Rare $573,000 Macallan Whisky to Lead Hong Kong Auction

(Bloomberg) -- Two bottles of rare 60-year-old Macallan whisky could fetch record prices at a Bonhams Hong Kong auction on Friday as Asian buyers show an unslakeable thirst for the drink as an alternative investment.

Offered as separate lots at the sale, each 750 milliliter bottle from 1926 carries an estimate of HK$3.6 million to HK$4.5 million ($459,000 to $573,000) excluding a 22.5 percent buyers premium, which is added to the hammer price.

The auction record, including buyers premium, of HK$4.9 million was set in 2014 for a six-liter bottle of Macallan 60 year old in a Lalique decanter. Any hammer price in excess of HK$4 million on Friday would surpass that record once the buyers premium is included.

Prices for whiskies have soared globally in recent years as more and more buyers seek out rare bottles from Scotland including Dalmore and Port Ellen, as well as Japanese distilleries Karuizawa and Yamazaki. Daniel Lam, head of wine and whisky at auctioneer Bonhams in Hong Kong, said whisky has outperformed even the most coveted French wine from Burgundy, Domaine de la Romanee-Conti, which has appreciated about 30 percent in the past 12 months. Macallans 18 years and older have doubled over the same period, he said.

"Nothing can compare with the performance of whisky, it has proved its status as an alternative investment," Lam said. Prices at Bonhams auctions have been growing at double digits every quarter thanks to growing demand from buyers in Taiwan, China, Indonesia and Vietnam, he said.

Picking Grapes

While a wine’s vintage is determined by the year in which the grapes were picked -- bottling usually takes place within 16 to 24 months after the harvest -- the age of a whisky refers to the time spent aging in a cask. For example, the Macallan 1926 60 year old was not bottled until 1986. Because of continued loss due to evaporation, known as the "angel’s share," older whiskies produce fewer bottles, adding to their rarity.

It is difficult to gauge how much the 1926 60-year-old Macallans will sell for as they haven’t been offered at auction in more than 20 years, said Aaron Chan, owner of Club Qing whisky bar in Hong Kong. Only 24 bottles exist. "These are like the Mona Lisa of liquor," he said.

In March, a similar pair of 60-year-old Macallans from 1926 sold for a combined $1.2 million at a Dubai duty-free shop, raising expectations for the upcoming sale. "I think Dubai set a benchmark and the auction price will be even higher," said Rickesh Kishnani, chief executive officer of Hong Kong-based Platinum Whisky Fund. "When you get a number of collectors in a room bidding you will get even more interest in this particular bottling."

Adding to their allure are the distinctive labels in this limited edition. Twelve bottles bear numbered and signed labels designed by Peter Blake, the British pop artist best known for co-creating the cover for the Beatles Album "Sgt. Peppers Lonely Hearts Club Band." The other dozen are adorned by a design by Italian artist Valerio Adami.

Other highlights of the sale will include the oldest Karuizawa whisky in the world, a 1960 52-year-old with an estimate of HK$1.5 million to HK$1.9 million. Only 41 bottles were ever made and each is named after the unique Netsuke that hangs from the neck of the bottle, according to the Bonhams catalog.

Another lot likely to attract keen bidding is a bottle of Karuizawa 1964 51-year-old offered at auction for the first time, with an estimate of HK$480,000 to HK$580,000. The Karuizawa distillery was shuttered in 2001. One of only 43 bottles ever made, the 1964 was released in 2015 by Wealth Solutions, a Polish company which purchased the cask after the distillery closed down.

The Apex 1000 index tracking rare whisky prices was up more than sixfold at the end of April since its inception at the end of 2008, according to Rare Whisky 101.

To contact the reporter on this story: Frederik Balfour in Hong Kong at fbalfour@bloomberg.net.

To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Anjali Cordeiro

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