Understanding OWC Wine: What It Means for Your Collection
Updated
For collectors navigating the fine wine market, understanding the nuances of wine packaging is crucial. It matters when you are buying, selling, or storing your bottles. When you encounter the term 'OWC wine,' it refers to wine packaged in an Original Wooden Case. WineBid indicates that 'OWCs' are a factor that influences 'Package size and number' when preparing wines for shipping. It lists 'format sizes' and 'quantity' alongside them. This suggests that the presence of an OWC affects the logistical considerations for transit. For your valuable collection, the type of packaging can play a role. It affects the handling, the storage, and the ultimate presentation of wines in the secondary market. Consider your next steps, whether acquiring new lots or preparing existing ones for sale. These details contribute to the overall condition and presentation of your wine.
What does OWC wine mean for your collection?
OWC wine refers to wine sold in its Original Wooden Case. According to WineBid, 'OWCs' are a factor in determining 'Package size and number' when preparing wines for shipping. This means the presence of an OWC matters if you are shipping wine. It will influence the dimensions and quantity of packages required for transit, and therefore what you pay to move a lot. The general condition of wine, including its packaging, is a key consideration in the fine wine market.
How do auction houses describe and guarantee wine condition?
Understanding how auction houses describe and guarantee the condition of wine is essential for managing your collection. Christie's states that "The condition of lots sold in our auctions can vary widely due to factors such as age, previous damage, restoration, repair and wear and tear. Their nature means that they will rarely be in perfect condition". Christie's further clarifies that any description of a lot in their catalogue, condition report, or other statement is their "opinion and not to be relied upon as a statement of fact".
A "WSET Level 2 or 3 certified team" conducts WineBid's "proprietary multi-point inspection of each wine listed" to "verify authenticity and protect against counterfeit wines". They also ensure "Each bottle is barcoded, photographed in high resolution, and accompanied by detailed condition notes" (WineBid). Despite these efforts, WineBid notes that all purchases are made 'as is' and they "do not offer refunds or exchanges" for 'bad' wine. The firm acknowledges a "small, yet inevitable percentage of ‘bad’ wine impacted by things like cork taint, imperfections during production, oxidation, and other factors which can’t be observed until the bottle is opened".
iDealwine provides similar insights. It states that "information provided regarding wine levels, status of corks, capsules and labels are only indicative". It adds that "The operator of auction sales cannot guarantee the conditions of the cork". They also cannot guarantee "Tasting characteristics for wines purchased in auctions" (iDealwine). During their assessment, if a wine's "level is deemed abnormally low for the vintage or in case of a deteriorated label, or a French bottle with a foreign export label, the lot’s reserve price may be lowered by 10 to 30% of its estimate" (iDealwine). iDealwine's experts also "divide the wines into lots, unless the seller has previously formulated a specific request prior to the deposit or shipment of their wines".
For more details on condition, you can refer to our guide on wine ullage levels explained.
What are the costs associated with buying and holding wine from auction?
When acquiring wine through auction, several costs extend beyond the hammer price. These typically include buyer's premiums, taxes, storage fees, and shipping charges. Understanding these components is key to calculating your all-in cost.
Buyer's Premium
A buyer's premium is an additional fee added to the hammer price of each lot. Rates vary by auction house and sale location:
| Auction House | Buyer's Premium Rate (Wine/Spirits) | Notes |
|---|---|---|
| Sotheby's (Global Wines & Spirits) | 24% Plus Overhead Premium on all hammer prices 1% | On all hammer prices |
| Christie's (London) | 25% | On the hammer price |
| Bonhams (United Kingdom) | 24% | On the hammer price |
| Zachys | 25% | Unless otherwise indicated, on the hammer price |
| WineBid | 17% | On the final hammer price of all lots purchased through auction |
| iDealwine (as of 02 March 2023) | 25.2% VAT included (21% excl. VAT) | For auctions, included in final price |
| iDealwine (from 27 March 2026) | 25.8% incl. tax (21.5% excl tax) | For auctions, included in final price |
Taxes and Duties
According to Christie's, the successful bidder is responsible for "all applicable tax including any VAT, GST sales or compensating use tax or equivalent tax wherever such taxes may arise on the hammer price and the buyer’s premium". For wines offered "in bond" (marked with a ‡ symbol by Christie's), "no excise duty or clearance VAT will be charged on the hammer price, but VAT will be charged on the buyer’s premium" (Christie's). If you choose to take these wines duty paid, "excise duty at current rates will be added to the hammer price and clearance VAT will be added to the duty inclusive hammer price" (Christie's).
HMRC sets alcohol duty rates in the UK. For wine with an alcohol by volume (ABV) between "8.5% to 22%," the duty is "£30.62" for each litre of pure alcohol in the product, according to HMRC.
Sales tax requirements vary by region. For New York Live Auctions and New York Internet Auctions, Zachys is "required to charge and collect New York sales tax". In contrast, for Delaware Live Auctions and Delaware Internet Auctions, "the State of Delaware does not impose sales tax on tangible personal property sold within the State" (Zachys). WineBid collects sales tax on "all purchases except those shipped internationally or to states where a direct shipper permit is held," it notes. That tax is "calculated as a percentage of the entire price paid, including the hammer price and the buyer’s premium for auction purchases". iDealwine notes that "customs and excise duties are not included in the buyer's premium and are charged to customers in accordance with the legislation in force".
Storage
After purchase, storage arrangements are a key consideration. Christie's includes "any charge for storage from the date of the auction" in the purchase price. If a lot is not collected by "the end of the 90th day following the date of the auction," storage costs are charged "at the rate set out at www.christies.com/en/help/buying-guide/storage-fees" (Christie's).
WineBid places "All wines purchased on WineBid" into storage at Global Storage Network (GSN). It offers "A minimum of two months of free storage" for all customers. Upgraded memberships provide extended free storage: "Collectors receive 4 months of free storage" and "Pros receive 6 months of free storage" (WineBid). Zachys stipulates that "Wines must be collected within 14 calendar days or they will be transferred to Zachys storage at the Buyer's expense". iDealwine charges "at a rate of €0.15 per bottle and per day, taking effect on the 31st day following the date of the order confirmation". For more on protecting your collection, explore our guide on how to store wine.
Shipping and Transport
Arranging transport and shipping is typically the buyer's responsibility. Christie's includes "any charge for subsequent packing or carriage" in the purchase price. It can also "arrange to pack, transport and ship your property if you ask us to and pay the costs of doing so". Zachys can "assist with packing, shipping, and insurance, but assumes no responsibility for carrier-related delays or damage". They also state that "It is the Buyer's responsibility to either pick up purchases or make shipping arrangements within 14 calendar days of the auction" (Zachys).
WineBid partners with Global Storage Network (GSN) for shipping. It notes that "Wines are always packed in molded Styrofoam shippers for insured, alcohol compliant transit". As mentioned earlier, according to WineBid, "Package size and number depend on format sizes, quantity, OWCs, and more". Shipping options "vary by location" and are "based on regulation at your destination" (WineBid). WineBid also advises that "It's most economical when you maximize the number of bottles that ship together in a box". iDealwine highlights that "The import of all goods into France and the export of all goods to other countries can be subject to the procurement of authorisation (export certificates, customs authorisation". It adds that "It is the responsibility of the buyer to check any authorisations and formalities required by the relevant authorities of the country in question".
For a comprehensive overview of buying at auction, see our guide on how to buy wine at auction.
How do you sell wine you own through auction?
Selling wine through auction involves several steps, from initial valuation to payment. WineBid describes a process that begins with "submitting a wine estimate request with a detailed list of your bottles". A "Consignment Director in your area will reach out to guide you through every step of the process" (WineBid). Once wines are "approved for consignment," WineBid will "coordinate pickup or shipping, handle professional inspection and photography, and list them in our weekly online auction".
Auction houses offer different approaches to setting reserve prices. WineBid provides "Automated Pricing". It uses "a proprietary algorithm based on nearly 30 years of auction data to set reserves in line with current market trends," with reserves "adjusted weekly based on real-time results". Alternatively, "Custom Reserve Pricing" allows consignors to "set your own reserve prices above market value" for "up to 8 weeks (8 auction cycles" (WineBid). iDealwine states that "The consignor can set a reserve price which is the minimum price that the goods can be sold at. The reserve price cannot be higher than the low estimate and by default, this price is set at the low estimate". If wines remain unsold after three consecutive auctions, iDealwine's policy is that "their reserve price will automatically be reduced by 10". After "6 auctions, unsold lots will be reduced by 10%, applicable to the already-lowered reserve price and not the initial price" (iDealwine).
Commissions are a significant factor in selling. iDealwine charges "The operator of auction sales' commission fee is 13% (excluding tax) or 15.6% (including tax) of the Hammer Price in addition to any transport costs incurred in transporting the wines to the iDealwine warehouses".
Payment timelines for consignors vary. WineBid states that "are issued 30 business days (4-6 weeks) after auction close". iDealwine pays "35 days after the end of auction". For private consignors in France, "the capital gain realised by a seller upon the sale of their goods will be taxed to the rate of 36.2% (19% as income tax and 17.2% as social insurance contributions) when the amount exceeds €5,000 per lot" (iDealwine).
To learn more about liquidating your assets, review our guide on how to sell fine wine. You can also use our producer atlas by region to research specific wines in your collection. Bordeaux is one place to start.
Understanding the full financial picture of your wine assets is crucial. Compare the all-in costs of buying, holding, and selling your wine with our all-in cost comparison on our live fine wine market index.