__________________________________

IN HIS FOURTH annual guide to South Africa, Tim Atkin MW regards the 2015 vintage as “the best I’ve tasted in 26 years of writing about the country’s wines”.

He says: “A winning combination of better viticulture, the development of new wine regions and the emergence of a young generation of wine-making talent make South Africa the most dynamic wine-producing country in the world right now.” Atkin singles out Chenin Blanc, Syrah and Méthode Cap Classique wines for special praise in his report.

Atkin argues that South Africa’s old vines are “a precious and dwindling resource that needs protection” and says that too many wine farms are unprofitable because of the low price of the country’s wines, particularly in export markets. “In the absence of significant government subsidies, the answer is to increase the price of South African wine.”

Winemaker Bruce Jack of Accolade Wines backs up Atkins’ comments: “The biggest issue is that our average grape price is the lowest in the New World, and probably lower than anywhere else. This would be OK if we had the soils and the topography to generate massive grape yields in easily accessible, large areas – but we don’t.

“South Africa has been designed by god to craft premium wine, yet circumstances (history, industry structure and many other factors) ensure we continue to bash away at entry-level wine, resulting in unsustainable grape prices for the growers.

“Where will this lead us? The answer is already evident – we aren’t replanting in a sustainable or strategic way. The industry is already reinventing itself for farmers to survive. Primarily vineyards are not being replaced, or pulled out and a different crop planted. This radical transformation will ironically hit those primarily responsible for the low grape prices – the big buyers of bulk wine. And many farmers and those dependent on grape farming will have to suffer a large amount of unnecessary pain in the process,” says Jack.

Managing director and partner at Anwilka and Klein Constantia, Hans Astrom says: “Brand South Africa needs to gain a bigger footprint on the very competitive export markets at the same time as there is a rise in pricing achieved among all tiers. The local market and its financial situation need stability and political support.”

Glenelly Estate export director Nicolas Bureau says: “The SA wine industry is not making money. For a long time, SA was perceived as a producer of bulk wine and we struggle, even today, to command higher prices for our wines because of this perception – even though the end of Apartheid was more than 20 years ago, SA still suffers from a negative perception from the public.

“We have no ‘iconic’ wine in SA yet and very few wines command a price of $100-plus for a bottle – I am leaving aside the small releases which are, for me, just the product of marketing, and not really related to quality.

The UK is South Africa’s most important market and the proposed exit from the European Union has done SA no favours. Doran Vineyards’ Edwin Doran says: “Brexit has raised its ugly head reducing the rate of exchange from ZAR22.4:£1 to today’s ZAR17.52:£1. We are a niche market, premium operation which offers top-quality wines at exceptional value-for-money prices. But a drop of 22% makes life difficult.”

Gerhard van der Watt, chief executive of the Perdeberg Group, says: “The greatest threat to the current growers is the low financial returns on their grapes that growers have received for some time now. The result is a net reduction in vineyards for many years and it is currently in an exponential decrease trend with all predictions that it will continue. Notably 42% of all SA vines are older than 16 years – a further testimony to the inability to renew vines and a pointer to many more extractions to come. Unfortunately SA has never really been able to establish better prices for its wines and, in world terms, is languishing in the dirt-cheap segment overall.

Jordan Wines’ Gary Jordan says: “Fluctuating exchange rates makes it very difficult to budget accurately, with swings of up to 30% this year not uncommon. While the official inflation rate hovers around 6% it is important to be able to raise the average prices of SA wines internationally so that wages and salaries of farm staff may be increased, and to provide capital for projects where all the staff in the company benefit.”

Boutinot Wine’s South Africa wine-maker Marinda Kruger-Van Eck says: “The greatest challenge for SA grape growers is to stay sustainable and profitable. Higher wine prices do not always reflect down to the grower.

“We can produce healthy yields with good profitability but the challenge is to keep on producing wine of quality that exceeds price point, as there are always market opportunities for exceptional price/quality wines. The huge press momentum around young winemakers and old vines helps SA break new markets – it’s cool.”

Eikendal co-owner Chris Saager says: “We need to get rid of the cheap wine stigma that is connected to SA. If we can achieve this we will be able to start achieving the prices our wines deserve.

“SA has managed to increase quality quite dramatically in the past 10 years because our industry is not as regulated in what you can produce. We can be very innovative and we are able to adapt very quickly to new trends and styles.”

Lammershoek Farms & Winery’s operation is based on small yields, so marketing and sales manager Zaine Pritchard says it is not in a position to “play the price game”. He is also concerned at the effect of shipping too much SA wine in bulk.

He says: “The balance of bulk and bottled wine has a direct and very strong effect on our perceptions in the global market.

“We must do everything in our power to ensure we are not seen as just a cheap option but that quality is pivotal at competitive pricing – but for this to work all parties and businesses need to buy in.”

Pritchard calls for a “charter for both bulk and bottle, ensuring we all sing off the same hymn sheet”.

Waverley Hills marketing manager Tammy Nieuwoudt says: “To stay economically viable, SA has moved strongly into wine tourism. Farms don’t just produce wine any more, they offer visitors a unique experience. Expanding offerings at farms adds another stream of revenue and sets farms apart.”

Oldenburg Vineyards managing director and winemaker Philip Costandius also sees tourism as crucial. He says: “We need to leverage our country as a destination which offers great cuisine and fantastic wines together with awesome vistas. I believe that South African wine sales will grow strongly in value.”

Jack says: “There isn’t a corner of the western Cape that can’t produce beguiling, complex and delicious wine. We simply have no boring bits of land. Our Achilles’ heel is communicating this advantage. Also, perhaps, our weakness is not believing enough in our environment to deliver on this brilliance in the actual wine – some of our facilities are unsuited for the new era.

“So the real opportunity is multifaceted and is about focusing on and selling premium wine by being innovative and communicating the extraordinary strengths of nature we are blessed with. We should be turning our back on the bland, brandless, cheap, sweetened-up alcohol hit and embrace character, class and craft,” says Jack.

TRENDS

Glenelly’s Bureaur says: “You obviously have witnessed the trend in wines from the Swartland over the past five years – grapes coming from old bush vines, Rosa Kruger, the Swartland Revolution, etc. But I think future trends will be going back to more ‘established’ wine regions, with producers making wines in a modern style but with a long history behind them. I have in mind Stellenbosch, obviously, but also Constantia and Franschhoek.

“The key trend is a dire state of affairs,” says Jack. Those with big enough farms on fertile, homogenous enough soils are planting the same old varieties for massive production, lowest-price, wine – often irrigated Chenin Blanc and Colombard. There is a small interest in new and unusual varieties and [grapevine nursery] Vititec is championing this. Bring on more Barbera I say.”

Astrom says: “We see a strong trend for blends, both white and reds. The same for Mediterranean grapes. Suddenly Cinsault is trendy again. The recently planted vineyards will soon produce world-class wines from healthier farming and vines and create a general lift upwards.”

GRAPES

Jack says: “Pinotage has come of age. Actually it came of age a few years ago. Remember the variety has only been around for a few generations. It’s flipping delicious when grown properly and well made. It almost lives forever. Great Pinotage is like great Pinot Noir, Monastrell, Barbera, etc… a wonderful confirmation that life is worth the exploration, because there’s a treasure chest of satisfaction hidden almost everywhere that’s hard to access.

Nieuwoudt agrees: “We feel SA’s Pinotage is already world class. We have one of the best Pinotage producers in SA on our Tulbagh wine route – Rijks Cellar is one to look out for. Grenache is another variety to look out for from SA.”

Jack believes Sauvignon Blanc is a “work in progress” and SA’s best Chenin is “simply the best”.

“Sauvignon Blanc really has its own strong identity and obviously Chenin is truly a unique grape that is very suitable to some of our regions,” concurs Astrom.

Van der Watt states: “The plethora of niche offers such as dry land bush vine Cinsault, or Swartland Malbec or wooded Chenins as well as older coffee Pinotages etc will create enough interest from the buying fraternity.

“In my view Chenin Blanc is about to surpass Sauvignon Blanc as the leading white variety and the width of Chenin expression from bush vine, dry land, sparkling, MCC, barrel fermented, and natural sweet on offer should emphasise SA as the only other real world player in Chenin Banc next to the Loire.

“Ironically the ageing SA vineyards have opened another niche offer, with many special old vine blocks being identified and sold as single offers.

“Grapes to watch therefore are Chenin Blanc, Cinsault, Grenache Blanc, Malbec and sexy premium white blends. The clever people are planting unusual stuff for SA such as Tempranillo, Malbec and Grenache and even a number of exotic varieties found in Europe. And Chardonnay and Cabernet Sauvignon, as the biggest losers in vineyard space, should not be forgotten as an opportunity when supply shortens and prices shoot up,” says Van der Watt.

KWV chief winemaker Wim Truter says: “We have a strong focus on Petit Verdot and Grenache Blanc but we are also excited about Malbec, Cabernet Franc, Semillon and Tempranillo.

“Alongside the new varieties there is a growing focus on preserving our amazing old vines as well as shining the light on the traditional back-bone of the industry – Cinsault. It is an amazing grape with the potential to become a signature grape for South Africa.”

Jordan says Chardonnay and Bordeaux blends should not be forgotten. Interestingly he plumps for a Greek variety, Assyrtiko.

He says: “Global warming/climate change has also meant we have been looking at new varieties better suited to our changing climate. Greek varieties such as Assyrtiko seem interesting from an acid retention and lower water requirement point of view and, in fact, assyrtiko.com points to Jordan Wine Estate.”

Oldenburg’s Costandius also chooses Assyrtiko, along with Albariño, and believes there is renewed interest in Cinsault and Grenache. Stellenbosch winemaker David Finlayson from Edgebaston, also lists Assyrtiko as a tip for the top.

Boutinot’s SA product manager Robin Naylor lists: “The Rhône – Mourvèdre, Grenache Blanc, Roussanne for planting. Whereas Cinsault & Semillon that have been here for so long are now being locally championed at last.”

Lynne Sherriff MW, of ABS Wine Agencies, says Semillon and Cinsault are being rediscovered while Chenin Blanc and Pinotage are uniquely South African varietals that are starting to be appreciated for what they can offer.

She also points to Bordeaux blends and Rhone-style blends, both red as growing in popularity.

REGIONS

Regions such as Stellenbosch, Paarl, Franschhoek, Elgin, Robertson, are widely regarded as SA’s premier wine-producing regions. Sheriff believes Swartland should be up there as well, as she feel this is one of SA’s most exciting and dynamic regions. She would also include Elim and Cederberg.

Jack suggests: “New regions are popping up all the time. For elegance head to the Overberg.” Apart from, obviously, Constantia, Astrom backs Elgin, Hemmel an Arde and Greyton.

Bureau says: “I think the big trend is towards cooler areas, and Elim seems to come up quite often.”

“An area in Paarl to watch is Agter-Paarl, which is unique enough to establish its own ward. You will see more of these terroir-driven demarcations in future,” says Van der Watt.

Distell chief winemaker Razvan Macici, who was cellarmaster at Nederburg from 2001 to 2015, says: “Climate change is certainly a challenge. Many South African producers, including Nederburg, are introducing Mediterranean varieties better able to withstand drier and warmer conditions, and so far, the results have actually been very exciting.”

Macici continues: “New wine-growing areas are being developed, along the coast, further inland, like high up in the Matroosberg pass where Nederburg has vineyards and in the southern Cape.”

SUMMARY

In summary Bureau says: We need ‘icon wines’ to come through the woodwork, but they are not created overnight. I am confident that a growing awareness of our wines, and a more global trading place, will facilitate this and speed it up.”

Edgebaston’s Finlayson is pessimistic. “I don’t see it changing much from where it is due to the markets not wanting it to change.

“We are still seen as a producer of lots of cheap and cheerful Chenin Blanc and red blends while there is a small pinnacle of world-beating top quality wine that unfortunately will never be bought by many people who still stick to France, Italy and Spain just because they feel safe buying from those countries, even if the quality doesn’t match South Africa’s top wines.”

Bruce Jack concludes: “Stylistically, South Africa is like Picasso. We are emotionally moved. Styles change continuously. Experimentation is embraced everywhere. The artistic side of winemaking is celebrated, even in the most corporate environments. Nowhere in the world are things so eclectic, exuberant and interesting when it comes to style.”