The Barack Bounce

Tuesday, 20 January, 2009
Neil Pendock
Neil Pendock reports on a new producer initiative to export South African wine to the USA.
Perhaps the biggest reason for South African exporters to target the USA in 2009 is missing from the USA Producer Association [USAPA] discussion document doing the e-mail rounds among producers: the Barack bounce. International geography is famously not a forte in a country which confuses its own name with that of its home continent.

During last year's presidential elections, narrowly defeated VP candidate Sarah Palin was notoriously unaware that Africa is a continent comprised of individual countries rather than a single state. The election of an African-American president, son of a polygamous Kenyan goat herder, will undoubtedly focus American attention on Africa, a continent in which South Africa is the undisputed leading wine producer.

The Mandela moment in 1994 is widely credited with the explosion of wine exports to Europe after the first South African democratic elections and the Obama opportunity is likely to achieve the same thing in the USA. While Madiba was at best a reluctant wine drinker, Barack likes the stuff as Chicagoan Ron Gault, ex JP Morgan South African supremo and one of the four black partners in the Epicurean Bordeaux blend, can confirm - each vintage he gave his senator a case. A custom that is sure to continue now that he's moved to 1600 Pennsylvania Avenue, Washington, DC.

After declaring his run for the White House back in February 2007, Barack took his wife Michelle LaVaughn to their favourite Chicago West Side restaurant Blackbird to celebrate. The tables are so close together "only someone who eats like a bird can squeeze between them" according to foodie website www.gayot.com. To drink with Paul Kahan's minimally elegant fare like grilled California sturgeon with piquant sauerkraut gnocchi, the sommelier recommended two glasses of Graham Beck Brut NV which the restaurant offers by the glass. The main attraction being that this was the fizz served at Nelson Mandela's inauguration. An African bubbly for an African-American wannabe president.

Michelle ordered refills on the 4th of November - six bottles of Graham Beck Brut to celebrate the election of the 44th president, popped before the president-elect addressed the world at Grant Park from a giant bulletproof glass shower. Graham Beck winemaker Pieter "bubbles" Ferreira denies that "yes we can" is being considered as a neck label for the next release of his benchmark bubbly.

You don't need a postgraduate degree in wine marketing from UCT to realize that the US is the Promised Land for wine exporters and New York is Ground Zero - to re-appropriate an unfortunate phrase. The statistics speak for themselves:
  • The US is the world's second largest wine importer and the fastest growing one;
  • South Africa has a declining 1% share of this market;
  • New York/New Jersey accounts for 13.4% of US wine consumption;
  • 42% of wine consumed in the tri-state New York/New Jersey/Connecticut region is imported;
  • New York hosted 46 million tourists in 2007;
  • Saturation wine press coverage in the Wine Spectator, Wine Enthusiast, New York Times and Wall Street Journal;
  • New York is the nexus of the Australian (23% market share, 2007 figures) wine export push. At the end of December, Wine Australia announced the appointment of winemaker James Gosper.
Dissatisfied with the status quo, producers like Dana Buys from Vrede en Lust proposed to establish a section 21 company called the USA Producer Association - USAPA. The objectives are to represent producers already exporting to the USA; to promote the sale of South African wine "well suited to the USA consumer"; to develop Brand South Africa and provide a point of contact for the US wine trade.

Fairly modest membership fees are proposed, although some producers will probably argue that these fees should be covered by the money they already pay to WOSA, the exporters' association; especially after WOSA hosted a visiting US delegation in 2008. USAPA plans to promote South African wine in conjunction with SA Tourism, selling South Africa as an attractive tourist destination with an exciting wine industry. In a break with the "cheap and cheerful" model used to promote South African exports to Europe, USAPA will focus on South African wine as a high quality product. As Dana notes "we can't afford to blow this unique opportunity to correctly position South African wines!"

To this end USAPA proposes a quality rating for wines to be promoted: 86 points in Wine Spectator, 87 in Wine Enthusiast, 88 from Robert Parker and Steve Tanzer, 3½ stars in Platter or at least a silver medal at a South African wine show.

The caveat that US ratings will supersede any South African score will surely lead to heated debates. Platter assessments are made sighted, so while this may bring some fashionable brands down to earth with a bump, those located on the wrong side of the mountain who struggle for a fair assessment, will still be left out in the cold, unless they enter US tourneys directly - an expensive exercise.

And an admission that a couple of North American palates should be the arbiters of which South African wines are promoted. But then as one Paarl exporter realistically commented "American distributors (the real power in that market) want brands with definite values, with precise lines, and not vague tales of either diversity or empowerment. American consumers buy what they are told to buy - value wines via in-store and regional communication and higher priced fare via Wine Spectator or Parker".

Producers interested in obtaining more information on USAPA should contact Dana Buys at djbuys@gmail.com or Ross Sleet at rsleet@kleinezalze.co.za.