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Burgundy beats Bordeaux in Hong Kong
John Kapon, CEO of the New York and Hong Kong-based auctioneers, Acker Merrall & Condit, on the latest fine wine trends at auction.
John Kapon in Hong Kong
“Burgundy has definitely been the sizzle in the steak,” said Kapon. “From our sales in the first half of the year, it accounted for 50% of our sales by value. Bordeaux was about 30%.” Among the most sought-after wines, he mentioned: “certain producers like DRC, Leroy and Jayer that are considered the First Growths of Burgundy, but also rising stars like Coche-Dury and Roumier.”
If such wines lack the scale to ever drive the secondary market like Bordeaux, Kapon is not bothered. “Yes there’s less of them being traded, but that’s what makes them ultimately more tradable because of their scarcity.” It has also attracted fraudsters, not least Rudy Kurniawan, which, in the view of Simon Staples, Berry Bros & Rudd’s sales director for Japan, is bound to affect the market.
“I think the market’s healthier that it’s ever been, and there is confidence among buyers,” Kapon insisted. “Obviously, with the oldest wines there is more trepidation than before, but I think all the [auction] houses have stepped up their level of diligence and processes to the point where the market is probably safer than ever.”
Compared to his Hong Kong clients, those in New York “tend to have a wider bandwidth of wine producers,” said Kapon “Whereas it’s more about the biggest names on the Hong Kong side.” In the States, he described the market for young Bordeaux as dormant. “There’s not a lot of activity in 2005 and younger in the secondary market, whether retail or auction. I think people are looking to older vintages they can drink and are actually less expensive.” On en primeur, he added: “if the prices are right the market will come back, but the producers have to leave money on the table.”
Beyond France, “California’s always a big chunk of sales in New York,” said Kapon. “There’s a kind of home-grown love for it among many American collectors. Italy has a very strong following and Spain’s been really hot, particularly the older wines.” The auction has a big Spanish sale on October 18th in New York. “It’s mainly old Riojas,” he explained. “They represent so much great value – delicious wines that age well.”