Poor results for Ontario icewines sold at recent auction a ‘wake-up call’

By Rick VanSickle

A treasure trove of perfectly aged Ontario icewines quietly auctioned off last week at bargain-basement prices is being called a “wake-up call” and “disappointing” by industry stalwarts.

Nearly 400 exquisite bottles split into 20 lots of top-quality icewines and late harvest wines from the impeccable cellar of a Toronto wine collector, who passed away earlier this year, went to the highest bidders at prices that will make you cry. Many of the top wines were sold at less than $20/bottle and a scant few lots didn’t even meet the low end of estimates.

And that’s a damn shame.

Waddington’s Auctioneers and Appraisers, the only company in Ontario permitted to provide the online wine auction of fine wine and spirits under the authority of the LCBO, puts out regular calls for rare and vintage wines to be consigned to auction (the only legal way consumers can resell alcohol in Ontario). For a fee, those wines are placed into one of several online and live auctions conducted by Waddington’s. The vast majority of wines come from the most collectible regions of the world — Burgundy, Bordeaux, Rhone, Champagne, Napa Valley, top Italians, Port, Alsace and Germany with prices fetching far beyond the high estimates. Every so often, a lot or two of top Canadian wines are consigned to auction and a few of those lots have exceeded estimates, but it is not the general rule.

That’s why it was so surprising to watch and see the end results of this auction in terms of the icewines.

Stephen Ranger (above), Waddington’s vice-president, fine wine and spirits, had this to say when contacted by Wines In Niagara:

“Our experience is that all Canadian wine underperforms at commercial auction,” he said. “This is because the secondary collectible market has always been driven by classed Bordeaux, Burgundy, the Rhone, rare Italian, California cult Cabernet, a handful of Spanish wines and Champagne.

“We had a six bottle vertical of Osoyoos Larose (Okanagan) that came in at the midpoint of its $200-400 estimate, but that was really it for Canadian wine this time around. You could also say the same thing for Sauternes, with the exception of D’Yquem, underperforming at auction internationally. The same is true with Port and German Eiswein.”

Ranger said that Canadian wines will eventually fetch more value at auction as they get better and thus, more desirable for the collector.

“I think we will see growth in Canadian wine at auction, mostly because the quality of what is coming out of Niagara and B.C. is so excellent these days. I would expect that we will see more cult producers like Pearl Morissette and Burrowing Owl making their way to auction soon enough and performing very well.”

Why these icewines performed so poorly at the latest auction is puzzling, to say the least. It did not help that the icewine lots were placed at the end of a very long list of lots when many bidders had already logged off or had otherwise lost interest for whatever reason. And, oddly, the wines appeared in the auction with little fanfare or awareness from consumers that such a historic auction of icewines was even being conducted.

I think it would be prudent of the auction house to promote the fact that such a magnificent collection of icewines, Canada’s greatest wine export, and, really, what Canada is known for around the world in terms of wine, was coming under the gavel so perhaps a lot more people would be interested rather than the few who stumbled on theses treasures and were rewarded with bargain prices.

According to the Canadian Vintner’s Association:

• Canada is the world’s largest consistent producer of icewine, with annual harvest temperatures dropping to -8 C and colder
• In 2018, icewine represented 61.3% of total export value ($22.4 million) and 13.3% of export volume (232,919 litres), as a percentage of total bottled exports
• Ontario is Canada’s largest exporter of icewine, valued at $18.6 million followed by British Columbia at $3.2 million

If this auction of Canadian icewines had been conducted in, say, Hong Kong or China, two of the largest importers of Canadian icewine, I can’t help but think prices would have fetched 10 or 20 times what bidders paid at the Waddington’s auction last week.

As Klaus W. Reif, owner of Reif Estate in Niagara-on-the-Lake and a premier producer of icewines told me: “The auction results are very disappointing, If I would have known I would have bought the (Reif) lots and maybe other lots for my private cellar!,” said. There were two lots of Reif icewines in the auction. The first lot of 10 icewines and late harvest wines fell short of the low $300 estimate and sold for $160. The second lot, consisting of eight bottles of 350 mL Vidal icewines and six 200 mL of Vidal icewines, sold for $210.

Reif is absolutely right. There were icewines of all varieties and styles dating back to 1995 and included either icewines or late harvest wines for most of Niagara’s (and Prince Edward County’s) top producers over the last three decades. In their own right, these wines are beautiful on release and only get better with age. Try purchasing an icewine that has been aged at winery for five or 10 years. It will cost you twice as much as the original price and with good reason — no other style of Canadian wine ages and changes so spectacularly for the better.

I believe that Canadian icewines are far less valued and appreciated in their own country than around the world.

The production of these treasures alone makes them a rarity and account for the higher prices:

• Grapes are then left on the vine until a sustained temperature of -8 C or lower is reached;
• The grapes dehydrate and the juices are concentrated and develop the characteristic complexity of icewine;
• Typically, a period of at least 6 hours is needed to harvest and press the grapes – and it is usually an overnight job;
• Most small and medium sized wineries harvest by hand, often with volunteers who are enthusiastic icewine lovers and want to experience the harvest first hand;
• Grapes are pressed in small hydraulic presses under much higher pressure than normal for grapes harvested in the regular season;
• Because the grapes are frozen, most of the mass is water, and is left behind as ice in the press. Only a small amount of concentrated juice is extracted.
• Juice yields for icewine grapes are much lower than for table wines – with average yields of 500 litres for each acre netted, or approximately 15% of the expected yield for grapes harvested for table wines.
• Icewine juice is very sweet and can be difficult to ferment. High sugars can create a hostile environment for the yeast and fermentation stops early, leaving relatively low alcohol and high sugar levels in the finished wine.

Paul Speck, president of Henry of Pelham Family Estate on the Short Hills Bench and a well-known producer of top-notch Niagara icewines, was taken aback by the results of the auction. One lot of 15 half bottles of Henry of Pelham icewines and late harvest wines sold for a disappointing $250 on an estimate of $500 to $700.

“It should be a wake-up call,” he said. “Doing an icewine festival in January is just not enough.” Speck, who was unaware that the icewine lots were coming up for auction, including two lots of Henry of Pelham wines, says Niagara as a region just doesn’t do enough to raise the profile of icewines in its own backyard.

“We used to, but not anymore. We celebrate it more around the world than we do here.” He said the Niagara wine industry celebrates Cabernet Franc, Riesling and Chardonnay with master classes on those varietals and promotions, but feels icewine has been left on the sidelines. He pointed out that in Japan alone Henry of Pelham was recently selling 10-year-old icewines in one of the top grocery retail stores for $300 a bottle and it sold out in less than a month. “So we know people will pay high above retail for aged icewines. Just not here.”

And he says it’s just not icewines. Speck and his team sell Henry of Pelham wines — icewines, sparkling wines and table wines — in 20 countries around the world. “The response I get is they can’t believe these wines are so good and so (inexpensive),” he says. “They can’t believe what’s going on here, in the investment of the wine industry.”

The biggest hurdle for Henry of Pelham and other VQA wine producers is right here in Ontario. “Toronto in general is a tough place to sell VQA wines. We have a lot of work to do in Toronto. We just do. I think we have the wine — but it’s a lifelong project,” he said.

Amelie Boury, vice-president of winemaking and operations at the St. David’s Bench winery, Château des Charmes, was also shocked at the low prices realized at the Waddington’s auction.

“I would have thought they would follow the same trend as red wines, with an increased value over the years. I find those wines age beautifully,” she said.

“We actually sell some magnums at the winery of back vintages icewines, and people love it. The 1998 is delicious.”

Here are some of the examples of what was offered and what bidders paid (minus the 13% HST and 20% buyer’s premiums).

Lot 590

Château Des Charmes Riesling Icewine 2002 (1 Hf. Bt.)
Château Des Charmes Riesling Icewine 2009 (1 Hf. Bt.)
Château Des Charmes Riesling Icewine 2014 (1 Hf. Bt.)
Château Des Charmes Riesling Late Harvest 1995 (1 Hf. Bt.)
Château Des Charmes Riesling Late Harvest 1999 (1 Hf. Bt.)
Château Des Charmes Riesling Late Harvest 2000 (1 Hf. Bt.)
Château Des Charmes Riesling Late Harvest 2005 (1 Hf. Bt.)
Château Des Charmes Riesling Late Harvest 2006 (1 Hf. Bt.)
Château Des Charmes Riesling Late Harvest 2007 (1 Hf. Bt.)
Château Des Charmes Riesling Late Harvest 2008 (1 Hf. Bt.)
Château Des Charmes Savagnin Icewine 2007 (1 Hf. Bt.)
Château Des Charmes Savagnin Icewine 2009 (2 Hf. Bt.)
Thirty Bench Riesling BA Late Harvest 1994 (1 Hf. Bt.)
Thirty Bench Riesling Icewine 1995 (1 Hf. Bt.)
Thirty Bench Riesling Icewine 1996 (1 Hf. Bt.)
Thirty Bench Riesling Icewine 1997 (1 Hf. Bt., Oc)
Thirty Bench Riesling Icewine 1999 (1 Hf. Bt., Oc)
Thirty Bench Riesling Icewine 2000 (1 200 Ml.)
Thirty Bench Riesling Special Select Late Harvest 2000 (1 Hf. Bt.)

This was a lot of 20 mostly 375 mL icewines and late harvest wines. The estimate for sale was between $600 and $800 but sold for the underwhelming price of $350, or $17.50 a bottle on average. If we used an average price of $50 per bottle as the original price (and I would argue that many if not all these wines are more valuable with the age they have) it would amount to $1,000 — just for replacement. That’s quite a deal someone got.

Other examples:

Lot 597

Cave Spring Cabernet Franc Select Late Harvest 2001 (1 Hf. Bt.)
Cave Spring Chenin Blanc Icewine Estate Bottled 2002 (2 Hf. Bt.)
Cave Spring Riesling Icewine 2002 (1 Hf. Bt.)
Cave Spring Riesling Icewine 2003 (2 Hf. Bt.)
Cave Spring Riesling Icewine 2004 (1 Hf. Bt.)
Cave Spring Riesling Icewine 2007 (1 Hf. Bt.)
Cave Spring Riesling Icewine 2008 (4 Hf. Bt.)
Cave Spring Riesling Icewine Estate Bottled 2006 (1 Hf. Bt.)
Cave Spring Riesling Indian Summer 2013 (1 Hf. Bt.)
Cave Spring Riesling Indian Summer 2016 (1 Hf. Bt.)
Cave Spring Riesling Select Late Harvest 2001 (1 Hf. Bt.)
Cave Spring Riesling Select Late Harvest 2003 (1 Hf. Bt.)
Cave Spring Riesling Select Late Harvest 2004 (1 Hf. Bt.)
Cave Spring Riesling Select Late Harvest 2006 (1 Hf. Bt.)
Cave Spring Riesling Select Late Harvest 2010 (1 Hf. Bt.)

Estimate: $600 to $800
Sold for: $300

Cave Spring lists its Riesling icewine at $50 (375 mL) a bottle for the current vintage and $25 for the late harvest wines. Face value of this lot without considering the aging would be $1,000. The lot sold for $300, or $15 a bottle.

Lot 600

Henry Of Pelham Cabernet Franc Icewine 2004 (1 200 Ml.)
Henry Of Pelham Cabernet Franc Icewine 2006 (1 200 Ml.)
Henry Of Pelham Cabernet Franc Icewine 2007 (1 200 Ml.)
Henry Of Pelham Cabernet Franc Icewine 2008 (1 200 Ml.)
Henry Of Pelham Cabernet Franc Icewine 2009 (1 200 Ml.)
Henry Of Pelham Cabernet Franc Icewine 2010 (2 200 Ml.)
Lailey Vineyard Cabernet Franc Icewine 2004 (1 200 Ml.)
Lailey Vineyard Cabernet Sauvignon Icewine 2008 (1 200 Ml.)
Lailey Vineyard Riesling Icewine 2004 (1 200 Ml.)
Lailey Vineyard Riesling Icewine 2007 (1 200 Ml.)
Lailey Vineyard Riesling Select Late Harvest 2006 (1 Hf. Bt.)

Estimate: $400 to $600
Sold for: $275

Lot 601

Henry Of Pelham Riesling Ba 2005 (1 Hf. Bt.)
Henry Of Pelham Riesling Icewine 2002 (1 Hf. Bt.)
Henry Of Pelham Riesling Icewine 2004 (1 Hf. Bt.)
Henry Of Pelham Riesling Icewine 2006 (1 Hf. Bt.)
Henry Of Pelham Riesling Icewine 2007 (1 Hf. Bt.)
Henry Of Pelham Riesling Icewine 2007 (1 200 Ml.)
Henry Of Pelham Riesling Icewine 2008 (1 Hf. Bt.)
Henry Of Pelham Riesling Icewine 2009 (1 Hf. Bt.)
Henry Of Pelham Riesling Icewine 2010 (1 Hf. Bt.)
Henry Of Pelham Riesling Icewine 2014 (1 200 Ml.)
Henry Of Pelham Riesling Special Select Late Harvest 2005 (1 Hf. Bt.)
Henry Of Pelham Riesling Special Select Late Harvest 2006 (1 Hf. Bt.)
Henry Of Pelham Riesling Special Select Late Harvest 2007 (1 Hf. Bt.)
Henry Of Pelham Riesling Special Select Late Harvest 2008 (2 Hf. Bt.)

Estimate: $500 to $700
Sold for: $250

Lot 605

Magnotta Cabernet Franc Icewine 2002 (1 Hf. Bt.)
Magnotta Cabernet Franc Icewine 2003 (1 Hf. Bt.)
Magnotta Cabernet Franc Icewine 2004 (1 Hf. Bt.)
Magnotta Cabernet Franc Icewine 2005 (1 Hf. Bt.)
Magnotta Cabernet Franc Icewine 2007 (1 Hf. Bt.)
Magnotta Cabernet Franc Icewine 2016 (1 Hf. Bt.)
Magnotta Riesling Icewine 2002 (1 Hf. Bt.)
Magnotta Riesling Icewine 2004 (1 Hf. Bt.)
Magnotta Riesling Icewine 2007 (1 Hf. Bt.)
Magnotta Vidal Icewine 1995 (1 Hf. Bt.)
Magnotta Vidal Icewine 2002 (1 Hf. Bt.)
Magnotta Vidal Icewine 2004 (1 Hf. Bt.)
Magnotta Vidal Icewine 2005 (1 Hf. Bt.)
Magnotta Vidal Icewine 2006 (1 Hf. Bt.)
Magnotta Vidal Icewine 2007 (1 Hf. Bt.)
Magnotta Vidal Icewine 2008 (1 Hf. Bt.)
Magnotta Vidal Late Harvest 1997 (1 Hf. Bt.)

Estimate: $500 to $700
Sold for: $300

Lot 608

Reif Estate Cabernet Franc Icewine 2002 (1 Hf. Bt.)
Reif Estate Cabernet Franc Icewine 2006 (1 200 Ml.)
Reif Estate Gewurztraminer Late Harvest 2007 (1 Hf. Bt.)
Reif Estate Riesling Icewine 2002 (1 200 Ml.)
Reif Estate Riesling Icewine 2008 (1 200 Ml.)
Reif Estate Riesling Icewine 2009 (1 200 Ml.)
Reif Estate Riesling Late Harvest 2007 (1 Hf. Bt.)
Reif Estate Vidal Select Late Harvest 2001 (2 Hf. Bt.)
Reif Estate Vidal Special Select Late Harvest 2004 (1 Hf. Bt.)

Estimate: $300 to $500
Sold for: $160

Lot 614

Calamus Estate Winery Vidal Special Select Late Harvest 2009 (2 Hf. Bt.)
Cilento Wines Gewurtraminer Icewine 1999 (1 Hf. Bt.)
Cilento Wines Riesling Special Select Late Harvest Riesling 1999 (1 Hf Ltr.)
Daniel Lenko Estate Winery Vidal Select Late Harvest 2000 (2 Hf. Bt.
Featherstone Gewurztraminer Icewine 2008 (1 200 Ml.)
Ice House Winery Vidal Select Late Harvest 2006 (1 Hf. Bt.)
Jackson-Triggs Vidal Late Harvest 2001 (1 Hf. Bt.)
Jackson-Triggs Vidal Late Harvest 2004 (1 Hf. Bt.)
Konzelmann Estate Winery Vidal Special Select Late Harvest 2015 (1 Hf. Bt.)
Malivoire Gewurztraminer Icewine 2008 (1 200 Ml.)
Palatine Hills Estate Winery Gewürztraminer Icewine 2006 (2 200 Ml.)
Palatine Hills Estate Winery Gewürztraminer Icewine 2008 (2 200 Ml.)
Palatine Hills Estate Winery Vidal Icewine 2006 (1 Hf. Bt.)
Palatine Hills Estate Winery Vidal Special Late Harvest 2006 (1 Hf. Bt.)
Willow Heights Vidal Special Select Late Harvest 2004 (1 Hf. Bt.)

Estimate: $500 to $700
Sold for: $250

Lot 615

Stratus Cabernet Icewine 2007 (1 200 Ml.)
Stratus Cabernet Icewine 2008 (1 200 Ml.)
Stratus Cabernet Icewine 2011 (1 200 Ml.)
Stratus Cabernet Icewine Special Select Late Harvest 2013 (1 Hf. Bt.)
Stratus Rieling Semillon Icewine 2008 (2 200 Ml.)
Stratus Riesling Icewine 2007 (1 200 Ml.)
Stratus Riesling Icewine 2008 (2 200 Ml.)
Strewn Vidal Select Late Harvest 1998 (1 Hf. Bt.)
Strewn Vidal Select Late Harvest 1999 (1 Hf. Bt.)
Strewn Vidal Select Late Harvest 2004 (1 Hf. Bt.)
Strewn Vidal Select Late Harvest 2006 (1 Hf. Bt.)
Strewn Vidal Select Late Harvest 2008 (2 Hf. Bt.)
Strewn Vidal Select Late Harvest 2010 (5 Hf. Bt.)

Estimate: $600 to $800
Sold for: $325