HDH claims to be top wine auction house in USA

[Roy Hersh]

Hart Davis Hart is #1 U.S. Wine Auction House in 2013
Yearly auction totals up 37% to $36 Million

(December 16, 2013—Chicago, IL) Hart Davis Hart completed the most successful year in the company’s history, following another strong showing at its two-day December auction. Over the course of seven auctions held in 2013, HDH netted $36.07 million, making Hart Davis Hart the largest seller of fine wines at auction in the United States. HDH experienced 37% growth while all major competitors declined.

HDH created the world’s most active, accurate, and efficient marketplace for wine. The firm achieved by far the highest sell-through rate in the industry, passing only seven of 12,350 lots offered. Five of the seven auctions were 100% sold. HDH also had a record number of bidders and buyers in 2013. By offering impeccably sourced wines, reaching global bidders and a dedication to service & integrity, HDH has achieved market-leading results.

“This was truly an incredible year for our team and for our clients,” said CEO Paul Hart. “We came into 2013 with prospects for growth and our results exceeded expectations. Consignors and Bidders have more faith and trust in HDH.”

As expected, bidding for Burgundy remained strong and 2013, which was also a year full of world records. In February, a case of 1990 Cros Parantoux from Henri Jayer sold for $113,525, after global bidders from Europe, Hong Kong and the United States battled for the lot. At “A Celebration of Burgundy” in March, a case of 1991 Clos de la Roche, Vieilles Vignes, Domaine Ponsot hammered at the world record price of $19,120, nearly twice its estimated value of $7,000-10,000. In September, 12 bottles of 1990 Clos St.-Denis, Domaine Dujac also shattered pre-auction estimates ($10,000-$15,000) and set a new world record of $23,900.

Over course of the year, HDH has seen significant growth in online bidding as well as noteworthy increases from South American bidders. Eager private and trade bidders participated in the saleroom, on the telephones, and via live internet bidding, hailing from more than 40 states, the District of Columbia and Puerto Rico, as well as Australia, Austria, Belgium, Brazil, Canada, China, Colombia, France, Germany, Hong Kong, Israel, Japan, Luxembourg, Macau, Malaysia, Mexico, Norway, Russia, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, the Netherlands, the Philippines and the United Kingdom.

The December Auction achieved remarkably strong results, selling 99% of the lots and realizing $6,340,634 against a pre-sale auction estimate of $4,453,800 -$6,640,160. Wines from Domaine de la Romanée-Conti continued to see intense bidding and top prices with 2005 Romanée-Conti, Domaine de la Romanée-Conti (3 mags) (owc) (est. $60,000-90,000) selling above its presale estimate for a world record price of $107,550.

[Tom D.]

Maybe so, in dollar terms, but they deal almost exclusively with very high end stuff and often in case lots. So that claim doesn't have a lot of resonance with most typical wine buyers.

[Eric Menchen]

And I am always amused by auction houses claiming huge dollar amounts of product sold. As a seller, I suppose this is a good thing. But as a buyer, it isn't really what I'm looking for. I want quantity and variety, and low prices.

[Julian D. A. Wiseman]

It also creates a poor incentive. If an owner of an auction house wanted to be the ‘top’, in the sense of most dollars sold, that’s easy to achieve.

1. Owner of auction house reaches into cellar to find splendid bottle: say a Crusted Port.
2. Lists for sale at own auction house.
3. Bids lots £$€¥元₩Ⓑ£$€¥元₩Ⓑ.
4. Pay hammer and premiums to self.

Result: ‘top’ auction house.

Which doesn’t mean that anybody has actually done this, only that the game seems to create an incentive to do so.

[Brian C.]

What Julian just described is called "painting the tape" in trading. http://www.investopedia.com/terms/p/paintingthetape.asp

I think the potential downside of such a practice far outweighs any positive to be gained for an auction house. If anybody ever figured out a house was painting its own tape, the credibility of the house would be tarnished forever.