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Wine sale mirrors tough economy

Sep 23 2008 13:17

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Cape Town - Increasingly competitive trade conditions in wine markets and the tough economic climate have resulted in the 34th annual Nederburg wine auction raising the lowest amount in three years, say auction organisers.

The auction, which took place in Paarl on Saturday raised a total of R4.7m, this was the lowest amount the auction has risen in the last three years, where earnings have topped R7m.

Competition and economic difficulties have also led to a 10% decline in the average price for a nine-litre case of wine; a case sold, on average, for R1 270 compared with 2007's R1 411.

The past three years saw record earnings for the wine auction. In 2005 sales fetched a whopping R7.5m with the average price of a nine-litre case increasing by 90%. In 2006, overall income was R6 956 180 with the average price of a nine-litre case of wine priced at R1 599. In 2007, buyers bought R5.1m in rare wines.

Foreign buyers made up 23% of total sales down 1% from last year's 24%, with Zambia's Juric Imports, Taiwan's Southern Rhino and Brazilian Casa Flora leading the pack of top buyers.

Restaurant chain the Cape Town Fish Market continued to make its presence felt for the second time in the auction's history buying the most wine priced at R924 800 and taking 20% of all sales. This year top ten buyers were dominated by supermarket and retail groups with Checkers and Makro buying the second and third largest amounts of wine.

The coveted rare Montis Collectors Port Stamp Collection 1948 broke a new record, raising R21 000 or R3  500 per bottle. While the highest price paid for a case of Zonnebloem Cabernet Sauvignon 1964 red wine was R7  000.

The auction, which also raises money for charity, raised a total of R227  600 for its beneficiaries - the Hospice Palliative Care Association of South Africa, Mother2Mothers and the Organ Donor Foundation. However, even the charities couldn't escape the effects of the difficult economic conditions hitting buyers, with sales down considerably from last year's R386  500.

Established in 1975, the Nederburg Wine Auction has become known as a sought-after event on the wine industry's calendar, with a wide variety of 173 rare South African wines on sale.

- Fin24.com

 
 
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