Insider Insights into Tim Atkin's South Africa Special Report 2023

This year's highlights are tailored just for you!

Tim Atkin's South Africa Special Report is a must-read for avid fans of South African wines. Hot off the press, we are eager to share the key highlights from this year’s report. Recognized as an essential publication on the South African wine industry, Tim Atkin captivates readers with his engaging style and profound knowledge.

Tim Atkin and His Journeys to the Cape

This year, Tim Atkin continues his annual travels to the Cape, where returning readers immediately recognize his deep affection and respect for South Africa's vibrant lifestyle. His philanthropic spirit and the importance he places on conversations and encounters with both legendary figures and newcomers in the wine industry shine. These meetings, marked by delicious food and stimulating discussions, often leave lasting impressions and promote positive changes within the industry. Atkin notes the impressive rise of young colored winemakers and sommeliers in South Africa, who approach their craft with enthusiasm, talent, and creativity.

South Africa – The Eighth Largest Wine Producer Worldwide

In his section “South Africa at a Glance,” Atkin begins his report with fascinating insights about South Africa's global standing as the eighth-largest wine producer and the fifth-largest among New World producers following the USA, Australia, Chile, and Argentina. He concurrently discusses the ongoing decline in vineyard areas due to factors such as the four-year drought from 2016 to 2019 and the subsequent heatwaves in 2022, presenting challenges compounded by the COVID-19 pandemic. Generally, South Africa produces around 4% of the world’s wine, although harvests can vary due to climatic conditions. The wine regions are organized according to a "Wine of Origin" scheme, with Paarl, Robertson, and Breedekloof standing as the largest grape-growing regions. Production is dominated by small farms and wineries, many of which sell their grapes to various producers, including large cooperatives.

Terroir, Terroir, Terroir

Moreover, Tim Atkin delves into the rising significance of terroir in the South African wine sector. Despite being classified as a New World wine country, South Africa has developed a strong tie to its terroir, echoing European winemaking traditions. The emphasis on soil, location, and terroir has intensified over the past decades, rooted in a respect for nature. Atkin elaborates on the geological backdrop of South Africa’s wine regions, tracing their vineyard soils back 950 million years to the ancient supercontinent Gondwana. This unique geology, combined with diverse flora, significantly contributes to the terroir of South Africa. While many wines in the South African market feature multi-regional and district labels, the spotlight on the top wines from the Cape region is increasingly shaped by terroir. He emphasizes the philosophy of crafting wines in the vineyard rather than imposing styles in the cellar, aiming to reflect the authenticity of the terroir. The country’s climatic and soil diversity enables the production of different wine styles, ranging from sparkling wines to dessert wines, alongside a wide array of grape varieties. There is a growing focus on identifying prime regions for specific varieties and wine styles, supporting subregions for individual grapes. Tim Atkin highlights the necessity for precision within South African vineyards, encompassing the creation of meaningful subregions that showcase the distinct attributes of various areas. Soil health, regenerative agriculture, and vineyard management are key elements in enhancing wine quality. The role of winemakers is increasingly acknowledged, with recognized vintners receiving due appreciation and financial rewards. Access to top-quality grapes becomes crucial for winemakers, alongside growing competition for the finest plots and varieties. Tim Atkin concludes his remarks addressing potential hurdles, including supply-demand imbalances, vineyard sustainability, and the necessity for contracts to guarantee ongoing grape availability. Additionally, he notes the significance of legal frameworks that facilitate vineyard purchases and secure access to exemplary grapes.

Vintage Variations in the New World

Furthermore, Atkin discusses the evolution of vintage variations within the South African wine scene. Whereas mass-produced wines may exhibit only minor annual differences, high-quality wines increasingly show pronounced year-to-year variations. Such changes are largely attributed to climate change and the growing diversity of South African wine regions. Atkin provides a snapshot of the vintage conditions over the last decade, outlining the challenges and characteristics of each year. He emphasizes that climate change, with its unpredictable weather patterns, has played a significant role in these vintage shifts.

Climate Change as a Serious Challenge

Concerningly, Atkin speaks about climate change as a major challenge facing the South African wine industry. During his three-week trip to South Africa’s wine regions in June, he encountered significant rainfall, overflowing riverbanks, and flooded vineyards. This unusually wet weather starkly contrasts with previous years when the Cape was affected by drought and heat. Normally, South Africa is a fairly dry country but experienced heavy summer rains this season, leading to considerable challenges for winemakers. Climate change and extreme weather events, including heatwaves and heavy rains, have profoundly affected the South African wine industry in recent years. The effects on viticulture and harvest timing have been unpredictable. Atkin emphasizes that it is imperative to take measures addressing climate change’s impacts, such as selecting drought-resistant grape varieties, intelligent watering initiatives, and fostering biodiversity alongside adjusted farming methods.

South Africa's Diverse Array of Unconventional Grape Varieties

Atkin happily highlights the increasing diversity of unconventional grape varieties in the South African wine landscape. South African wine producers are steadily beginning to embrace a wider range of grape varieties. While classic varieties like Chenin Blanc, Sauvignon Blanc, and Cabernet Sauvignon still dominate, there is a burgeoning interest in lesser-known types. Several new grape varieties have gained prominence in the Cape, including Malbec, Petit Verdot, Grenache, Mourvèdre, and many others. As many winemakers experiment with various grape types, they are enriching the country’s wine offering with varieties such as Albariño, Assyrtiko, Barbera, Carmenère, and Fiano. Although consumer familiarity often favors established grapes, diversifying the grape selection allows for exploration of innovative and exciting wine styles. Marketing and quality assurance will be crucial to encouraging consumers to try these less common varieties. The introduction of new grape types may require local producers to learn how best to cultivate them under specific conditions or with specific oenological techniques. Nevertheless, this adaptation can contribute to a more resilient wine industry in light of climate changes. Expanding grape varieties can provide options that are better suited to withstand heat and drought, crucial factors in a changing climate.

South Africa’s White Wines – The Cream of the Crop

Finally, Atkin focuses on South Africa's premium white wines, placing them amongst the best in the world. This assertion stems from tasting more than 76 dry white wines from South Africa, all of which scored above 95 points. When compared with wines from France, Italy, Portugal, and Spain, South Africa's white wines can easily compete. The country offers a broad selection of white grape varieties, including Chenin Blanc, Chardonnay, Sauvignon Blanc, and many others, cultivated in various styles and terroirs. Notably, Chenin Blanc is often described as South Africa's "flagship" variety, having taken the mantle as the leading source of the finest dry Chenin Blancs globally from the Loire Valley. The range of Chenin Blanc wines is remarkably diverse, moving between dry and sweet, oaked and unoaked, sourced from old or new vines, and single vineyards or blends. This versatility encapsulates the unique soils and terroirs South Africa has to offer.

Chardonnay has also risen in prominence in South Africa, now standing amongst its most successful varieties. The grape flourishes in cooler climates like Ceres, Elgin, Franschhoek, Stellenbosch, and the Hemel-en-Aarde region, showcasing a variety of styles. Additionally, Sauvignon Blanc and Semillon face unjust neglect in South Africa, as Atkin remarks. Sauvignon Blanc is easily marketable when young and affordable but can mature beautifully with age. In contrast, Semillon often goes unnoticed, despite excellent examples existing within the country. South Africa also presents an impressive range of single-varietal wines, including Albariño, Assyrtiko, Verdelho, Grenache Blanc, Palomino, Riesling, Viognier, Roussanne, Sauvignon Gris, among many others. Particularly interesting are white wine blends combining Bordeaux varieties like Sauvignon Blanc and Semillon with additional varieties such as Chenin Blanc, Clairette Blanche, Colombard, Grenache Blanc, Marsanne, Palomino, Roussanne, and Verdelho. These blends embody the extensive diversity and immense potential of South Africa's various wine regions.

A New Generation of Winemakers – Change in the Cellar

Atkin also describes the emergence of a new generation of winemakers in South Africa who draw inspiration from European wine regions. He outlines a transformation in winemaking characterized by an increasing focus on balance, subtlety, and a return to traditional methods of winemaking while applying innovative practices and a diverse selection of grape varieties. South African winemakers are leaning less on oak barrels and high alcohol content, instead directing their attention to finesse while exploring concrete tanks, clay amphorae, larger casks, and older wood. Blind tastings of South African wines indicate that the country is more than competitive on the international stage. Notably, South African Syrah has outperformed both French and Australian competitors in evaluations, reflecting the country's growing expertise in this varietal. Furthermore, tastings of Cabernet Sauvignons and Bordeaux blends from the 2017 vintage have solidified the reputation of South Africa as a leading red wine producer. The ability of South African winemakers to adapt and work with the unique characteristics of each vintage—rather than imposing a fixed style—has been vital in their ongoing success. This flexibility is a critical trait in the evolving wine scene of the Cape.

Cap Classiques – South Africa's Bubblies on the Rise

Atkin also observes the steady growth of interest in South African Cap Classiques, which he finds increasingly impressive. The quality of these sparkling wines has significantly improved in terms of balance and finesse in recent years, providing outstanding value for money. Of the 121 Cap Classiques evaluated, 85 scored over 90 points—a record for sparkling wines. It’s no surprise that sales are rising at a rate of 12% each year. Atkin notes that there has never been a better time for Cap Classiques. The variety of styles is also striking, spanning across grape varieties like Chenin Blanc, Colombard, Syrah, Verdelho, Viura, as well as classic Champagne styles such as Chardonnay, Pinot Meunier, and Pinot Noir. Various factors ranging from barrel aging, stainless steel usage, or even amphora fermentation, partial or complete malolactic fermentation, time on lees, closure selection, disgorgement timing, and dosage nuances provide a wide selection of sparkling wines suitable for every palate.

The history of South African Cap Classiques dates back to the early 1970s when Frans Malan produced the first commercially successful Cap Classique wines at Simonsig Estate. Today, approximately 250 sparkling wine producers operate in South Africa.

Foreign Investors Venturing into South Africa's Wine Industry

Atkin also delves into the increasing significance of foreign investments in South Africa’s wine sector. Many wineries are now owned by individuals or entities from various countries. Despite the economic and political uncertainties, South Africa has become an attractive investment hub for the wine industry. Particularly, French and German investors have shown interest in South African wineries, bringing international expertise and contributing to the growth of global brands. The recent acquisition of South Africa’s largest wine producer, Distell, by the Dutch Heineken Group, further emphasizes the potential for added investments in the country’s wine sector. Although it is uncertain which areas Heineken will prioritize, its presence could greatly influence the South African wine scene.

Positive Developments Amidst Significant Challenges

In concluding his thoughts, Atkin reiterates the remarkable resilience of the South African wine industry despite facing significant challenges, including the COVID-19 pandemic, governmental issues, and economic strains. Initial fears surrounding potential winery closures and job losses have not played out as dramatically as anticipated. The industry has dealt with challenges such as rising interest rates, a fragile currency, energy constraints, increased costs resulting from the Ukraine market, and the ongoing pandemic. Despite all this, South Africa has sensed a gradual recovery, with returning tourists and an equilibrium between supply and demand. While the domestic market primarily favors budget-friendly wines, export markets—especially in Europe—demonstrate a willingness to pay more for premium South African wines. Leveraging the unwavering enthusiasm and creativity of both seasoned and new winemaking generations, Atkin paints a positive picture for South Africa's wine industry, insinuating a promising future ahead!

If you're keen on the complete report, feel free to download it!