Welcome to the CWG New world success stories 20 April 2017 Presented by Charles Hopkins
What is a success story? Scenario: Big brands with big volumes selling at affordable medium price VS smaller volume wines with personality & story at a high price. PROFITABILITY! Interesting concept Differentiation Price king Expert on distribution
Definition of a Successful Wine Brand Any brand that successfully engenders some level of positive emotional resonance among its customers might therefore be said to be good but the very best brands manage to appeal widely without undermining their value or diluting their story. Source: Richard Hemming MW
Definition of a Successful Wine Brand A successful wine brand must have the following: 1. Quality product with quality credentials 2. Made in proper quantities 3. Consistent pricing 4. Proper distribution 5. Passion to support the brand Source: Jacques Roux
Biggest Wine Brands in the World # WINERY COUNTRY PRODUCTION 1 Barefoot USA 22,5m cases 2 Concha y Toro Chile 15,2m cases 3 Gallo USA 15m cases 4 Changyu China 15m cases 5 Robert Mondavi USA 12m cases 6 Yellow Tail Australia 11,5m cases 7 Sutter Home USA 10m cases 8 Hardys Australia 9,5m cases 9 Great Wall China 7,8m cases 10 Beringer USA 7,27m cases
My Initial Concept Criteria: Wine history of less than 20 years Wine retailing for $50 (US Dollars) Profitable Strong family ties Single product selling 10 000 cases IMPOSSIBLE TO ACHIEVE
Contacts in Countries COUNTRY CONTACT COMPANY New Zealand Patrick Materman Pernod Ricard Australia Sue Hodder Wynns Chili Julio Bouchon Vina Bouchon USA Martin van der Merwe Constellation Brands South Africa Many experts
New Concept Strong family ties Selling between $30 and $50 Profitable In demand History 30 years and younger Great stories (Differentiation)
Current Limitations in SA? Profitability Perception of South African wines Lack of brands Roll leaf virus Lack of funds research Declining vineyard plantings 60% + of South African wines are made by 56 coops
Goal of this Tasting? 1. Can you achieve a growth of 35% year to year and still maintain the quality? 2. Did you sacrifice everything for profitability? 3. Do these successful wines portray the winery, cultivar and area? 4. How does successful South African brands compare to the rest of the world?
Alc: 12,5% TA g\l: 7,32 ph: 3,2 RS g/l: 2,6 Price: $34 / R442 First production: 1000 cases (2000) Current production: 730 cases (2011) [11y] Growth: - 1 Country: Chile Area: Malleco Valley Winery: Aquitania Wine: Sol de Sol Chardonnay Vintage: 2011 Winemaker: Eduardo de Solminihac Wooding: 8 months 10% new Owners: Paul Pontallier, Bruno Prats, Chrislain de Montgolfier, Felipe de Solminihac Interesting info: Sol is Spanish for Sun, Sol is French for soil, Transport is 650km to winery
Alc: 14,1% TA g\l: 6,4 ph: 3,16 RS g/l: 2,5 Price: $40 \ R545 First production: 291 cases (2002) Current production: 833 cases (2014) [12y] Growth: 9,16% 2 Country: South Africa Area: Swartland Winery: Eben Sadie Wines Wine: Palladius Vintage: 2014 Winemaker: Eben Sadie Wooding: Kleipotte stuk vate Owners: Eben Sadie Interesting info: 12 cultivars, natural fermentation, Unfiltered, 50% export, white wine with red wine attributes
Alc: 13% TA g\l: 6,7 ph: 3,15 RS g/l: 3,7 Price: $26 / R338 First production: 500 cases (2002) Current production: 15 000 cases (2016) [14y] Growth: 27,5% 3 Country: New Zealand Area: Marlborough Winery: Dog Point Wine: Sauvignon Blanc Vintage: 2016 Winemaker: James Healy Wooding: - Owners: Family owned Interesting info: All handpicked, profitable after 8 years, only 10% on local market, own grown fruit
Alc: 13,5% TA g\l: 6,4 ph: 3,38 RS g/l: - Price: $50 / R650 First production: 500 (2002) Current production: 13 000 (2016) [14y] Growth: 21,12% 4 Country: USA Area: Sonoma Coast Winery: Flowers Wine: Chardonnay Vintage: 2014 Winemaker: Chantal Forthum Wooding: 100% wood, 18% new Owners: Huneeus Family Interesting info: Sonoma Coast, 900m above sea level
Alc: 13% TA g\l: 6,29 ph: 3,14 RS g/l: 3,27 Price: $105 / R1083 First production: - Current production: 830 Growth: - Country: Australia Area: Margeret River Winery: Cullen Wine: Kevin John Chardonnay Vintage: 2015 Winemaker: Vanya Cullen Wooding: 100%, 73% new Owners: Cullen Family Interesting info: 1,39 ton/ht, natural fermentation, marriblosson, biodynamic, natural powered, carbon neutral 5
Alc: 14,74% TA g\l: 4,95 ph: 3,73 RS g/l: 2,83 Price: $16 / R200 First production: 500 (2002) Current production: 41 800 (2015) [13y] Growth: 40,56% 6 Country: South Africa Area: Swartland Winery: Boekenhouts Kloof Wine: The Chocolate Block Vintage: 2015 Winemaker: Mark Kent, Johan Nesenberend Wooding: 16 months Owners: Boekenhouts Kloof Interesting info: 5 cultivars, 1675 barrels, Swartland, 60% export
Alc: 14,1% TA g\l: 4,61 ph: 3,7 RS g/l: - Price: $50 / R650 First production: 900 (1997) Current production: 4 800 (2014) [17y] Growth: 10,35% 7 Country: New Zealand Area: Central Otago Winery: Felton Road Wine: Bannockburn Pinot Noir Vintage: 2014 Winemaker: Blair Walter Wooding: 11 months Owners: Family owned Interesting info: biodynamical, no additions, profitable from second year
Alc: 15,2% TA g\l: 4,8 ph: 3,87 RS g/l: 6,06 Price: $47 / R600 First production: 385 (1998) Current production: 75 000 (2015) [17y] Growth: 36,36% 8 Country: USA Area: Napa Valley Winery: The Prisoner Wine Company Wine: The Prisoner Vintage: 2015 Winemaker: Jan Beloz Wooding: 30% new oak Owners: Constellation Interesting info: David Phinney, OrinSwift, Sold in 2016 to Constellation for $285m, Zinfandel, Cab Sauv, Syrah, Charbono, Petit Syrah
Alc: 13,5% TA g\l: 6,1 ph: 3,51 RS g/l: 2,9 Price: $21 / R273 First production: 14 000 (1998) Current production: 110 000 (2014) [16y] Growth: 13,75% 9 Country: South Africa Area: Western Cape Winery: Rupert & Rothschild Wine: Classique Vintage: 2014 Winemaker: Schalk Willem Joubert Wooding: 17 months Owners: Rupert & Rothschild Interesting info: 50% Merlot, 40% Cabernet Sauvignon, 10% Franc, Joint venture between Antonij Rupert & Edmin de Rothschild
Alc: 14,4% TA g\l: 7,33 ph: 3,48 RS g/l: - Price: $125 (Aus) / R1250 First production: 250 (1973) Current production: 3 000 (2014) [41y] Growth: 6,25% 10 Country: Australia Area: Margaret River Winery: Moss Wood Wine: Cabernet Sauvignon Vintage: 2014 Winemaker: Wooding: 28 months, 17% new Owners: Keith Mugford Interesting info: Moss Wood Cheohire, Bill Sandra Pannell.
Alc: 15% TA g\l: 5,5 ph: 3,8 RS g/l: - Price: $60 / R 780 First production: 500 (1987) Current production: 14 000 (2013) [26y] Growth: 13,67% 11 Country: Chile Area: Calchague Valley Apalta Winery: Montes Wine: Purple Angel Vintage: 2013 Winemaker: Aurelio Montes Wooding: 18 months new oak Owners: 4 partners Interesting info: Sustainable certification, 700 000 cases, average $65, 750 ht, 9 tons/ht, 95% export, Carmenère 92% & Petit Verdot 8%
Thanks for your attention and input Thanks to my colleagues, Suzette van Rensburg (Logistics) and Hanro van Tonder (Social Media), and all the wine makers representing these 11 wines for their input. Special thanks to the experts in each country: Patrick Materman, Sue Hodder, Julio Bouchon, Martin van der Merwe. Thanks for the amazing comradery of the wine industry all over the world. Join us for dinner wines to be served: Starter 2013 De Grendel Koetshuis Sauvignon Blanc Main 2013 De Grendel Rubaiyat