Wine and spirits are not merely honorary members of the art world. As aptly expressed by legendary collector Pierre Chen, wine is the ninth art form; the only form one can consume, requiring senses that other art doesn't involve. Released on April 9, 2024, Sotheby's annual Wine and Spirits Market Report for 2023 reflects on new records within this global community.
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For the third consecutive year, wine and spirits auction sales reached a new high: $159 million. This achievement is a testament to the robust growth in Asian markets and the allure of fine wine and spirits to a diverse range of collectors, even amidst a broader market slowdown.
The Asian market has decisively asserted its prominence and refuses to play second fiddle to Europe and the U.S. This year, Sotheby’s inaugurated its first Wine & Spirits auctions in Singapore and Shanghai. In a significant expansion of its portfolio, Sotheby’s also introduced The Epicurean’s Atlas, a year-long series of five dedicated auctions showcasing an extraordinary collection of wines. This event debuted in Hong Kong with a two-day sale, featuring the initial tranche from the esteemed collection of epicurean Pierre Chen. Subsequent sales took place in London, Paris, Burgundy, and New York.
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The Epicurean’s Atlas paid off. In Hong Kong alone, it achieved $16.8 million, one of the highest totals for a single wine sale. Not far behind, the Monumental Cellar sale in New York garnered $9.3 million. Additionally, KODAWARI | The Greatest Japanese Whisky Collection set a new record price for a collection of Japanese whisky, fetching $2.2 million.
The record-breaking growth in the whisky category aligns with the global expansion of the spirits market. On April 18, Scandinavian auction house Bruun Rasmussen hosted major sales of rare whisky, spirits and wines. Auction houses anticipate these sales to attract significant interest from Gen Z consumers, who are breaking into a market traditionally dominated by older generations. Another change to the industry is enhancing transparency with blockchain technology: in June 2023, South Africa's Strauss & Co sold six collections from The Coats Family Cellar which were also minted as NFTs.
It's no secret that Gen Z are more "sober curious" than their parents. When they do drink, they're prioritizing quality. "Most people from this younger generation aren’t going to be heading into the liquor store to buy a six pack of cheap beer. Their approach is entirely different; they’ll select something innovative and tasteful that tells a story," says Brad Neathery, CMO of Oak & Eden, an innovative American distillery.
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Younger people are also intrigued by fine wine as an investment; Canadian auction house Waddington's notes "wines offered at auction appreciate in value, especially rare and acclaimed vintages, making auctions an excellent way to build a fine wine portfolio." It's a win-win strategy, Cambi Casa D’Aste points out: "investing in wine is always worthwhile because, bad luck, you drink it."
Whether you're investing or simply enjoying, the present "global interest in fine wine has arguably never been greater," says Nick Pegna, Sotheby’s head of Wine and Spirits. Buyers are diversifying their interests with a keen preference for wines from Champagne, Rhône, and California regions. This enthusiasm is evidenced by vigorous bidding from U.S. consumers, who have outbid their European counterparts for the first time in a decade. Interestingly, while Asian bidders lead in spirits market share, U.S. buyers are the top spenders.
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The appeal of wine and spirits is as nuanced as the beverages themselves. It doesn't matter if you spend $20 or $20,000 on a new bottle; auctions are providing all consumers ample reasons to celebrate.