The 29th Nederburg Auction has come and gone - with the customary hullabaloo about records... record wine prices, record participation, record turnover... Most likely also a record attendance over a record duration, because this event is now becoming rather drawn-out.
And time and again, after the extravaganza, one questions the message that goes out to the producer, marketer and consumer. It is no longer appropriate merely to gush about the great good times and wonderful shopping on this elite wine farm, which, once again this year, was held on a beautiful autumn day, albeit slightly rainy.
Or to discuss the gourmet meal, fine wines, colourful guests, over-the-top and revealing fashions - there is no doubt we live in the era of transparency - and so forth, all of which simply has to be seen and experienced.
That is a game which attracts social butterflies and wine buyers with fat purses - this year there were about 1 600 merchants, media, industry personalities and celebrities from the fashion, film and TV scenes.
Of interest to the wine folk in the rest of the country, is that in recent years, a particularly large percentage of the auction wines are eventually offered on the consumer market. Supermarket buyers still dominate, with 25% of purchases (30% last year).
Leading the pack was Makro, who bought 9,1% of the wines on offer, followed by Pick 'n Pay with 8,4%. Spar kept a low profile this year, after claiming the biggest purchases three years in a row.
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In recent years, a particularly large percentage of the auction wines are offered to the consumer market.
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In recent years, the supermarkets have become a force to be reckoned with as regards wine sales. With their large purchasing power, they probably offer the best wine value for money nowadays - and this applies increasingly to their 'elite' products, as acquired at the Auction.
The top ten buyers, who bought practically half the wines on offer, were:
- Makro R702 200
- Pick 'n Pay Supermarkets R645 740
- Igor Ledecky (of Russia) R435 810
- Norman Goodfellow Illovo R408 310
- Metro Cash R347 400
- Shoprite Brackenfell R270 820
- Cape Town Fish Market Waterfront R258 580
- Cybercellar R256 240
- Big Five Duty Free R240 000
- Heinitzburg Hotel R203 600
In the past decade, Nederburg has probably been saved from a few meagre innings by the supermarkets. Foreign sales peaked at over 40% early in the 1990s, then fell back to 14% in 1998, but has since picked up again to 17% last year and 18% this year - with attendance from 32 countries (including Namibia).
The organisers, Distell, being the mother company of Nederburg, declared it a priority two years ago to develop more overseas interest. Likewise, to refute the perception that the Nederburg prices are too expensive for foreign purposes.
Auction manager Bennie Howard emphasises, however, that a lot of the overseas sales are hidden in the sense that a lot of South African cellars, as well as the duty free and Cybercellar purchases, are intended for abroad.
In actual fact, he ascribes the good overall auction prices since 1998 to tourism - an expanding market to be supplied by local merchants.
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'Market the great personality' - Allan Cheesman
South Africa has a great personality and should capitalise on it by making use of its winemakers, said Allan Cheesman, opening speaker at the auction.
Cheesman, wine consultant to Sainsbury's in the UK, also recommended the creation of a strong brand for the Cape wine industry.
"Create and promote individuality, do not become a slave to the international varietal route - build on your strengths. Think globally and trade locally! Rather produce too much quality than too little.
"Wine is still growing. The New World still holds the key, there are dynamic developments in new packaging. The market is forever changing and South Africa is seen by the trade as a rapidly expanding supplier nation, now at number four in the UK hierarchy, and the one with the most potential. Almost 50% of the country's wine exports goes to the UK.
"What you need - and a start has already been made - is to create a strong generic Brand South Africa initiative - it goes without saying that you will have to define exactly what you want to achieve at a competitive level, communicate the message efficiently and co-operate. That is the essence of this auction - there are so many producer countries who do not sing in harmony - it would be well worth trying to do so!
"Also take note of the social aspects. Ignore the anti-alcohol lobby at your own risk. Everybody should strive towards uniform, world-wide alcohol unit labelling. We should actively promote responsible drinking habits and support education about the use and benefits of wine."
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With regard to foreign sales, a flamboyant Russian banker and wine collector, Igor Ledecky, accompanied by a beautiful woman, stole the limelight. Not only did he buy 259 'ordinary' cases at R435 810, he also tendered the closing bid of R140 000 for a single six bottle case of Lanzerac Pinotage 1966, the income of which was later donated to charity by Distell.
In a second charity auction, Ledecky also bought a 9 litre bottle of Villiera Merlot 2001 in a wooden case with the signatures of the Griers, Jeff, Simon and Cathy, for R27 000.
On the whole, the auction realised a record income of R7,5 million - 7% more than last year, for about the same number of wines on offer (8 558 cases were sold at an average of R886 per case of 9 litres equivalent).
This year red wine prices increased by 9%, dry white by 4%, semi-sweet white by 11%, noble late harvest by 10%, port by 33% and sparkling wine by 26%.
Although these prices are obviously inflated, for marketers and producers alike it serves as a good barometer of the styles and varieties that are in demand and highly coveted ? and of the health of the wine economy, despite suffocating exchange rates.
HIGHEST PRICES:
Red wine: The highest price was the opening offer of R7 000 for six bottles of Lanzerac Pinotage 1968, the average price being R1 423 per 9-litre case equivalent. The highest prices for 'commercially available' wines was R6 200 for a six bottle case of Vergelegen 1998 (red blend) and R5 000 for a six bottle case of Kanonkop Paul Sauer 1994.
White wine: R1 250 for six bottles of Iona Sauvignon Blanc 2001, a cellar which made its debut at the Auction. The average price for white wine was R712 per 9-litre case.
Noble late harvest: R6 600 for six bottles of Klein Constantia Vin de Constance 1986, double the price paid for the 1987-vintage at the 2001 Auction. The average price for noble late harvest was R1 756 per 9 litre case.
Port: For the second consecutive year Monis fetched the highest price for port, R7 400 for 6 bottles of Monis Collectors Port 1948 (Stamp Collection) - almost three times more than last year, when it fetched R2 700. The average price of port was R1 125 per 9-litre case.
Fortified wine: The highest price was R410 for six bottles of Nuy Red Muscadel 1996. Average price: R533 per case.
Sparkling wine: R740 for three bottles of MCC Pongr cz 1992. Average price: R899 per 9 litre case.
SALES per Category:
- Red wine: R5 820 670
- Dry white: R R975 730
- Noble Late Harvest: R432 000
- Sparkling: R181 360
- Port: R96 180
- Semi-sweet white: R29 200
- Fortified: R46 630
Nederburg and Distell are justified in smiling about much more than just another colourful, successful event. As usual, large volumes of their own wines were sold - including 23 products from Nederburg - which probably earns them almost half the total income without commission on other sales. Their biggest single income was earned, for example, from 250 cases of Nederburg Private Bin Auction Cabernet Sauvignon/Shiraz Reserve at R313 100 (R1 252 per case).
In all its excess, Nederburg always makes provision for charity. This year the charity auction raised altogether R322 000 for the Hospice Association. For the first time too special items were auctioned at the gala luncheon, raising R116 000 for Mothers 2 Mothers, a health care programme for HIV-positive women.
- Cas du Plessis
New labels. New spirit. Trendsetting
An icy cold Thursday evening, 500 guests dressed in black, a gigantic marquee, three course meal, fashion show... and an impressive laser PowerPoint presentation to give Nederburg's wines a new look.
The venue at the official residence of the British High Commissioner in Bishopscourt, where the function was held the Thursday before the Nederburg Auction, raised a few eyebrows and might even have caused a few nervous flutters (the war against Iraq was in full swing at the time).
The function was definitely a social statement, glamorous and swanky. According to Peter Hafner, Distell's international marketing manager: wines, this was Nederburg's leap into the modern wine market. "The trendy new look underlines its repositioning as a world-wide, quality driven, lifestyle brand and coincides with the creation of three defined categories within the Nederburg range."
At the apex is the Private Bin collection of specialised wines, in the middle the Classic range, which offers a larger variety of varietal and blended wines to consumers, and then there is the Lifestyle category - the Lyric and Duet - aimed at the young wine drinker.
The new label retains the well-known coat-of-arms, but looks fresh and modern nevertheless, with a stylised ribbon. The ribbon, says Peter, indicates the brand's long list of awards. "The look is intended to find favour with all wine lovers, from experienced connoisseurs to those who are looking for an aristocratic stalwart."
Nederburg's repositioning also means that the name is now linked to cutting-edge local fashion design. Nederburg is the title sponsor of the SA Designers' Collections, aiming to give exposure to top designers.
The creations of 20 top designers were showcased this year at the fashion show on the Saturday afternoon in the marquee in front of the homestead. (The Saturday's attractions were predominantly social, rather than business oriented.)
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The trendy new look underlines its repositioning as a world-wide, quality driven, lifestyle brand.
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And for those who wondered about the creations on the ramp, or about Nederburg's involvement in fashion, the success of the fashion show is based not only on the beauty calling of the clothing. "By supporting South African fashion, Nederburg will make a positive contribution to the economy and the lives of the people in the industry," explains Gavin Rajah, executive producer of the fashion show and one of South Africa's foremost fashion designers. "This show is about a lot more than the creation of beautiful pieces, it ensures work opportunities, it creates a desire for quality products that are intrinsically South African and establishes an international brand identity."
The Saturday was characterised by a colourful fashion mélange of the who's who in the world of wine, as well as social trendsetters. Under black umbrellas, guests started their day with a sparkling breakfast. Throughout the day they strolled at leisure to the cellar for a cellar tour, or they simply chilled with food and drink in the fashion lounges of the five lifestyle magazines - Elle, Marie Claire, Condé Nast House and Garden, Style and Visi - where food, wine and design mingled into a modern lifestyle experience.
During the protracted luncheon, the inner man was fortified by a starter of marinated salmon and tuna tataki with cucumber sushi, buckwheat noodle salad and coconut and chilli mousse. The main course - rack of Karoo lamb with creamed rice and butternut pilaff with root vegetables - which was served warm and full of flavour, proved that the logistics had been planned and finetuned to the n-th degree, taking into account that about 2 500 guests were served lunch over the two days. Dessert was a visual feast with baked cheesecake, black cherries, a nougatine trumpet waffle with fruits of the forest and a chiboust cream pavlova.
This was followed by the fashion show, which prolonged the day even further and induced guests to linger longer than previous years. As usual the outfits were creative, daring, even defiant. Others were more ethnic, traditional, classic and some were even shocking.
In his opening speech Allan Cheesman, wine consultant from the United Kingdom, spoke about the new, more liberal and powerful approach to reach the consumer. Wines are no longer displayed in the back row of the supermarket, but in front, alongside the fresh produce - wine is part of the meal. So many factors impact on the sales of wine: mood, lifestyle, lighting, ambience, decor, design...
At this year's Auction, Nederburg followed this very same strategy: the combination of business, fashion, design, food and the enjoyment of wine.
- Wanda Augustyn