2020

MID-YEARREVIEW

What a 2020 it has been. We began the year on a high note after closing out 2019 as the #1

auction house in the world with $121m in sales, a record high for any auction house. 2020

started with a bang, too, with a stellar auction in celebration of La Paulée.

Then the world as we know it changed drastically, and our focus became the health and well-

being of the Zachys team, and that of our customers. While keeping everyone safe, we knew our

mission wouldn’t change. We needed to continue to do what we do best as an auction house:

bring the world the fi nest wines. We needed to do it in a way that kept our employees safe and

comfortable. And we needed to pivot our auction platform. A hallmark of a Zachys auction is

togetherness, sharing wine, talking wine, and we can no longer do that. It saddens us--it saddens

me, personally--but as a company we remain dedicated to fi guring out a way forward.

I’m proud to report that Zachys pioneered the “Studio Sale,” or live-streaming auction, and did

so before any other auction house. We sold 15,111 lots so far in 2020, for a combined total

of $37,304,429. Auctions and participation in Asia have been a different, if parallel challenge,

with different quarantine regulations at different times. And yet, our team there has excelled. A

full 47% of our YTD sales have gone to Asia. 26% of our sales went to Hong Kong, and 11% to

mainland China, which underscores the importance of key hires we made over the past few years

in Shanghai and Beijing. Our Shanghai “bidding parties” have become a hit, and clients there can

have a meal, drink a glass, and bid on wines I’m auctioneering at 3am New York time!

One of the most exciting aspects of 2020 will be the launch of our London sales with the offering

of wines from one of the most legendary cellars in Europe--indeed the world--that of Enoteca

Pinchiorri in September, followed by a multivendor offering in October. These sales will bring

Zachys to one of the oldest fi ne wine markets in the world, London, and we’re excited to make a

splash there.

Take your time and look through this mid-year in review. We are confi dent in the state of the

market as is evidenced by the numbers here, and we’re looking forward to a successful fall.

Indeed, folks are lined up and ready to sell, and I hope you will consider being one of them.

Sincerely,

Jeff Zacharia

President

$37,304,429

Introduction

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On May 28th at 10am sharp, with dozens of people in the “virtual room,” Zachys president Jeff

Zacharia sanitized his gavel at “Studio 39” and started an auction of California cult wines totaling

over 600,000 points.

Hours later, auctioneers Charles Antin and Jeff Zacharia lowered the gavel on the last lot. Online

bidders left an amazing 6876 bids on the 1133 lots—bidding was fast and furious at times, with

Zachys’ website straining to keep up. In total the sale realized $2,955,726 against a pre-auction

low estimate of $2,272,000 and was 100% sold.

This was Zachys’ fi rst American “Studio Sale” (an auction with a live auctioneer, but no in-room

audience) and second Studio Sale globally. There was no printed catalog. Zachys had three people

in a large boardroom at any given time, the auctioneer, the AV technician, and a Wine Specialist

with a computer advancing internet bids. While maintaining 6 feet of distance, and with everyone

except the auctioneer wearing a mask, Zachys was able to bring to sale millions of dollars of

wine. As “proof of concept” it worked, and has become a key arrow in Zachys’ quiver going into

the fall. “The market” has been the question on everyone’s lips this spring, and thanks to quick

thinking and a crack team, Zachys has been able to pivot quickly and has had the busiest June

ever.

Zachys has four single-owner auctions, including one in London, lined up for the fall, as well as

several multivendor auctions. Don’t miss out on this exciting new sale format.

Anatomy of a Studio Sale

B I D

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Zachys has been able to succeed this year thanks to our response to an unprecedented pandemic.

Our fi rst concern has always been our employees and our customers. Once we felt we could do

what we do best in a safe and responsible way, we continued to do so. We’ve also been able to

support organizations affected by Covid-19. We had two auctions where we donated the entire

buyer’s premium on dozens of lots to relief of restaurant workers, and health care organizations

in Piedmont. We offered 5 lots which sold for nearly $50,000 with no buyer’s premium to support

organizations whose charity auctions had been cancelled due to Covid-19. And of course, we

continued to perform our core business and employ over 150 people around the world. We were

able to do that with Trust, Tech and Team.

Zachys’ Response to COVID-19

TRUST

Trust has always been at the core of everything we do, but in the past few months it has been

especially important. It’s never a small decision to choose to sell your wine collection, and we’ve

always been proud of how many repeat customers we have. As Covid-19 became a reality, many

of you had questions about the state of the market. In the beginning we had predictions; a couple

of months later, we have data to back up those predictions. We’ve always felt that the best way to

run an auction house is with trust--give a collector the best information you have, and they will

be a customer for life. Try to simply close a sale, and you may lose them forever. Our best guess

was that the auction market would be steady, and many of you agreed, which is why we had the

busiest June at Zachys, ever. And it’s also why, now that we’ve proven we can operate successfully

in this market, we are planning an amazing fall, including a launch in London!

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TECH

Behind the human element is the technical element--the nuts and bolts (or clouds and code) of

how we run auctions. For years we have offered our timed online auctions (zCollections), and

had a “live streaming” component to our live sales. In the past few months, our zCollections

have become even more essential than usual. We’ve sold the wine cellars of the Union Square

Hospitality Group’s restaurants to raise funds for Covid-19 relief, we’ve sold part of Eric Ripert’s

cellar, we’ve sold an amazing collection of California wine dubbed the “600,000+ Point Cellar,”

and we’ve sold single-owner offerings and multivendor sales. Our live streaming auctions have

been renamed “Studio Sales,” and are held from the boardroom in our White Plains offi ce. The

support has been amazing. We’ve hosted “bidding parties’’ in Shanghai and Stockholm, and

hundreds of people logged in from all over the world. New York-based auctioneers Jeff Zacharia

and Charles Antin, have started our Hong Kong auctions at 6:30AM EST, and at 10:00PM EST,

and auctioneered through the night. No auction house has pivoted the way we have to perform

auctions so quickly and so nimbly, and for that we’re immensely proud.

TEAM

There isn’t a better team in the business. We couldn’t be more proud of how this international

team, in different stages of quarantine depending on home country, led us through a truly

challenging time, all while prioritizing safety and mental health. Not only did we donate over

$100,000 to organizations dealing with Covid-19 relief and racial inequality, we performed our

core business at an extremely high level. From the single-owner Ruby Collection in Hong Kong, to

our European team leading the charge in launching London sales, to the 600,000+ Point Auction

here in New York, each region has had a truly excellent auction.

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The live auction is an important part of the Zachys experience. We love getting together, sharing a glass (or two) of fi ne wine, and the discussions that emerge after the dernier gout. Though we’ve been able to pivot to what we call “Studio Sales,” and our spring season was an enormous success for our consignors and buyers, we’ve been sad to have to cancel the in-person element of our sales. We miss you! Which is why we’ve been rolling out “Bidding Parties,” to great success and will continue to do so this fall for all of our global auctions.

Anatomy of a Bidding Party

What is a Bidding Party?Prior to Covid-19, we would often hold get-togethers around the world during our auctions. If you couldn’t be with us in New York for a sale, one of our global specialists would host you and your friends in your home city. Over breakfast, lunch, or dinner, depending on the time zone, you’d open bottles, enjoy a meal together and watch the live auction happen. With Covid-19, this hasn’t changed. Different countries are under different restrictions, and during our June auctions we were able to host very success-ful “Bidding Parties” in Stockholm and Shanghai, for two. We plan to roll out different cities this fall.

How Does it Work?Zachys arranges small groups of like-minded collectors to get together during the auction at a restaurant or hotel banquet room. We supply the food and lots of wine, and collectors bring a few great bottles as well. We arrange the seating in such a way that everyone feels safe. If you’ve never been to a Zachys auc-tion, the fun is in the room, and this is exactly like that. Enjoy wine, enjoy food, and enjoy the excitement of watching the fi nest wines in the world go up for sale!

Can I Really Bid Live?As the auction is happening from our offi ce in New York, it is live-streamed into the Bidding Party. If you wish to bid on a lot, you simply raise a paddle as you would if you were in the room, and the bid is trans-mitted to our auctioneers. Simple as that.

How do I Get an Invite?We are not anticipating any in-person auctions this fall. That may change, but for the time being we are planning a full schedule of Bidding Parties. The best way to get an invite is to email your normal Zachys contact. If you don’t have one, email us at auction@zachys.com and we’ll connect you.

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THE RUBY COLLECTION PART IVMay 8, Hong Kong

Price Realized: HKD $26,234,680

Top Lot: 12 Bottle Assortment of 1999 Domaine de la Romanée-Conti

Realized: HKD $545,600

FINE & RARE WINESJune 4, New York

Price Realized: $3,618,072

Top Lot: 12 Bottles of Echezeaux Henri Jayer for Georges Jayer Realized: $54,560

THE 600,000+ POINT AUCTIONMay 28, New York

Price Realized: $2,955,726

Top Lot: 12 Bottles of 2010 Screaming EagleRealized: $32,240

FINE & RARE WINES & SPIRITSJune 19 & 20, Hong Kong

Price Realized: HKD $40,645,836

Top Lot: 12 Bottles of 1996 La Tâche Domaine de la Romanée-Conti

Realized: HKD$471,200

FINE & RARE WINESJune 26, New York

Price Realized: $3,704,376

Top Lot: 12 Bottle Assortment of 1990 Domaine de la Romanée-Conti

Realized: $62,000

Studio Sale Success

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THE COLLECTION OF A NORTHERN EUROPEAN GENTLEMAN

March 31- April 6, Hong KongPrice Realized: HKD $2,391,904

Top Lot: 12 Bottles of 2016 Meursault Charmes Pierre-Yves Colin-Morey

Realized: $HKD18,481

THE CONNOISSEUR’S COLLECTIONJune 2-7, New York

Price Realized: $247,888

Top Lot: 6 Bottles of 1996 Musigny JF Mugnier Realized: $8,680

Rare Wines formerly from the Cellars of

GRAMERCY TAVERN, THE MODERN, UNION SQUARE CAFE, MAIALINO & MARTA

April 21- May 3, New YorkPrice Realized: $905,907

Top Lot: 12 Bottles of 2008 Barolo Monfortino Riserva Giacomo Conterno

Realized: $32,240

THE 600,000+ POINT AUCTIONMay 21-31, New York

Price Realized: $243,685

Top Lot: 4 Bottles of 2007 Opus OneRealized: $1,736

ERIC RIPERT & MAGUY LE COZE OFLE BERNARDIN

June 18-28, New YorkPrice Realized: $1,179,141

Top Lot: 3 Bottles of 2015 Romanée-Conti Domaine de la Romanée-Conti

Realized: $59,520

zCollections Success

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Top Producers Sold

Top Regions Sold

0

1M

2M

3M

4M

5M

Petru

s

Mou

ton

Roth

schi

ld

Lafit

e Ro

thsc

hild

Arman

d Ro

usse

au

DRC

Low Estimate

Realized

$4,452,145

$982,394

$1,199,699

$993,992

$1,082,574

$999,942

$1,080,970

$869,275

$898,843

$4,928,595

0

3M

6M

9M

12M

15M

Cham

pagn

e

Tusc

any

Califo

rnia

Bord

eaux

Burg

undy

Low Estimate

Realized

$12,786,827

$7,622,284

$7,965,776

$4,057,598

$4,333,802

$688,282

$732,176

$656,398

$674,052

$14,197,266

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Top 20 Lots Sold

Rank Wine Realized QTY-Size

#1Assortment Case Domaine de la Romanée-Conti 1990

$80,600 12-750ml

#2Assortment Case Domaine de la Romanée-Conti 1999

$74,400 12-750ml

#3Assortment Case Domaine de la Romanée-Conti 1999

$69,949 12-750ml

#4 La Tâche Domaine de la Romanée-Conti 1986 $66,769 1-6L

#5Romanée-Conti Domaine de la Romanée-Conti 1990

$63,590 3-750ml

#6 Chateau Lafi te Rothschild 1959 $63,590 1-6L

#7 La Romanee Liger-Belair 2009 $62,000 12-750ml

#8Assortment Case Domaine de la Romanée-Conti 1990

$62,000 12-750ml

#9 La Tâche Domaine de la Romanée-Conti 1996 $60,800 12-750ml

#10Romanée-Conti Domaine de la Romanée-Conti 2015

$59,520 3-750ml

#11 Richebourg Henri Jayer 1985 $57,600 1-1.5L

#12Romanée-Conti Domaine de la Romanée-Conti 2009

$57,040 3-750ml

#13Assortment Case Domaine de la Romanée-Conti 2000

$54,560 12-750ml

#14Romanée-Conti Domaine de la Romanée-Conti 2016

$54,560 3-750ml

#15 Echezeaux Henri Jayer for Georges Jayer 2000 $54,560 12-750ml

#16Romanée-Conti Domaine de la Romanée-Conti 2009

$52,080 3-750ml

#17Romanée-Conti Domaine de la Romanée-Conti 2009

$52,080 3-750ml

#18Romanée-Conti Domaine de la Romanée-Conti 2010

$52,080 3-750ml

#19Romanée-Conti Domaine de la Romanée-Conti 2010

$52,080 3-750ml

#20 La Romanee Liger-Belair 2016 $51,200 6-750ml

Zachys has always been about strategic growth. In 2008, we launched our Hong Kong offi ce, and

now Hong Kong has become the epicenter of all of our Asia business. We also have Specialists in

Japan, Shanghai and Beijing, and indeed 11% of our YTD sales have gone to mainland China.

Years ago, we started looking towards Europe. We’ve always had a robust and active bidding

and consignment base in Europe. Indeed, the collections of Ian Mill QC, The Alpine Collector,

and Lafi te-Rothschild, all sold in 2019, and Klaus Umek in 2018 were all due to our boots-on-

the-ground approach to the continent. 9.4% of sales went to European buyers in 2019, and

consignment growth doubled. To us, the path forward was obvious: a European sales site.

London has been at the center of the Bordeaux and fi ne wine trade for centuries, so it was clear

to us that, when we decided to launch auctions in Europe, they would be in London. Helmed

by Christy Erickson, our European offi ce is now staffed by Specialists in Paris, Lyon, London, and

Stockholm. We will kick off the next chapter of Zachys global with an auction this September

from the cellar of Enoteca Pinchiorri, one of the great wine and cuisine destinations in the world.

This landmark auction will feature one of the greatest offerings of large format Jayer ever offered,

among other rarities purchased on release by the restaurant. We’ll follow up this auction with a

multivendor offering in October with several fi ne consignments.

If you’d like to be a part of Zachys’ inaugural European sale season, we’re offering competitive

terms and easy logistics.

Looking to the Future

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ENOTECA PINCHIORRI • The Legendary Cellar •

2020

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Upcoming Sales

September 12

The Cellar of Enoteca Pinchiorri, London

September 18 & 19

Fine & Rare Wines, Hong Kong

September 24 & 25

Fine & Rare Wines, New York

October 16 & 17

Fine & Rare Wines, London

Now accepting consignments for all three multivendor auctions and online auctions at consignments@zachys.com