There are numerous reasons why individuals wish to buy or sell wine on the secondary market. There are those who purchase certain wines or vintages purely as an educated, but speculative investment, looking to resell once the particular wine has appreciated in value, assuming it actually does increase.
The reverse can also be true where a purchaser can seek out good wines that, for whatever reason, failed to maintain their initial value, and thus can later be purchased at a more reasonable cost.
It’s also where you can find back-vintages of excellent wines that aren’t known to draw big collectors at live auctions.
Auctions also provide buyers the opportunity to purchase iconic wines that were either not readily available to the general public at the time of the initial release or may not have been affordable to the buyer in the past.
While many collectors have embraced online auctions for the convenience, it’s become a place for wine consumers wanting to dabble in the auction world to do so at a much lower cost of entry. While the financial point of entry for online auctions may be lower, the quality of the wines is good.
Wine Auctions in Ontario
In Ontario, Waddington’s is the sole company permitted to sell fine wines and spirits by auction, under the authority of the LCBO. Auctions arranged through Waddington’s can either be live or online.
Registration for a live auction is free and can be completed at their office during the preview for an auction or on the day of the auction. The process for registering and bidding is pretty much the same as for any other type of live auction.
Registration for an online auction is completed using Waddington’s web site. The good news is you only need to register once to participate in all of their online auctions.
Once registered, you can place online bids anytime up to the noted end time for the desired lot.
If a bid is received in the final five minutes of the auction, the countdown clock is reset an additional five minutes until no further bids are received.
You can also leave ‘absentee’ bids by entering the maximum amount you would like to bid up to; the software will bid on your behalf up to that amount.
Following payment you can either pick up your purchased auction items or arrange for shipping. Items purchased and not picked up after 10 days following the auction may be subject to storage fees on a per lot basis at $15/week, unless Waddington’s is otherwise notified at time of payment.
Waddington’s does not undertake packing or shipping. The purchaser must arrange for the services of an independent shipper and is responsible for all shipping and insurance expenses and any necessary export permits that may apply.
Explore the online catalogue of any auction you are interested in. Items are researched by Waddington’s specialists and catalogued with an image, description and value estimation to help understand each item.
Don’t hesitate to email auctioneers with questions about lots before bidding. Every auction house has wine specialists on staff that should be able to answer any questions about lots that you are interested in. Things that would be helpful to know include:
- The ownership history (the provenance) of the wine. The provenance includes information about how the wine was acquired by the current owner and under what circumstances. Provenance is particularly important for establishing the estimated value of very old, rare or valuable wines.
- The manner in which the wine has been stored, such as
- Temperature controlled unit
- Passive cellar, which is a room in a residence with no means of maintaining a permanent temperature.
- Underground/subterranean cellar, which is an underground cellar that can also be passive or temperature controlled. A passive underground storage area is always preferable to an above ground passive residential cellar. Underground storage is almost always a cooler environment, less susceptible to damaging light, and generally very still.
- Professional storage facility which provides lockers in temperature-controlled buildings that can be rented by wine collectors.
Auctions provide the opportunity to look for vintages that may not have initially been well received. Some wines receive less than favourable reviews at the time they are released but time and experience prove those reviews to be wrong with those wines drinking well now.
Bidding on mixed lots is not recommended as you can’t be certain of what you are getting. Selecting single bottles or even small verticals (several consecutive vintages of the same wine) is the recommended way to go. Mixed lots are a great way for auction houses to move along their cellar’s random one-offs.
Waddington’s charges a buyer’s premium of 20% on the hammer price. Buyer’s premium and applicable Canadian taxes are added to the final bid amount.
Conditions of Sale
In order to purchase alcoholic beverages through an online or live auction you must of course be able to prove you are nineteen years of age or older.
All lots are sold “as is”. Any description issued by the auctioneer of an article to be sold is subject to variation to be posted or announced verbally in the auction room prior to the time of sale. Descriptions provided by the auction house are only statements of opinion. No opportunity of inspection is offered prior to the time of sale. No sale will be set aside on account of lack of correspondence of the article with its description or its photo, if any. Some lots are of an age and/or nature which preclude their being in pristine condition and some catalogue descriptions make reference to damage and/or restoration. The lack of such a reference does not imply that a lot is free from defects nor does any reference to certain defects imply the absence of others. In other words, the auction house cannot speak for how well the wine has been maintained while in the possession of the current owner or possible previous owner(s).
The potential saving grace is that the buyer, prior to removal of a lot, may make arrangements satisfactory to the auctioneer, for the inspection of the purchase by a fully qualified person acceptable to the auctioneer in order to determine the genuineness or authenticity of the lot. This inspection must be completed within a period of 14 days following the sale. The results must be presented to the auctioneer to the effect that the lot is not genuine or authentic, accompanied by a written request from the buyer to rescind the sale. The sale price will then be refunded to the buyer.
Unless exempted by law, the buyer is required to pay HST on the total purchase price including the buyer’s premium. This is important to keep in mind as it can significantly increase the total cost of your purchase.
Each lot may be subject to an unpublished reserve which may be changed at any time by agreement between the auctioneer and the consignor.
Auctions can be exciting, challenging, frustrating and rewarding. Your own experience will in part be a factor of your preparedness for the event. Do your homework; predetermine the maximum you are willing to pay for the item you are interested in, and be prepared to stand down if the bidding surpasses that amount. It is not a competition. “Winners” have been known to have buyer’s remorse if they have gotten carried away in the heat of the moment.