Wine Investment in South Africa - Cape Wine Academy

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.
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