2007 Sloan Allocation

Anyone still on the list for Sloan may want to consider taking their 2007 allocation. Like many Napa 2007s, Sloan earned 100 points from RP. With local tax and shipping, expect to be on the hook for about $360/bottle. If you want to sell, consider that the typical auction house fee of about 20% means that the market needs to value 2007 Sloan at $450 for a speculator to break even.

Typical vintages of Sloan get 96-98 points from Parker, and price on the secondary market is highly sensitive to very small variations in Parker's rating. The 2003-2005 vintages got 96 points, and their resale value is in the $225-$300 range. The 98-point wines from 2001 and 2006 seldom trade under $350, and $400 is a typical retail price for the 2006. The only other 100-point from Sloan, the 2002 is a $500 bottle (sometimes higher, rarely lower).

Finally, recognize that large variations in auction price can be the result of selling a couple of odd bottles vs an original wooden case (six bottles in the case of Sloan). The wine market volatility of the past couple of years hurt small speculators disproportionately. As I described here, with the example of 1982 Mouton, sellers of an owc get plenty of protection in a falling market; plan accordingly.

Earth to Sloan.....

In spite of the raging global depression, Sloan wines just offered a second round allocation of their 2005 Cabernet for $360/bottle. If you are a speculator, skip it.

These allocations are shooting closer and closer to the auction price each year. Many of them are already at 80% of the auction price, which to me is "fully priced" since anyone flipping their allocation is clipped for 20% by the auction house.

The current ask on 2005 Sloan is $500/bottle (winebid.com), which includes the auctioneer's premium. A seller can expect $400 -if the lot sells.

Sloan will charge for shipping on top of the $360, and by the time you pay to ship it to the auctioneer, there's no money left in this deal.

It may make you feel better to know that they offered it at $225 to their preferred customers already.

Many wine speculators will be finding their way on to the allocation lists during these difficult times. But they will be offered higher and higher prices. The only reason that I can think of to buy any of these wines now, is to be on the list for the 2007s -which are supposed to be the best vintage ever to come out of CA in 30+years. Buy carefully, if at all. I think when they hit the market in 2010-2011, most 2007s will be held by very weak hands.