South Africa: conquering hero

Thursday, 31 August, 2017
drinksretailingnews.co.uk, Martin Green
South Africa secured a resounding victory when DRN recently polled 200 independent merchants in a bid to find which countries’ wines are performing best in the sector. It finished ahead of Italy, Argentina and Spain as the country growing sales in the strongest fashion and it is easy to see why.

Quality has improved drastically in recent years. Classics from well-established regions are winning plaudits, a dynamic new wave of winemakers is pushing boundaries and producing intriguing offerings and at the very top end scores from critics speak for themselves. 

But perhaps the finest praise it can get is that South African MW Greg Sherwood has started drinking it at home again. For years he turned to Burgundy, Bordeaux and Italy for his evening tipple, but now he is returning once more to his motherland. “I find myself drinking so much more South African wine again,” says Sherwood, of London indie Handford Fine Wines. “They are so affordable, at high quality, with such diversity.”

Diversity is what springs to mind the most when you consider South Africa – it is hard to think of a New World country that offers such a wide array of styles and unique selling points. “Australia, Chile, Argentina – it’s difficult for these countries to compete when they don’t have the diversity and USPs of South Africa,” says Sherwood. 

But it is not just indies that are revelling in the price-to-quality ratio being offered by South Africa nowadays. Nielsen figures covering the multiples show that year-on-year sales are flat at £468 million (year to July 2017), which is an improvement after a couple of years of decline. 

“South Africa is a fascinating country from a wine perspective,” says Gyles Walker, senior wine buyer at The Co-op. “It can basically produce anything you want as a customer. If you want varietal-led, great value, quality products then fantastic South Africa is your first stop. You can get entry-level Chardonnay, Sauvignon Blanc and Cabernet Sauvignon at really good quality, all the way up to the top icon brands that have been around for a number of years, and all the ladders in between. 

“There are really exciting areas where winemakers are being unleashed. They know the farmers and the old vines and the quality of the grapes and they are so excited about what they can turn these grapes into. This whole generation is very confident and wants to try something different, but not in a scary way – 
the wines they produce can still be understood by customers.”

Areas of excellence

South African government figures show that exports to the UK are up 1% in value, driven by bottled exports as bulk declines. This shows that the work being done by the likes of Handford, Hallgarten, Farr Vintners, Berry Bros and Fine & Rare at the fine wine end of the market is driving growth in the category.

Sherwood points to a few key areas in which South Africa is really excelling – white blends, trendy calling cards such as Chenin Blanc and Cinsault, and alternative warm climate varieties finding a great home in areas such as Swartland. “No one can do white blends like South Africa,” he says. “They have a classic flavour, good concentration and acidity. It’s like a white Burgundy alternative, but impossible to replicate anywhere else in the world. Nobody can challenge them.

“The Cape white blend in all its forms remains a very special category because the greatest expressions are not just conjured up creations. They are formidable, thoughtful wines with a sense of confidence, terroir, balance and delicious, synergistic flavours. Varieties you’d expect to be incongruous marry seamlessly and genuinely create a whole that is greater than the sum of its parts. This synergy factor is the Holy Grail that other international producers have found almost impossible to replicate. The South African wine industry is truly blessed to have this joker in its marketing hand.

“People in our store are just as happy to pick up a £25-£30 Chenin as they are to pick up a £30 white Burgundy or Italian, which is great.”

Sherwood has a particular soft spot for Duncan Savage’s wines and points to the new 2016 Are We There Yet? Touriga Nacional as showcasing the potential of warm-climate varieties in South Africa. He also highlights Eben Sadie as a great pioneer in this field. He says his private clients are piling into top-end South Africa in a big way and his main challenge is securing a large enough allocation as demand is so high among London merchants. 

To read more online, click here.

subscribe to news
South Africa's Old Vine Project
South Africa's Old Vine Project

more news