LIQUID INVESTMENTS
MICHAEL FRIDJHON: Sobering viability issues fermenting in the Cape wine industry
Structural changes since democracy have demanded a higher level of competitiveness
For most of the 20th century, the Cape wine industry ticked along as a producer of largely generic bulk wine which found its way to market in many guises — of which premium wine was a tiny percentage. The industry was structured accordingly: 4,500 growers, but fewer than 300 wineries — many of which were cooperatives whose sole function was to transform grapes into liquid form. Some of this juice remained exactly that — grape juice or juice concentrate for sale to the non-alcoholic beverage industry. Some was fermented into wine and immediately distilled to make brandy, the most important spirit by volume in the domestic market. A portion went to make port, sherry and other fortified wines like muscadel and jerepigo, at the time a vastly more important segment of the trade than table wine. The rest became unfortified wine, from jug wine and bag-in-box to several well-known brands marketed by the wholesale merchants. As recently as 1993, of the 900-million litres of juice extracted f...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.