We chat to a Vinpro member each month about their business, what keeps them awake at night and what gives them hope.

 

1. Tell us more about Groote Post?

Groote Post wine farm on the West Coast stretches over 2 700 ha. In addition to 119 ha of wine grapes, we also produce wheat, canola, barley and fodder crops. We have an Angus cattle stud and commercial SA merino sheep for meat and wool production. The farm employs 55 people throughout the year, and 80 during harvest time.

In 2020 our vineyards produced 820 tons of wine grapes, of which we processed 550 tons ourselves and sold 270 tons to other cellars. We mainly operate in the local market, with only 25% of our wines being exported.

Groote Post targets the premium wine consumer with a range of 13 wines between R85 to R250 per bottle. The wines below R100 per bottle are made for every day enjoyment, while the wines above R200 per bottle are mostly destined for special occasions.

2. How did the restrictions on liquor sales during the national restriction affect you?

We lost three months of sales to retailers and restaurants. As for exports, the ban was on and off and there were logistical problems at the port to that hampered wine shipments. Our overseas markets were also severely affected by Covid-19, so orders were much smaller.

The fact that we have a wine club and a strong online presence has helped. Increased online activity has resulted in us having much more direct sales than usual during the lockdown.

However, I estimate that our total sales during the lockdown were still only a third of what they should have been. We will never be able to regain the two thirds that have been lost.

The general economy was already under severe pressure before the Covid-19 pandemic. The wine industry is very competitive, and a tough time lies ahead, with all the cellars having to compete for consumers’ strained disposable income.

3. With the current surplus of uncontracted wine, there is concern that there will be no room in cellars for the 2021 harvest, and some producers are considering green harvesting. Are you currently making any adjustments in the vineyard or cellar regarding the 2021 harvest?

Our wine stock was quite low before Covid-19 due to four years of lower productions as a result to the drought. The lost months’ sales will mean that we will have to adjust our planning, but no drastic action is being considered.

4. You recently shared a video on social media of new Sauvignon Blanc vineyards being planted at Groote Post, at a time when many other producers were reluctant to invest in new vineyards. What is your thinking around this?

The wine industry is a long-term industry, with vineyards only showing a profit from eight years onward, not to mention a wine cellar investment that takes even longer before it becomes profitable. A vineyard has a lifespan of about 25 years and you need to replace about 3% of your vineyards every year to ensure that your entire vineyard remains viable and can continue to produce high quality grapes.

We ordered the vines for the Sauvignon Blanc vineyard that we planted recently already 18 months ago, as the grower we ordered them from had to know at that stage which clonal combinations we wanted. The vineyard will only start producing grapes from 2022.

5. What is your message to other cellars and producers?

Wine has been around for hundreds of years as the drink of choice to be enjoyed with food, and the demand for wine will always be there. Covid-19 has caused great damage to countries and economies worldwide, but this too shall pass.

The great advantage of the South African wine industry is our beautiful scenery and wine farms that offer a large variety of activities for visitors. We need to realise and expand on the enormous benefits of wine tourism for our industry. Foreigners will experience our hospitality and look for our wines in their countries once they’re back home. There is a very large market outside South Africa for our wines, and consumers with good purchasing power. Not only in the wine industry, but across South Africa, tourism also has the potential to be the biggest job creator.

We need to create innovative packaging and make top quality wines in order to add as much value as possible. Grape producers are now more than ever going to have to concentrate on quality and work with cellars to produce a product that can add value at the highest level.