South Africa – the future

One of the biggest threats to the global wine industry is climate change. It will change to face of viticulture while making currently marginal warm climates beyond the realms of quality grapes. Bordeaux and Burgundy have both been making moves to re-define their wines with Burgundy trialling Syrah to allow growers to plant varieties more suited to a warmer climate as Pinot Noir becomes less viable. Bordeaux has recently announced they are to permit several other varieties that are more suited to warmer climates. At the same time, regions previously too cold will become warm enough to grow the noble grape varieties associated with much warmer climates. It may not be as simple as it first seems as other factors will come into play. Increased rains may happen in some parts while currently damp regions could become deserts, only time will tell. As has happened since wine first emerged from the Middle East, wine will continue to evolve as tastes and climates change. Our greatest challenge will be to ensure our knowledge keeps pace with that change.

The next obstacle facing South African wine in particular, is making it sustainable. This will need to be looked at in two parts. Firstly, economic sustainability. South African wine attracts a much lower price both in the domestic market and export markets. This is limiting investment and opportunity as many farms struggle to actually make profit in a competitive marketplace. The industry needs to increase the value it gets from wine to secure a viable, long term industry. Secondly, environmental sustainability. South Africa will face similar challenges to other wine producing countries to reduce reliance on resources and introducing recyclable packaging and the impact of transportation on the environment.

It isn’t all bad news. South African wines are improving beyond all expectations coupled with greater regionalisation. There are distinct regions more suited to certain grapes which are having greater success. As more is understood, quality can only continue to improve.

This improvement will drive the next factor, premiumisation. This is because the industry needs to produce premium products to raise the profile of South African wine across the world. In 2018, Tim Atkin awarded the Kanonkop 2015 Paul Sauer 100 points. This recognition caused the price to explode but it didn’t reach anywhere near equivalent wines from other countries. Even the likes of Eben Sadie struggles to break through the ‘glass ceiling’ price at home and abroad despite making wines that can stand side by side with the best. More producers understand the need to make and sell these ultra-premium wines which, despite being out of reach for most consumers, are important to bring economic sustainability to the industry.

Lastly, Chenin Blanc. For years, Sauvignon Blanc has ruled the white wine category, but South Africa’s own white grape is catching up. Driven by improvements in winemaking, vineyards maturing and the rediscovery of old vines, consumers are realising the potential of this once overlooked grape variety. Helped by the versatility of the grape, it is now up to 3rd place in sales while consumers understand the regional variation of Chenin Blanc in South Africa Having a globally successful product will underpin the industry while improving profit, sustainability and premiumisation.

While the imminent future of the SA wine industry has never been more uncertain, there has simultaneously never been more optimism and appreciation for our wines both at home and on the global stage. It is now up to us as an industry to work closer together in 2019 and beyond to build a future that is both drinkable and sustainable.