Whisky auctions have been around for decades and online probably since the start of the Internet. They probably account for some of the “premiumisation” of whisky through creating a global market in collectable whisky. For years it was one of the most dynamic and exciting trends in the world for whisky enthusiasts, collectors, and investors. All vying for rare and limited-edition bottles. More recently it has been in a bit of the doldrums. Prices have fallen and the ability of flippers to make a quick buck diminishing.
Gone are the heady days when you bought your limited edition bottle and got two to three times the retail price for it within a couple of weeks. Nowadays you need to be more careful of the bottles you buy. However, they currently offer the whisky drinker, the opportunity of bagging a bargain. Whether you’re an experienced connoisseur, a first-time buyer, or just curious about the world of whisky auctions, this blog will provide insight into whisky auctions, plus what makes them so fascinating and how to navigate them.
An insight into why Whisky Auctions are so popular
Until a couple of years ago, the insight into whisky auctions had grown from niche events for collectors into mainstream affairs attracting global attention. The three reasons behind this surge are multifaceted:
- Rising Demand for Rare and Limited Editions
As whisky producers released limited-edition bottlings, special cask finishes, and anniversary editions, the supply of unique bottles became constrained because of popularity. As a result, rare bottles commanded impressive prices at auction. Some of the most iconic brands, like Macallan, Glenfarclas and Japanese distilleries such as Yamazaki, have seen their limited releases appreciate in value, with certain bottles now fetching hundreds of thousands of pounds. - The Investment Appeal of Whisky
Whisky has increasingly been recognized as an alternative investment class. Bottles from prestigious distilleries can appreciate in value over time, making them a desirable asset for investors looking for high returns. In fact, whisky has outperformed several traditional investments in recent years, including stocks and gold. For instance, a bottle of Macallan Fine & Rare 1926 sold for an eye-watering £1.5 million at a Sotheby’s auction in 2019—setting a world record. - The Globalization of Whisky Collecting
With the rise of online whisky auctions, collectors can now participate in auctions anywhere in the world. Platforms like Whisky Auctioneer, Bonhams, and Sotheby’s host online events where buyers from every corner of the globe can bid on bottles they may never have seen in person. This has expanded the audience for rare whisky, creating a truly international marketplace.
An insight into Types of Whisky Auctions
There are generally two types of whisky auctions: live auctions and online auctions. Each has its own appeal, depending on the preferences of the buyer or seller.
- Live Whisky Auctions
Live auctions are more traditional and often take place in person, either at a local auction house or at a dedicated event. Famous auction houses like Sotheby’s and Bonhams often feature particularly rare or valuable bottles and attract serious collectors and investors. Whereas your local auction house might have that “rare gem” they often will auction the collection of a more modest whisky enthusiast. They also tend to have higher fees than online auctions.
2. Online Whisky Auctions
Online whisky auctions have seen a meteoric rise, especially in the past few years. Platforms like Whisky Auctioneer, Catawiki, and Scotch Whisky Auctions allow people to browse, bid on, and purchase bottles from anywhere in the world. This has democratized access to rare and limited-edition whiskies, giving individuals who might not have access to physical auction events the opportunity to bid on bottles they otherwise wouldn’t encounter.
Online auctions tend to have lower fees compared to live auctions and offer more flexibility for participants. Buyers can bid at their own pace, and auction houses typically provide detailed photographs and descriptions of the bottles for sale, making it easier to assess their value.
An Insight into how Whisky Auctions Work
If you’re new to whisky auctions, here’s a quick overview of how they work:
- Registering to Bid
To take part in an auction, you’ll need to register with the auction house or platform. This often involves providing identification and agreeing to the auction terms. Once you’re registered, you’ll receive a bidder number or account that allows you to place bids. - Bidding
In a live auction, bidding happens in real time, with an auctioneer calling out prices and bidders raising their paddles to make offers. In an online auction, you place bids electronically, with some auctions allowing you to set maximum bids so the system will bid for you automatically up to a certain price. Most auctions last for several days, with the bidding process gradually escalating as the deadline approaches. - Winning the Lot
If you’re the highest bidder when the auction closes, you’ll win the lot. The auction house will then provide payment instructions, and once the transaction is complete, the item is yours. Some auction houses offer shipping services, or you may need to arrange for local pickup. - Buyer’s Premium
Keep in mind that auction houses typically charge a buyer’s premium, which is a percentage of the hammer price. This fee can vary from 5% to 20%, depending on the auction house. On top of that you will have transport fees and insurance costs. A rule of thumb is to add 20-25% to the final purchase price. As example, if the maximum price you’re willing to pay for a bottle is £125, then your maximum bid might be £100. Be sure to factor this into your budget when bidding.
What Makes a Bottle Valuable at Auction?
Several factors can affect the value of a bottle at auction, and understanding these can help you make informed decisions whether you’re buying or selling:
- Age and Rarity
Older whiskies, especially those that have been aged for several decades, often command high prices. Limited edition releases or bottles from closed distilleries such as Brora or Port Ellen (recently reopened) are also highly sought after. - Condition
The condition of the bottle is crucial. A bottle with a high fill level (close to the neck) and a well-sealed cork is generally more desirable. Labels should be intact, and the packaging (if applicable) should be in good shape. The whisky should be in original packaging, or it may “lose” up to 50% of its value. If the bottle is open, forget it, collectors will rarely buy an opened bottle. - Distillery and Brand
Certain distilleries have built a strong reputation, and bottles from these places often perform better at auction. These distilleries do vary, to some extent due to their current fashionability. Currently the “top brands” are The Macallan, Springbank and some Japanese distilleries. This list could extend to Glenfarclas, Glenfiddich, Glenlivet, and Highland Park. Certain distilleries have cult followings, such as Ardbeg and Laphroaig in the Islay region. However, not all expressions or series from a popular distillery will be “investable”. You might want to follow a new distillery? Who’d have thought that The Lakes Distillery, Distillery Reserve Batch 1 would reach £1000 at auction from an initial retail price of £65 some five years later! - Packaging and Design
Unique or artistically designed bottles can also increase a whisky’s desirability. Special edition bottles or those with unusual packaging often attract attention at auction. The Macallan is a “master” at this (at least with some expressions), with their recent Time: Space Mastery edition (NAS, £1100, 43.6% ABV) going for £2000 at auctions around the release date. - Provenance
The provenance, or history, of a bottle can also increase its value. If the bottle has an interesting backstory (e.g., a rare distillery release with a special history), it may attract premium bids.
Tips for Buying and Selling Whisky at Auction
Buying Whisky at Auction:
- Do your research: Take time to research the distillery, bottle history, and auction house details before bidding. This should also help you avoid “fake” bottles.
- Set a budget: It’s easy to get caught up in the excitement of an auction, so establish your maximum bid and stick to it.
- Understand the fees: Remember to account for the buyer’s premium, shipping costs and insurance when calculating the total cost.
- Examine photos carefully: Auction houses typically provide high-quality images of the bottles. Make sure you examine them for condition, fill level, and label integrity.
Selling Whisky at Auction:
- Choose the right auction house: Not all auction houses specialise in whisky, so choose one with experience in the market.
- Accurate descriptions: Provide detailed information about the bottle, including its age, distillery, packaging, and condition.
- Set a reserve price: If you have a minimum price you’re willing to accept, set a reserve price to ensure you don’t sell below a certain threshold.
Conclusion on an Insight into Whisky Auctions
Whisky auctions are more than just a way to acquire a rare bottle or even a bargain core range. They are a thrilling marketplace where history, artistry, and investment meet. Whether you’re looking to add a prized bottle to your collection or sell a rare gem for a profit, understanding the dynamics of whisky auctions can help you navigate this industry with confidence. As the market continues to evolve, whisky auctions are sure to remain a key part of the whisky world, offering both enthusiasts and investors a chance to participate in a dynamic and exciting global marketplace
