Mark Wickman of Wickman’s Fine Wine Auctions has sent out a press release questioning the asking price of the 2001 Penfolds Grange. How much do they want? A paltry $600AUD/bottle. Mark thinks that just a little too much, and I’m inclined to agree. While Grange is unique in terms of the iconic wines of Australia and there is a market for the wine locally it can be quite difficult to get access to bottles of Grange. This is due to allocation of the wine which is based on sales of quantities of other Penfolds wines. Thus a fine wine store selling St Henri, RWT and Magill etc may get a smaller allocation than a supermarket selling larger quantities of Koonunga Hill, Thomas Hyland and the Rawson’s Retreat range.
To read what other think about the price of Grange check out the Auswine forum thread.
The Wickman Press Release is copied below.
Auction expert questions pricing policy of the imminent Penfolds Grange release and urges collectors to consider recent performance before making any buying decisions.
Adelaide, Australia - March 21, 2006 -- Every year, the release of Penfolds Grange sparks excitement among wine drinkers who want to ensure they don’t miss out on their share of Australia’s most prestigious wine.
Penfolds has announced that this year’s release date will be May 1st and asking prices for the 2001 Grange are estimated to be as high as $600.
But according to Mark Wickman of Wickman’s Fine Auctions, paying that much for a bottle of 2001 Grange upon release makes little sense.
“I believe Grange is overpriced at that price and predict that while this new release will sell at a premium initially, it will then drop back below $400 within a year or so,” he says.
“The 2000 vintage was not doing well at auction last year, fetching around the $500 mark if it sold, but demand was poor and many lots around the country were left wanting.
“In fact, recent past vintages including the 1999 and the 1997 are selling below $300 per bottle sometimes as low as $200 each and even the renowned 1998 is selling for approximately $400 or less, so I question Penfolds decision to release it at $600 when buyers can expect better bargains at auction.”
Wickman says that he also expects plenty of Grange to be dumped on to the secondary market as a result of the Heritage collapse, further pushing down the value of this iconic wine.
“At a recent silent auction, a rare full set of Penfolds Grange valued at more than $170,000 failed to sell I think that is as clear a sign you can get that Grange’s secondary market value is slipping,” he says.
“Considering the current state of the market and basic supply versus demand principles, I believe it would be best for buyers to buy their Grange at auction rather than on release.”
About Wickman Fine Wine Auctions;
Distinguished by innovation and driven by passion, Wickman’s Fine Wine Auctions has been a lively and profitable meeting ground for wine buyers and sellers since 2003. A family business based in South Australia, Wickman’s prides itself on its position as a reliable resource with a well-spring of extraordinary values and opportunities.
Being a good “neighbour” in a global community is an important part of Wickman’s corporate identity.
“Philanthropy is in our blood,” explained Wickman, referring to his family’s commitment to annual fundraising.
“In the last three years, Wickman’s has auctioned wine and wine-related services generously donated from wine companies from Australia and overseas and raised over $17,000 to benefit The Multiple Sclerosis society, The Asian Tsunami Appeal, a local South Australian charity; The Eyre Peninsula Fire appeal and the Adelaide Women and Children’s Hospital foundation.”
For additional information contact:
WICKMAN'S FINE WINE AUCTIONS
PO Box 1270
South Australia, 5018