Auction houses toast success of fine wine sales

London*s auction houses may have taken a hammering as a result of the global financial crisis but demand is surging for their most easily consumed product * top quality wine.

Estimates for next week*s auctions show that the market for the most prestigious wines is experiencing a strong recovery thanks to a new wave of collectors from Asia.

Sotheby*s says that more than half of all the wine sold by value at its auctions this year has been snapped up by Asian buyers, with mainland Chinese proving the most enthusiastic imbibers.

At its London auctions alone, nearly 40 per cent of wine has been bought by Asian buyers, up from 10 per cent just three years ago.

Asian interest was given a big boost last year when Hong Kong ceased charging import tax on wine, transforming the city into a global hub for wine trading and distribution and prompting Christie*s and Sotheby*s to hold auctions there.

The sale of wine has also benefited from the growth of online bidding at auctions: at Sotheby*s Hong Kong sale in October, 67 per cent of lots received online bids.

Serena Sutcliffe, head of Sotheby*s international wine department, said it was logical for wealthy Chinese to become interested in fine wine. *They are people who pull a lot of corks,* she said. *They love entertaining in style and in numbers.

They are extremely hospitable.

*There is kudos in building up a collection of fine wine, of course, as with amassing highly recognisable art that everyone can value, but the Chinese do love serving it and seeing the enjoyment it spreads. The Asians are deeply interested in food, so it is a natural progression to be interested in what one drinks too.* She said that the top French wines from Bordeaux and Burgundy commanded a cachet similar to that of luxury goods. *But the big difference between a handbag and a bottle of wine is that the wine is absolutely linked to its land. It is an agricultural product. [The best bottles] are by necessity a limited edition.* Prestigious wines such as Chateau Lafite Rothschild were often opened to celebrate the sealing of a business deal in Asia. *They are used in all kinds of celebration, whether business or family-related.* Ms Sutcliffe said it was a common perception in western countries that fine wines were not properly appreciated by inexperienced Asian buyers.

*But that is a very patronising view,* she said.

*They are learning very fast indeed.* The surge of Chinese interest has helped to restore wine prices to their pre-crisis levels, said Ms Sutcliffe. The average lot value for wine sold at Sotheby*s nearly doubled from 2004-2008, from ?982 to ?1,812, and this year*s result is expected to exceed that figure.

Next week*s sales at the two big auction houses include important collections of French wine. At Sotheby*s on Wednesday, a double magnum of Chateau Lafite 1961 is estimated at ?4,000-?6,000, while the highest estimate for a case of Chateau Latour 1982 is ?15,000.

Christie*s sale on Thursday includes historic vintages drawn from the cellars of the Chateau Pichon- Lalande winery. Sotheby*s has held three wine sales in Hong Kong this year, all of which have been *white glove* sales (100 per cent sold, by value and by lot).

The sales have all realised more than $14m, outstripping the total turnover for this year*s sales in New York.