L’Avenir Estate, Stellenbosch.
Some fifteen years after launching an extensive investment programme in the South African wine industry, listed French wine company Advini has acquired five prominent wine producers in the Stellenbosch region and seen Adivini’s South African arm contributing 13% to the company’s 2024 turnover of 278m euros.
Advini, listed on the Paris Euronext stock-exchange, was founded in 1870 and today owns 27 wine properties, estates and winemaking facilities in the French regions of Burgundy, Bordeaux, Châteauneuf-du-Pape, Provence, Languedoc and Roussillon as well as the five farms in Stellenbosch. Having launched its investments in South Africa in 2010 with the acquiring of L’Avenir Estate in Stellenbosch, Advini’s confidence in the local wine industry and its identification of growth opportunities saw it expanding its portfolio to include Le Bonheur Estate (2016), Ken Forrester Vineyards (2016), Stellenbosch Vineyards (2018), and Kleine Zalze Wines (2022).
Naretha Ricome, Advini South Africa vice-president based in Saint-Felix-de-Lodez in southern France’s Languedoc wine region, says that besides investments in infrastructure and personnel aimed at increasing the profitability of the company’s current Stellenbosch portfolio, plans to expand its South African footprint will continue unabated.
“The fact that South Africa is the only wine country in which Advini has invested in land, vineyards and infrastructure outside of France underscores our belief that there is still a lot of untapped potential in the country’s wine industry, both in terms of wine production as well as tourism,” says Ricome. “We did look at other wine countries, including Chile, but nowhere was more opportunity seen than in South Africa.”
“This year there has been a lot of talk about the slowing-down of wine consumption and the global oversupply leading to vineyards being ripped out in Europe as well as certain New World countries – like New Zealand – just not harvesting some of their vineyards due the lack of a market for its wines.
“But Advini believes the future lies in growth in focussed market-segments internationally – such as Europe and Canada - where the past few years have seen an increased demand for premium-priced South African wines. The first two decades after the ending of economic sanctions against South Africa in 1990 were challenging in building international recognition for the country as a wine producer. But the industry bodies and producers themselves have risen to the challenge, and since 2010 Advini has seen and experienced an annual growing demand for Cape wines with strong brands, a quality product and properties with a desired wine address – this is why we have focussed on Stellenbosch, as this is the country’s leading wine region and one of the few South African appellations with which international buyers show an affiliation.”
Ricome attributes the success of its Stellenbosch wine farms to the overriding Advini philosophy of allowing each of its wineries to maintain its independence and unique identity. “Take your own story and your history, make the best wines from the varieties your terroir is suited to, and back in France we will provide support, especially through sales and distribution,” she says.
A major reason for profitability of its South African business is Advini’s access to international marketing channels, where the company exports to 110 countries. This has, for one, allowed Le Bonheur Chardonnay to become the largest white wine brand in Canada. Focusing on Cape specialities Pinotage and Chenin Blanc has seen L’Avenir enjoy formidable success. And Kleine Zalze and Ken Forrester are strong brands in the UK and Europe, as well as having a tremendous following among South African consumers.
Ricome admits that, while having improved immensely over the past 35 years, the image and reputation of South Africa as a wine producing country has to grow further for the industry to unlock its true potential.
“The image and price of Cape wine has to continually rise so as to make it profitable for farmers to keep vines in the soil,” she says. “From Advini’s side, we are working hard to position our South African farms as strong, recognisable brands, which is just as important as getting good wine into the bottle. The current quality of Cape wineis stunning -overwhelming actually, otherwise my French board and shareholders would not be here. So, for Advini a top priority is – as it is with our French brands – to expand the reach of our Stellenbosch wines and further entrench them as desirable, premium wines throughout the world.”
Playing by the rules of South Africa in terms of empowerment and sustainability are vital for Advini, says Ricome. “We have two empowerment projects at Kleine Zalze and Stellenbosch Vineyards – Visio Vintners and the Arniston Bay Trust, respectively – where employees are direct shareholders in wine brands that are being exported and from which our previously disadvantaged people benefit,” she says. “Our commitment to sustainability has been underscored by, among others, ensuring that Advini’s Le Bonheur Estate in Stellenbosch has been certified by the World Wide Fund for Nature(WWF)'s as a Biodiversity Champion. Le Bonheur is also a Fairtrade-accredited wine producer, the largest in Stellenbosch to obtain this certification.
“And our Arniston Bay wine brand, produced by Stellenbosch Vineyards, has joined SANCOBB in focussing on the plight of the threatened African penguin, especially in reviving a colony on the Southern Cape close to the village of Arniston.”
Ricome says that although tradition forms the basis of any country’s wine industry, evolution is non-negotiable, especially in light of the current slowdown of wine sales.
“What an international wine business like Advini is bringing to our South African interests is the belief in market expansion with product diversification,” she says. “We have allowed our Stellenbosch wineries to enter new markets – locally and internationally – with innovative packaging, including flexible and recyclable Frugal packaging, as well as 250ml cans. Innovation of product includes low alcohol wines for the Canadian market as well as offering natural aromatic fruit-infused sparkling drinks.”
An example of the success of Advini’s innovative packaging and wine quality was confirmed when it won a recent tenderto supply Quatar airlines with three million litres of wine under Stellenbosch Vineyards’ Star of Africa label packaged in 750ml flat PET bottles.
Ricome says innovation has a strong role to play in growing the wine category in South Africa. “The South African market holds vast potential for further innovation – the wine category makes up only seven percent of the total retail alcohol offering, and Advini is determined to be one of the leaders in growing wine’s share in this space,” she says.“Innovation in packaging and project, together with other exciting opportunities from the incredible wine country that South Africa is, will ensure the expansion of the Advini footprint. The past 15 years have been tremendous, but we believe the best is yet to come.”