Wine Investment in South Africa - Cape Wine Academy

Appendix D
Interview with Dave Hughes Hon. CWM
Why is there currently little or no investment in SA wines
It is largely because of our history. Before the Second World War, we drank European
wines. By the 1960’s, the strengthening of the Rand, from R2 to the GB Pound to R20
meant that those wines became expensive and there was a bit of a red wine boom of
SA wines. But those wines, before, say, 1973 were poorly made and didn’t keep. This
was partly because of poor corks and anyway, wine was bought and drunk
straightaway. Also, the law prevented anyone selling wine without a licence and this
restricted purchase and consumption. SA doesn’t really have a wine culture.
Since the 80’s though, things have changed
Wine drinking only began in the 60’s, and only in the last 20 years has wine been
good enough to keep. People are more aware of storing wine better at home and
some wineries began to store for the customer, such as the Bergkelder.
But no trading facilities for wine
There are no wine auctions, perhaps because of the years of poor wines, they are
allowed to sell deceased estate wines and to bona fide collectors. It shows how bad
laws were in preventing investment in domestic wine, the lifting of Prohibition was
only in 1961.
And what hope is there for future wine investment
People will have to spend more on wine. More on imported foreign wines. Top wines
have to develop a performance level thus creating icon wines but at the moment there
is still no wine culture here.
Appendix E
Interview with Johann Krige
Why is there currently little or no investment in SA wines
One of the problems is credibility of SA wines as investment wines. Even Bordeaux
has problems at the moment, the Chinese bailed out the Bordeaux system and saved
en primeur from collapse.
Also, South Africans don’t understand en primeur.
And no trading facilities for wine
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