DATABANK Label Consciousness The billion-dollar market is largely driven by the fabled names of : Château Lafi te Rothschild, Château Latour, Château Pétrus, and Château d’Yquem, among others. In 2010, prices for the best Bordeaux fi rst growths reached jaw- dropping heights as thirsty Chinese buyers and other investors pouring their capital into material assets paid a high premium for these luxury goods. Below, we analyze the rise—and the short-lived recession-era fall—of Bordeaux at auction, using 235,000 records retrieved from international sales at Artcurial, Bonhams, the Chicago Wine Company, Christie’s, Hart Davis Hart Wine Company, Skinner, Sotheby’s, Tajan, and Zachys from January 1998 through December 2010. Only .75-liter bottles that brought $50 or more at auction are included in this index. While 2011 data is not illustrated, we have observed a slowing market for the most elite Bordeaux —including the much- in-demand Château Lafi te Rothschild—a correction that suggests that they were somewhat overvalued in 2010. The overall market remained strong throughout 2011, however, with high-net-worth individuals continuing to invest in wine. BY ROMAN KRAEUSSL

INDEX OF BORDEAUX , 1998–2010

The average price of a bottle of Bordeaux more than doubled between 2006 and 2010, but the value of 1982 Château Lafi te Rothschild, a favorite among the house’s Asian clients, jumped more than 400 percent during the same period, underlining the importance of name recognition. The index is based at 100 in 1998.

TOTAL SALES, ALL VINTAGES 1982 LAFITE 1982 PETRUS 1975 PETRUS 1983 YQUEM 1982 MOUTON ROTHSCHILD AVG BOTTLE

$180,000,000 1400

160,000,000 1200 !" 140,000,000 1000 120,000,000 100,000,000 800

80,000,000 600 60,000,000 400 40,000,000 200 20,000,000 0 0 2010 2001 2001 1999 1998 1998 2007 2007 2002 2002 2003 2005 2005 2004 2009 2006 2008 2000

BOTTLE SIZE AND PRICE BRACKET

Although the vast majority of bottles sold at auction are the standard .75-liter size, the rarity of a 1.5-liter magnum, a 3-liter jeroboam, or a 6-liter imperial magnum can elevate the unit price: Sotheby’s sold an imperial of 2000 Château Pétrus in London last July for £32,200 ($52,000), whereas six .75-liter bottles of the same brought £18,975 ($31,000) at Christie’s London in March 2011. More than 80 percent of standard-size bottles, however, go for between $50 and $499.

Bordeaux Bottle Sizes, All Vintages Bordeaux Price Ranges, .75 liter 3.5% 3.5% 1.6% 3.8%

6.1% 8.2% 10.3% 25.5%

.375 liter $50 –99 .75 liter $100–499 82.9% 1.5 liter $500–999 3 liter 54.6% $1,000 –5,000 6 liter > $ 5,000

0022 AAA_Databank_backA_Databank_back uup.inddp.indd 9900 112/22/112/22/11 8:03:258:03:25 PMPM Two cases of 1982 Château Lafi te Rothschild fetched $59,750 apiece at a Lafi te- themed Hart Davis Hart sale in Chicago last March.

INDEX OF CRU CLASSIFICATION, 1998–2010

The index by cru classifi cation demonstrates how the high end took off after 2005 and dipped during the fi nancial crisis, whereas more moderately valued wines have remained steady.

PREMIER GRAND PREMIERS GRANDS PREMIERS GRANDS PREMIER CRU PREMIER CRU SECOND- THIRD- CRU CRUS CLASSES A CRUS CLASSES B SUPERIEUR SAUTERNES GROWTH GROWTH

450 400 350 !! 300 250 200 150 100 50 0 2010 2001 2001 1999 1998 1998 2007 2007 2002 2002 2003 2005 2005 2004 2009 2006 2008 2000

BORDEAUX WINES CLASSED BY CRU

The Bordeaux classifi cation system hails from 1855, when Napoleon III demanded that wines be offi cially graded by quality. The rankings—from fi rst growth (premier cru) to fi fth—have hardly changed since the 19th century and continue to play a large role in determining a wine’s value on the market. The top classifi cation, premier grand cru, includes Lafi te Rothschild, , Latour, Haut-Brion, and Mouton-Rothschild. Wines rated as premier grand cru or premier grand cru classé A—specifi c to wines produced in Saint-Emilion and currently applicable to Château Ausone and Cheval Blanc—are the only ones that net a higher dollar share of the market than volume sold.

1% 1% 2% 1% 2% 1% 8% 4% Market Shares by Volume Market Shares by Value 5% 8% Premier Grand Cru 3% Premier Grand Cru 6% Premiers Grands Crus Classés A Premiers Grands Crus Classés A Premiers Grands Crus Classés B Premiers Grands Crus Classés B 42% Premier Cru Supérieur Premier Cru Supérieur Premier Cru Sauternes 10% Premier Cru Sauternes 21% 67% Second-Growth Estate Second-Growth Estate Third-Growth Estate Third-Growth Estate Fourth-Growth Estate Fourth-Growth Estate 5% Fifth-Growth Estate Fifth-Growth Estate 6% 6% Others Others

HART DAVIS HART WINE COMPANY 1%

ARTINFO.COM | FEBRUARY 2012 ART+AUCTION

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