Only a fraction of the 8,000 or so wines produced yearly in SA sell for more than R150 a bottle.
About 5,000 labels change hands at under R70. Most of these come from high-volume cellars: you need economies of scale to stay profitable at those price points, as well as fruit costs of under R6,000/ton. Growers with ample supplies of water can manage on this, but not those in the premium regions.
In the Northern Cape, where yields often exceed 30 tons per hectare, R3,500/ton for healthy but unexceptional grapes converts to R100,000/hectare for the grower. His farming cost could be well under R50,000/ha; accordingly he is doing very well. So is the winery owner: R3,500/ton for grapes translates to about R8/litre for wine, or R6 (before excise) for what is required to fill a bottle.
Those fruit prices do not help growers in Stellenbosch, where average per hectare yields are below 10 tons, and farming costs of more than R60,000. You do not need an MBA to work out why vineyards close to the Mother City are being grubbed up while the Northern Cape is experiencing a boom.
It’s also clear that there really are two different kinds of wines and two different kinds of consumers. The value in “value” wine lies in the quality at the price point. The value in the higher priced wine sector resides — at least in part — in the gratification which ownership and the service of the beverage confers upon the buyer. There is virtually no overlap between these positions.
Those accustomed to shopping on price know very little about the geekier wines. They are alert to the purchasing prospects in their chosen segment: this is why supermarkets promote what are called “known-value items” and steer clear of the more esoteric brands.
If consumers don't know what your brand is supposed to be worth, they're not going to be attracted to the ‘special offer’ the retailer is using to promote the sale.
— MIchael Fridjhon
Most new producers these days aim for the small volume ultra-premium segment. The reasoning is obvious: first, they’ve probably come into the wine game because they think they can make something worthy of serious consideration; second, they’ve worked out that to build a market in the hotly contested space where people shop on price requires big budgets for advertising and for discounting. If consumers don’t know what your brand is supposed to be worth, they’re not going to be attracted to the “special offer” the retailer is using to promote the sale.
The latest of these newcomers to visit Johannesburg to show his wares was Damascene’s Jean Smit. Formerly at Boekenhoutskloof and now working with David Curl (sometime proprietor of Chateau Gaby in Fronsac), Jean’s point of difference is that he seeks to marry appellation (rather than single site) to each variety. Unsurprisingly his Sémillon comes from Franschhoek (which has the Cape’s greatest concentration of old Sémillon vineyards) while his pinot noir is made from Elgin fruit.
The 2018 Franschhoek Sémillon is quite special: it comes from two blocks on the valley floor, the oldest of which is now more than 75 years old. Initially quite creamy on the palate, it evolves in the glass delivering a more perfumed, zesty lime-twist note, fresh and elusive. The 2018 Syrah, from sites in Bottelary and Polkadraai, is remarkably accessible, but not simple. A small portion went through carbonic maceration, adding a vibrant berry whiff to the rich, meaty aroma. There’s also a single vineyard Cabernet Franc in the range, spicy and elegant and not at all herbal.
The pinot noir is sold under the Moya Meaker label (because it comes from the Elgin farm of the same name). I really liked it though it’s less ambitious than the Damascene wines: an intense black cherry bouquet, almost limey on the palate, savoury, forward and very attractive. It’s not a blockbuster, and its charm lies in the purity of the fruit, but at about R240 a bottle it’s one of the best pinots of the season.
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