South African workers in the wine sector were fighting against poor working conditions for farm workers at several vineyards in the country and the wine retailers were supporting their actions.

According to the Human Rights Watch (HRW), wine and fruit farm workers in South Africa live in on-site housing unfit for occupancy, are exposed to pesticides without appropriate safety equipment, have limited (if any) access to toilets or drinking water while working and have many barriers to representation by unions.

Economic Asset

Farm workers add millions of dollars to the economy of South Africa; however, the people who produce the goods are among the lowest wage earners in the country. According to the Paris-based Organization of Vine and Wine (OVI, 2021) data, South Africa ranked eighth among the world’s largest wine-producing countries, ahead of Germany and Portugal, behind Australia, Chile, and Argentina.

The wine industry in the Western and Northern Cape contributes R550 billion (approximately US $30 billion) to the local economy and employs almost 269,000 people. The annual harvest produces approximately 1.5 million tons of crushed grapes, producing 947+/- million liters of wine. Domestic sales record 430 million liters of wine; export sales total 387.9 million liters.

There are 546+/- listed wineries in South Africa with only 37 crushing over 10,000 tons of grapes (producing 63 cases of wine per ton; 756 bottles per ton). Most of the wine produced is white (55.1%) including Chenin Blanc (18.6%); Colombar(d) (11.1%); Sauvignon Blanc (10.9%); Chardonnay (7.2%); Muscat d’Alexandrie (1.6%); Semillon (1.1%); Muscat de Frontignan (0.9%); and Viognier (0.8%).

Approximately 44.9% of South African vineyards produce red varietals including Cabernet Sauvignon (10.8%); Shiraz/Syrah (10.8%); Pinotage (7.3%); Merlot (5.9%); Ruby Cabernet (2.1%); Cinsau (1.9%); Pinot Noir (1.3%) and Cabernet Franc (0.9%).

It is interesting to note that although South Africa is a recognized producer of fine wine, the alcoholic beverage of choice among South Africans is beer (75% of total alcoholic beverage consumption), followed by alcoholic fruit beverages and spirit coolers (12%). Wine consumption accounts for only 10%, with spirits coming in last at 3%.

Preferred Grapes

White Wines

Chardonnay accounts for 7.2% of all vineyard plantings. Chardonnay tends to be medium-bodied and structured; however, some producers prefer to make Old World style (heavy and wooded), while others select a New World approach (lighter and unoaked).

The Chenin Blanc grape was one of the first wine grape cultivars introduced to the Cape by Jan van Riebeek (17th century). It has high acidity making it a versatile grape for producing a variety of wine styles from still, dry, and sparkling to well-balanced sweet wines. It is high-yield, versatile, and grows on land unsuitable for other white grape varieties.

The Colombar(d) varietal was planted in South Africa in the 1920s and is now the second most planted grape in the country. It was primarily used as a base wine for brandy production until the end of the 20th century when Cape Winemakers discovered it could produce a pleasant drinking wine with good acid content ensuring a fresh, fruity, and interesting palate experience. It was developed from a crossing of Chenin Blanc with Heunisch Weiss (aka Gouias Blanc).

Sauvignon Blanc presents as a crisp and refreshing wine. The first records in the Cape date to the 1880s; however, a high rate of disease led to most vineyards being ripped out and replanted in the 1940s. This variety is the third most planted white wine in South Africa and styles run from green and grassy to light and fruity.

Red Wines

Cabernet Sauvignon was first recorded in South Africa in the late 1800s. By the 1980s it made up 2.8% of all vineyards; now it is found in 11% of vineyards. The varietal produces very good wines that develop well with age and mature into a spicy, full-bodied, complex taste experience. The wines range from intense with perfume aromas, spicy and herbaceous on the palate, or soft and well-rounded with berry notes. It is also found in Bordeaux-style blends.

Shiraz/Syrah dates back to the 1980s. It is the second most planted red grape variety representing 10% of plantings sparked by the Australian Shiraz popularity in the 1980s. Styles present as smokey, and spicy developing over time; frequently used in Rhone-style blends.

Merlot began as a single-hectare vineyard in 1977 and has increased to be found in approximately 6% of red wine vineyards. It ripens early, is thin-skinned, and is highly sensitive to drought making growth and production challenging. Traditionally used in Rhone-style blends to add softness and breadth to Cabernet Sauvignon, increasingly it is bottled as a single varietal that is usually medium to light-bodied in style with a touch of herbal freshness.

Pinotage is a South African cultivar created by Professor Abraham Perold in 1925 and is a cross between Pinot Noir and Hermitage (Cinsault). Currently, it can be found in approximately 7.3% of the vineyards. Pinotage is unpopular in export markets but a favorite in the country. The grapes can produce complex and fruity wines as they age but are pleasantly drinkable while young. Pinotage easy drinking styles produce rose and sparkling wines. It is the main component in Cape blend making up 30-70 % of the wine sold in South Africa.

Exports

In 2020, approximately 16 % of the wine produced was exported (480 million liters). The level was reached because of increased demand from African markets and the industry’s strategy to grow exports. There has been growth in wine exports to other African countries from 5% in 2003 to 21% in 2019. This is expected to continue as the African Continental Free Trade Agreement (passed in 2021) is implemented and becomes operational (2030). The member nations present a potential market of 1.2 billion people and a combined gross domestic product of $2.5 trillion. It is the end result of many negotiations started in 2015 among the leaders of 54 African nations.

South Africa has a free trade agreement with the EU and exports to the US via a duty-free agreement under the Africa Growth Opportunity Act (AGOA. The largest export is bulk wines and the EU is the biggest market.

Organizations representing the wine industry include:

• South African Liquor Brand Owners Association (SALBA). Manufacturers and distributors of liquor products on issues of common interest (i.e., lobbying the government on regulatory matters).

• South African Wine Industry Information Systems (SAWIS) supports the wine industry through the collection, analysis, and dissemination of industry information; administration of the industry’s Wine of Origin system.

• VINPRO. Wine producers, cellars, and industry stakeholders on issues that impact the profitability and sustainability of members and the entire industry (i.e., technical expertise, specialized services from soil science to viticulture, agricultural economics, transformation, and development).

• Wines of South Africa (WOSA). Represents producers of wine who export their products; recognized by the government as an Export Council.

• Winetech. Networking of participating institutions and individuals supporting the South African wine industry with research and technology transfer.

A Step into South African Wine

At a recent New York Astor Wine Center South African wine program, I was introduced to a number of interesting wines from South Africa. A suggestion for phasing into the world of South African wines includes:

• 2020. Carven, the Firs Vineyard, 100% Syrah. Age of vines: 22 years. Viticulture. Organic/sustainable. Aged 10 months in neutral 5500L French tonneau (barrel; thin with a capacity of 300-750 liters). Stellenbosch.

Stellenbosch is the most important and renowned wine-producing region in South Africa. Located in the Western Cape’s Coastal Region, it is South Africa’s second oldest settlement after Cape Town and best-known for its wine estates.

Established on the banks of the Eerste River in 1679, it was named for the Governor, Simon van der Stel. The French Huguenot protestants fleeing religious persecution in Europe arrived in the Cape, found their way to the town in the 1690s, and began to plant vines. Today, Stellenbosch is home to nearly one-fifth of all vines planted in the country.

The terrain encourages variation in wine styles with many meso-climates. The soil is granite, shale, and sandstone-based and the ancient soils are among the oldest on earth. The mountainsides are mostly decomposed granite, preventing waterlogging and adds minerality; the valley floors have a high clay content with excellent water-retention properties. Sufficient rainfall in the winter allows growers to keep irrigation to a minimum, The climate is relatively hot and dry with cooling southeasterly breezes circulating through the vineyards in the afternoons.

The Winery

Mick and Jeanine Craven started their winery in 2013, and produce (exclusively) single-vineyard, single-variety wines that highlight the different terroirs around Stellenbosch. The Firs Vineyard is owned and farmed by Deon Joubert in Devon Valley. The soils are rich, deep, and red with high clay content developing a peppery, meaty experience that cool-climate Syrah fans appreciate.

The grape bunches are hand-harvested and fermented entirely whole cluster in open-top stainless-steel fermenters. The bunches are lightly foot stomped to extract a bit of juice and followed by gentle pumpovers once or twice daily to minimize extraction and maintain as many whole bunches as possible.

After nine days the grapes are gently pressed into old French puncheons (barrel size; holds 500 liters of liquid; twice the size of a typical wine barrel) for maturation for approximately 10 months. The wine is bottled without fining or filtration but with a small addition of sulfur.

Notes:

Ruby red to the eye, the nose finds hints of bell peppers, herbs, smoke, minerality, oak, and blackberry; medium tannins. Wild cherry and raspberry, plums, and jam find their way to the palate with a medium finish along with suggestions of green/stem sensitivities.

Headlong or Rational Progress

• The wine industry of South Africa faces harsh realities in the value chain:

1. Glass shortages

2. Export/import challenges at Cape Town harbor

3. Contrast between a 15% increase in farm cost inflation and a 3-5% wine price increase

4. Growing illicit market

• In order to endure and prosper South Africa should:

1. Move to a premium positioning in the global market

2. Focus on inclusive growth

3. Strive for environmental and financial sustainability

4. Investigate and adopt smart production systems to ensure a secure future

5. Plant the right cultivars and clones on the right sites while considering drought-tolerant rootstocks

6. Use water more efficiently by implementing monitoring systems that continuously measure if, when, and how much to irrigate

7. Invest in people through training

8. Use the ready-to-drink model and consider serving sizes, style, and packaging and investigate opportunities for ready-to-drink products that are usually chilled, carbonated, and blended

9. The traditional wine-drinking population is decreasing; however, some consumers are becoming more engaged and premium focused, supported by increases in at-home drinking opportunities

10. Millennial and Gen Z consumers are driving a trend toward moderate drinking and no/low alcohol wines

11. E-commerce channels are growing and evolving; online delivery apps are increasingly popular providing opportunities to increase brand awareness

12. Wine tourism to take an increasingly important part in the industry’s strategic growth plan

13. SA wineries should benchmark themselves against existing and future wine tourism intelligence futures in terms of composition, visitor statistics, and expenditures

The clock is ticking. Now is the time to seize the opportunity to move assertively towards developing a successful wine future.