Introduction to Wine Business Assignment 1B

1. South Africa
The Birthplace of Pinotage

2. Introduction
• The South African wine
industry is still recovering
from years of isolation,
following the end of
Apartheid in 1994.
• It is now time to reengage
with international markets.

3. • The majority of the wine
produced following the end
of the apartheid era was
cheap and insipid.
• Why? Labour and Land
was affordable so anyone
wanting to make a quick
buck jumped on the
bandwagon.

4. • The industry is based on the
southern tip of the country.
• Primarily based in the
Western Cape, there are
some vines in the Northern
Cape and a very small
amount in KwaZulu Natal.

5. "TODAY, PRAISE BE TO GOD, WINE WAS PRESSED FOR THE
FIRST TIME FROM CAPE GRAPES.“ JAN VAN RIEBEECK,
FEBRUARY 2ND, 1659
History

6. 1678 - Stellenbosch
Established
1685 - Simon van der Stel
plants vines in Constantia

7. 1688 - Arrival of French
Huguenots, some with
valuable winemaking
experience
1761 - Constantia Valley
starts exporting wine to
Europe

8. 1788 - Constantia dessert
wines win acclaim
throughout Europe
1886 - Phylloxera causes
major destruction

9. Current
Industry
• Over 100,000
hectares of vineyards
• 9th largest producer in
the world
• 450 million litres
exported annually
• Mediterranean
climate, with cool, wet
winters and dry warm
summers

10. Most Planted
Varieties
• Chenin Blanc – 18%
• Cabernet – 12%
• Shiraz – 11%
• Sauvignon Blanc –
10%
• Pinotage – 7%

11. • South Africa’s wine
history dates back to
over 300 years ago.
• Contemporary New
World Styles
combined with Old
World Classicism

12. The Vine
Improvement
Programme
(VIP)
First Phase (Completed)
• Yield controlling
rootstock
• Virus free rootstock
• Clonal research
Second Phase (in progress)
• Matching grape varieties,
rootstock and clones to
terroir

13. Influence on the world of wine
Pinotage
• Abraham Izak Perold
• Cross between Pinot Noir and
Hermitage (Cinsaut)
• He planted 4 seeds in his
private garden in 1925
• First commercial planting in
1943

14. Pinotage Misunderstood
• Low quality commercial wine in the 80’s and 90’s
• Vigorous; Bold; High in Tannin and Anthocyanin

15. Challenges
• Unstable market
• Unfair practices
• Strikes
• WIETA – introduced
“ethical seal carried
on bottles as a
guarantee of fair
labour practices”
Labour

16. Further
Challenges
• Possible ban on liquor
advertising
• Unpredictable
weather patterns and
consumer trends
• Balancing supply and
demand
• Unstable exchange
rates
• Tax changes
• 2014 elections

17. Resources
Dougherty, P.H. (Ed.). (2012). The Geography of Wine: Regions, Terroir and Techniques.
New York, USA: Springer.
Anderson, H. (2003). Vino: Great Wine for Everyday Life. London, United Kingdom:
Random House
Johan Anthoniszoon “Jan” Van Riebeeck | South African History Online. (n.d.). Retrieved
from http://www.sahistory.org.za/people/johan-anthoniszoon-jan-van-riebeeck
Prial, F. J. (1992, April 8). The Wine Regions: South Africa; Long History of Wine
Emerges From a Cloud. The New York Times. Retrieved from
http://www.nytimes.com/1992/04/08/garden/the-wine-regions-south-africa-long-
history-of-wine-emerges-from-a-cloud.html
Wines of South Africa. (n.d.). Retrieved from
http://www.wosa.co.za/sa/history_timeline.php
Facts & Figures | Wine Industry | Wines of South Africa. (n.d.). Retrieved from
http://www.winesofsa.co.uk/facts/
History of South African Wine. (n.d.). Vineyard Varieties. Retrieved from
http://vineyardvarieties.com/history-of-south-african-wine.html

18. South African wine. (2014, July 28). In Wikipedia, the free encyclopedia. Retrieved
August 4, 2014, from
http://en.wikipedia.org/w/index.php?title=South_African_wine&oldid=615495886
Who’s Your Daddy?: Pinotage. (n.d.). The Academic Wino. Retrieved from
http://www.academicwino.com/2012/03/whos-your-daddy-pinotage.html/
Give Pinotage Wine a Taste | Wine Folly. (n.d.). Retrieved from
http://winefolly.com/review/give-pinotage-wine-taste/
Winelands set for record harvest if unrest is resolved - Business News | IOL Business |
IOL.co.za. (n.d.). Retrieved from http://www.iol.co.za/business/news/winelands-set-for-
record-harvest-if-unrest-is-resolved-1.1451563
South Africa: striking workers burn vineyards in protest over 'hunger wages' | World news
| theguardian.com. (n.d.). Retrieved August 13, 2014, from
http://www.theguardian.com/world/2012/nov/08/south-africa-strike-vineyards
The South African Wine Industry: Insights Survey 2014. (n.d.). Retrieved from
http://www.pwc.co.za/en/publications/wine-benchmarking-survey.jhtml