Wine Investment in South Africa - Cape Wine Academy

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www.wineinvestment.org. (2011) Market Report 2010 published - 18th January 2011 author Thomas Gearing of Cult Wines Ltd. http://www.cultwinesltd.com Woodard, R. (2010) En primeur scam targets Bordeaux 2009 investors, Decanter.com, April 2010 Your Thurrock Magazine,UK. (2010) http://www.yourthurrock.com/2010/12/08/roof-onpurfleet-wine-warehouse-collapses/ Zachys Wine Auctions. (2011) Westmoreland Avenue, White Plains, NY. http://www.zachys.com Bibliography Decanter Magazine, UK. Published by IPC Media Group, Fine Wine Price Watch, www.decanter.com Koöperatieve Wijnbouwers Vereniging van Zuid-Afrika Bpkt, History; http://www.kwv.co.za Platter’s South African Wine Guide. Published by Newsome McDowell, SA, 2011 Wine Magazine, SA. Published by Ramsay Son & Parker, www.winemag.co.za Wine Report, Stevenson, T. published by Dorling Kindersley, UK, 2009 83
Appendices Appendix A Interview with Emile den Dulk Why is there currently little or no investment in SA wines There is no wine culture. SA’s wine history is one of control. The KWV did an effective job of controlling wine and wine drinking in SA. It meant there were no big wineries ( except co-ops, whose wine was variable ) and no real export until 2004. Even now, three co-ops have some 80% of the market. We have a beer culture. But no trading facilities for SA wines En primeur here could work, only for a handful of wines. We will be doing en primeur next year on an estate wine, not under the De Toren name. This will be an icon wine, launched internationally ( there’s a lack of market here for this sort of wine ). It will raise our profile abroad and it will take SA wines to another level, raising the profile of all SA wines. I don’t resent Parker’s influence and I’ve invited his SA contributor ( see 8.2.4 ) to taste my wines in barrel. We need to positively promote our wines on the world stage and Parker is a way to do this. What do you feel is an icon wine An icon wine is determined by marketing, ratings and price. To me, an icon wine is ‘made’, not manufactured. It means low yields, manicured vines, hand destemming, absolute commitment. SA has no world icon wines; it’s because of little marketing abroad, not enough overseas ratings and too low a price. Any marketing in key countries such as the UK has been for the commercial end of the market and has damaged chances of establishing icon wines. And what hope is there for future wine investment Difficult. SA wines have no access to distribution channels. SA wines are not big enough abroad. It will need much better distribution. More capital as well. It takes a huge amount of capital investment to take a wine from 92 points to 95 points. You might need a separate cellar just to do MLF treatments, for example. Most wineries don’t have that capital. Figures show that last year wineries had an average turnover of R40m, but the average winery only made R200,000 profit. 84
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Wine Investment in South Africa Dav
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Acknowledgements The following all
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Contents Acknowledgements………
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List of Tables Table 1 Key investme
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1.2 Scope of Assignment Wine invest
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The barriers that seem to exist whi
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meet future market demand. The 1855
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after seller’s premium ) giving t
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Hence the growth of dozens of inves
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Table 5 above shows an even more im
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Thus 1 case brokered personally or
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would avoid the need for the invest
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For the top châteaux, returns have
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‘bargain’ prices. This requires
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Ratcliffe, though, believes that,
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2e) buying through an investment co
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worldwide and hugely increased the
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6.1.2 Securing a release price High
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Other vintages should be considered
Page 39 and 40: Indices Level MOM YTD 1yr 5yr Liv-e
Page 41 and 42: may be legally more deserving than
Page 43 and 44: Even with the best intentions, wine
Page 45 and 46: Ullages (Level of Wine) For Bordeau
Page 47 and 48: Section 2 Chapter 7 7.1 South Afric
Page 49 and 50: people distrust wines of age and do
Page 51 and 52: 8.2.3 Domestic recognition of SA fi
Page 53 and 54: ‘It would be depressing indeed to
Page 55 and 56: some top producers do not enter the
Page 57 and 58: found in numerous bottle shops - an
Page 59 and 60: cR50,000 in SA or an underground ce
Page 61 and 62: The need for investment from abroad
Page 63 and 64: Krige is selling previous vintages
Page 65 and 66: ‘South Africa may not have as muc
Page 67 and 68: found an even more serious lack of
Page 69 and 70: important to establish to the world
Page 71 and 72: cases the CWG wines achieved higher
Page 73 and 74: ecession. Table 16 below shows wine
Page 75 and 76: seeing négociants make huge profit
Page 77 and 78: wine market. De Toren’s will be m
Page 79 and 80: For this reason, savvy investors mi
Page 81 and 82: Section 4 Summary and conclusions T
Page 83 and 84: References 90pluswines. (2011) http
Page 85 and 86: Goode,J. (2009) http://www.wineanor
Page 87 and 88: Norman, R. MW (2011) Chenin Challen
Page 89: Van Rensburg, A. (2011) The Big 5 S
Page 93 and 94: CT has still got 2/3rds of the fore
Page 95 and 96: We were one of the first to offer e
Page 97 and 98: There is no way forward for SA wine
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Wine Investment in South Africa - Cape Wine Academy

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