Africa arises

What were the take-outs of the 39th staging of the annual Nederburg auction held in Paarl on 6 and 7 September?

Firstly, the anticipated sales of around R2.2million for the reduced volume (12 426 litres on offer versus 2012’s 25 444 litres after a stricter selection process) did not materialise. Instead, bidders outstripped expectations, paying R4.358 million – which resulted in significantly higher statistics than previous years. The average price – per litre – of red wine rose by 91% from R193.18 to R398.94 while that for white wine showed an 80% hike from R116.80 to R211.31. Volumes of noble late harvest wines – historically, the raison d’etre for the auction – were down substantially but showed the biggest hike of all; up 255% from R193 per litre to R705.45.

Outgoing MD of Distell Jan Scannell pronounced himself “very happy – and relieved” at the results. “I’m going to enjoy coming to the auction next year and not having to worry about the turnover!” he quipped.

One of the most noteworthy aspects of the 2013 auction, Mr Scannell said, was the interest displayed by African buyers. Namibia, long a supporter of the Nederburg event, increased its purchases to R455 500 as the United Arab Emirates accounted for sales of R219 150 and Kenya for R213 650 while Zambian buyers more than doubled last year’s acquisitions to R191 350. Coming off a zero-base were Rwanda, Botswana, Angola and Nigeria with wines to the value of R114 150, R107 100, R66 500 and R63 800 respectively knocked down to them.

Of the local retailers, the SPAR group once again bought the most with 15% of all the available lots for a total of R673 360 with Singita Game Reserve occupying second spot having paid R342 100 for its 115 lots.

Singita’s wine selection manager Francois Rautenbach had a busy two days, targeting the choicest lots of premium older wines – notably aged Kanonkop Pinotage and Cabernet Sauvignon. He almost cornered the market on the 1997 Kanonkop Cabernet Sauvigon, paying an average of around R8 000 per case of six bottles. “It’s already sold,” he later admitted. “It’s being shipped to America and elsewhere.” Which explains why the nearly R1 400 per bottle price appears a virtual steal when converted to dollars. Rautenbach said the clientele that Singita catered for wanted to taste the best wines South Africa had to offer, and since day one the group had taken a decision to show wines tasting at their peak – once well matured. “We obviously buy younger vintages and mature them ourselves but the demand for wines at optimum maturity in all our lodges and for sale to guests once they’ve returned home from safari is such that we need to supplement our existing stocks.”

The energy within the auction hall was palpably higher than in recent years. This was attributed to a number of factors, notably less wine available, smaller lots, more exciting wines selected, and also the advent of a few invited private buyers who chased the smaller case lots on offer. “It was obvious that the private buyers had firstly done their homework well and were prepared to go after the wines they wanted, whatever the price,” said auction manager Dalene Steyn. Retailers always need to consider adding their mark up onto what they buy and in previous years bailed out of the bidding when they felt the price went too high for what consumers would pay.

With the theme of Authenticity adopted this year, the organisers seeded the programme with choice selections from the Distell Tabernacle cellar, another move which paid dividends with the venerable vinous gems obtaining excellent prices. On day one three bottles of 1965 Chateau Libertas were knocked down for R4 800 – or R1 600 per bottle, but that was easily overshadowed by the R17 000 paid for six bottles of 1949 Monis Port, just shy of R3 000 per bottle. The honours for highest price for a single lot went to three bottles of 1973 Zonnebloem Cabernet Sauvignon which went for R22 000 – or just over R7 000 per bottle!

2014 sees the 40th anniversary of the auction with a new MD at the helm and renewed optimism and enthusiasm for the future of this event which has been in the balance for a few years.