hdh wine co. - 2015 year-end report€¦ · exclusively developed for hdh, this groundbreaking...

HDH Wine Co. - 2015 Year-End Report

AUCTION

AUCTION: MARKET RECAP

By our estimates, compiled using Wine

Spectator data, the wine auction industry has

accounted for more than $278 million in live

auction sales in 2015. This impressive tally is

largely the result of a booming U.S. sector. The

U.S. retained its spot as the #1 wine auction

market in the world ($157M+ in sales) and

surpassed Hong Kong ($92M in sales) by a

margin nearly 70% this year. We attribute this

change to a return of core U.S. collectors,

improved economic conditions, and a decline of

over 10% in the Asian market.

HDH successfully upheld its #1 spot in 2015

atop the U.S. wine auction house rankings

with a market share of 26%--exceeding our

nearest competitor’s live auction sales by a

signifi cant margin. The impetus behind our

continued success has been strong property,

the most accurate estimates in the industry,

and an increased global demand for wines of

impeccable provenance.

SATURDAY, MARCH 28, 2015

A CELEBRATION OF BURGUNDY

An Auction of Finest & Rarest Wines

8:30AM AT TRU RESTAURANT

FRIDAY, MAY 15 & SATURDAY, MAY 16, 2015

AN AUCTION OF FINEST & RAREST WINESINCLUDING CHAMPAGNE FROM THE CELLARS OF KRUG

8:30AM AT TRU RESTAURANT

FRIDAY, OCTOBER 30 & SATURDAY, OCTOBER 31, 2015

A CELEBRATION OF BORDEAUXIncluding Wines Directly From: CHATEAU LEOVILLE LAS CASESCHATEAU MOUTON ROTHSCHILDCHATEAU LA MISSION HAUT BRIONAND MORE THAN 20 OTHER TOP CHATEAUX

INTRODUCING THE WINE COLLECTION OF JOSUE V. HARARI

8:30AM at TRU RESTAURANT

THURSDAY, DECEMBER 10, 2015

FRIDAY, DECEMBER 11, 2015

SATURDAY, DECEMBER 12, 2015

AN AUCTION OF FINEST & RAREST WINES8:30AM AT TRU RESTAURANT

A Celebration

of Burgundy

March 28

EST. $2,746,340-$4,101,480

$4,052,112

98.6% SOLD

An Auction of

Finest & Rarest Wines

May 15 & 16

EST. $4,307,220-$6,440,549

$6,163,236

100% SOLD

A Celebration

of Bordeaux

October 30 & 31

EST. $4,493,380-$6,724,480

$6,375,576

100% SOLD

An Auction of

Finest & Rarest Wines

December 10, 11 & 12

EST. $6,842,290-$10,220,350

$9,640,053

99.8% SOLD

TOTAL 2015 AUCTION SALES: $41 Million, 99.7% Sold

26.4%

4.5%

16.7%

19.5%

6.9%

19.6%

4.3%

2.1%

HDH Zachys Acker Sotheby’s

Wally’s Chris e’s Heritage Bonhams*

2015 US Wine Auc on Market Shares

HDH Wine Co. - 2015 Year-End Auction Report

* Some data not available

BIDDING & BIDDER DEMOGRAPHICS

Our 2015 auctions witnessed a record breaking number of bidders from all corners of the

globe with bidding from North America leading the way. Given our domestic location, this is

not particularly surprising; however, we have also seen an enormous growth in international

bidding. Over the past three years, our total number of international bids has increased by

more than 50%.

Asia continues to be our leading international market and consistently drives a large part of

our business. Private collectors and trade buyers in China, Japan, South Korea, and Taiwan are

infl uential segments of our clientele. To continue to cultivate relationships in these countries,

our team has held several special events for bidders in Asia in 2015, including walk-around

tastings and auction viewing events in Hong Kong and Shanghai.

Over the past three years, we have also seen a tremendous expansion of our business in Latin America. Brazilian collectors in

particular have, and continue to, demonstrate a strong desire for fi ne and rare wines. We have been pleased to offer events in

São Paulo and Rio for these avid collectors and we are thrilled to continue building relationships with all Latin American bidders.

Integral to the strong bidding we experienced in 2015 was our state-of-the-art bidding platform that was rolled out in March.

Exclusively developed for HDH, this groundbreaking system serves as a “one stop shop” for all of our clients’ absentee-bidding

and live-bidding needs. Our bidding platform, which can be accessed through our auction website (auction.hdhwine.com) as

well as a mobile app, is the most innovative and interactive site of its kind, offering live streaming video and audio of auctions in

progress, a simple and fast bidding process, options to follow favorite wine estates and bookmark lots, and much more. It also

displays a user’s bidding status for bids placed in advance of the sale—meaning that clients are able to see whether they are

winning a lot or if their absentee bids have been outbid. Perhaps most importantly, it provides a more inclusive auction experience

as it allows users from all around the world to participate in an auction in real-time. We have already seen an overwhelmingly

positive response to the new system and we expect great results as we continue to tailor the app to fi t our clients’ needs.

HDH is the First House to Present

a Mobile Bidding System

Download the app for free at the iTunes store

• Search our catalog by category, lot number,

name, or vintage

• Simple and effi cient live bidding process

• Seamlessly submit complex

“Either/Or” bids

• Track lots with

“Watched Lots” feature

• Follow favorite wine estates

• View past sales with results

• Stream video and audio of

auctions in real-time

• See whether your bids are

winning or losing as the

auction progresses


Top Lots in 2015

Sale 1510

1982 Château Le Pin (6

mags) (lot 645)

Sale 1505

1982 Château Pétrus (12 bs) (lot 1791)

Sale 1509 1990 Vosne-Romanée, Cros

Parantoux, Henri Jayer (8 bs) (lot 1506)

Sale 1503 2005 La Romanée Comte

Liger-Belair (3 mags) (lot 607)


SALE LOT WINE ESTIMATE AGGREGATE

1510 645 1982 Château Le Pin (6 mags) $50,000-75,000 $101,575

1506 1157 1993 Romanée-Conti, Domaine de la Romanée-Conti (7 bs) $50,000-75,000 $71,700

1509 1506 1990 Vosne-Romanée, Cros Parantoux, Henri Jayer (8 bs) $55,000-85,000 $65,725




1512 178 1990 La Tâche, Domaine de la Romanée-Conti (12 bs) $35,000-55,000 $45,410

1502 1422 1989 Château Pétrus (12 bs) $32,000-48,000 $41,825

1505 1791 1982 Château Pétrus (12 bs) $32,000-48,000 $41,825

1512 1133 1982 Château Pétrus (3 dbl-mags (3L)) $35,000-55,000 $41,825

1509 1099 1982 Château Pétrus (3 dbl-mags (3L)) $40,000-60,000 $41,825

1509 1528 1985 Domaine de la Romanée-Conti Assortment (12 bs) $35,000-55,000 $41,825

1503 607 2005 La Romanée, Comte Liger-Belair (3 mags) $24,000-35,000 $38,240

1503 541 1999 Domaine de la Romanée-Conti Assortment (12 bs) $28,000-42,000 $38,240

1506 1177 1997 Vosne-Romanée, Cros Parantoux, Réserve Henri Jayer, Henri Jayer (9 bs) $18,000-28,000 $38,240

AUCTION: WINE SALES PER REGION

HDH auctions continue to offer diverse selections of fi ne and rare wines

from around the world.

Fundamental to our auctions, are the wines of Burgundy and Bordeaux.

In 2014, Burgundy overtook Bordeaux for the fi rst time in HDH history;

however, this year we have seen a resurgence in the Bordeaux market

and it is once again our strongest category at auction, accounting for

39.3% of our auction sales. A notably strong demand was seen for

Bordeaux from 1966, 1970, 1975, 1986, 1989, and 2005, and for wines

from “Super Seconds” including La Mission Haut Brion, Léoville Barton,

Pichon-Longueville, Baron, and Lynch-Bages. In addition, our top lot of

the year was from Bordeaux: 6 magnums of 1982 Le Pin sold for a total of

$101,575, exceeding their high estimate by 35%.

Burgundy was an important category at auction throughout this year and

the average price per bottle remained strong at $469. We were excited to

see many top white Burgundy producers including Coche-Dury, Dauvissat,

Raveneau, and Roulot garner exceptionally high hammer prices.

Mature, Old World wines from Champagne, the Rhône Valley, Italy and

Spain also commanded top prices at auction this year. A recent example

is a consignment in our December auction of late release champagnes

direct from the cellar of Dom Pérignon. These pristine wines brought in a

total of $57,958 against presale estimates of $36,200-$54,600.

Moving on to domestic wines, California experienced a dramatic 17%

increase in average bottle price and a signifi cant increase in percent of

total sales in 2015. This was due in part to the high demand for Sine Qua

Non and the strong hammer prices of other cult California wines such as

Harlan Screaming Eagle and Scarecrow. Other contributors to the high

bottle prices included a parcel of Diamond Creek in our September auction

and a parcel of Ridge Monte Bello in our December auction. Many lots

from these two classic California estates achieved record-breaking prices.

Region Avg. $ / 750ml

Bordeaux $350

Burgundy $469

California $345

Champagne $443

Other $326

Rhone $247

Italian $243

Spain $346

2015 Auc on Sales by Region

36.6%

12.3%

3%3%

2.4%2.3%

1.1%

39.3%


TOP PRODUCERS BY REGION - AUCTION

Bordeaux

RANK

1 Pétrus

2 Lafi te Rothschild

3 Mouton Rothschild

4 Margaux

5 Latour

6 Haut-Brion

7 Léoville-Las-Cases

8 Cheval Blanc

9 La Mission

Haut-Brion

10 Le Pin

Burgundy

RANK

1 Domaine de la

Romanée-Conti

2 Armand Rousseau

3 Domaine Leroy

4 Coche-Dury

5 Henri Jayer

6 Domaine Dujac

7 Comte Georges

de Vogüé

8 Domaine Lefl aive

9 Georges Roumier

10 Domaine Raveneau

California

RANK

1 Sine Qua Non

2 Screaming Eagle

3 Harlan

4 Colgin

5 Marcassin

6 Ridge

7 Dominus

8 Bond

9 Schrader

10 Joseph Phelps

Champagne

RANK

1 Dom Pérignon

2 Krug

3 Louis Roederer

4 Salon

5 Taittinger

6 Pol Roger

7 Philipponnat

8 Bollinger

9 Henriot

10 Jacques Selosse

Italy

RANK

1 Bruno Giacosa

2 Tenuta dell’Ornellaia

3 Gaja

4 Tenuta San Guido

5 Giacomo Conterno

6 Case Basse

(G. Soldera)

7 Marchesi Antinori

8 Luciano Sandrone

9 Tenuta Valdicava

(V. Abbruzzese)

10 Roberto Voerzio

Top 10 Producers for 2015 Auction Sales

Domaine de la Romanée-Conti

Château Pétrus

Château Lafi te Rothschild

Château Mouton Rothschild

Sine Qua Non

Château Margaux

Château Latour

Armand Rousseau

Screaming Eagle

Château Haut-Brion

$0 $0.5M $1M $1.5M $2M $2.5M $3M $3.5M $4M

Auction Sales

$3,984,309

$2,263,808

$1,986,293

$1,578,834

$1,452,714

$1,375,565

$1,229,536

$1,131,964

$1,039,650

$997,060


HDH Wine Co. - 2015 Year-End Report

RETAIL

RETAIL: WHAT WE’VE SOLD

HDH retail is always proud to offer wine from around the globe. In 2015, as in years past, Bordeaux, California, and Burgundy constituted

the majority of our retail business with a combined total of 81% of retail sales. Bordeaux was the #1 region for retail sales and

accounted for an incredible 50% of our total sales. This impressive record is due in large part to the phenomenal ex-châteaux and ex-

négociant offerings sold this year. Château Mouton Rothschild was this year’s top seller with more than $420,000 in total sales.

California maintained its edge over Burgundy earning itself the #2 spot based on retail sales. While the end of the year witnessed a

pattern of lower average bottle prices for California than for Bordeaux or Burgundy, the incredible demand for stalwart estates like

Caymus, Dominus, and Joseph Phelps bolstered the numbers and helped California end at 17% of our retail sales this year. Despite

lower purchase volumes, Burgundy reached the #3 spot in retail sales rankings.

Burgundy also continued to benefi t from the high prices garnered by its most sought-after producers with the top three domaines—

Domaine de la Romanée-conti, Domaine Leroy, and Domaine Lefl aive—accounting for a third of the total value of Burgundy sold at

retail, and with DRC accounting for 20% on its own. Burgundy also gained the accolade for the most expensive retail lot of 2015 with a

3-pack of Romanée-Conti that sold for nearly $40,000.

Other notable high-performing categories included Italy, Champagne, and Rhône. In addition, 2015 saw a signifi cant amount of sales of

both domestic and international spirits.

Region Avg. $ / 750ml

Bordeaux $250

California $164

Burgundy $215

Other $167

Italian $154

Champagne $240

Rhone $144

German $141

Spain $174

2015 Retail Wine Sales by Region

49.8%

4.9%

16.8%

14.6%

6.2%

1.1%2.5%2.9% 1.3%

HDH Wine Co. - 2015 Year-End Retail Report

TOP PRODUCERS BY REGION - RETAIL

Bordeaux

RANK

1 Mouton Rothschild

2 Cheval Blanc

3 Margaux

4 Latour

5 Pétrus

6 Montrose

7 Léoville-Las-Cases

8 Lynch-Bages

9 Lafi te Rothschild

10 Ducru-Beaucaillou

Champagne

RANK

1 Dom Pérignon

2 Krug

3 Billecart-Salmon

4 André Clouet

5 Veuve Clicquot

6 Louis Roederer

7 Pol Roger

8 Bollinger

9 Ruinart

10 Salon

California

RANK

1 Caymus

2 Dominus

3 Joseph Phelps

4 Peter Michael

5 Marcassin

6 Aubert

7 Schrader

8 Silver Oak Cellars

9 Spottswoode

10 Chateau Montelena

Burgundy

RANK

1 Domaine de la

Romanée-Conti

2 Domaine Leroy

3 Domaine Lefl aive

4 Domaine de Montille

5 Bouchard Père et Fils

6 JF Mugnier

7 Maison Olivier

Bernstein

8 Louis Jadot

9 Remoissenet

10 Comte Georges

de Vogüé

Italy

RANK

1 Gaja

2 Marchesi Antinori

3 Tenuta dell’Ornellaia

4 Paolo Scavino

5 Tenuta San Guido

6 Bruno Giacosa

7 Roberto Voerzio

8 Altesino

9 Luciano Sandrone

10 Aldo Conterno

2015 Retail Wine Sales by Vintage

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

pre-1

970

1970-1974

1975-1979

1980-1984

1985-1989

1990-1994

1995-1999

2006-Pre

sent

2000-2005

Re

tail

Win

e S

old

by

Bo

ttle

s

831 517 1,057 1,502

3,436

11,030

29,966

21,860

3,706

RETAIL: WHAT WE OFFER

The HDH retail site offers a unique variety of wine and spirits spanning a variety of formats and vintages. In 2015, nearly one-third

of all wines sold at retail were produced prior to the year 2000 (with some Sherry dating back to 1847). Additionally, HDH retail sold

an impressive quantity of wines in formats other than the standard 750ml bottle. These ranged from over 2,500 half bottles to 71 6L

Imperials and Methuselahs.

Retail Wine Sales by Format

Half-Bottles (375ml)

2,510

Other Small Formats

505

Magnums (1.5L)

1,831

Double Magnums (3L)

171

Jeroboams (5L)

14

Imperials (6L)

71


RETAIL: WHO WORKS WITH US

Consignments from private collectors are an integral part of our retail business, accounting for over 50% of retail sale. This model

fosters a diverse retail inventory to serve our global client base and also provides consignors with an alternative to auction or an

additional platform on which to sell their wines. In addition, HDH has partnered with top producers from around the globe to offer new

release wines, ex-château selections, and wine futures. Direct sourcing through these channels has enabled us to provide additional

selections for our clients with our regular promise of unquestionable provenance and excellent condition.

Allocations from Top Producers

Many of the producers we carry have extensive wait lists

to purchase newly-released wines, which typically sell out

immediately after their entrance onto the market. Thanks to

our strong ties within the industry, we have been fortunate to

offer pre-sales for many of these small production wines. In

2015, HDH has allocations from reputable producers such as

Domaine Leroy, Domaine de la Romanée-Conti, Domaine Dujac,

Schrader, and others. In May, HDH was also one of the fi rst

retailers given access to P3 Champagne, the newest release of

the Dom Pérignon family.

Ex-Château Selections

HDH offered more ex-château and ex-négociant wines to our

customers in 2015 than ever before. These lots were provided

to our clients with the utmost assurances of authenticity and

storage conditions, regardless of the age of the wine. Needless

to say, these stellar and unique wines have contributed to our

record sales. Among the lots we have offered are wines from

Châteaux Lafi te Rothschild, Margaux, Montrose, Pavie, Pichon-

Longueville, Lalande, and Pontet-Canet. Most thrilling, these

selections granted our clients with the rare opportunity to buy full

cases of Bordeaux from the renowned 2000 and 2005 vintages.


Bordeaux Futures

HDH is proud to offer

Bordeaux futures to our

clients. In April, a small

group of our staff traveled to

Bordeaux to taste wine from

the barrel for the annual

En Primeur tasting and to

select the wines we would

be providing at retail. We

are thrilled to announce that thus far, we have sold more 2014 Bordeaux Futures

than any previous campaign since 2010, including over 150 large formats! 2014 is a

fresh, focused, approachable vintage and we are elated to be able to continue offering

Futures to our clients. The 2014 wines we are currently offering on a futures basis

include Château Haut-Brion, Château Mouton, Château Montrose, Château Pétrus,

Château Pichon-Longueville, Lalande, and Château Lynch-Bages.

Top Sellers – 2014 Futures

1. Château Montrose

2. Château Mouton Rothschild

3. Château Pétrus

4. Château Ducru-Beaucaillou

5. Château La Mission Haut Brion

6. Château Lafi te Rothschild

7. Château Lynch-Bages

8. Château Haut-Brion

9. Château Haut-Brion Blanc

10. Château Léoville-Las-Cases

RETAIL: WHERE OUR BUYERS ARE LOCATED

SHIPPING

HDH’s immense selection of fi ne and rare wines available

on our retail site draws clients from around the world. Of

course, one potential barrier we face with our international

clientele is the physical movement of wine from our

warehouse to their doors. Luckily, we have a fantastic

shipping team in place that is dedicated to assisting clients

with their shipping needs.

Within the U.S., HDH offers refrigerated shipping to areas

including California, Florida, and the New York Tri-state area.

These shipping routes make it possible for clients to receive

their orders even in the hottest parts of the summer unaffected

and undamaged by the heat. Given our upsurge in global retail

volume, particularly to Asia, HDH is offering free quarterly

shipping to Hong Kong in 2015. Each shipment is temperature-

controlled from the time it leaves HDH until it arrives in our

partner’s state-of-the-art wine storage facility in Hong Kong.

Our team is experienced with shipping wine around the globe

and we encourage clients to contact HDH with any questions

or concerns regarding the safe transport of their wine.


ABOUT HDH RETAIL

The HDH Retail site features one of the best selection of wines including new

releases, rare wines and older wines from private cellars with impeccable

provenance. Our inventory, which is listed on www.hdhwine.com, is a real-time

site. All of our consigned wines are thoroughly inspected, in-stock and ready to

ship. Our inspection team applies strict standards to wine that we accept for sale,

and our experts carefully inspect wines upon arrival in our temperature- and

humidity-controlled cellar.

Our knowledgeable retail team offers

highly personalized consultation and

sourcing services for buyers at every level.

Our experienced staff can inform you about

new arrivals and recent releases, assist

with special requests, or simply discuss

the latest market trends.

A full inventory list is updated daily and is

available on our web site in Excel or PDF

format. Our content is also searchable by

a number of features including category,

vintage, bottle size, rating, price and more.

Inventory listings also include tasting notes

and ratings from Robert Parker, Jancis

Robinson, Antonio Galloni, Allen Meadows

and Wine Spectator, when available.

MEET THE TEAM

Nick Pagoria, Retail Sales ManagerNick brings his expertise in wine, auctions, and

the French language to the HDH retail sales team

and as our European client liaison. His auction

experience ranges from the highly-regarded

modernist Wright Auctions in Chicago to Tajan S.A.

in Paris. Nick graduated from the University of

Michigan with a dual B.A. in French and Art History,

studied four summers in France, and he holds an

Advanced Certifi cate from the Wine & Spirit Education Trust. His fl uency

in French and his diverse auction and retail experience have made Nick a

valuable asset at Hart Davis Hart.

Lauren Domenech, Retail Sales AssociateLauren joined HDH in 2010, bringing with her more

than 15 years of industry experience and a breadth

of knowledge spanning from local vineyards to

rare Champagne. Through her retail experience,

Lauren has helped many passionate collectors in

the Midwest acquire and cultivate diverse private

collections and curate several award-winning wine

lists of more than 100 selections for Randolph Wine

Cellar and The Tasting Room. Lauren’s rich understanding of wine makes

her an integral part of the team, able to help any connoisseur fi nd the right

wine for the right occasion or direct a savvy investor to the next big thing.

Dale Salentiny, Retail Sales AssociateDale brings a decade of experience in many facets

of the wine industry to HDH’s retail team. With his

expertise in retail and auction sectors as well as the

management of shipping and logistics, he guides

our clients through every aspect of buying fi ne and

rare wines. Prior to joining the HDH team in 2004,

Dale gained on-the-fl oor retail wine experience

by working for a major Chicago wine retailer and

earned valuable knowledge of shipping and logistics at Lionstone/Sotheby’s.

Dale holds an Advanced Certifi cate from the Wine & Spirit Education Trust

and is currently enrolled in the WSET diploma program.

We’re here to help

you with all

your retail needs.

312.379.8710


hdh wine co. - 2015 year-end report€¦ · exclusively developed for hdh, this groundbreaking...

Documents