Winemakers On Fire, Issue #10

Good day, and a warm welcome!

The counterfeit wine market, valued at around $65 billion, represents a significant portion of the wine industry, potentially accounting for up to 20% of total wine sales. Global experts assert that approximately one-fifth of all wines sold globally are fake, within a market worth $418 billion as of 2020. Shockingly, in China alone, an astounding 30,000 bottles of counterfeit imported wine are sold every hour, indicating the vast financial scale of this problem.

The wine industry's rich history and international popularity have made it an attractive target for counterfeiters seeking to exploit reputable wine brands. These counterfeiters continually adapt as technology advances. Consequently, the wine industry has proactively responded by embracing innovative strategies and cutting-edge technologies to protect both their brands and consumers from falling prey to deception.

Wine brand owners should carefully and thoughtfully consider their options and begin to realise how uncomfortable this "dark" world is. We are a part of a global market, and South Africa's brands are now well known and increasingly becoming more and more recognised. Although it may seem like a distraction, it is necessary. Jeopardising this is not an option.

This week’s Insights to Fuel Your Mind takes an in-depth look into the future landscape of wine brand protection, highlighting emerging trends, persistent challenges, and effective solutions.

A toast to excellence: La Vierge Apogée Pinot Noir 2021 wins top honours in international competitions.

Congratulations to the La Vierge winemaking team, as their Apogée Pinot Noir 2021 was the only South African Pinot Noir to be awarded Gold in the blind tasted 2023 International Wine & Spirits Competition (IWSC), with 96 points, the highest score awarded to wines in this competition.

This recognition follows hot on the heels of the 2020 Apogée Pinot Noir being awarded a Trophy at this year's International Wine Challenge, claiming the South African Trophy for the country's best Pinot Noir.

Learn more about Christo Kotze, winemaker at La Vierge.

Just some general housekeeping: You've come to the wrong spot if you're seeking doom and gloom about everything that's happening. Here, we only offer upbeat assessments. Kevin Kelly summed it up perfectly: “The future will be shaped by optimists.”

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Our guest this week is Duncan Savage, winemaker and owner of Savage Wines. We also feature Bravo Designs' modern makeover of The Roodeberg 70th Anniversary Packaging. In addition, this week's Insights to Fuel Your Mind takes an in-depth look into the future landscape of wine brand protection, highlighting emerging trends, persistent challenges, and effective solutions.

Cape Town’s Hidden Gem: The Unparalleled Craftsmanship of Duncan Savage

Duncan Savage is a trailblazer in the South African wine industry, embodying the spirit of a new generation of winemakers who are revitalising old vineyards and embracing an artisanal approach to winemaking. His commitment to quality and innovation has earned him a respected position in the industry, and his wines are in high demand among wine enthusiasts.

Today’s guest is Duncan Savage, winemaker and owner of Savage Wines.

You spent 14 years at Cape Point Vineyards, where you crafted their signature white, Isliedh (Platters 5 stars), before starting your own venture in 2016. What motivated you to go alone?

Winemaking is an emotional rollercoaster; one becomes very attached to certain parcels of fruit and wines. It’s fantastic to be able to be part of this process for someone else, but to do it for oneself is truly rewarding. I had a plan to do my own thing from the start; it just took a little longer than I thought. Cape Point was, however, one of the best places to learn, with an amazing terroir up against the cold Atlantic and one of the best sites in South Africa. Brand Savage started modestly while at Cape Point Vineyards and grew from 2016 until I left. We have had an incredible journey to date, with so many people around the world supporting the brand.

Your winery is in Salt River, right in the heart of Cape Town. Why Salt River?

Salt River is the heart of the South African wine industry. It wasn’t the natural choice; we didn’t have cash, and I didn’t want to get investors involved in the business. I happened to be renting space at a farm in Paarl called Klipdam with a few other guys. Tim Martin, who owned the urban winery where I am today, decided to sell and contacted me, knowing I was looking for a space. It was central and basically all we could afford after scraping every little bit of cash together from various family members. We have grown the facility over the years and made it our home. There is an unbelievable energy in the city. In a roundabout way, it’s also quite centrally located among all our vineyards.

What has been your biggest challenge since going alone as a winemaker, and how did you overcome it?

Cash flow in any business is a challenge, but I think the security of fruit when one doesn’t own one’s vineyards is a real challenge. We are extremely particular when it comes to viticulture and are very involved in all the blocks we work with. Some we do everything, others just the fine tuning, but farming is the number one most important thing we do. We have great relationships with all the farm owners and have worked the same parcels since day one, with a few new additions.

Tim Atkin named you the South African winemaker of the year in 2022. What was your initial reaction when you heard?

I was naturally over the moon! We have really worked hard as a team, and it was awesome to be recognised. Tim has had a great influence on the success of the South African wine scene, and he has really made a huge effort and genuinely believes in what’s happening here.

How has being a member of the prestigious Cape Winemakers Guild impacted your winemaking career?

The Cape Winemakers Guild is awesome. I became a member in 2007, and it is fantastic to be recognised by one’s peers. The comradery is fantastic; we are a really dynamic group of people who share knowledge, and we also get to taste some of the greatest wines in the world together. I started with people like Jan Boland, Neil Ellis, and Beyers Truter as senior members—not bad mentors, I reckon.

Can you tell us about a particularly memorable wine you have created as a member of the Cape Winemakers Guild?

Our very first bottling of “Follow the Line” was submitted for auction; we made too little to release commercially. It was a 2013 vintage and is still so beautiful today.

I understand you enjoy Grenache. Tell us about the potential and opportunities for this cultivar.

Grenache is extremely versatile the world over; it makes beautiful wines of elegance and purity, but with incredible structure too. The variety also happens to like the sun and higher levels of solar radiation, which is obviously very relevant in the South African context. The Piekenierskloof is where Grenache is particularly at home.

What advice would you give to someone who is thinking about (or crazy enough to start) their own winery or wine label?

If you are not wyn befok (drinking wine) it’s not going to work. Great wines are made by wine people, and wine people understand the wine business. If you look at it from an accountant's point of view, it makes no sense, but it's moer lekker (very nice)!

Thank you for inviting us into your winemaking world, Duncan. Best wishes to you and your team as you move forward.

INSIGHTS TO FUEL YOUR MIND

How Technology is Shaping the Future of Brand Protection in the Wine Industry

Background

The market for counterfeit wine is estimated to be worth $65 billion. Fake wines may account for as much as one-fifth of total wine sales. According to experts, 20% of all wines sold globally are fake, with the wine market valued at $418 billion in 2020. According to the Interprofessional Council of Bordeaux Wine, 30,000 bottles of counterfeit imported wine are sold in China every hour. The market value of counterfeit wines is easily in the billions of dollars.

Consumer buying habits are being significantly impacted by the prevalence of counterfeit goods on the internet. According to independent research commissioned by Incopro (a Corsearch company), more than three-quarters of UK consumers (76%) would be less likely to buy products from a brand if their reputation was associated with counterfeit goods.

The report also emphasised the importance of brand reputation: 44% of consumers said a brand's reputation was very important to them when making online purchases, while only 3% said it wasn't.

However, any exposure to counterfeit products appears to have a negative impact on brand confidence. 66% of consumers who were ripped off after unintentionally purchasing counterfeit goods lost trust in that brand, while 34% of all consumers polled were less likely to buy from the brand's own website if its products had been susceptible to counterfeiting elsewhere online.

Introduction

With its rich history and global appeal, the wine industry has become an appealing target for counterfeiters and fraudsters looking to exploit the value and reputation of established wine brands. As technology advances, so do the methods used by counterfeiters. As a result, the wine industry is embracing innovative strategies and cutting-edge technologies to protect its brands and consumers from deception. This article delves into the future of wine brand protection, highlighting key trends, challenges, and solutions.

Blockchain Technology for Transparency

Blockchain technology has the potential to transform brand protection in the wine industry. Blockchain can trace each step of the wine production process, from vineyard to bottle, by creating an immutable and transparent digital ledger. By scanning a QR code on the bottle, consumers can easily access information about the wine's origin, production methods, and authenticity. This not only confirms the wine's authenticity, but also gives customers confidence in the product they are buying.

NFC and RFID Tags

Tags with Near Field Communication (NFC) and Radio Frequency Identification (RFID) are becoming more common in wine packaging. These tags, which can be embedded in labels or corks, allow customers to interact with the product through their smartphones. Consumers can access detailed information about the wine's provenance, quality, and authenticity by tapping their devices near the tag. This technology provides a seamless and engaging way to protect the brand while also improving the consumer experience.

Advanced Anti-Counterfeiting Packaging

Innovative packaging solutions are gaining popularity as a means of thwarting counterfeiters. Tamper-evident closures, distinctive bottle designs, as well as "smart design" techniques like colour flips and lens effects, that use hot or cold foiling technology, enhance wine label designs while virtually eliminating label replication.

Secure Optical holograms are another contemporary innovation that is skillfully incorporated into a brand's design to enhance it rather than serve as a stand-alone feature. The security device and brand should be thoughtfully integrated to improve the visual impact and the perception that the brand, heritage, and pride are being protected and respected.

These actions serve as a clear sign of authenticity that customers can easily recognise, in addition to protecting and enhancing the brand.

Artificial Intelligence and Data Analytics

Artificial intelligence (AI) and data analytics are critical in detecting counterfeiting patterns and tracking suspicious activity throughout the supply chain. AI algorithms are capable of processing massive amounts of data in order to detect anomalies, irregularities, and potential instances of fraud. AI can predict where counterfeiting attempts are likely to occur by analysing purchasing trends and market data, allowing brands to take proactive measures.

Collaboration and Regulatory Measures

Collaboration among stakeholders, including wineries, distributors, retailers, and regulatory bodies, is becoming increasingly important in the wine industry. Sharing information and best practices can help create a united front in the fight against counterfeiting. Furthermore, stricter regulatory measures and international standards can raise the barriers for counterfeiters, discouraging their efforts and making the marketplace safer.

Consumer Education

It is critical to educate consumers about brand protection. Consumers who are well-informed are more likely to spot counterfeit goods and demand transparency. Brands can educate consumers about how to verify the authenticity of their products and the risks associated with purchasing counterfeit wines through their packaging, websites, and social media.

Conclusion

The future of brand protection in the wine industry appears bright, thanks to technological advancements and industry collaboration. Innovative solutions, ranging from blockchain transparency to AI-powered analytics, are reshaping how brands combat counterfeiting. As the industry evolves, a multi-pronged approach encompassing technology, education, and regulation will be critical to preserving wine brand integrity and consumer trust. Finally, these efforts will not only protect the industry's legacy but will also ensure that wine enthusiasts around the world can continue to enjoy the authentic and high-quality products they love.

The Iconic South African Wine Brand Roodeberg Receives a Modern Makeover from Bravo Design

Roodeberg is the cherished South African red blend that resonates in the hearts and minds of wine lovers the world over. The Roodeberg 70th Anniversary Packaging features a larger, bolder label, an updated closure, and a special commemorative cylinder to give this well-known South African brand a brand-new look.

Since 1949, Roodeberg has been woven into the fabric of South African wine culture, making it one of the country's most recognisable wine names. Today, Roodeberg maintains its legendary heritage and consistency, while continually evolving in line with the modern lifestyle of its consumers. The Roodeberg range now also includes a Rosé, a white blend, and an opulent red blend, Dr. Charles Niehaus, named after Roodeberg’s founding father.

The Roodeberg Red, a classy, fresh red wine with nuances of raspberry, red cherry, and mulberry, is the range's flagship offering. With well-integrated, silky tannins and a lingering finish, the palate is exquisitely layered. With these wines, which are admired for their impeccable structure, outstanding quality, and consistent drinking pleasure, KWV maintains the brand's status as an "icon" brand.

Thank you, John and Brenden, for inspiring and motivating us. We wish you and your team at Bravo Design every success in the future.

Read more about Roodeberg here.

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• Winemakers On Fire is written by Mike Carter and published every Sunday. My vision is to be recognised for giving more than taking and to use my talents and skills to positively impact others. Albert Einstein put it succinctly: "Try not to become a man of success, but rather try to become a man of value."