Going, going, gone in Hong Kong

Going, going, gone in Hong Kong

Writer Elaine Davie

As we all know, the Western Cape (not least our own region), is Wine Country.

Since the first Nederburg Wine Auction was held in the late 1960s a thriving industry has grown up around the collection of premi- um wines as a form of investment. Now wine auctions pop up all over the world, in most cases featuring products from a cross-section of wine estates. More recently, they have also gained traction as a form of income genera- tion for Non-Profit Organisations.

But that’s old news; been there, done that. Hot off the press is a completely new, off the wall gastronomic initiative, and leading the way on the world stage is a well-known Hermanus company. Ever heard of an auction offering in- vestment grade abalone for sale? No, really… perlemoen!

To celebrate 25 years in the industry, Abagold, the largest land-based farm in Southern Africa recently held a first-of-its-kind abalone auction in Hong Kong, the international trading hub for this luxury seafood. And following the wine industry’s example, 10% of the income was pledged to support the Abagold Development Trust for the upliftment of our local communi- ties, especially the children and young people.

ABOVE LEFT: With Tim Hedges, Managing Director of Abagold (centre) are auctioneer, Brian Hodgson of HK Auctioneers and MC, Xaviera Yau, who kept the bids flowing and the sometimes-over-enthusiastic bidders under control.

According to the company’s official press release, the Abagold 25K Investment Grade Abalone Auction took place at the home of abalone, Hong Kong, on 21 June 2023. ‘This premier event set a new standard of excel- lence in the industry, demonstrating Abagold’s unparalleled expertise in the production of the world's finest quality abalone, and making hand-selected dried abalone items available on auction to exclusive invitees.

The introduction and launch of Investment Grade abalone catapults Abagold to the fore- front of this very traditional market. All 24 auc- tion lots drew immense interest from over 65 international buyers, reaching unprecedented prices in both the live and silent auctions.’

But what, one wonders, defines investment grade abalone? Well, it seems that for this first-ever dried abalone auction, the standards and criteria had to be formulated from scratch. Factors would include the age (up to 25 years), size, shape, texture, the absence of any chemi- cals or colourants in the drying process, as well as the rarity of the harvest and the sustainabil- ity of the species. To most of us, that may seem like a mouth-full, but for the invited aficiona- dos not only from Hong Kong, but also from Singapore, Malaysia, China and as far afield as the USA, it all made perfect sense.

The event took place in an exclusive venue in Hong Kong and the bidding was intense, says Abagold’s Managing Director, Tim Hedges. “The attraction wasn’t only the pre- mium-grade abalone, but also the uniquely designed packaging, all of it hand-produced in Hong Kong. It ranged from beautifully carved wooden chests and a circular display unit, to branded glass jars, colonial-style hat boxes and steamer trunks, as well as gold bar look- alikes.” To give the event an authentically local flavour, each lot was given a local title like fynbos, perlemoen, Kleinbaai and Hemel-en- Aarde.

Gold standard. Amongst the top buyers on the night was the Dragon Marine Company of Hong Kong, a major Abagold client.
They were thrilled with the high-quality lots packaged to look and feel like solid gold bars.

For example, Lot 9, named ‘Zwelihle’, carried one of the top investment grade ratings of 95 and recorded the highest documented price paid for 25 catties of 25-year-old dried abalone in an Abagold-branded glass jar. After some very lively competition between buyers, the successful bidder paid over HK$70 000 for this auction lot.

Another successful item was lot 1, named ‘Perlemoen’, and this item attracted attention amongst many collectors; also with an investment grade rating of 95, the 2,5 catties of 25-year-old dried abalone were displayed in their polished shells on a one-of-a-kind wooden frame and was eventually sold for HK$32 000.

The featured lot that got bidders so fired up that the auctioneer was obliged to restore order to the proceedings, was one of the silent auction items. In this lot 19, named ‘Langbaai’, 50 pieces of 100g-plus dried abalone, were displayed in a specially designed hatbox. This lot was sold for HK$23 000 via the silent auc- tion process at the end of the evening.

Each purchase was accompanied by a certif- icate of authenticity and in addition to the excitement of the auction, guests enjoyed a gourmet dinner and were presented with a glossy coffee-table book to keep as a sou- venir. Some of the purchases are likely to be displayed at the buyers’ business premises to be sold on at a profit. Alternatively, they may be retained by the purchaser to mature as an investment, just as a premium wine might be.

According to Tim, there was an interesting mix of young business people present, alongside canny old hands with many years of experi- ence in the trade. He emphasises the point that over and above any income generated for Abagold, the PR aspect of the event was worth more than gold to the company. “The dried abalone market is very competitive and very difficult to brand,” he comments. “This high-profile auction helped to put Abagold’s name front and centre in traders’ minds, which will hold long-term benefits for us.

“We wanted to draw attention to the fact that we aspire to advance the value of abalone farming while safeguarding our sustainable farming practices. Our vision for this auction was to set the standard for potential future global platforms, where farms can showcase their dried products, nurturing a new gen- eration of aquaculturists delivering lasting investment grade abalone to the world. Of course, it also places a focus on South Africa as a world-class producer of abalone.”

He adds that one of the most pleasing outcomes from the auction is that 10% of the proceeds were donated to the Abagold Development Trust. (ADT). “The funds raised will aid the numerous important developmen- tal initiatives this charitable trust carries out in the communities of Hermanus where most of our employees live and raise their families.”

As with wine auctions in the Western Cape, Tim hopes that this initiative will take root and flourish as a showcase to increase the value and profile of abalone world-wide. “This was a learning experience for us and based on what we have learnt, we would certainly be thinking of repeating the initiative in about two years’ time, perhaps in Singapore.”