Whisky auctions suspended at Bonhams NY

Auction house Bonhams has cancelled all future whisky auctions at its New York site pending an evaluation of the “profitability” of whisky sales.

The cancellation of whisky auctions at Bonhams New York is not thought to be a reflection on the value of the luxury and secondary spirits market

Bonhams – the third largest international fine art auction house – cancelled an auction due to take place in New York on 19 October “because of its profitability at that time”.

It’s thought that Bonhams is unable to generate a sufficient profit from its whisky, Cognac and rare spirits auctions in New York to justify hosting such events.

Mariam Cebalo, director of business management at Bonhams, said “Bonhams made a business decision to cancel a whisky auction that was scheduled to take place in New York in October because of its profitability at that time. Bonhams is evaluating its scheduling of whisky auctions in New York for 2015.”

The most recent Bonhams whisky auction held in New York on 30 April saw the sale of a 1762 vintage Gautier Cognac to an online bidder from Poland for US$59,500, who also purchased a 1790 Grande Champagne Cognac for US$49,980.

Two rare demi-johns of pre-Prohibition Bourbon from Chapin & Gore, fetched US$2,975 each.

That auction sold 94% of its lots, with 74% sold achieving a sale price either above or within their estimated values, “proving the items on offer accurately reflect the current market demand for luxury spirits”.

Bonham’s decision to cancel its New York auctions is thought to reflect the company’s inability to generate a sufficient profit, when storage, appraisal, display and human resources are considered, rather than an indication of the value of whisky on the secondary market.

“Bonhams’ evaluation of whisky auction scheduling for 2015 is based solely upon profitability,” Cebalo confirmed.

Bonhams will continue to host four whisky auctions throughout the remainder of this year in other markets, including Japanese and Rare Whisky on 15 August in Hong Kong – where a selection of the world’s oldest and rarest Japanese whisky will be on sale; Whisky on 1 October in Edinburgh; Fine and Rare Wines, Cognac and Single Malt Whisky on 18 November in Hong Kong; and Whisky on 10 December in Edinburgh.

The auction house generated £481.1m from a variety of auctions held around the world in 2013, an increase of 33% on the previous year. The group’s total income for the period came in at £127.1m, up 19.1% from 2012.