winning 1967 lots. This resulted in the OGG Index finishing at 103pts, still 6pts below the 2004 average. In the current climate, good Grange bargains can be had from the early 1980’s and surprisingly, due to over supply, from the better 1990’s vintages. And as always, if you are only going to buy Grange to consume, then the imperfect rated wines, particularly from the stronger years can still be successfully purchased at true bargain basement prices. However, it should be remembered that, as has been rightly pointed out by Berry Bros & Rudd, “it is both normal and acceptable for a wine to decrease in volume over time”. The role of ullage levels in wine and its effect on a wine’s value will be further explored in an Oddbins wine bulletin later this month. And finally, word should be made about the impending release of the 2000 vintage of Grange, as a cellar door staff member in Coonawarra was recently over-heard to say that it could fetch an opening price of approximately $800 bottle! But just remember, it will enter into the auction market sooner than you think. Highlights…Safe and sound was the watchword for our W549 auction as buyers opted again for established brands from the better years over lesser known wines, with brands such as Penfolds 389, 407, 707, St Henri and Grandfather ports, Petaluma reds & whites clearing well, while the likes of Lehmann Stonewell and 8 Songs, especially in the original cartons, Wendouree shiraz and shiraz blends, Parker 1st Growths and a Wynns John Riddoch and Michael shiraz also cleared beyond expectation. The offering of the special cellar of fine and rare Bordeaux attracted a lot of attention and bidding from buyers and with a better than expected clearance rate. The highest price paid was $2080 for a magnum of 1982 Ch Mouton Rothschild while sadly, the two 1961’s on offer were passed in. While the majority of sales were with the established brands, special mention should be of the keen bidding on some of the more curios and exotic wines in the catalogue, such as the 2002 Wild Duck Estate Duck Muck, the Savatarre Beechworth pinot noir, Giaconda’s Nantua, Rockford SVS series and interestingly named Poonawatta shiraz. And on the imported front, Bordeaux sales were brisk, there was good clearance rates for Champagne where there is a general under supply, and a return in interest for the wines of Burgundy and Italian reds. Quiet Times…While we have been reporting for some time that both consumers and collectors of wine at auction have been quite variable and volatile in their purchasing habits over the past twelve months, opting for different brands and styles from auction to auction. Our March auction was no exception with buyers cooling down on normally strong performers such as Penfolds RWT, Bin 128 & 28’s and imperfect Grange. This volatility has also certainly affected the likes of Rockford, Greenock Creek, Noon’s and Wendouree cabernet and cabernet blends, and as reported recent and current vintage reds and whites. Patience is the key watchword for vendors, as Oddbins is advising all sellers that it will take two to three auctions to clear their consignments. The Market Place & Pricing…Conditions in the general market place have caused a tightening with in the retail sector, as January saw a lot of Australian disposable income being tied up with the numerous tsunami appeals. The Aussie dollar still continues to be very strong against the greenback, with serious implications for exporters and making imports even cheaper, and the eventual rise in interest rates which came in late February/March, have contributed to an overall tightening in the Australian economy. The implications for the auction market will be the continued downward pressure on pricing, as with the retail wine sector, as buyers still continue to look for bargains. The forthcoming release of a number of premium Australian reds, lead by the 2000 Grange, and 2002 and 2004 Barossa shiraz should add a bit of zest into the market place. And finally…It is worthwhile noting that Oddbins Buyer’s Premium is still one of the lowest premiums available to Australian wine auction bidders. And buying at auction is always an excellent way of purchasing fine, rare and aged wine at generally cheaper than retail prices, even with a buyer’s premium! So until the April W550 report, all of us at Oddbins Wine Auctions would like to wish you strong bidding… Graham & The Team |