The story of the exceptional wine sale in Hong Kong

After Vinexpo's recent success in Hong Kong, interest in the former British colony is growing in the world of wine and spirits. For several months now, Acker Merral & Condit, Sotheby's and Christie's have set up their homes in what is known as the new world capital of wine business. The auctions reach dizzying prices on French grands crus. Rather than seeing the train pass, two auctioneers, the Breton Jack-Philippe Ruellan and the Toulouse Marc Labarbe, will organize from 11 to 13 May 2012, the first French auction of great wines. Exclusive interview with Johan Gesrel.

- How was born this auction project in Hong Kong?

Marc Labarbe - The idea goes to Jack-Philippe Ruellan, auctioneer in Vannes who was the first French to attempt the adventure in China. For the moment, no big French box left there. He started last year and asked me to accompany him. On site, we saw the infatuation of the Chinese for wine and that's why we decided to organize a new auction both in May in Hong Kong.

- By studying your catalog, we notice from the outset that this sale is articulated around the big names and great wines of Bordeaux: Château Figeac, Rothschild, Château Latour, Cheval Blanc ... Why?

Marc Labarbe - It must be recognized that the Chinese clientele is rather for the moment fond of great wines of Bordeaux. It opens to the Burgundy and is currently discovering White Burgundy so we turned to recent vintages because the Chinese want to drink immediately. For now we are not on collectors, we are on merchants who buy for customers. Some buy some old bottles for birthdays, of course, but they want bottles that are meant to be drunk. For them, there are legendary labels like Laffite Rothschild, even if it is running out of steam; the Burgundies arrive behind and I think they will quickly occupy the field. In our opinion, the market will explode within two years, which is why we are positioning ourselves now.

- How did you build your catalog of rare wines?

Marc Labarbe - Quite simply, we are announcing our sale in Hong Kong. Following this, individuals and professionals call us by proposing to sell their cellar. There, I have a restaurant that called me a few days ago that told me he wanted to finish his cellar bottom. We also have many individuals who have speculated at a time speculative buying wine 20-25 years ago, it is an opportunity to sell these bottles to a market in demand. I even think that they will have the opportunity to sell them better than in France at the moment.

- Do you stay open to other, less luxurious areas?

Marc Labarbe - You can not fall in the small areas because it's an auction that has a cost and you have to write it off. We can not make a sale with 3000 lots. We limited ourselves to 1000 lots with relatively high starting prices while going towards 2e, 3e, 4e raw to allow modest Chinese to access quality wines at more reasonable prices.

- How are you doing from the logistic point of view? Carry bottles of values with the whole issue of travel-related turmoil, climate change, etc. ... It's not running a risk?

Marc Labarbe - All the wines will not go to China. The Grands Bordeaux will surely remain on site. Part will be transported with one or two months in advance. Once sold, the bottles will be shipped via our own services.

- These sales from Bordeaux to Hong Kong, as we know, are reaching dizzying prices. (Between 10 000 and 25 000 € the box of twelve bottles, reports the weekly Express), do not you have the impression to participate in this speculative frenzy today criticized by figures like Michel Bettane or even Robert Parker?

Marc Labarbe - Yes of course. But let's say that the Chinese are still reasonable. Of course, the goal in going to Hong Kong is to have the presence of wealthy individuals who could actually, to please themselves, raise prices at prices higher than those we know today but it We must also know that foreign competition is present so prices can not fly in the immediate future. If there is flight, it will be in the coming years because the Chinese market is really nascent. What will happen, we do not know anything about it. For now, we are more about a reasonable increase in value than on an explosion of prices in China.

- The counterfeiting of vintage wines is a reality in China. What guarantee do you bring to your customers-buyers?

Marc Labarbe - We are lucky in France to work with cellars of individuals who generally do not book unpleasant surprises. Our expert, Jean-Christophe Lucquiaud, looks at them one by one so that the Chinese customers are not disappointed and that we can then renew the experience.

- In your catalog, there is a buyer's guide with drawings to learn how to check the level of collars. Is it to infuse a culture of auctioning in China?

Marc Labarbe - Yes, the Chinese do not know the auction world well. These wealthy people we talk to have often made a fortune in a very short time and I think the auction houses are intimidating them. However, these people are very demanding and we must do advice and quality. Last year, we saw that once the sale was over. If a bottle of their lot does not match what has been described in the catalog, some Chinese customers refuse the whole lot. So yes, we try to instill in them a taste for detail so that they have confidence in our expertise. The goal is to sell bottles of which they are happy to see them return to the next sales.

- The auction will take place from 11 to 13 May 2012, fifteen days before the next edition of Vinexpo. A lot of stress and excitement in the end, right?

Marc Labarbe - For my colleague Jack-Philippe Ruellan and me it's a challenge but it's also a challenge for Jean-Christophe Lucquiaud, our expert. For example in France, if I sell a case of wine of a great vintage and that I indicate "Twelve bottles of white horse 1990 wooden box" and that I do not put any mention beside, in the spirit of the French customer, it means that the bottle is intact. In the mind of a Chinese customer is that the bottle hides a defect that is not mentioned. So you have to indicate everything: the level, the label, etc. ... There is a very high level of requirement which finally turns out for us, you are right, very exciting. But I confess that going to China is already an adventure in itself.

-Last question even if we should have started there. When was your taste for Marc Labarbe wine?

Marc Labarbe - It's a passion that began twenty years ago through my stepfather who introduced me to great meals and great wines. And so I took a liking to it. I met friends who made me share this passion. Because wine is something that is not lived alone.

http://www.finewinefrenchauctioneers.com/

Definitions

The auctioneer conducts the auction.

There are two auction types :

  • Voluntary auctions : an owner provides freely items. The voluntary auction is organized in accordance with the provisions of the French Civil Code (laws of July 10, 2000 and July 20, 2011,art. L. 321-1 to L. 321-38 of the French Commercial Code). The fees are applied in addition to the hammer price. They are generally set at 20% pre-tax, i.e 24% after tax.Upcoming Voluntary Sales.
  • The judicial sales : a judicial sale is provided for by a law or regulation, or can be authorized by a judge. Fees in addition to the hammer price are set at 12% pre-tax, i.e 14.40% after tax.Upcoming judicial sales.
 

A sale can be described as an auction when anybody is free to participate, under the sole condition of his solvency.

Everybody is able to hear all the offers made, and can thus outbid. The object presented is won by the highest bidder.

Any bid has to be equal to or higher than the starting price, or must be higher than the one proposed by a competitor for the purchase of the thing.

The amount of every bid is repeated out loud by the auctioneer so that every bidder can hear it.

This way, auctions are an objective and automatic mode of designation of a price and a purchaser.

The purchase order corresponds to a specific maximum amount in euros up to which the auctioneer is mandated to buy the item. The auctioneer buys the item on behalf of his client, in accordance with the instructions of the purchase order form. The auctioneer aims to purchase the item at the lowest possible price and still under the maximum price his client has set.

 

How to bid ?

The auctions being "public", they are open to anyone who can bid, i.e to any creditworthy person.

The place where the sale takes place is public. The auctioneer ensures the free access to the sale.

The restrictions to participate in an auction are those of common law : non-emancipated minors, protected adults, people under the influence of alcohol.

The auctioneer may subject the participation to a prior registration and the presentation of a guarantee of payment, these conditions being objective, non-discriminatory and appropriate.

The price is shouted. The sale is conducted in French and bids are made in euros. The auctioneer conducts the operations. He designates the item for sale and announces a starting price. People start bidding. When it turns out that no one is willing to offer a higher price, the item is won. The lot is sold and the sale is over when the auctioneer blows the hammer and says 'Adjugé'.

It is possible to bid by raising your hand, the sign being immediately translated into figures by the auctioneer, who announces it orally.

If you can't attend the saleit is possible to place an absentee bid. You have to fill in a purchase order form with the highest amount you are willing to pay for the artwork..
Once your form is registered, you will receive a confirmation by email.

If you can't attend the saleit is possible to place an absentee bid. You have to fill in a purchase order form with the highest amount you are willing to pay for the artwork..

Once your purchase order is registered, you will have the confirmation by email. You may be required to provide a piece of identification for the buyer as well as his bank details.
For some objects of exceptional character and/or value, a guarantee deposit may be required.

If the purchase order is made on behalf of a legal entity such as a company, you may be required to provide a Kbis extract and the ID of the manager mentioned in this document.

If the auctioneer receives several orders for identical amounts on the same lot and if, at the auction, these orders represent the highest bids, it will be awarded to the bidder whose order has been received first. .

No purchase order lower than the low estimate is accepted.

Full contact details must be provided in the form.

If the purchase order has been completed, the bill of sale summarizing the designation of the objects purchased, the amount awarded and the total amount with the fees will be sent no later than 24 hours after the sale (excluding non-working days).

The sending is done to the email filled during the request or, in the absence of it, by postal way.

it is possible to place bids by telephone.

Bidding by telephone lets you take part in the auction without having to be present in the auction room. If you would like to do this you will need to book yourself in as a telephone bidder in advance. Places are available on a first-come-first-served basis. You will also need to fill in a telephone bid form, providing proof of identity and residence and a contact telephone. is the one by which the person asks to be called on the phone during the auction, to make a live auction. To do this, simply fill in a Telephone bid form.

Once your request is registered, you will have the confirmation by email or telephone. You may be required to provide an ID as well as bank details.
For some objects of exceptional character and/or value, a guarantee deposit may be required.

If the purchase order is made on behalf of a legal entity such as a company, you may be required to provide a Kbis extract and the ID of the manager mentioned in this document.

Please note that this is a free service provided by the Auction House that can not be held responsible in case of late request or defective telephone link or in case of any error made in telephone contact.

No telephone bid form for objects whose low estimate is lower than 200 euros is accepted.

 

If you want to bid on the internet, the Auction House Labarbe uses the platform Interencheres Live. Live sales are broadcast on https://www.interencheres-live.com/. They bring two new services:

  • of the live auctions it allows to remotely participate in a real-time auction. From your computer, you can follow the auction fire and the auctioneer's comments during the sale (with sound and video). At any time and with a single click, you can bid as if you were in the room on the lots you want.
  • of the secret purchase orders : interencheres-live.com offers a service of secret purchase orders. Secret purchase orders are automatically executed and computerized. Their maximum amounts are not disclosed to the auctioneer. The bidders benefit from the guarantee of a purchase at the fairest price if they win the auction.

If you want to participate in an auction live or deposit a secret purchase order, kindly note that you have to register BEFORE the sale on interencheres-live.com.

Taxes are alway included in the hammer price, but the selling fees are not. Selling fees are a percentage calculated on the total amount of the sales bill. They can cary from one sale to another.

If you bid on the internet, an additional 3-percent fee applies. It pays the subcontractor responsible for organizing the auction live.

The payment of any item is due immediately. spot.

You can pay cashcash in the limit of €1000 with fees for French citizens and up to €15,000 with fees for anybody whose tax domicile is abroad.

The payment can also be made by credit card when the place of the sale allows it. 4% additional fees are charged to purchasers holding foreign cards.

If you bids were placed remotely, payment must be made upon receipt of the sales slip. You can pay by making an appointment with our accounting department, or use a bank transfer. Please contact us to retrieve our bank details.

For purchases made via the platform interencheres-live.com, the total amount can be debited from the credit card you've used for the registration.

How to pick up your purchase ?

  • I'm leaving with my goods on the same day.
    The staff will give me my goods on presentation of my sale slip (my invoice) fully paid.
  • I can not immediately take away my goods.
    Exceptionally, the Labarbe House can give you 72 hours to pick up your items. You should find out the place of storage of your object by contacting us beforehand. We will give you your good on presentation of my sale slip (my invoice) fully paid.
  • You can also mandate the person of your choice to pick up your property. In this case, you have to :
  1. fill out and send it to the Auction House a withdrawal authorization of the goods by a third person.
  2. This third person must present a copy of the sale slip fully paid, the withdrawal authorization, and his ID. If the sale slip hasn't been fully paidthis person has to do it at the auction house, in cash up to €1000 with fees or by credit card.
  • You pick up your property in person.
    On presentation of a sale slip fully paid, the goods can be withdrawn at the auction house. during opening hours, or when appropriate, at another place of sale. You should find out where your good is stored by contacting us beforehand.
  • You mandate the person of your choice to pick up your property. In this case, you must :
    1. Inform us by filling in a withdrawal authorization by a third party.
    2. This person must present the copy of the fully paid slip sale, the withdrawal authorization, and an ID. If the sale slip hasn't been fully paidthis person has to do it at the auction house, in cash up to €1000 with fees or by credit card.

    You should first find out where your good is stored by contacting us beforehand.

  • You want to call a carrier.
    You are free to call the carrier of your choice. If you don't know any transport company, the auction house can give you the details of a professional. In any case, you must :
  1. Inform us by filling in a withdrawal authorization of the goods by a third person.
  2. Transmit to the carrier a copy of my fully paid sale slip.
  3. You should first find out where your good is stored by contacting us beforehand.

Unless otherwise specified, the property is sent in good condition. The auction house is not liable for any loss or damage. The cost of the transport is the responsability of the purchaser.

  • I wish my purchases to be sent by post.
    It will be perceived a A price for packaging and shipping is required. It changes from 5 to €20 depending on the weight and volume of the property. Unless otherwise specified, the property is sent in good condition. The auction house is not liable for any loss or damage. The costs and the responsibility of the transport belong to the purchaser. In case of a postal sending, please contact us so that we can give you a quote. The auction House can refuse the packaging service if it seems to be too risky, given the nature of the object. The transport being carried out under the full responsibility of the buyer, please contact us to know if the good you want to acquire can be dispatched.