Tim Atkin MW: South Africa 2021 - Deep Insights

Tim Atkin's Report Translation

In January, I purchased a T-shirt that reviewed the year 2020 like a film. It received a generous score of one out of five stars, along with the following critique: "Terrible. Not recommended." Oftentimes, we laugh at what we've gone through over the last 18 months, and it’s probably the best way to process it. However, it has often been difficult to keep a smile. We all had hoped that 2021 would bring an end to the pandemic, but it remains a prevailing element in our daily lives. Even vaccinated individuals, like myself, can still catch the virus, as I experienced while writing this report. We are tired and we are fearful. We are "gatvol," as they say in Afrikaans: we have had enough.

Very few countries escaped the devastating impacts of the COVID-19 pandemic, and South Africa certainly isn't one of them. The younger population has slightly reduced the death toll, but still, 84,000 people have lost their lives due to this terrible virus - and the numbers are rising. Cathy van Zyl MW expressed in an online discussion about the future of the South African wine industry that "South Africa has likely been hit worse than any other country."

The production of wine in South Africa has historically faced challenges – think of the awful droughts from a few years back, but the years 2020 and 2021 demanded superhuman endurance from the industry. Businesses dependent on the local market, where the sale of alcohol was entirely prohibited four times within 18 months, have struggled horrifically for survival. If we think that the anti-alcohol lobby, spearheaded by eloquent individuals like Dr. Charles Parry, will quiet down once the pandemic ends, we are naive.

As disheartening as all this may seem, there is still a possibility – indeed, it is essential right now – to present the South African wine industry in a more positive light. Sometimes it's hard to realize these things in one's own country, however, one must also see that the Cape enjoys growing commercial and critical success in export markets. While I wrote this report, I received the news that sales of South African wine to the UK, South Africa’s largest export market, had increased by 43% in value by August 2021. Yes, much of what leaves the country is sold in bulk at low prices; however, the image of Cape wines is at an all-time high.

This marks my ninth report on the South African wine scene. I vividly recall the nervousness that accompanied my first report, released back in 2013, regarding its reception. Today, I feel somewhat more confident. When you work hard and present yourself with honesty and integrity, people will read your work and listen to you. This same work ethic and desire to continually give your best are some of many elements that impress me greatly about today’s South African winemakers, marketers, and representatives. They may not always be in agreement, but they share a common goal: to establish South African wine as the best producer in the New World.

Every morning when we look in the mirror, we often fail to notice how time has passed – however, my 60th birthday last month gave me pause for reflection. Perhaps South Africa should do the same. What has been achieved thus far, especially since 1994 and across the nine years I’ve published this annual report, is indeed remarkable. No other wine industry has made such advancements, and no other possesses such energy and enthusiasm. Right now, it’s essential to keep that success in view. South Africa is grappling with several challenges that create a relatively dark situation, yet its best wines shine as true beacons in this darkness.

It requires more competent, less corrupt politicians – do we not all wish for this? Plus, a better education system and an economy that offers more people a living wage. Obviously, *wine* alone cannot fix this. However, it can attract tourists to the Cape. If that succeeds, it can bring the taste of South Africa to people’s tables. I doubt they will be disappointed.

South Africa
At a Glance: 10 Things You Need to Know

1. According to the latest OIV figures (International Organisation of Vine and Wine), South Africa ranks as the seventh-largest wine producer globally and the fourth in the New World after the USA, Argentina, and Australia. The total vineyard area (currently at 92,005 hectares) has been declining since it peaked at 102,146 hectares in 2006, with a slight decrease of 62 hectares between 2019 and 2020, but a much larger decline of 8,563 hectares over the last decade. The brutal four-year drought between 2016 and 2019 partly explains this decline, as some vineyards perished from lack of water. But the low profitability of viticulture and understandable decisions by farmers to switch to other crops, whether fruit, flowers, or tea, have also contributed to this long-term trend. It is no coincidence that the Cape has lost around 25% of its viticulturists and 7.7% of its wineries since 2010. A substantiating forecast suggests that South Africa will lose another 7,000 ha vineyard area in the coming five years.

Overall, South Africa produces about 4% of the world's wine. However, the positive news is that the 2021 vintage is estimated to have risen by 9% despite all logistical and pandemic-induced complications compared to 2020, and the quality is reported to be very good, marking one of the coolest vintages ever. However, increasing sales of more wine isn’t necessarily positive, given that the Cape currently sits on an estimated surplus of 150 million liters of what is referred to as "uncontracted stock." Additionally, only a limited amount of wine can be converted to grape concentrate or sparkling beverages.

South Africa's regions are organized under the Wine of Origin Systems (WO). The production areas are classified by geographical units, followed by "regions" (the Western Cape being by far the most important of a sextet that includes the Eastern Cape, Free State, KwaZulu-Natal, Limpopo, and Northern Cape), followed by "districts" (28 in total, including renowned names like Paarl, Stellenbosch, and Swartland, along with the less known Douglas, Langeberg-Garcia, and Swellendam), and finally by "wards." There are a total of 92 wards that range from the familiar (Constantia, Durbanville, and Hemel-en-Aarde valley) to the rather unfamiliar (Cango Valley, Goree, and Spruitdrift).

Wineries can also mark their wines as single vineyard (the block cannot exceed six hectares) and Estate Wines. It's mostly a logical system; however, exceptions confirm the rules. Coastal wines may contain grapes from inland areas like Tulbagh and Wellington. An extensive report published annually by South African Wine Industry Information and Systems (SAWIS) lists the largest wine-producing areas. The current rankings are: Stellenbosch (16.4% of the total), Paarl (16.02%), Robertson (13.91%), Breedekloof (13.82%), Swartland (13.42%), Olifants River (10.22%), Worcester (7.23%), Northern Cape (3.76%), and Klein Karoo (2.37%). It's essential to remember that these figures refer to hectares and not production quantities. Indeed, a dry vineyard in Stellenbosch or Swartland will yield only a fraction of what an irrigated vineyard in Worcester or Olifants River would.

2. Terroir is becoming increasingly crucial in South Africa – as is high-quality grape material. South Africa possesses the oldest vineyard soils in the world, dating back to 950 million years in the case of Malmesbury schist, at a time when the Western Cape was still a water basin. Despite this remarkable history, the idea of wines with a clear sense of origin often proves tricky in a country where many brands are marketed under mixed, over-regional, and district designations such as Coastal, Cape South Coast, and Western Cape. How much terroir can be said to be present in a white wine made from grapes sourced from the regions of Breedekloof, Olifants River, Stellenbosch, Swartland, and Wellington? It might very well taste South African, but that’s not the same thing as terroir.

3. Regional classifications must be established to allow winemakers to capitalize on their individual terroirs. The next step in South Africa's evolution must focus on the best-suited regions for specific grape varieties and certain wine styles. Well-known examples include Chardonnay in Ceres, Elgin, Hemel-en-Aarde, Overberg, Robertson, and Stellenbosch; Sauvignon Blanc in Constantia, Darling, Durbanville, and Elim; Chenin Blanc in Citrusdal Mountain, Bot River, Breedekloof, Stellenbosch, and Swartland; and Pinot Noir in Elgin and the Hemel-en-Aarde region.

4. Also noteworthy is the increasing attention on the pivotal role of grape producers which is essential in understanding the quality of the wines produced.

5. The sparkling wine sector has celebrated 50 years this year. A blend of traditional practices with local grapes has led to an impressive product range that proudly graces the international market.

6. South African Chenin Blanc continues to dominate world-class standards. When compared to the Loire Valley, South Africa has long overshadowed it as the main source of the finest dry Chenin Blancs in the world.

7. The growing complexity of the grape palette is evident. With an increasing range of grape varieties being planted annually, the spectrum now encompasses even more colorful options.

8. The value of top wines is on the rise. South African wines have been increasingly sought after at auctions, and leading brands are gradually reaching the prices they deserve.

9. COVID-19 has caused substantial harm to the South African wine industry, but many producers have found creative solutions to develop positive business models.

10. Looking towards the future, the weather and harvest conditions become vital in ensuring the survival and prosperity of South African vineyards.

We are hopeful for brighter times ahead for South Africa!