Wine rating

The quotation is a central element when you sell your wines or when you estimate their value. It is a note reflecting the purchase prices of bottles in auction rooms, and is recorded in a database. How is this rating initially defined? How does it play a part in the valuation of a bottle or a vintage?

The rating, a factor in the estimate

The quotation is like a wine auction. It is based on figures from wine auctions, gathered in vast databases (some of which have several million entries). The figures collected may correspond to a vintage or a category (white Burgundy, sweet Bordeaux, etc.). It's easy to obtain the rating for a dry Bordeaux wine from 1964, for example
This quotation is useful because it is based on actual sales. Updated regularly, it is not based solely on subjective opinions, but on the law of supply and demand. To a lesser extent, the quotation is also representative of market trends. Wine is indeed a stock market product, represented in particular by the WineDex index. Today, wine is a trendy product. It is being exported, and is now very popular, particularly in China and Russia. All of this is driving prices (and therefore the possibility of buying back bottles or buying out cellars) upwards, making wine an investment product
So, as well as being objective, it can be used to identify various market trends. However, the price of a wine should not be confused with its estimate. It is indeed a factor in the valuation of a wine, but the latter takes other factors into account to give the price of a specific bottle: rarity, the reputation of the estate, tasting notes, etc. Added to the partly speculative nature of wine prices are the various characteristics of each bottle, giving the final estimate that can be used in the auction room. This also makes it possible to buy individual wines.

What you need to know about the quotation

Let's reiterate: the quotation reflects the price paid at auction. But it is important to bear in mind that the prices recorded in the databases are not always comparable: some figures are hammer prices, i.e. the auction price. But other prices include the fees charged. On average, the buyer adds between 15% and 25% of the hammer price, and the seller pays an average of 15% of the hammer price. The fees set by the exchange platform also depend in part on its logistics
Another case is that of rare sales. How is a price calculated if a vintage has very few, if any, annual sales? In this case, it is customary to look for an equivalent wine that has more information to help define the price. To do this, experts give priority to wines from the same appellation or vintage.