Buyer, Holder or Cellar
The crime had the makings of a mystery novel for the Robb Report set.
In the affluent Silicon Valley town of Atherton, Calif., a venture capitalist returned from a New Year’s vacation in the first days of 2007 to his gated multi-million dollar home on Fair Oaks Lane, a quiet cul-de-sac. To the horror of both his wallet and palate, he found $139,000 worth of vintage wine missing from his climate-controlled cellar. A total of 454 bottles had vanished, including a rare $11,000 magnum of 1959 Château Pétrus and a vertical of red Bordeaux representing an unbroken line of more than 20 years.
The average price of a stolen bottle: an astonishing $300. No common cat burglar, this thief was one discerning oenophile.
The heist became known as “The Big Wine Caper.”
On a Saturday morning in spring, tables draped with starched white linen and stacked with trays of canapés face the auctioneer at Christie’s Fine and Rare Wines auction at New York’s Rockefeller Center. In the back of the room a bartender serves fresh juice, sparkling water and champagne. There is the pop of a cork. To the amusement of the bidders, the auctioneer pauses and imitates the sound by flicking the back of his index finger against the side of his mouth.
A buff guy in a black tee shirt, jeans and pointy boots never removes his shades. A silver-haired lady sits attentively, glasses perched on her nose. A balding man with long strands of the hair he has left and bright red socks studies the catalogue like a racing form.
Amateur and serious collectors, wine brokers and the curious, wine auctions draw an eclectic crowd and an exclusive group of insurers and brokers helping wealthy collectors pursue and protect their passions.
On each side of the room, tapestries of half-clad people dancing merrily in the woods hang from the walls behind the dark wood consoles where rows of jacketed salesmen and saleswomen arm the phones for call-in bidders.
A case of ’95 Opus One goes for $2,370. An absentee bidder gets two bottles of 1990 Cristal for a bargain $700. After a bit of witty banter with the auctioneer whose accent reflects his Savile Row-like pinstriped suit, Mr. Red Socks ceases bidding on a lot of Château Lafite- Rothschild, eliciting a “Sure? You were tempted weren’t you?” It is a convivial yet businesslike atmosphere.
Lots from the private cellars of well-known collectors create spirited bidding. But with the storage habits of other sellers a mystery and counterfeit labels on the rise, buying wine, even prestigious vintages, is not a sure thing.
One thing is for sure: With record sales of over $71 million in 2007 at Christie’s alone, demand is soaring. And with a case of 1985 Romanée-Conti fetching $237,000, the most expensive case of Burgundy ever sold at auction, collectors are willing to pay for it.
Insuring vintage investments may be hard to swallow for some, but it’s absolutely essential if you don’t want to become the next ‘Big Wine Caper.’
This article was originally published in Leader’s Edge Magazine in October 2008. (I won a Society of National Association Publications Excel Silver Award for feature article.) It is an article about insuring fine wines wrapped in a whodunit.