These are the South African wines you should be investing in

Friday, 11 August, 2017
Business Tech
According to Knight Frank’s latest Luxury Index (KFLII), wine has finally overtaken collectable cars as the most popular luxury investment for the world’s super-rich.

The value of the Knight Frank Fine Wine Icons Index rose by a 24% in the 12 months to the end of March 2017, while the HAGI Top Index, which tracks the performance of the world’s most collectable cars, managed a relatively modest rise of just 6% over the same time.

Resurgent demand for Bordeaux and Burgundy wines, amplified by the decline in the value of the pound, has helped to boost the market, said Nick Martin of Wine Owners, which compiles the wines index for Knight Frank.

“Catastrophic frosts that affected up to 80% of the crop in the best Burgundy vineyards mean there is very little stock of the 2016 vintage,” said Martin.

“A lot of the growth has come on the perception of scarcity, but the most sought-after Burgundies might have hit a peak and it feels a bit toppy to me.”

South Africa

Speaking to BusinessTech, Roland Peens, director of fine wine merchants Wine Cellar noted that wine as an investment had also seen increasing interest in South Africa.

“In the last five years South African wine has reached a new point of local and international interest,” he said.

“There has been a surge of quality as winemakers have discovered precious old vineyards, vineyard quality has increased and winemaking in general has been improved. South Africa is now producing some of the hottest and most highly sought-after wine in the world.”

He noted that South Africa’s wine was still relatively cheap compared to similar quality wines from Europe and the US.

“We also produce fine wines in small volumes, which means demand exceeds supply and there is ample room for price growth. Customers are therefore seeing opportunity to make money in buying fine wine and selling them at a later stage.”

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Thomas Davidson

Thomas joined in May 2019 after graduating from Stellenbosch University with a BA in History & Ancient Cultures and completing a certificate in Business Management and Entrepreneurship at the Graduate School in Stellenbosch. He moonlights as a radio presenter at MFM - and has an incredible passion for wine. 
We are delighted to have him on the team.