Buyers’ Guide to VINTAGES August 22nd, 2020

John Szabo’s Vintages Preview for August 22^nd: Crisis in South Africa

By John Szabo MS, with picks from Sara, David, and Michael

“There’s no way to sugarcoat it. We are in serious trouble”, says Ken Forrester, of his eponymous estate in Stellenbosch, South Africa. While wineries around the world have been suffering from the vast ripple-on effects of Covid-19, South African wineries have been hit by a double calamity, and are facing a true existential threat. The pandemic not only shut down society, bringing life to a grinding halt in an industry that can’t simply be put on hold – vineyards can’t be paused. It also triggered the South African government’s decision to impose successive bans on all alcohol sales, a period totalling some 14 weeks since March 27^th, effectively killing both domestic, and for a period, export sales as well. The long-term negative consequences for the South African wine industry are hard to over-estimate. But on the positive side, as Chris Mullineux of Mullineux Wines in Swartland points out: “The quality here has never been better or more exciting”. And this fact, coupled, with multiple factors that have kept prices shockingly low, means extreme value for consumers. With exports resuming, you can help rebuild the industry while also drinking great wines at absurd prices. Read on for eyewitness accounts of what’s happening on the ground, as well as for our top picks from the (admittedly weak) Vintages August 22^nd South Africa-themed release. Beyond that, there are many other sharp buys already on shelves, including a couple of memorable fully mature reds and a brilliant old white, plus fine bottles from Uruguay, Spain, Germany and more.

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South African Wine’s Covid-related Calamities: Total Sales Ban on Alcohol

South Africa’s wine industry may just be the hardest hit in the world, both a direct and indirect victim of Covid-19. While the pandemic is global, only South Africa has faced a period of total ban on alcohol sales for domestic and export markets, a decision which has caused irreparable damage to the industry. Underlying cracks in society have widened into chasms.

According to Vinpro, a non-profit company which represents 2500 South African wine producers, cellars and industry stakeholders, “the [wine] industry is believed to have lost more than R7 billion ($550 million CAD) since the introduction of sales restrictions in March 2020.” Following the initial nine-week ban on local sales, five-week ban on exports and subsequent second domestic sales ban, Vinpro estimates that more than 80 wineries and 350 wine grape producers will go out of business over the next 18 months, with a potential loss of more than 21000 jobs across the value-chain, nearly 10% of the industry workforce.

Laurel Keenan, who runs Propeller PR and represents the promotional agency Wines of South Africa (WOSA) in Canada, has been closely watching the situation. “The second local ban on sales (which was lifted only last week Tuesday, August 18), saw a complete ban on all retail sales of alcohol, including from cellar door and on-trade. No alcohol could be sold or even transported in a private vehicle during that time”, she reveals, highlighting just how tight the sales restrictions were.

For an industry that represents 10% of SA’s tax revenue, it’s a serious blow. South Africa’s government declared the alcohol bans necessary in order to prevent people from spreading the virus in gatherings, and to free up hospital beds from alcohol-related trauma injuries for Covid-19 patients. “Let’s give alcohol a break,” said Nkosazana Dlamini Zuma, cooperative governance and traditional affairs minister, during a press briefing after the second ban was announced in July. “No soldiers can win a fight while drunk.”

Export sales became collateral damage. They were banned for fear that shipments would be hijacked and stolen en route to port, putting lives at risk.

Some within the industry understand the motivation behind the decision, but feel it was poorly thought out and handled. “Part of me can understand the rational behind the alcohol ban”, says Sebastian Beaumont of Beaumont wines in Bot River, in the Overberg region. “We have big problems with alcohol-related issues in our society, violence being one major part. I think the ban did help to limit the access to alcohol, but it is not the solution to fixing the problems in our society. Those issues are much bigger and deeper and will need to slowly and steadily be dealt with.”

Chris Mullineux, of Mullineux Wines in the Swartland region, agrees: “We do have a fragile health system and can understand the government’s need to protect it from being overwhelmed. But we strongly feel they could have been far more sensible in their handling of the situation. Just by enforcing a curfew and the laws that are already in place would have gone a long way to minimizing the impact of alcohol on the health system. But South Africa isn’t famous for enforcing regulations.”

Ken Forrester is less circumspect: “Our government adopted a “one size fits all” policy and sadly it’s literally destroyed 100s of 1000s of jobs. We are close to a 50% unemployment rate!!!! There’s no way to sugarcoat that. We are in serious trouble and need to ensure that somehow we can create opportunities to get these people re-employed.”

As could have been predicted, during the sales bans many wineries resorted to bootlegging just to cover employee wages and non-deferrable expenses. And similarly, many restaurants were converted into speakeasies, with wine and other booze being served from coffee mugs and teapots. But that’s little more than a drop in the sales bucket, which could do little to stem what is quickly becoming a national employment emergency. “The real tragedy is in the whole chain of people who live off selling and delivering wine. Our agents, our logistics partners and our restaurant partners who have had little to no business to trade with”, Chris Alheit of Alheit Vineyards tells me via email.

Short and long term problems have been further compounded by the closing of the country’s borders. “The wine industry is very dependent on local and international tourism, and although restrictions on local tourism have been lifted since last Tuesday, it is still uncertain when international travel will resume,” says Kobie Lochner of Graham Beck, a sparkling wine specialist in Robertson, fearing that the worst is yet to come as the pit grows deeper.

Alheit echoes concern for the restaurant industry: “Even the really good restaurants depend on tourists in season for most of their customer base. Tourists won’t be travelling to SA any time soon, and the ban on alcohol sales has already crippled many restaurants. But it will hit them even harder later in the year I think. It will hit us all harder then.”

As we’ve seen elsewhere, the pandemic has surfaced pre-existing, systemic problems in both South African society and industry. “The cold fact is that the majority of the Cape wine industry wasn’t in great shape pre-Covid”, says Chris Alheit. “Many of the large-scale producers were struggling with slow sales and tight margins. Many were hardly profitable prior to the lockdown, which in turn precipitated a classic avalanche effect. There will be major fall out in the months to come. “

“I think the only thing Covid 19 highlighted in the world is the poor standard of leadership across all sectors.” Eben Sadie, Sadie Family vineyards

Eben Sadie, of Sadie Family Vineyards in Swartland, believes that more problems, rather than solutions, have come down from above, fingering poor leadership for the situation: “I think the entire strategy that was followed throughout was not properly analysed nor interpreted and it is crazy to think that an event like Covid-19 is likely to shut down some companies in wine that have been around for more that 5 generations. Many of these companies have already faced the Spanish Flu, First & Second World War and the depression, as well as a global economic meltdown. And yet in 2020, with all the global resources we have, we seemed to have failed ourselves, which does not say much about current leadership.”

Cases of wine piling up in Sadie Family Wines’ cellar, waiting for the the ban on alcohol sales to lift. Photo courtesy of Sadie Family Wines

Wine Dumping

One of the main concerns for many producers is the likelihood that unsold wine will be dumped on the market at cut-throat prices, which could cause irreparable damage to the image of South African wine. “It goes without saying, the lack of sales will most likely result in a surplus, especially in the bulk wine market. One can only hope that this would not put too much downward pressure on the price of SA wine and that buyers and consumers would still be willing to pay the level of pricing that the quality demands”, says Kobie Lochner.

“The biggest issue is that many wineries sit with many litres unsold in tanks, and with the harvest only 5 months away, it will be trying times to find space in cellars to accommodate the next harvest,” continues Sadie. In Spain, where Sadie also used to make wine under the collaborative label Terroir al Límit in Priorat, he reports that some winegrowers have “actually opted to just cut down the fruit for there is simply no way in producing a bigger lake of wine and completely destroying the value of the wine. It will be hard and I think wine prices in the bigger bulk market will plummet. There is unfortunately no other reality unless a national distillation process gets rid of the excess. But for that you need serious input from government and somehow I fail to see that currently happening.”

The trickle on effect will spread the crisis further: “This will leave grape growers in the lurch as wineries renege on grapes, in turn taking bread out of the mouths of farm workers. This will hit the fan in about 6 months from now when the real damage becomes clear, save some miracle’” says Alheit.

Domestic E-commerce

While countless companies are in deep trouble, some of the smaller, quality operations have been better positioned to weather the storm. The dramatic circumstances have forced a rethink of their business strategies, and those who adapt, stand a chance of survival. One relatively new sales channel that has evolved at light speed in many wine-producing countries around the world is e-commerce. Such sales were almost non-existent six months ago in South Africa, but online wine sales have now become a material revenue source for those able to implement them as soon as the sales ban was lifted.

“We were luckily already geared for online shopping”, Jenna Bruwer of family-owned and operated Springfield Estate in Robertson, tells me. “But we saw our online sales grow tenfold. The sales have remained high which is great considering our tasting room sales (and until recently, our restaurant sales) have all been dead in the water. I do think one positive of this pandemic is that it has really driven a lot more customers towards e-commerce, and has forced us to update and streamline our systems – in South Africa, both our online shops and our online shoppers are still a bit in the dark ages (no Amazon same day delivery here!).”

With the restaurant trade collapsing, Sebastian Beaumont has also been driven to develop his direct to customer business. “We always had some sales through our tasting room, but this has now changed with the added demand from direct orders. It’s not massive and certainly won’t save our business. But it will help us more than we expected with the extra margin.”

Mullineux even reports that local customers having been willing to pre-order wine and take delivery once prohibition was lifted. “This has been truly appreciated”, he says.

Worldwide Support

“Our cash flow has been hammered, but we will recover.” – Chris Alheit

Exports, too, have been business-saving in some cases for wineries with existing international distribution, and will continue to be. Although export sales had been banned during a five-week period at the beginning of lockdown, alongside domestic sales, they have since been able to continue. And as Kobie Lochner reports, “Many of our international partners have gone above and beyond to support the SA wine industry. Great initiatives were put in place to create awareness for the category and it seemed to have been embraced by consumers who showed their support.”

Sadie, too, has been among the fortunate: “I cannot thank enough our importers and national partner and above all our private clients, it was amazing and humbling to see their commitment to our wines.”

Despite the struggle, Forrester also sees hope for the future: “When one stands at a river and watches the water flowing under a bridge – there is the awful reality that one can never see or meet or gather that water again – it’s flowed under the bridge. I fear that life will never be the same. but we will carry on, and with the incredible support of our export markets we hope to build and create the new normal.”

Quality, No Compromise or Charity

There’s more than a little irony, and tragedy, in the fact that at a time when the quality of South African wine has never been better, or the offer more exciting, the industry is facing such an existential threat. Consumers can of course do their part to support the industry by buying South African wines. But don’t think of it as disaster relief or charity. The best wines offer outstanding quality and represent extreme value. So, it seems, a win-win. Let’s hope they can stay in the game, and ride the wave without falling off. It’s a good thing so many South African winemakers are also seasoned surfers.

This is a time of seismic shift. This is going to be one massive wave of change around the globe and we will have to ride it as best we can and not fall off. My surfing skills will hopefully help. – Sebastian Beaumont

Buyers’ Guide August 22^nd: South Africa

Almenkerk Wine Estate 2014 Syrah WO Elgin, South Africa
$17.95, Loyal Imports
John Szabo – From the heavy bottle alone you’d think this was expensive wine, and the wine inside, too, could certainly fetch a higher price in the market. This means you can pull it out at your next dinner party and have guests thinking you’ve dished out far more than you have. Widely appealing, applicable for drinkers from novice to seasoned.
Sara d’Amato – From the cooler region of Elgin, this meaty, lightly smoky syrah is delightfully aromatic and notably elegant while remaining typical of this rather hearty grape variety. Mid-weight with silky tannins and very good length.

The Winery Of Good Hope 2019 Full Berry Fermentation Pinotage WO Coastal Region South Africa
$14.95, Nicholas Pearce Wines Inc.
John Szabo – A “carbonic” style pinotage, which is to say fermented with whole bunches in the fashion of Beaujolais, this is a bright and fruity, clean, immediately engaging example of pinotage, with ultra-light tannins, almost non-existent, and comfortable acids. This is a wine full of the zeitgeist, designed to chill down like a white, crack and enjoy anywhere, anytime. An outdoor picnic would be fun.
David Lawrason – Now here’s a fine little pinotage that shows its pinot noir X cinsault parentage. Those who seek to make more of pinotage than it was meant to be are missing the mark, and making a mess of it. It is fairly pale, light bodied, fresh and energetic with sour red fruits.
Michael Godel – A mini Radford Dale so to speak with winemaker Jacques de Klerk at the helm for what is very modern thinking and progressive pinotage. Though the cost is a mere few Rand in the hand, that does not speak to an antiquated style, in fact the freshness and varietal transparency is very much alive in this baby Frankenstein.

KWV The Mentors Canvas 2017, WO Coastal Region, South Africa
$26.95, Philippe Dandurand Wines
David Lawrason – The Mentors is a premium range from KWV honouring the pioneers of the modern South African wine industry. This “Rhone” blend is based on syrah with fruit from several interior regions. This good value is classically built, almost Euro firm, and I really like the focus and balance.
Sara d’Amato – Offering a brilliantly layered and complex aromatic profile, this balanced and terroir driven blend is a top buy in this VINTAGES release. Comprised of shiraz, grenache noir, mourvèdre and cinsault, this southern Rhône-style blend is both generous and fresh. Clean and juicy with a surprisingly ethereal mouthfeel given its rather high level of alcohol.

Buyers’ Guide August 22^nd: White & Rosé

López De Heredia 2011 Viña Tondonia Viña Gravonia Rioja Crianza DOCa, Spain
$39.95, John Hanna & Sons Limited
John Szabo – The 2011 Gravonia Crianza from arch-traditionalists Lopez de Heredia is an absolutely stellar wine. The nose is a near-perfect mix of old barrel spice, ripe pear, orange, apple quince and more, in both fresh and dried form – the type of complex white you could spend an entire evening unravelling. And it continues to evolve in the glass, affording a new and equally beguiling set of aromatics over time, shifting into croissants and pastries, candied lemon, honey and bees wax, wet pebbles and rocky lakefront. The palate is perfectly mid-weight, neither tart nor flabby, with terrific length. A unique experience to be sure. Drink or hold another decade or more- this will evolve slowly no doubt.

Dr. Loosen 2017 Berkasteler Lay Riesling Kabinett, Mosel, Germany
$29.95, Select Wine Merchants Inc.
John Szabo – Classic Mosel Riesling, with impossible flavour concentration at just 8% alcohol. A really terrific wine that fans of the genre will revel in tasting. Drink or hold mid-term (though it’s irresistibly delicious now).
David Lawrason – At a mere 8% alcohol this deceptively powerful, but it is all about flavour concentration and that great Mosel acidity. It is light bodied with some residual sugar adding creaminess and weight, but stony acidity remains the driver.
Michael Godel – Loosen’s Berkasteler Lay is a highly rated vineyard along the Mosel between the village of Bernkastel and the estate house. Seemingly on the drier side of Kabinett for riesling with pulse, energy and drive. A wildly fanciful wine, crushable yet serious, a delight in profound riesling clothing.

Foris Chardonnay 2018, Rogue Valley, Oregon, USA
$25.95, DB Wine & Spirits
Sara d’Amato – Like an autumn day, this crisp, enticing chardonnay is fresh and nervy. Delightfully salty with a wealth of orchard fresh fruit, lightly nutty and a hint of tropical on the finish. No new oak nor malolactic fermentation are use resulting in a pure, expressive and true expression of this cooler climate, alpine influenced chardonnay.

Bodega Garzón 2019 Reserva Albariño, Maldonado, Uruguay
$21.95, Mark Anthony Wine & Spirits
John Szabo – Terrific albariño here from regional drivers Bodegas Garzón, undoubtedly one of the southern hemisphere’s best examples of the variety. It’s a little fleshier and riper than the mean from the grape’s homeland in northwestern Spain and Portugal, dry and properly vibrant, but also broad and concentrated at 13.5% alcohol declared. Well worth a look.

Colomé 2019 Torrontés Calchaquí Valley, Salta, Argentina
$15.95, Prevedello And Mathews
David Lawrason – Such a vibrant yet elegant and delicious rendition of Argentina’s unique torrontes grape. It is a citrus salad with spearmint and fennel. Can’t think of a better gin and tonic substitute to close out summer.
Michael Godel – From altitude in Argentina’s north, extreme altitude and climate actually, high in solar radiation and day-night temperature fluctuations. Effects wonders on torrontès, exaggerating the freshening florals and when reigned in, as here, makes for a white wine of dramatic afternoon delight.

Trimbach 2018 Pinot Blanc, AC Alsace, France
$20.95, Woodman Wines and Spirits
Michael Godel – Oh my, so forthright and drinkable is this pinot blanc from Trimbach ye hardly know you are drinking at all. Ripeness the virtue meets mineral the destiny for a varietal wine so clean, so fresh and so spot on that time stands Alsatian still.

Fournier Pere & Fils 2018 Les Belles Vignes Sancerre, Loire, France
$35.95, Hobbs & Co.
Sara d’Amato – A showstopping yet elegant Sancerre with an appealing chalky texture and a lightly oily finish. Offering a dynamic tapestry of flavours on the palate along with excellent length. Not to be missed.

Buyers’ Guide August 22^nd: Red

Château Larose-Trintaudon 2009 Cru Bourgeois, AC Haut-Médoc, Bordeaux, France
$30.95, Marchands Des Ameriques Inc.
John Szabo – An attractively mature left bank Bordeaux, complex and stylish, supple, silky, classy, which has aged marvellously well since I first tasted in September of 2012. Back then I wrote that it would be better in 2-4 years. Well, eight years on and it has indeed developed considerable complexity and beautiful texture – I’d expect to pay far mor for this experience, or at least invest far more in cellar space and patience to get there. Lovers of mature Bordeaux from top vintages like 2009, and mature wine in general, should get in on this bargain.
Michael Godel – Nothing can hide the lovely and swarthy evolutionary notes in this 11 year-old Haut-Médoc and doubly so in its lingering heat from a vintage that produced a bonus number of those cumulative units. The wine may be acting its age but beauty is forever. A warming in the glass only accentuates the feeling.

Bodegas Enrique Mendoza 2017 La Tremenda Monastrell DO Alicante, Spain
$18.95, Azureau Wine Agency
John Szabo – Watch my 5-7 Winedown JGTV video featuring this wine by Pepe Mendoza, one of the leading lights in Alicante, who has unlocked the secrets to creating balanced, fresh, but still sun-filled expressions of monastrell (aka mourvèdre). Part of secret is high-elevation, precisely-farmed, balanced old vines, in this case 30 year-old plants from the La Tremenda vineyard (some of Mendoza’s youngest vines). A gem of a wine at the price.

Arnoux Père & Fils 2017 Les Beaumonts Chorey Lès Beaune, AC Bourgogne, France
$41.95, Brand New Day Wines & Spirits
Michael Godel – Surely a pinot noir of place, gifting a sweeter fruit promise matched by a tightly wound coil of acidity and tannin. A very good price here for additional geographical denomination and Climat to a well-established Côte-d’Or red.

Quinta Do Mondego 2012 DOC Dão, Portugal
$19.95, Terroir Wine Imports
John Szabo – It’s terrific to see this fully mature wine arrive on shelves at such an attractive price. A typical Dão blend led by touriga nacional with tinta roriz, alfrocheiro and jaen, it’s sultry and smoky, and brings to mind aged pinot noir, tempranillo, or sangiovese. If you don’t have 8 spare years, or a space to cellar wine for that long and you enjoy mature wines, this is an excellent option.

Castello Di Bossi C. Berardenga 2016 Chianti Classico, Tuscany, Italy
$22.95, Connexion Oenophilia
David Lawrason – This is beautifully balanced and poised if still a bit youthfully reticent. Soft, complex classic Chianti Classico aromas nested amid subtle barrel notes. It is texturally refined and almost mellow, yet structured to age.

Château Tour De Montrabech 2018 Corbieres, Languedoc, France
$14.95, Authentic Wine & Spirits
David Lawrason _-Wines from the rocky, arid Pyrenees foothills of Corbieres are usually rugged, edgy and tannic, but possess surprising complexity with a local peppery/herbal garrigue. Which is very much the story on this fine little five star value.

Michele Chiarlo 2017 Le Orme 16 Months Barbera d’Asti, Piedmont, Italy
$15.95, Univins
Sara d’Amato – This barbera is sourced from a selection of parcels throughout the South Aegean and although no oak is used, it is cellared 16 months before its release. Zesty and vibrant well made, with notable complexity for the price.