Nederburg Auction disappoints 1 October 2007

Low prices could prompt some rethinking about the famous event

To be fair, the event has never truly been about realistic wine prices - the kind that ordinary consumers will pay for a decent bottle of wine. As a high-profile PR exercise for both the brand, owner Distell and the industry in general, the Nederburg Auction is unassailable. But the extraordinary low prices and lack of interest at this year’s event is likely to lead to some serious scratching of heads.

Having moved the auction, in it 33^rd year, to spring for the first time, should theoretically have been to its advantage. But while it certainly helped to make the party  – always the social mainstay on which Distell spends a fortune – the best and smartest ever, it clearly didn’t bring in the high bidders. Most of the wines sold for barely above their reserve prices.

It seems to have been the locals most holding back, as foreign buyers accounted for just under a quarter, up from 16 percent last year. Vina Vita from Russia was the top overseas buyer, taking 238 cases. They were fourth in the league table of buyers, which was topped by the Cape Town Fish Market  (884 cases, for R654 220), followed by the big supermarkets and liquor stores.

While organisers were sweet-talking the low prices afterwards and blaming difficult trade conditions, surely Distell will want to research what went wrong. If top wines like Vergelegen and Stellenzicht Syrah (the famous 1994 was on the table) could not really excite bidders (reaction was very slow), the state of the wine industry in general comes in the spotlight. It will be interesting to see what happens at the Cape Winemakers Guild Auction in a few weeks.

Even with lesser wine on auction and 16 fewer producers on the list, the average price of R1 411 per nine-litre case  was down 11 percent on last year. The overall income was R5.13-million compared with R6.96-million in 2006.

Even the charity auction struggled to get support and the last of the Nederburg Amateur 2003 white, made by wine writers, just-just got a buyer. Sad indeed!

The average price for red wine was R1 559 per nine-litre case. The Stellenzicht Syrah 1994 sold for a high of R666 a bottle, and the  Vergelegen 2001 R633 a bottle.  Dry white wine was a slim average of R853 per nine-litre case, with the top price paid for Cape Point Sauvignon Blanc 2004 at R300.

These prices make the R400 for KWV’s 1953 Red Muscadel seem a snip (even though it’s a record price for muscadel) – if it’s anything close in quality to the famous 1953 KWV Jerepigo.  The average price for fortified wine was much lower, at R801 per nine-litre case.

A new feature this year was the controversial inclusion of new-vintage sauvignon blancs. The highest price paid in this category was R123 for a bottle of Graham Beck Pheasants’ Run. The same winery’s Brut Blanc de Blanc 2001 sold for R300.

The charity sale on the day raised R386 500 for the beneficiaries, the Hospice Palliative Care Association of South Africa, Mothers2Mothers, and the Organ Donor Foundation of South Africa.