Factors to Consider When Buying High-end Wines
In last week’s column we delved into the world of high-end wines and the exorbitant prices they command. My focus was on the La Romanée-Conti Grand Cru bottling, produced by the Domaine de la Romanée-Conti, most commonly known by its acronym, DRC, and perennially the most expensive wine sold.
The availability of DRC is severely limited. A small amount is produced each year and little is available in the retail market. A small portion is offered for sale at public auctions, many years (even decades) after its initial release. The price? The value a willing buyer and a willing seller arrive at. The vicarious pleasure of owning one of these bottles? Priceless?
Predictably, a buyer will have a difficult time finding and purchasing this wine. Herein is the perfect opportunity for bidding wars – at auctions (public and private) and the underground markets of questionable source and authenticity.
One might ponder if DRC, and other rare wines, are susceptible to those nefarious individuals who troll the winosphere for gullible consumers. Ponder no longer. In examining the attributes of the wine and the producer, I did not mention the allure this wine has with the dark side of the marketplace for rare and expensive wines.
I present several considerations facing buyers when purchasing DRC or any scarce, rare or one-of-a-kind objet d’art (or objet d’vin).
- Price. Scarcity drives up prices. It is generally perceived wines from the Bordeaux region of France command the highest prices, in particular a bottle of Petrus. However, the preferences of collectors (old line and the newly minted aristocrats) are wines from the Burgundy region of France, in particular DRC.
The most recent vintage available of Petrus costs $3,000 per bottle. This wine also has the distinction of being the first wine to travel, and age, in the International Space Station, returning to earth a few months ago after its 14-month journey.
By comparison, the current release of DRC commands a per bottle price of more than $15,000. As for older vintages, there seem to be quite a few willing buyers. At an auction held in Hong Kong several years ago, a single bottle of 1945 DRC sold for $558,000, a record price. A second bottle was auctioned immediately after. It commanded an equally staggering price of $496,000.
However, a few bottles of the space-aged Petrus are being auctioned, which will certainly challenge the DRC record-setting price.
- Provenance. For those few who are able to afford rare wines there is no certainty that your purchase is genuine. The DRC wine market is rife with shady characters lying in wait for enthusiastic buyers. A few years ago, I reported that Rudy Kurniawan, a prominent wine collector, was arrested on counterfeit charges. He affixed fraudulent DRC labels to bottles filled with unidentified cheap wine and sold them in the high-end wine markets.
In a separate instance of fraud, European police, informed of counterfeit DRC wines being sold in the private (black) market, conducted a sweep in 10 countries, raiding 20 homes and companies. Over $2.7 million in fraudulent profit is believed to have been realized.
- Blackmail. Owners of the winery producing the most expensive wine in the world have been targets of nefarious blackmailers. In 2010, a father and son attempted to extort $1.4 million from the owners of DRC, threatening to destroy their vineyard. After much anguish, the owners contacted the authorities, who intervened and subsequently arrested the culprits.
Fear not if you are unable to find, or afford, that special gift of rare wine for yourself or someone special. Living vicariously through the adventures – and wallets – of others is a noble diversion. It may even enhance your enjoyment of lesser-priced wine.
Nick Antonaccio is a 45-year Pleasantville resident. For over 25 years, he has conducted wine tastings and lectures. Nick is a member and program director of the Wine Media Guild of wine journalists. He also offers personalized wine tastings and wine travel services. Nick’s credo: continuous experimenting results in instinctive behavior. You can reach him at nantonaccio@theexaminernews.com or on Twitter @sharingwine.
