Acker Reports Stunning Q1 Results In Spite Of Global Economic Uncertainty
Acker reports one of its strongest quarters, with over $30M sales in Q1
NEW YORK, April 6, 2020 /PRNewswire-PRWeb/ -- Despite significant global uncertainty and economic volatility, Acker has experienced one of its strongest quarters in recent history, reporting Q1 sales of over $30M. These strong sale results have shown that the demand for fine and rare wine remains stable, if not increasing, as wine lovers staying home are depleting their cellars more than ever and enjoying their passion as much as possible. In spite of an overall market volume decline of 23% for the major wine auction houses in Q1 2020 vs. 2019, Acker's auction business is up an impressive 20%. Even more impressively, Acker's Q1 business is approximately 300% more than its nearest competitor, capturing nearly 60% of market share, confirming Acker's presence as the leading auction house in the world of fine and rare wine.
Bidders from the United States accounted for 45% of overall Q1 auction dollars spent, followed closely by Greater China (Hong Kong, mainland China, Taiwan and Macau) which totalled 40%; and the increasingly emerging Brazil rounding it out with nearly 10% of all sales. Burgundy and Bordeaux remain the two powerhouses of the fine and rare auction market, making up over three quarters of total sales. Burgundy continues to be the top performing region on the auction block, with over its 52% of the total dollars, while accounting for only 22% of the total bottles sold, demonstrating how its scarcity is adding upwards pressure on prices. The market for Bordeaux remains solid, accounting for 24% of both the dollar amount and bottle count sold. Champagne, California, Rhone and Italy combined for 18% of revenue and the bulk of the rest of sales. Of note, the rare Spirits continued its emerging trend, holding its own at a 2.5% market share despite Acker not holding a spirits-only auction yet this year.
Domaine de la Romanee Conti remains far and away the most important brand in the world with over four times the dollars traded of the next largest brand, the combined offerings of Lalou Bize Leroy (Maison and Domaine Leroy along with Domaine d'Auvenay). As expected, the Top Ten Producers of the quarter offer a duel between the leading names of Bordeaux and Burgundy, with Chateau Lafite Rothschild taking third place. Burgundy returns to claim fourth, with Domaine Dujac, before Chateaux Latour and Petrus take fifth and sixth place. Armand Rousseau brings the mantle back to Burgundy, along with Coche-Dury and Henri Jayer capturing the seventh, eighth and ninth positions, while Chateau Margaux ekes out tenth place, beating out the other First Growths Chateaux Haut Brion and Mouton Rothschild in eleventh and twelfth places, respectively. Other producers from outside Bordeaux and Burgundy to grace the Top 25 include Dom Perignon, Krug, J.L. Chave, Karuizawa, Salon, Vega Sicilia and Gaja.
"In spite of this very challenging market climate, we are privileged to say that this first quarter of 2020 was a very strong one for Acker," said Acker Chairman, John Kapon. "With the transition to 'live-online' auctions over the past month and a continued effort of outreach to our clients via virtual tastings and expanded digital programming, we are doing everything we can to stay connected and involved with our customers worldwide, and the response has been fabulous. People still want their fine and rare wine, and they need it more than ever before. Wine remains something that unites us in these trying times, and the convenience of digital gatherings affords us the opportunity to share and discuss what's in our glasses despite not being in the same room together. In the coming days, we will also formalize a new effort to provide relief to our sommelier community with the United Sommeliers Foundation. So much of our business is done in the great restaurants of the world, and so we will be accepting consignments to benefit their grant program, assisting sommeliers whose livelihood has been affected by the ongoing global health crisis. We look forward to doing our part to support efforts like these, and to all of us returning to share a glass together soon."
The auction season continues for Acker with a Hong Kong spirits-only auction "live online" on May 9th, and an auction of fine and rare wine "live online" in New York on Friday, May 15th. Acker is always accepting wines for consignment. Weekly web auctions are closing every week. For more information, email [email protected].
About Acker
Established in 1820, Acker is the oldest wine shop in America and the world's largest fine and rare wine auction house. Since third generation wine merchant John Kapon, Chairman of Acker, started the auction business in 1998, the house has gained worldwide recognition. Acker offers a vast array of services, including cellar consultations, a deep retail inventory of fine and rare wine for immediate sale, first class wine education amenities, in-store tastings of high-end wines daily, and its ne plus ultra – fine and rare wine auctions.
SOURCE Acker
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