Prices commanded by some of South Africa’s top wines at the 2005 Nederburg auction, which took place in Paarl on April 9, have skyrocketed by 90%, boosted by a more restricted, higher quality offering, with the average price per nine-litre case of wine rising to an all-time high of R2Â 145 from R843,36 in 2004.
The annual Nederburg auction, organised and sponsored by Distell, South Africa’s largest listed wine and spirits producer, is regarded as the South African wine industry’s most prestigious showcase of wines. The 2005 event was revamped by significantly paring down the number of wines offered, after years of strong growth, in a move to reinforce the selectivity of the event, among other reasons.
Despite a total of only 4Â 955 cases coming under the hammer, sales reached
R7,49-million, the second highest in the history of the auction, surpassing last year’s total of R6,73-million with 7Â 977 cases sold. The highest-ever sales came in 2003, when 8Â 558 cases fetched R7,58-million.
Although prices rose sharply, most wine industry commentators did not believe this reflected current domestic market conditions in general, but only those for the highest-priced, niche sector of the market. According to many, red wine prices are likely to remain flat or decline slightly this year given the rising supply of red wine and stiff competition in the local market (particularly in the middle-and lower-priced market segments), while higher quality white wines, in relatively short supply, could experience moderate price increases.
This year’s auction saw a new trend in which one specialist retailer — Midmar Liquors in the Western Cape — bought by far the most wine, eclipsing the purchases of the large supermarket chains like Makro, Spar and Pick ‘n Pay, which have dominated previous auctions. These national groups were constrained by the much smaller lot sizes than in the past.
Midmar Liquors accounted for 33% of total sales on the day and bought 1Â 438 cases to the value of R2,48-million. The top 10 buyers bought 71% of the wine, the highest ratio in more than a decade, while foreign sales came out at only 5,7% of the total.
“I think the prices were realistic, and a reflection of the effort of producers to bring out top quality wines,” said Distell CEO Jan Scannell at a press conference following the auction late on Saturday. “It also possibly indicates the trust the buyers have in the quality on offer — they are rewarding real quality.
“Midmar is a very successful retailer specialising in a variety of high quality wines and spirits, and operates with strict selection criteria. They are astute buyers and wouldn’t have paid those prices if they didn’t believe they could sell it.”
Liquor City from Johannesburg was the second biggest buyer at R719Â 720, with the Cape Town Fish Market restaurant group in third position (R467Â 560), followed by Pick ‘n Pay (R453Â 360), Makro (R271Â 960), Spar Western Cape (R201Â 240), and Cybercellar with most of its sales bound for overseas (R239Â 970).
Prices across all wine categories rose sharply, with the average price per case paid for red wine doubling to R2Â 481 versus last year’s R1Â 208.
The average price paid for dry white wine was R1Â 233, up on last year’s price of R645. Warwick Professor Black Sauvignon Blanc 2004 went for the top price of R4Â 300 per case (6 x 750 ml).
The average price paid for a noble late harvest was R2Â 299, compared to R1Â 600 in 2004. The top price of R11Â 200 was paid for the last six-bottle case of Klein Constantia Vin de Constance 1986.
The average price of fortified wine was R993, higher than last year’s R445. The Nuy Red Muscadel 2005 took honours at R700 per six-bottle case.
The average price of port nearly doubled to R3Â 948, compared with R2Â 162 the previous year. For the fourth consecutive year, Monis Collectors Port Double Stamp Collection 1948 took the top spot, going for R14Â 500 for six 750ml bottles.
The Methode Cap Classique went for R1Â 618, up from R1Â 086, and one three-litre bottle of the JC Le Roux Chardonnay 1989 went for R1Â 300.
In his opening address, guest speaker and biodynamics expert Nicolas Joly of Clos de la Coulée de Serrant in Savennières in the Loire Valley, praised South African winemakers, saying “clearly, South Africa’s winegrowers have identified unique vine sites that express unique characteristics that are inimitable anywhere else in the world” and concluded “the wine farmer should be an artist of the earth”.
The charity sale raised R257Â 400 for its two beneficiaries, the Hospice Palliative Care Association of South Africa and the non-governmental organisation Mothers To Mothers. The Altia Corporation of Finland snapped up the 300-litre barrel of the Pinotage Association celebrating 80 years of Pinotage in South Africa for R75Â 000.
In closing, veteran auctioneer Patrick Grubb announced his retirement after setting an all-time record by presiding at all 31 Nederburg auctions, knocking down R250Â 000 cases to the value of more than R87-million. – I-Net Bridge