Acker Merrall Condit's PR firm sent out an email yesterday (which I've replicated below) that is offering an entire cellar (see "The Man with the Golden Cellar" catalog), claimed to be among the world's top 3, for a mere $20 million.
I've discussed the trend towards the purchasing of "instant cellars" in prior posts (see Sold for $1.05 million! and "Instant" wine cellars vs. developing a wine advisory relationship) but the sheer audacity of this proposal is to be admired. In this case, which is Acker's first attempt to sell an entire collection, Acker's CEO John Kapon says (on page 11 of the catalog) that he is doing so because he considers "this collection to be a work of art" and that there should be a chance to keep it together. He also acknowledges it might create some buzz (he's right).
While it would be a major exercise to perform a "sum of the parts" valuation of the component wines in the auction, I suspect the $20 million figure reflects a healthy premium to any such analysis give the reference to "a work of art." However, I would also not be surprised if a wealthy Asian buyer emerges and pays the tab. After all, it would sure save a lot of time and effort, not to mention generate instant credibility in the wine collecting world. The credible alternative of selling the wine via an auction also focuses the mind of any buyer to act by the October 17th deadline or the opportunity will be lost forever.
Contents of the October 4, 2007 Email Sent by Acker's PR Firm
The bull market for fine wines shows no sign of retrenchment. The London International Vintage Exchange Index - an index of the top 100 investable wines - rose 42% in 2007-- trading at its highest level since its inception in 2000. Prices on the most sought-after vintages shot-up by 90% this past year, and new investors from Russia, China and the rest of Asia, are clamoring to get into the game in even bigger ways.
Now, for $20 million, a single investor can instantly become one of the world's undisputed top collectors-overnight.
Beginning October 5 through the 17th, the New York-based wine retailer Acker Merrall Condit (host of the world's largest-ever wine auction in 2006, which grossed $24.4 million) is looking to break new ground this year by offering a single buyer the opportunity to acquire one of the world's masterpiece wine collections in its entirety. Impeccably curated over decades and ranked as one of the world's top-three collections, it aggregates a portfolio of 1,500 of the best-of-the-best wine lots (roughly 12,000 bottles) that closely track the Liv-ex Index.
If no single investor steps up by October 17, the collection will be sold at a blockbuster auction attended by Wall Street high-rollers and international investors at New York's internationally acclaimed, Le Bernadin restaurant on October 19 and 20. Absentee bidding is expected from around the world via web and speaker phone.
John Kapon, president and CEO of Acker Merrall Condit, says that many of the investors he meets love to collect wines and to share a bottle with colleagues and friends. Aside from the high-yield on their investment, fine wine is a potent business tool, helping to cultivate and cement key relationships. "This collection is so extraordinary, the wines so rare, that it couldn't be recreated over a single lifetime. It's truly one-of-a-kind, like a Picasso."
John Kapon is available to discuss all details of the collection and auction. Let me know if you're interested in speaking with him.
Thanks for your consideration.
