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Sotheby’s auctions hit record US$159 million

15 April 2024 By Arabella Mileham

Sotheby’s wine and spirits auctions hit US$159 million in 2023, the third year in a row it has hit a new high, the auction house reported.

2023 also saw a 17% increase in the number of lots offered year-on-year, with the number of auctions held worldwide up for the fourth year in a row, doubling the pre-pandemic levels. Auctions were held in six countries – with inaugural auctions held in Shanghai and Singapore during the year, while Sotheby’s attracted bidders from 53 countries.

More than $100 million was raised from single-owner sales for the first time, the auction house said in its annual report, which highlights including the first sale of the The Epicurean’s Atlas: The Encyclopaedic Cellar (Hong Kong, $16.8million) A Monumental Cellar (New York, $9.3 million), Kodawari, The Greatest Japanese Whisky Collection (London, $2.2 million) and Iconic Wines from a Prestigious French Cellar (France, $2.5 million).

Nick Pegna, global head of Sotheby’s wine & spirits also noted that “we sold as many wines & spirits by value in one extraordinary week in 2023, as the whole of 2013.”

This record-breaking week took place in November, with $50 million raised in auctions held in three different regions, and included the most expensive bottle of spirit or wine ever sold at auction. The Macallan 1926, featuring the Valerio Adami label, raised $2.7 million, smashing the previous record of $1.9 million achieved by Sotheby’s in 2019 for any bottle of spirit or wine by a wide margin.

Demand and diversification

Drilling into the data showed some interesting trends. Buyers from the US were the strongest bidders in auction for example, with the Americas accounting 25% of successful bidders – the US took the lions share with $26m, but there was a sharp increase coming from Mexico and Brazil, Sotheby’s noted, with the rest of America accounting for $6m.

However, Asia remained the leading market for auctions overall, holding 42% of the market buyers, led by Hong Kong, which contributed $22m to the total. Meanwhile participation in Europe remained stable, led by France ($23m), Denmark ($6m) and the UK ($5m), although the rest of Europe segment doubled its spend during 2023.

The breakdown of stats also showed the diversification of the lots being offered and sold. For example Burgundy, Bordeaux and spirits accounted for just over 70% of lots offered in 2023, down from a historical average of 87%. In the last ten years, Bordeaux has gone from representing around 60% of wine and spirits sale to 16%, with Burgundy rising from 26% to 34% over the same period – although it has fallen from the 50% high of 2019. Meanwhile spirits are on an upward trajectory, rising from $4m in 2017 to £33m in 2023, or 21%.

There was also increased demand for wines from Champagne, Rhône and California.

The top ten producers comprised Hospices de Beaune – top for the second year in a row with sales of US$25m, followed by Domaine de la Romanée-Conti, whose sales increased by 40% over the year to $21m, Domaine Leroy and d’Auvenay, whose sales more than doubled to $11m. Petrus was the most sought-after Bordeaux, seeing an increase in sales of 50% to $6m, pipping Burgundy’s Domaine Armand Rousseau ($5m) to fourth place.

A new entrant in sixth place was Champagne producer Maison Krug, the first Champagne producer to make it into the top ten, accounting for 38% of sales from Champagne, reflecting the rising demand for wines from the region. This was ahead of Bordeaux’s Château Lafite Rothschild, Château Mouton Rothschild and Château Latour, who all saw sales of $2m, and Château Haut Brion with sales of $1.5m.

The top Rhone producer was Château Rayas, accounting for 27% of wines from the Rhone, followed closely by Guigal (25%) and Jean-Louis Chave (22%). Massetto topped the list of Italian wines (accounting for 26% of the Italian segment), followed by Sassicaia and Gaja (both 14%), and Screaming Eagle accounted for nearly half (48%) of US wines sold at auction, ahead of Harlan, the next closest at 12%.

In retail terms, wines from Bordeaux retained the top spot, accounting for 37% of sales, followed by wines from Burgundy (25%), Champagne (13%), Italy (7%), the US (6%) and Spirits (1%).

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