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On a roll ...
but not on the world map by Cassie du Plessis
Not that Nederburg hasn’t seen change. On the contrary, this glittering highlight of the Cape wine calendar was changed from a one- to a two-day event three years ago. And last year saw the first entry of wines from the former Bergkelder stable, previously the very opposition to Nederburg and its mother company, SFW. But what we’re talking about here is possible fundamental change, such as a new approach to the line-up of wines, to present internationally viable volumes and prices ... and a more international shift in the guest list.
With the recent final merging of the two respective mother companies, SFW and Distillers Corporation, into the Distell group, one would have expected the auction to be a different ball game. But this year it was probably a bit too soon after the merger to effect changes that would bring the auction more in line with the Distell course.
The company's vision is to be an international player to be reckoned with. But it is exactly in the international department where the Auction now appears to be lacking, 27 years down the line.
Subtle hints of possible change were actually given by the MD of Distell, Jan Scannell, at the wrap-up media conference and during a subsequent chat with WineLand.
Responding to questions about the waning international participation, Mr Scannell said that the comparatively small purchases by buyers outside the South African borders were a matter of concern ... "We shall have to investigate ways to get more international interest."
Mr Scannell assured me later that he did not believe the emphasis on high prices by the mammoth, well-oiled Nederburg media campaign was part of the problem around foreigners' perception of the Auction prices being too high for their needs. "It is, after all, an auction of rare wines, which means the wines will be pricey. It depends where we want the focus to be. It is not the place to sell masses of commercial wines. But if we want to sell more internationally, some change of focus might be necessary to target more foreign buyers."
Commenting on the fact that potential buyers were outnumbered by far on the guest list, Mr Scannell said that the "social part" of the auction was an important aspect. "This has become a South African Auction rather than a Nederburg one."
Asked about the future survival of the Auction under the new dispensation, Mr Scannell said that as long as Nederburg covered its costs, there would be no danger. And the personnel involved were doing an excellent job in covering costs.
Actually, in terms of income Nederburg is certainly doing pretty well out of the party - total sales this year amounted to a record R6,5 million. Roughly two-thirds of the income from sales and commission usually go to the organisers. And, despite the fact that there is a good mix of South African brands, and with 22 items on auction, the vast majority of wine in volume terms was from Nederburg itself.
Altogether 13 of the total 144 items on sale realised six figure amounts, and 13 of them were Nederburg products, the highest being R477 900 for 460 cases of 1994 Nederburg Cabernet Sauvignon-Shiraz. Incidentally, the only "outsider" in this income bracket was 1996 Veenwouden Classic, which totalled R148 500 for 65 X 6 X 750 ml at an average of R2 284 each (R3 400 high and R1 020 low!)
While the rapid rise of the supermarket buyers continued this year, international buying remained at last year's level of about 9% of total purchases - after a peak of 46% in 1994. The 2 200 guests entertained over the auction's two days included 38 international representatives from 20 countries. Although invited buyers numbered 628 with all their "hangers on", the actual registered bidders in the Johann Graue Hall totalled 193, of whom 158 were successful.
In terms of international participation, it was disappointing to see only 12 bottles out of 6 736 cases (9 litres volume equivalent) going to the UK. These were two six-bottle cases of 1993 Morgenhof Cab purchased at R1 750 each by Mrs Daphne Mackenzie of The House of Rosskeen, Ross-Shire in Scotland.
The USA - proposed by guest speaker Zelma Long as a priority export country - will get at least get 27 cases. This, of course, if the South African buyers do not in turn send some of their wares abroad, which is always a possibility. The export country with the highest purchases was Namibia with 7%, followed by Kenya, with 3% of total sales.
Auction manager Bennie Howard said that all the supermarket group purchases - 36,5% of the total - were intended for the domestic market. This was confirmed as far as Spar is concerned, by the head of their liquor division, Ray Edwards, who bagged 1 532 cases to the value of R1 231 000 - accounting for 19 % of total sales.
Mr Edwards said in an interview that just about all his purchases had been "pre-sold" in the sense that these had been ordered by retailers in the group, based on their sales in the past year. Spar was only the second single buyer to top the R1 million mark for Auction purchases, the previous one being Mr Wu Chiu Lin Trafficker from Taiwan in 1997.
The Spar chain comprises 750 supermarkets, 550 of which have wine licenses. Their sales through the Spar Wine Club, with 2 500 members, are buoyant.
"The Auction wines were indeed expensive," Mr Edwards continued, "but considering the quality, advanced maturation and prestigious brands, they are value for money." Spar concentrated on red wines, mainly Cabernet Sauvignon, preferably the Nederburg brand, followed by other labels of the Distell group.
Other salient facts and figures were:
The second biggest buyer was again the Makro group with 698 cases to the value of R590 580 and third Pick 'n Pay with 590 cases for R383 500.
Newcomers among the top ten buyers were the Wine of the Month Club, Midmar Liquors Cape Town, Hotel Heinitzburg of Windhoek and Metro Cash and Carry.
The rest of the "top ten" were Big Five Duty Free, BP Investments and Oude Libertas Trust.
Overall prices went up marginally to R957 per nine-litre case, compared with last year's overall average of R928. White wine increased to R702 from last year's R639 and red wine to R1 157, up from last year's R1 146. Fortified wines decreased to R605 compared to last year's average price of R1 080.
The highest prices were: Dry white, R1 050 for six bottles of 1998 Vergelegen Chardonnay Reserve. Sweet white, Klein Constantia Vin de Constance 1987 (6 x 500 ml) at R3 300 per case. Red, R6 400 for a case of Lanzerac Pinotage 1964 (6 x 750 ml), the closing bid of the auction. Fortified wine, a single case of Monis Collectors Port 1961 (6 x 750 ml), which sold for R3 100.
-Lowest price: R250 for a case of 1999 Nederburg Muscadel-Chenin Blanc Special Late Harvest.
There were 16 unsold lots. The wines involved were one special late harvest, a noble late harvest, an MCC, a fortified sweet, a port and a Cab - we'll not mention names.
The charity auction raised R258 200 for the Hospice Association of South Africa (HASA), totalling R1,2 million over the past 12 years. Hans Schreiber, co-owner of Lusan Premium Wines, paid the highest price - R200 000 for a 300 litre barrel of Nederburg Pinotage 2001, made by the newly appointed cellarmaster, Razvan Macici and his new team.
Another charity item, a collection of six wines, donated by the guest speaker Zelma Long, was bought by Mike Kovensky of Aroma Drop Inn for R33 000.
Cape Sun Inter-Continental, the caterers, used 20 000 pieces of cutlery and 9 500 glasses to keep the guests fortified.
The Nederburg Fashion Collection Show 2001 featured 21 top couturiers from South Africa and Zimbabwe ... and transparent tops or exposed bosoms aplenty did not raise an eyebrow, unlike 10 years ago when a "neckline" slid down and caused quite a stir!
Present a united front - guest speaker Zelma Long
Don't compete with each other; compete with the rest of the world. They, not your neighbours, are your competitors." This was the message from Zelma Long, the dynamic winemaker from Napa Valley, California, to the entire South African wine fraternity, who should "present a united front to the world".
She also advised South Africa to position itself in the super and ultra premium categories and lead with the best. "You do not want to position yourself as an industrial-scale producer."
Ms Long also called on the South African government and South African wine producers to develop the American market as wine is one of the fastest growing consumer products in that country. Between 1990 and 1999, the US per capita consumption of wine declined, but the per capita consumption of premium wine (cork-finished wines) more than doubled.
"Wine is consumed by adults, and older adults drink more wine. America is ageing; we have 119 million people over 40; 78 million under 40."
She added that a leading US wine market researcher had predicted that, over the next 15 years, the US premium wine market would grow from 203 million to 369 million cases. " This is an opportunity."
"South Africa should position itself as a cool growing climate with one of the world's most distinctive, and best, terroirs for growing fine wines. Wine is one of the most competitive consumer products in the world. However, South Africa is well positioned to be the 'new wine discovery of the 21st century'."
Ms Long also advised wine writers, winegrowers and winemakers as follows:
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Visit our sister sites:
 2009/10 Directory Now Available! Facts, figures, contact details and much more...
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Gloriously sunny autumn weather is part and parcel of the Nederburg Auction, like record prices and vinous, culinary and couture extravagances. But this year there were a few downpours ... perhaps an omen of change to come.
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