Experts at wine sale have nose for $50m

Wine auctioneer Acker Merrall & Condit is recalls the halcyon days of six months ago when its first sale in Hong Kong was described as sheer magic - the greatest wine auction ever held.

But as the global economy contracts, president and auction director John Kapon said the wine trade is not totally insulated from the shocks "and we will see some knock-on effects."

Their first wine auction on May 31 realized HK$63.2 million, setting a new local record, after competitor Bonhams & Butterfields raked in HK$11.7 million in an April 24 auction.

Eager to offer more opportunity for bidders in the current economic climate, Kapon said low-end exceptions have been lowered from 10 to 25 percent.

Hoping to capture two-thirds of this year's wine auction market with Saturday's fine and rare wine sale featuring 950 lots at the Island Shangri-La, Kapon expects HK$50 million to change hands, with more than 300 bookings so far. With over 80 percent of attendees being local and volatility hitting the US wine auction market, he said the growth in Asia needs to shift from high concentration of buyers from Hong Kong to neighboring countries.

He said further growth lay in developing trade agreements for wine with countries such as South Korea where demand is strong, and Indonesia where taxes are prohibitively high.

With Kapon describing the consignments in their auction as the "Van Goghs and Picassos of the wine world," the auction will feature 12 bottles of 1990 Domaine de la Romanee Conti, which may realize upwards of HK$1.6 million compared to a similar lot sold in May that fetched HK$1.89 million.

The sale will also have 144 bottles of DRC from 1990 to 2001 expected to draw upwards of HK$2.8 million, three double magnums of 1989 Chateau Petrus expected to fetch HK$640,000 and six bottles of Krug Vintage Champagne at HK$538,888.