Oddbins Auction & Market ReportW543 - 15/06/2004What A Difference A Bottle Makes…Max Schubert’s most famous wine, the rare Bin 1 1951 Grange, a wine that should never have been made, set an Australian auction record at Oddbins latest wine auction, when it fetched a hammer price of $50,200 at the Oddbins Silent Bid Wine Auction. The strength of bidding on this iconic wine confirms Grange’s enormous significance within the Australian wine industry. Record prices were also paid tonight for rare Granges from 1952, 1955, 1958 and 1961 and a half bottle of 1953 The 1952 fetched a hammer price of $19,000 while the 1958 fetched $19,100. The 1951 Grange was never commercially released and according to the 2004 Penfold’s book, The Rewards of Patience, the wine is described as a valuable collectors item because of historic significance. It also notes that the bottles themselves are also a rarity as they were hand blown. Only 160 cases were ever made and no one knows exactly how many bottles remain. A Reality Check…While the Penfold’s headline acts stole the show, so to speak, the rest of the W543 auction saw a good overall clearance rate of both Australian and imported wines. We are still experiencing both collectors and consumers bidding for safe brands from safe vintages: a trend that commenced in late 2003 and likely to continue through 2004. What was noticeable was the appearance for the first time, and in quantity, of collectable, high quality wines from the famed 1996 and 1998 vintages, as wine collectors seek returns on their investments. Needless to say, a lot of these wines were classics from Penfolds. This auction further demonstrated that bidders are definitely looking for bargains, with most bids coming at the lower end of the auction guides. There is still a preference for lots under a dozen bottles with good interest shown in “interesting” wines in mixed lots. Happily, the renewed interest in fortified wines continues, especially in quality Rutherglen muscats. Consumers Liked…We can happily report that at long last there was good bidding on Australian cabernet sauvignons. Cabernets from producers such as Bowen Estate, Majella, Petaluma Coonawarra and Wynn’s John Riddoch and from the better vintages sold well and fetched good prices. There was also strong demand for quality cabernets and merlots from Bordeaux. Shiraz though, still remains the favourite with lots of interest shown in d’Arenberg’s The Dead Arm and from a variety of producers such as Kay Bros. Torbreck and Greenock Creek and somewhat surprisingly good clearances on the much maligned Wynn’s Michael. And talking of the Rhone Valley’s favourite grape variety, the much vaunted, 100 point Parker rated, Jaboulet Hermitage La Chapelle 1990 was able to fetch a high of $600, well above the expected $340-$400 price guide. Bidders also showed a preference for number of quality Rhone Valley producers such as Barge Clape, Tardieu Laurent, Jaboulet, Graillot and in Champagne generally and in that famed Spanish bodega, Vega Sicilia. Consumers Avoided This Time…Alas, it was noticeable that auction participants showed little interest in Grosset rieslings, Moss Wood cabernets and wines from Mountadam. Collectors were also placing large amounts of Wendouree’s into the auction the market, which could have a future negative effect on pricing. Other styles that raised little interest included the increasingly difficult to sell imperfect Grange category, a range of basic Burgundy and most wines from Italy. Where Bordeaux is fully understood and sought after by the by Australian wine collectors, the wines and domaines of Burgundy and the great estates of Italy still represent a baffling minefield for the general Aussie wine consumer. Provenance & Rarity – Is It A Clear Winner?For the first time, Oddbins was able to identify a number of lots in the auction that came from known, high quality cellars. So it was a good test case to see if bidders preferred these wines over those not identified as coming from good cellars. The wines identified from the Schubert collection were keenly sought after and as noted above, fetched in number of cases record pricing. The other identified wines received clearance rates only marginally higher than those not identified. Interesting. Part of this may be explained by the careful vetting of all wines by the Oddbins warehouse staff, which would also explain the low complaint rate Oddbins receives from its buyers. Oddbins Good Grange Index – Down 2pts to 109Penfold’s Grange still remains the mainstay of the Australian secondary market and represents just under 10% of the total lots in the W543 auction. Activity within this sub market was brisk, aided and abetted by the inclusion of Grange from the Max Schubert collection and the auctioning of the above mentioned Bin 1. Good clearance rates were achieved for most pre-1996 vintages. Of particular note was the strong bidding on the 1990, the stabilisation of pricing for the 1998 vintage around the $480 mark and the introduction onto the secondary market of both the bottled and magnum versions of the recently released 1999 vintage. The 1999’s were passed in, one suspects that these wines may have appeared a little too soon, as collectors have just finished purchasing these wines in the retail market. As they say: no sale, no biscuit…this time! While poor clearances rates for the 1996 and 1998 vintages eased the Oddbins Good Grange Index down by 2pts, prices for Grange continue are continuing to recover from the post Christmas downturn. And growth is expected to continue well into late 2004. And Finally…Bargains are still to be had at auction and the current glut in Australian wine will still keep this pricing very keen for the foreseeable future. But, as we have said for the last two auctions, good brands from good years are still fetching good prices. Until the W544 report, happy bidding and imbibing! Cheers, Graham Wright |