Fah Mai Holdings Group Inc (OTC:FMHG) UK head and manager of @whiskybullauctions, Jacob Carter talked with Proactive's Stephen Gunnion about the current state of the market and auction trends in 2023.
Carter highlighted that the market is currently a strong buyer's market, with sellers showing no urgency to sell their collections due to a soft decline in bottle prices at auctions. He mentioned a 5% drop in bottles sold by the end of 2023 and a 19% decrease in hammer prices. Moreover, between 2021 and the end of 2023, there was a 102% increase in bottles failing to reach reserve prices. Despite this, the industry has seen a significant growth of 322% over the past ten years according to the Knight Frank Luxury Investment Index.
Carter provided specific examples, such as Aberlour, which saw a 21% increase in trading volume and a 13% increase in value. On the other hand, brands like Ardbeg experienced a 20% decline in trading volume and a 23% decrease in value. Carter emphasised the importance of secondary market prices in determining future bottle values.
The interview also touched on the advantages of buying at auctions, noting that a large portion of the market consists of bottles priced at £100 or less, making it accessible to a wide range of collectors. Carter concluded by stressing the impact of supply and demand on auction prices and the importance of auction data for the secondary market.