Since businessman Patrick Drahi became the main shareholder in June 2019, the climate has been good for Sotheby’s – famous American auction house – which surpassed $ 118 million in sales in 2019 for its wine department.
By Luxus Plus
Specializing in the auction of works of art and collectibles for decades, the American multinational of British origin had suffered for several months from an insufficient supply on the art market. This was not to mention the takeover of the company by telecommunications magnate Patrick Drahi who immediately announced its reorganization, in collaboration in particular with his own former financial director of Altice USA, Charles Stewart.
After exploring new avenues for development, he announces the diversification of Sotheby’s sales channels and the creation of a division dedicated to luxury – and in particular luxury wines and spirits – but at affordable prices. Starting in the fall of 2019, the house then offered at auction a new range of wines, always rare and high-end, but at reduced prices. “Dinner” wines more than special occasions like the 2018 Sancerre Blanc or the 2017 Sonoma pinot noir, sold at prices ranging from $ 16.95 to $ 39.95.
“There is a growing interest in fixed price sales as opposed to variable price sales” which traditionally take place within the framework of Sotheby’s auctions, explains vice-president David Schrader. The house then gives the consumer unprecedented access to ever larger markets for luxury goods at more controlled prices, even if they are still quite expensive. This is particularly the case for Burgundy wines, which absorbed 26% of total sales in 2019, mainly due to a 36% drop in the average price of bottles, from $ 804 per bottle in 2018 to $ 513 per bottle in 2019.
Result of this revaluation of the quality-price ratio under the aegis of Patrick Drahi: wine and spirits auctions exceeded $ 118 million (106.5 million euros) at Sotheby’s Wines in 2019, up by 20 % compared to 2018, achieving a whole new record.
A very positive assessment, mitigated however by the serious threat posed by the coronavirus epidemic. Especially since Asia, the dominant market, represented in 2019 66% of Sotheby’s world sales, the highest share since 2013. The house has already announced the postponement of its auction of prestigious wines scheduled this spring from April to July 2020.
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Featured photo: © Sotheby’s
