Cape Debate

How should South Africa build its on-trade presence, particularly with its premium wines? Hosted by Wines of South Africa, our panel of experts debated the merits of icon wines, food and wine pairing and the elusive X factor. Patrick Schmitt reports

Take a smart gastropub. Fill it with leading figures in the on-trade and fill them with South African wine, then ask them a few questions. What do you get? A series of frank and forcefully delivered views. So that’s what we did, and the subject? Selling premium New World wines in the bar and restaurant sector, in particular those from the Cape.

What we really wanted to know was not just how South Africa could bring its on-trade share more in line with its the off-trade share – 5% versus 10% – but specifically how it can increase its sales of premium wines, those around the £30 mark on wine lists?

Our panel comprised Sophie Waggett from Wines of South Africa; Rupert Clevely, managing director, Geronimo Inns; Olivier Eynard, restaurant manager, Almeida; Nick Tarayan, owner, Wine of the Times; Jamie Wynne- Griffiths, prestige London accounts, Bibendum Wine; and Chris Davey, managing director, OW Loeb.

Rupert Clevely (Geronimo Inns) kicked off: “In this business it’s difficult enough selling wine over £20, and when it comes to £30, I don’t even want to go there. It’s hard selling things like Puligny Montrachet from France, let alone an unknown name from South Africa, New Zealand or Australia. But what we are looking to do to promote better wine is to take a smaller cash margin, and on all wines over £8 we will be keeping to an £8 margin. At the moment about 5% of our turnover is over £18 and we believe this will enhance sales of better quality wines and get people to trade up.”

Chris Davey (OW Loeb) wholeheartedly agreed with Clevely’s point about the challenges in shifting expensive wines whatever the region, adding that even with a wine like Puligny Montrachet, “presumably younger consumers don’t know the name in any case”. For Loeb, the varietals have become the brands: “You now need those words, Merlot, Cabernet, Chardonnay.”

But could an icon wine help South Africa’s cause in the smarter end of the on-trade? A Cloudy Bay for example? “There are some great wines coming out of South Africa but nobody has heard of them,” piped up Davey, before Clevely continued, “New Zealand has been such a success in recent years because of Marlborough Sauvignon Blanc. It’s such a distinctive style, and there is nothing so distinctive from South Africa, no South African ‘X’ compared to New Zealand Sauvignon or Australian Chardonnay.”

Suddenly the conversation had veered onto varietals and a possible USP for South Africa. “I think there’s such a huge opportunity for Chenin, it’s a fantastic food wine and when well made it’s absolutely delicious,” said Sophie Waggett (WOSA). “And there’s so much Chenin coming out of the Loire that tastes of wet wool and carpets,” quipped Davey, adding, “but is South African Chenin unique enough to become the Marlborough Sauvignon equivalent from South Africa?”

For Clevely, the problem is partly that, “Chenin is not considered to be one of the great grape varieties of the world; it is not necessarily the right thing to hang your hat on.” At which point Waggett reminded everyone of the role of Sauvignon and Syrah in South Africa. “But those are not a USP,” said Davey. Waggett continued, “What we do have is a marketing story that’s unique to South Africa. We are talking up the biodiversity of terroir and linking it into the biodiversity of South Africa’s floral kingdom. Sauvignon Blanc within a two hour radius can be so different stylistically – for instance something from Elgin, to Darling, to Constantia and Stellenbosch.”

Nick Tarayan (Wine of the Times), however, appeared unconvinced by the strategy. “Doesn’t that serve to confuse? With Marlborough Sauvignon Blanc, the two words together just seem to say ‘Buy me’, not that I’m saying South Africa won’t sell.” At which point Clevely closed the issue, noting that “the customer is very pro South African wines, but at a certain price point. There isn’t an icon to justify a £30 price, but if there was, then people might pile into it.” (It was later noted that V from Vergelegen or Vilafonte from Warwick might emerge as future icon wines).

Having tasted a few more of the top-end South African wines on offer the conversation continued. “With premium wines you are talking about relatively fine dining,” said Davey, “and then you are into the French club of sommeliers, who are professional people, but let’s face it, their knowledge outside France is not great.” Tarayan then recalled his time at Leiths. “One year our best selling wine was Albarino, well before anyone had heard of it, and it was because half the waiters were from Galicia. It’s entirely down to who you’ve got on the floor talking to the customers.”

Nevertheless, all agreed that South Africa has moved beyond simply Chenin as a house white in the on-trade, but to really push the premium positioning South Africa needs top-end producers with some volume behind them. Only Graham Beck and Fairview sprung to mind as credible contenders. Waggett then told the table about WOSA’s initiative for the on-trade, which involves taking, over three years, as many as 100 people from the on-trade out to South Africa to show them the country and its premium wines.

Clevely nodded, showing his approval for the scheme, before commenting, “The packaging, presentation and quality of the wine from South Africa has leaped ahead. Already you’ve made massive steps.” Davey agreed, adding, “We mustn’t forget that 12 years ago South Africa was still a pariah. It was closed off, and Australia happened while South Africa was a closed market. South Africa has come an enormous distance.”

Back to the issue of premium wines, however, and the question was posed whether releasing back vintages might boost South Africa’s reputation at this level? Jamie Wynne-Griffiths (Bibendum Wine) began, “Okay, so Grange is interesting, but is it really that interesting for a sommelier when offering a Chenin to say we’ve also got some ’92? Perhaps, but only as a curiosity.” Olivier Eynard (Almeida) agreed, adding, “At the end of the day the sommelier will list the wine he discovers at a tasting – back vintages are not going to be the selling point, and very few restaurants buy wine to lay down.” Tarayan wasn’t so quick to dismiss the idea, saying that back vintages might be “of interest, but a restaurant is only likely to sell a case a year”.

It was at this stage in the discussion that Clevely shared some ideas for boosting the volumes of South African wines sold in the on-trade, premium or not. Through his small chain of gastropubs some 70% of all wine consumed is house, because, “It’s so much easier for the customer, who’ll just say ‘I’ll have a glass of white, or red’.” However, Clevely is embarking on a generic promotion to increase sales of Spanish wines in his outlets. “We are working with Wines of Spain and for a couple of months we will be doing food matching with four whites and four reds from Spain with price points from £14 to £20 from different areas of Spain. We will probably sell 300 or 400 cases of wine in that time from that promotion alone.”

So, should South Africa focus on culinary links? “If you don’t have a South African themed menu it doesn’t mean you can’t match a South African wine,” said Tarayan. “I think everyone tries too hard.” Davey paused and then asked, “

But why then would you recommend a South African wine? What’s the trigger?” Tarayan responded, “Let’s say you are having venison, and you’re happy to spend £35 a bottle, a good sommelier will offer three choices, and possibly one will be a South African red. Just because you’re doing a Spanish wine promotion doesn’t mean every dish has to have chorizo or pimientos de padron in it.”

Clevely continued, “What you want is passion and lifestyle. For example, take Cloudy Bay, you might write ‘First tasted on the beach in New Zealand’ to conjure up freshness and waves, and then offer it with a fresh salad; or for Merlot, just note, ‘Got to be eggs Benedict with this one’ and the wine just flies. It’s about suggestion, not trying to match food with wines from that region.”

And this idea of the power of suggestion encouraged a broader debate about South Africa’s image as a whole. “You are tying to tell everyone that South Africa is quality, premium, but you don’t need to do that, it should be insinuated,” said Clevely. “There’s so much that’s special about South Africa, put those messages across. South Africa, for example, is about beaches, or ruggedness, but nobody tells me about that, I don’t have that vision back in the UK.” Tarayan seemed to agree: “Only a year ago I went to New Zealand but the image of the country has been in my mind long before I visited, and it has been a very positive one.”

But as the afternoon drew on, Waggett wondered what South Africa’s chances were of doubling its share in the ontrade. “It’s got a very good potential to double its share in the next five years,” said Davey, while Tarayan believed it’s “not an impossibility”. Eynard, who had been quiet for a little time, then gave the final vote of confidence. “I’ve seen an improvement in the product, and it’s all about the product. If it’s right you take it, and it has improved.”