Wine Investment in South Africa - Cape Wine Academy
Wine Investment in South Africa - Cape Wine Academy
Wine Investment in South Africa - Cape Wine Academy
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White w<strong>in</strong>e<br />
Approx<br />
Price on release sold <strong>in</strong> 2010 Increase<br />
DeGrendel Koetshuis Sauvignon Blanc 2007 R75 R153 104%<br />
Vrede en Lust Viognier 2008 R110 R183 66%<br />
Durbanville Hills Rh<strong>in</strong>ofields<br />
Sauvignon Blanc 2007 R70 R116 65%<br />
L’Avenir Chen<strong>in</strong> Blanc 2006 R50 R86 70%<br />
Spier Private Collection Sauvignon Blanc 2007 R70 R163 132%<br />
Uva Mira Chardonnay 2008 R200 R266 33%<br />
Table 14. Selected white w<strong>in</strong>es at Nederburg auction 2010 with <strong>in</strong>creased values<br />
d) There are opportunities for the <strong>in</strong>vestor to acquire <strong>in</strong>vestment quality w<strong>in</strong>es at<br />
‘barga<strong>in</strong>’ prices, eg Uva Mira Chardonnay 2007 lowest successful bid was R166 ( before<br />
VAT ) <strong>in</strong> 2009 when its cellar door price at the time was R175.<br />
e) Not only ‘blue chip’ w<strong>in</strong>es acquire value, many commercial, higher volume<br />
w<strong>in</strong>es achieve excellent value growth, eg Chateau Libertas, whose price today is around<br />
R35 achieved R108 for the 1994 <strong>in</strong> 2010 and R1000 for the 1968 <strong>in</strong> 2008. Also, Zonnebloem<br />
Cabernet Sauvignon whose price today is around R70 achieved R1633 for the 1970 <strong>in</strong> 2010<br />
and R2333 for the 1964 <strong>in</strong> 2008.<br />
f) Top <strong>in</strong>vestment w<strong>in</strong>es show consistency <strong>in</strong> their returns. Table 15 shows how<br />
three suitable <strong>in</strong>vestment w<strong>in</strong>es consistently achieve healthy returns at five or six years old.<br />
Such consistency is essential for <strong>in</strong>vestment purposes even if growth is erratic.<br />
<strong>W<strong>in</strong>e</strong> at 5 yrs. Old achieved <strong>in</strong> ’06 ’07 ’08 ’09<br />
Jordan Cobblers Hill R316 R350 R225 R233<br />
Hamilton Russell P<strong>in</strong>ot Noir R300 R250 R366 R266<br />
De Toren Fusion V ( 6 yrs. Old ) R416 R416 R400 R416<br />
Table 15. Consistency <strong>in</strong> top <strong>in</strong>vestment w<strong>in</strong>es over time at Nederburg auction<br />
Track<strong>in</strong>g price changes at the auction, of w<strong>in</strong>es that have appeared more than once, does<br />
not appear to reflect any trends, though 2008 and 2009 show perhaps the effects of the<br />
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