Hong Kong, May 22nd, 2014 – BWC Management & Consulting was recently asked by China Daily to comment on the Sir Alex Ferguson wine auction, held by Christie’s in Hong Kong.
The ex-Manchester United manager has been a keen wine collector over the years, and recently decided to part with much of his collection, putting 257 lots up for sale in the Hong Kong auction.
When asked to comment on the auction, BWC Management & Consulting’s senior market analyst, Daniel Paterson, offered some insight into China’s recent penchant for purchasing valuable European wines.
Paterson told China Daily that the number of collectors worldwide has increased, while the availability of investment grade wines has dwindled. This has led to an increase in the value of blue chip wines, and the Chinese market has been quick to identify this phenomenon.
“We have seen ‘staggering levels’ of increased interest from the BRIC economies as well as in Europe and the United States,” Paterson said. “The Chinese, Russian, Indian and wealthy South American countries are also consolidating their positions as both consumers and investors.”
Taking this data into account means there is good sense in Sir Alex Ferguson choosing to hold the auction of much of his wine collection in Hong Kong, where interest and demand are high.
Recent Years Show High Return on Wine Investments
Samuel Cheung, senior broker at BWC Management & Consulting, was also quoted in the China Daily article, commenting on the types of gains wine investors have been reaping in recent years. Cheung cited an example of a case of wine sold in 2001 for 1,000 pounds, which would sell today for 2,760 pounds – a 180 percent return on investment.
Highlights in the Ferguson collection include a case of Petrus 2000, expected to fetch HK$550,000, and six bottles of Romanee-Conti Grand Cru 1999, which could go for as much as HK$850,000.