CAPE FINE WINE INDEX
1st Edition
Wädenswil, February 2024
Dear wine lovers and wine investors,
We are delighted to inform you that producers of fine wines in South Africa have financially benefited tremendously over the past two years. As a result of increased international recognition with new top ratings from renowned experts such as Robert Parker, Vinous, Jancis Robinson, Tim Atkin, and other wine publications, the price development of most South African top wines has significantly increased. You can find more information here.
It is therefore not surprising that increasingly higher prices are being demanded and paid for "sold out" and aged vintages from top wineries on the secondary market. Additionally, more and more South African wines are appearing at international auctions. At KapWeine, we also sell increasingly more "aged" wines, with our customers willing to pay a sometimes considerable premium for (ready-to-drink) fine wines and to store them as an investment. All these factors lead to a significant price development already taking place in our, or rather your, CFWI portfolio, as predicted.
This is due to the positive developments of South African fine wines and their excellent ratings, combined with the ever-increasing international demand for coveted top bottlings. No wonder the release prices of current vintages are rising rapidly.
For these reasons, the wines in the Cape Fine Wine Index Portfolio have gained an average of more than 20% in value over the past two years. Take a look at the details further down in our updated report. Enjoy reading.
And finally, we now look forward with excitement and anticipation to see where individual wines and the overall portfolio will be priced in the next 12 months. As it looks, all signs point to further value growth.
We are proud to share this success with you and look forward to offering you more first-class investment opportunities in the next Cape Fine Wine Index Portfolio soon.
More information on this will follow shortly.
Best regards, your Andy Zimmermann and the KapWeine Team
The most important facts in brief
- The right moment to invest in South African wines
- With guaranteed returns in the coming years
- 54 high-quality investment red wines
- Limited to 60 portfolios
- With top vintages/ratings and aged wines
- Exceptional aging potential
Liquid returns – Why wine investments pay off!
About 40 years ago, you could put a bottle of Bordeaux Premier Grand Cru in your cellar for approx. CHF 50. You then had to keep it locked away for about 20 years until it reached its drinking maturity. In the meantime, the same wines from the current vintage cannot be bought for less than several hundred francs. An extraordinary increase in value.
A system has developed where matured wines are sold at a profit, thus financing one's own wine consumption.
Wine prices compared to gold and the MSCI World equity index from 2004 to 2020.
Source: Wine trading platform LIV-EX, Bloomberg
Why invest in South African wine?
When I bought my first bottles of South African wine in South Africa over 30 years ago, the price for the "best" and best-known wine at the time, "Meerlust Rubicon", was CHF 10. There were no more expensive wines than this. Today, the price is CHF 40 for a bottle of Rubicon from the 2018 vintage. The 2008 vintage currently costs the equivalent of CHF 150 in England. Just do the math. No! You don't have to wait 15 or 20 years, as in Bordeaux, for the mature enjoyment to set in. And no! We are not Bordeaux. We are South Africa!
Andy Zimmermann, CEO KapWeine:
“I always recommend a little foresight, because for wine lovers, it is cheaper and easier to buy enough of the current vintage and let some of it mature in the cellar. Exactly as you would with Bordeaux. And that brings us to the topic of CAPE FINE WINE INDEX by KapWeine.”
SECURE 1 OF 60 PORTFOLIOS
To allow you to participate in the development of South African wines, we at KapWeine have launched the CAPE FINE WINE INDEX.
We have put together a portfolio of 54 red wine bottles, featuring rare, highly-rated top wines, which you can acquire with a share certificate in the form of one bottle per wine. For the price of CHF 3481.60, you will become the proud owner of one bottle each of the 54 red wine bottles we have selected for the portfolio.
If desired, we will store your wines for a few years so that you can enjoy the inevitable increase in value. These can then be realized when the complete portfolio is sold in a few years, or you can enjoy the wines that have matured by then and celebrate the highest drinking pleasure at a low price.
You can collect the entire portfolio at any time – from our warehouse, or finally resell it as a complete package (brokerage through us is possible). Annual costs of CHF 99.- per complete package for storage & management fees will be charged.
All further information, such as process, conditions and general terms and conditions, can be found at: kapweine.ch/cape-fine-wine-index
THE GOLDEN AGE IS COMING
We have gained a lot of experience regarding aging potential by spending decades at the pulse of the South African wine industry alongside the producers.
From its small beginnings 26 years ago until today, our "aged rarities cellar" has grown slowly but steadily. In the last 5 years, there has been a truly rapid growth in wines that we have set aside in appealing quantities. In the meantime, our "tasting cellar," as we affectionately call it, has grown to over 17,000 bottles.
So we set out and selected 54 wines for the first edition of the CAPE FINE WINE INDEX by KapWeine and set them aside. Selected based on quality, development potential, ratings, and future increase in value, with regard to rarity, brand power, availability, and price development.
To share this experience with you, so you can make the right choice for your investment, there will be a tasting of the 54 wines – price CHF 100 per person (with snacks). The tasting will take place on Saturday, October 29, 2022, by appointment.
To appreciate the aging potential of South African wines, we recommend you purchase a matured tasting set of Warwick Trilogy or Constantia Glen THREE and FIVE. Wines from Grangehurst / Vergelegen / Morgenster also offer good examples of current vintages that are already released in a matured state. For those who want more specifics, our GEREIFTE WEINE (aged wines) and rarities offers in the online shop will provide what you're looking for.
Andy Zimmermann, CEO KapWeine:
“The dynamism in the South African wine industry has reached such a high level in the last 25 years that I could never have imagined it. Not even in my wildest dreams… and believe me, I dream a lot!”
INCREDIBLE PRICE-PLEASURE RATIO
The 2015 and 2017 red wines are among the best vintages of all time in South Africa, and they offer a price-pleasure ratio that can only be dreamt of in Europe. The 2018/19 vintages also have nothing to hide. And the 2020s could surpass everything that has come before.
For white wines, three consecutive vintages stand out: 2019 / 2020 / 2021. However, the 2017 & 2018 whites are also considered very good.
The South African secondary market for fine wines is gaining momentum. The combination of sales figures from the South African brokerage platform Wine Cellar and the results of the Strauss & Co Fine Wine Auctions shows a sales growth of 87% in the secondary market. Ideally, South African wines have so far been spared speculation, and the wines can be purchased at predominantly "normal" prices, ranging from CHF 40 to CHF 100. Therefore, now is exactly the right time to enter the top-tier wine market in South Africa. The fact that South Africa can keep up with the qualities of this wine world – but lags behind in price for various reasons – has prompted us to offer you the opportunity to benefit from the current situation with top vintages, highly rated wines, still "affordable" prices, combined with excellent aging potential.
Anthony Mueller, wine critic at Robert Parker:
“Most of the time, I'm amazed at how affordable and cellar-worthy these wines are, and when I ask the producer if they intend to raise the price from $15 to $20, I get an almost cynical reaction. They're almost afraid that simply raising the price by $5 will have catastrophic effects on the brand. This is strange, because I know dozens of consumers who won't buy a $15 bottle of wine because they associate price with quality. They assume that a wine that costs $15 tastes cheap and looks like it was mass-produced in an industrial warehouse. Yet both wine collectors and everyday wine drinkers can enjoy South African wines, as the country is well-positioned in both categories.”
Cape Fine Wine Index – Portfolio with 54 red wine bottles
Brand |
Vintage |
Ratings |
2022 |
2024 |
|
| Bartinney Cabernet Sauvignon – aged | 2015 | 94GS 5PL 97IWSC 93DC | 39.00 | 39.20 | 1% |
| Beyerskloof – Pinotage Diesel | 2020 | 94 TA 94NM 5PL 95GS | 79.00 | 79.00 | 0% |
| Boekenhoutskloof – Cabernet Sauvignon Franschhoek – aged | 2017 | 94TA 17SWZ 92WM 18.75BL | 44.00 | 71.20 | 62% |
| Boekenhoutskloof – Cabernet Sauvignon Stellenbosch – aged | 2017 | 94GS 5PL 93DC | 44.00 | 63.20 | 44% |
| Boekenhoutskloof – Syrah – Swartland – aged | 2017 | 94TA 94NM 17SWZ 95MG 17.75BL | 44.00 | 63.20 | 44% |
| Boschkloof – Shiraz Epilogue – aged | 2018 | 98TA 5PL 18SWZ 95DC 95WM | 55.00 | 79.20 | 44% |
| Cederberg – Cabernet Sauvignon – Five Generation aged | 2018 | 93TA 97DC | 69.00 | 79.20 | 15% |
| Constantia Glen – FIVE – aged | 2015 | 93TA 17SWZ 96IWSC 97DC 95WM | 59.00 | 71.20 | 21% |
| Crystallum – Pinot Noir Cuvée Cinema | 2021 | 17JR 96WM | 49.00 | 52.00 | 6% |
| De Trafford – Elevation 393 – aged | 2014 | 95TA 92NM 5PL | 55.00 | 79.20 | 44% |
| De Trafford – Syrah 393 | 2018 | 92TA 5PL 17.8BL | 44.00 | 59.00 | 34% |
| Diemersdal – Cabernet Sauvignon The Journal – aged | 2018 | 92TA 17SWZ 95DC 95WM | 34.00 | 47.20 | 39% |
| Diemersdal – Pinotage The Journal – aged | 2018 | 93TA 5PL 17SWZ 95DC | 34.00 | 47.20 | 39% |
| Erika Obermeyer – Cabernet Sauvignon – aged | 2015 | 5PL 18SWZ | 75.00 | 79.20 | 6% |
| Ernie Els – Signature – aged | 2015 | 92RP 5PL 92JS | 55.00 | 75.00 | 36% |
| Gabrielskloof – Cabernet Franc Landscape – aged | 2017 | 17.5VI 96TA 95DC | 39.00 | 47.20 | 21% |
| Glen Carlou – Cabernet Sauvignon Gravel Quarry – aged | 2017 | 17SWZ 96DC | 39.00 | 47.20 | 21% |
| Glenelly – Lady May – aged | 2015 | 94TA 92NM 94WS 96GS 17.5JR | 34.90 | 63.20 | 81% |
| Kanonkop – Cabernet Sauvignon – Magnum – aged | 2015 | 94TA 92NM 5PL 93DC | 109.00 | 127.20 | 17% |
| Kanonkop – Paul Sauer | 2018 | 96TA 96NM 93GS 96DC 93JS | 55.00 | 71.20 | 29% |
| Le Riche – Cabernet Sauvignon Reserve – aged | 2017 | 96TA 93RP 97GS 5PL 96DC | 59.00 | 79.20 | 34% |
| Lismore – Syrah Estate Reserve – aged | 2017 | 95TA 93NM 92RP 18JR 96DC | 55.00 | 71.20 | 29% |
| Longridge – Merlot Misterie – aged | 2016 | 93NM | 135.00 | 151.20 | 12% |
| Longridge – Pinotage Maandans | 2018 | 93TA 92NM 93JS 96WM | 85.00 | 103.20 | 21% |
| Meerlust – Rubicon – aged | 2017 | 96TA 96GS 5PL | 42.00 | 47.20 | 12% |
| Mullineux – Schist Syrah Roundstone – aged | 2018 | 97TA 93NM 18JR 5PL 95JS | 109.00 | 119.20 | 9% |
| Neil Ellis -Cabernet Sauvignon Jonkershoek – aged | 2017 | 93TA 92RP 5PL | 26.90 | 39.20 | 46% |
| Porseleinberg – Boekenhoutskloof – aged | 2018 | 100TA 95NM 95RP 97GS 5PL | 129.00 | 135.20 | 5% |
| Rainbow’s End – Family Reserve – aged | 2017 | 94TA 92RP | 35.00 | 55.20 | 58% |
| Rall – AVA Syrah | 2020 | 96TA 5PL 98WM | 59.00 | 76.00 | 29% |
| Reyneke – Cornerstone – organic – aged | 2017 | 92TA NM96 94DC | 23.90 | 31.92 | 34% |
| Rust en Vrede – 1694 Classification | 2017 | 95WS 5PL 95DC | 109.00 | 143.20 | 31% |
| Rust en Vrede – Syrah single vineyard – aged | 2016 | 5PL 17.8BL | 89.00 | 119.20 | 34% |
| Sadie Family – Columella – aged | 2017 | 98TA 94NM 93RP 92WS 95WM | 149.00 | 159.20 | 7% |
| Saxenburg – Shiraz Select | 2019 | 93 TA 95DC | 99.00 | 109.00 | 10% |
| Shannon – Black Merlot – aged | 2017 | 96TA 5PL | 89.00 | 111.20 | 25% |
| Shannon – Mount Bullet Merlot – aged | 2017 | 94TA 5PL 92JS 93WM | 49.00 | 71.20 | 45% |
| Spier – Frans K. Smit Red Blend | 2017 | 92TA 5PL | 89.00 | 99.00 | 11% |
| Storm – Pinot Noir Ignis – aged | 2018 | 95TA 5PL | 49.00 | 55.20 | 13% |
| Storm – Pinot Noir Ridge – aged | 2018 | 94TA 92WM | 49.00 | 55.20 | 13% |
| Storm – Pinot Noir Vrede – aged | 2018 | 94TA 92WM | 49.00 | 55.20 | 13% |
| Thelema – Merlot Reserve | 2019 | 95TA 96GS 5PL | 39.00 | 47.20 | 21% |
| Thelema – Cabernet Sauvignon – aged | 2015 | 93TA 95GS 92DC | 29.90 | 39.20 | 31% |
| Thelema – Rabelais – aged | 2018 | 96TA 96GS 93WM | 47.00 | 63.20 | 34% |
| Tokara – Director’s Reserve Red – aged | 2017 | 95TA 94NM 5PL 93DC 93WM | 99.00 | 143.20 | 45% |
| Tokara – Director’s Reserve Red – Magnum – aged | 2015 | 94TA 5PL | 44.00 | 60.00 | 36% |
| Vergelegen – „V“ – aged | 2014 | 95TA 17JR 5PL | 69.00 | 87.20 | 26% |
| Vilafonté – Series C – aged | 2017 | 96TA 93NM 92 JS 92WM | 129.00 | 143.20 | 11% |
| Vilafonté – Series M – aged | 2017 | 94TA 92NM 96GS 96JS | 65.00 | 79.20 | 22% |
| Warwick – Cabernet Franc – Magnum – aged | 2015 | 17VI 94TA 17JR 17.75BL | 89.00 | 119.20 | 34% |
| Warwick – Cabernet Sauvignon – Blue Lady – aged | 2015 | 17.5VI 94TA 92NM 92WS 95GS | 39.00 | 55.20 | 42% |
| Warwick – Trilogy – aged | 2015 | 95TA 92DC | 39.00 | 60.00 | 54% |
| Waterford – Cabernet Sauvignon- aged | 2015 | 95TA 94GS | 49.00 | 55.20 | 13% |
| Waterford – The Jem – aged | 2015 | 97TA 93NM 5PL 96WM | 109.00 | 159.20 | 46% |
| Storage fee (3 years) | CHF | 218.40 | 215.80 | ||
| CAPE FINE WINE INDEX – PORTFOLIO PRICE | CHF | 3’700.00 | 4’480.00 | 28% | |
Legend Wine Ratings:
VI = VINUM CH / TA = Tim Atkin UK / NM = Neal Martin – Vinous USA / RP = Ropert Parker USA / WS = Wine Spectator USA / GS = Greg Sherwood MW UK / JR = Jancis Robinson UK / PL = Platter’s SA / SWZ = Schweizer Weinzeitung CH / DC = Decanter UK / WM = WINEMAG SA / BL = Blick CH / IWSC = International Wine & Spirit Competition UK / JS = James Suckling USA
OUTSTANDING QUALITY DEVELOPMENT
From the depths of mass production to the Olympus of the wine world. Thanks to an almost unbelievable dynamic, driven by the then, and still today, wild young (Young Guns) rebels who dedicated themselves to top quality and broke new ground, South African wines are rapidly evolving.
The realization to cherish and nurture old vines led to activities such as the Old Vine Project. Natural production methods from the vineyard to the cellar are optimized, incorporating old cellar techniques with the use of amphorae, concrete eggs and concrete tanks, large foudres, and moving away from the use of new small oak barrels. What was initially practiced by the young rebels is now being adopted by more and more wine producers! But wine quality has also improved everywhere else. The vineyards planted after the opening in 1992 are now reaching their prime, and many of the generational estates at the Cape have focused their efforts on quality. The many new small wine producers, which have sprung up like mushrooms in the last 25 years, have also shown them the way. It took a few years for winemakers to implement the existing world-class terroir. To be precise, almost 20 years since the opening of export markets in 1992. Developments are still ongoing. Renowned wine journalists have recognized the treasures hidden in South Africa and that these are increasingly being brought to light, or rather, into the bottle. The quotes from wine experts speak for themselves.
Neil Martin, Wine Critic Vinous:
“As I mentioned in my last ‘Cellar Favorite’ column, the secondary market becomes more intense year after year. For many of the wines, which sometimes cost only a fraction of the price demanded in Bordeaux, Burgundy, or California, allocations are snapped up in no time. And the secondary market ensures that some of these bottlings can fetch multiples of their price. Attentive consumers should hold onto a few of them, not only for the longevity of the wines but also because I suspect they will eventually become collector's items, as old vintages of Paul Sauer or Columella already have.”
“Many producers have driven the Cape’s ascent to one of the most dynamic wine regions in the world. They made wines that are often sheer joy in a bottle. As usual, I had to constantly check the retail prices, as, after tasting 2019 Burgundies and 2018 Bordeaux, I had become accustomed to entry-level wines sometimes costing more than $50 a bottle – the same price as a brilliant South African wine that is on par with Bordeaux Second or Third Growth or Burgundy Top Premier Cru. That is no exaggeration. That is where the best of the Cape stands now.”
EXTRAORDINARY AGING POTENTIAL
The terroir determines the extraordinary storage and aging potential. Grown on the oldest soils in the world, South African wines consistently show excellent aging potential.
Almost all South African wines can be stored well and for a long time, with most white wines providing enjoyment for 3 to 10 years, and often reaching their peak after 3 to 5 years. Unless you like them young, vibrant, fresh, and crisp, depending on the grape variety. For reds, we usually see an ideal drinking window after 8 to 15 years, with optimal drinking pleasure starting three, but preferably five to ten years after bottling. If you prefer rough and tough, you can start a bit earlier, and if you prefer velvety and tertiary flavors, you wait a bit longer. And of course, it depends on the grape variety. For Cabernet Sauvignon wines, I would add another three years each here. I have drunk numerous 20-year-plus Cabernet Sauvignon-based top wines. Many had the potential for another 10 to 20 years in the bottle. All of this demonstrates the characterful qualities of our wines. This is not limited to top wines, but applies to many good wines in the price range of CHF 20 to CHF 30. Even we at KapWeine are always surprised how small wines develop when they are open for one to three days, but of course go into the refrigerator with the cork or screw cap closed for sleeping. The white wines develop within the first two days and quickly rush from an 80% potential when opened, towards 100%. Wines aged in oak barrels need one to two days longer to show their full potential. For red wines, it is two, but usually three to five days, which the wines need to come together.
What is the reason for this? This is due to the terroir. Meaning the climatic conditions in combination with the soil conditions. Because South Africa is truly spoiled in that regard. Of course, the so-called winemaker – we prefer to speak of a wine midwife – also contributes. Because good winemakers let the wine make itself and only accompany it. Because the wine is "made" in the vineyard. Of course, wine midwives must know exactly, feel, and implement what the vineyard, the grape, and the wine need at the right time. In this case, the use of oak barrels is just cosmetics, but even this needs to be well judged and timed! Here too, optimization takes place, and primarily the wine should speak! It does this best with the accompaniment/integration of amphorae, concrete eggs, concrete tanks, and large used foudres/barrels to coax the best out of the wine without dominating it.
LONG-TERM STORAGE
Over the years, we at KapWeine have continuously expanded our range of aged wines and have thus struck a chord with our customers. More and more aged vintages from various producers are being purchased from us because our customers have recognized the added enjoyment they offer. This has led many of our customers to store wines long-term in order to then enjoy the ultimate pleasure of 95% to 100% of the wine's potential. Most South African wines, however, are also drunk young and at a potential of 70 to 80%. This is also possible, of course – patience is rewarded. That's why we think now is the right time to enter the top-wine market with South Africa!
"Don't miss it: South Africa is firing on all cylinders. You just have to be selective and know where to look. Even as an experienced taster, I eventually leaned back and admired the astonishing qualities. Especially the white wines are reaching such a high level that I imagined them as runners sprinting forward, looking back at the reds and urging them to catch up.
As someone privileged to enjoy more than a share of rare and expensive Grand Cru Burgundies and First Growth wines, I can say without hesitation that the finest wines of South Africa punch in the same weight class. This report is brimming with wines produced in climatically challenging, dry-farmed vineyards, often from old vines and with minimal intervention by talented and frequently young winemakers who are at the beginning of a long career. These winemakers create an exciting and dynamic scene from which the entire industry benefits, as it dismantles the stigma and prejudices that far too many people harbor towards the wines of this country. Fortunately, there are a number of top producers who are steadily evolving and gaining a loyal audience, ensuring that their limited cuvées sell out faster each year. Believe me when I say that you might regret it in a decade if you haven't acquired one of these exceptional wines." NEAL MARTIN, Vinous Report November 2019.
As the most well-known and influential wine critic Neal Martin (formerly Robert
Parker) of Vinous writes: Don’t deny yourself – which means: Don’t miss it!
