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Confirmation of South Africa’s top ‘investable’ wines – 2019 auction data

KANONKOP PAUL SAUER tops the list of most ‘investment-worthy' South African wines produced over the past 20 years and sold in 2019 at one of the various Strauss & Co Fine Wine Auctions or at the Cape Fine & Rare Wine Auction (CFRW) in Stellenbosch. That's according to Roland Peens, director of Wine Cellar, the Cape Town-based merchants associated with the Strauss & Co auctions by way of a joint venture partnership.

‘Investment-worthy' wines are defined by Wine Cellar as those which hold the brand equity, quality and ageability that lead to the highest price growth. On this basis, the following are the Top SA wines according to the highest compound annual growth rates as measured by Wine Cellar – the Top 20 highlighted in bold, with the Top 10 in red:

Alheit Cartology (White Blend)
Alheit Magnetic North Makstok (Chenin)
Alto Cabernet Sauvignon
Beeslaar Pinotage
Boekenhoutkloof Syrah
De Toren Fusion V (Red Blend)
Glenelly Lady May (Red Blend)
Hamilton Russell Pinot Noir
Hartenberg Gravel Hill (Shiraz)
Hartenberg The Mackenzie (Red Blend)
Kanonkop Black Label Pinotage
Kanonkop Cabernet Sauvignon
Kanonkop Paul Sauer (Red Blend)
Kanonkop Pinotage
Klein Constantia Vin de Constance Natural Sweet
Le Riche Cabernet Sauvignon Reserve
Meerlust Rubicon (Red Blend)
Mullineux Single Vineyard Syrah(s)
Mullineux Straw Wine (Olerasay and Straw)
Mullineux Syrah
Mvemve Raats de Compostella (Red Blend)
Porseleinberg Syrah
Rust en Vrede Estate (Red Blend)
Rustenberg John X Merriman (Red Blend)
Rustenberg Peter Barlow Cabernet Sauvignon
Sadie Columella (Red Blend)
Sadie Old Vines Series (Various)
Sadie Palladius (White Blend)
Thelema Cabernet Sauvignon
Tokara Director's Reserve Red (Blend)
Vergelegen G.V.B Red (Blend)
Vergelegen Reserve Cabernet Sauvignon
Vergelegen V (Cabernet Sauvignon)
Vilafonté Series C / Series M (Red Blends)
Warwick Trilogy (Red Blend)
Waterford The Jem (Red Blend)

“The international wine market is estimated at $300-billion, with fine wine contributing $8-billion,” according to Peens. “Sadly, South Africa produces the lowest-priced wines in the world, averaging just R26 per bottle. The market above R100 is likely around R2- to R3-billion, and at the R500 level the revenue of South Africa's fine wine is equitable to that of [just] one Bordeaux château. Considering we produce 4% of the world's volume, this surely offers opportunity for price and quantity growth.”

The secondary fine wine market is even smaller, said Peens. “Combining the Cape Winemakers Guild Auction (R11m), the Cape Fine & Rare Wine Auction (R3m) and Strauss & Co Fine Wine Auctions (R4m), the Wine Cellar brokerage platform (R4m) and vintage releases from producers (estimated at ±R8m) gives a total secondary market of R30m.”

Peens stressed that one of the key drivers of appreciation in the secondary market is brand equity. “While quality is paramount, perceived customer value hinges on high scores and competition success as well as clear and consistent marketing,” he said before referring to the 2018 poll by Cape Wine Master Tim James, the results of which were published on Winemag. “The combined views of 27 pundits [voting on the Top 20 SA wine cellars] doesn't necessarily correspond with consumer demand however, and brands such as Vilafonté and Meerlust offer high brand equity even though not considered amongst the Top 20.”

There are six producers whose names are included on both Wine Cellar's list of the Top 20 Most Investment-Worthy in 2019 and the Top 20 according to the Tim James/Winemag poll of 2018: Alheit, Boekenhoutskloof, Kanonkop, Klein Constantia, Mullineux and Sadie. Whereas in the 2019 SA Cellar Classification based on the opinions of judging panels around the world, there are three names among the Top 20 that are also included in Wine Cellar's Top 20: Kanonkop, Rustenberg and Vergelegen, i.e. with Klein Constantia and Mullineux ranked among the country's six most successful dessert wine producers during the preceding 10-year period.

 

• For the top prices paid at the Strauss & Co Fine Wine Auctions in 2019, see here, here and here.

• For the top prices paid at the 2019 Cape Fine & Rare Wine Auction, see here.

• For the top prices paid at the 2019 Cape Winemakers Guild Auction, see here.

 

 

 

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