The road leading to the Taaibosch estate runs alongside a property with a familiar name: Courchevel. Further up the road is a farm called Navarre. French place names are not uncommon in the Cape region, where Protestant Huguenots took refuge after the revocation of the Edict of Nantes in 1685. Some of them cultivated vines on farms which, three centuries later, are now renowned estates. However, a new chapter is about to begin, one of a vineyard growing in reputation and attracting new foreign investors, including French ones, who own around 15 estates.
After acquisitions in Sicily and France – such as Vallon des Glauges, which produces a notable rosé – the Oddo family was looking to add so-called "new world" wines to its portfolio. South Africa won out over Argentina and New Zealand. They set their sights on the prestigious Stellenbosch region, purchasing three estates, including Taaibosch in 2017, the group's flagship, which produces only Crescendo. This destination was suggested to them by Bertrand Otto, of the Edmond de Rothschild Group, which has also been in South Africa since 1997 with the renowned Rupert & Rothschild Vignerons brand, a French-South African joint venture.
'The most beautiful estate'
Pascal Oddo and his daughter Lorraine "fell in love with the country," Lorraine told Le Monde over the phone. She praised Stellenbosch's stellar reputation, "a very fine appellation which is developing throughout the world," and highlighted the quality of her property, "an absolutely stunning estate with incredible exposure, a view of the ocean that brings a great deal of freshness to the wines and protects the vineyard during heavy rain." It's "the most beautiful estate in South Africa," Taaibosch winemaker Schalk-Willem Joubert had promised them at the time of purchase.
Joubert, an experienced grower, enthusiastically drove his 4x4 up the estate's slopes. The incline rises 400 meters above the Atlantic, which can be seen from the vines. "If you want to make a Bordeaux-style wine, this is the right property," Joubert had said to himself when he first spotted the farm. This appellation area and its terroir are ideal for growing Bordeaux grape varieties such as cabernet sauvignon, cabernet franc, merlot and petit verdot.
However, the landscape, with its mountains surrounding Stellenbosch, bears no resemblance to the Gironde. This particular topography means that "land is more expensive. The slopes are steep, so the cost of production is higher, and urban sprawl makes land less available," said Joubert. "However, the people who invest want to make the best wine they can, and Stellenbosch allows them to do just that."
"The opportunities here are very good," said Maryna Calow, spokesperson for Wines of South Africa, the body responsible for promoting the country's wines abroad. Although Stellenbosch is the most expensive South African wine region – with an average cost of €50,000 for a hectare of cultivable land – but "it's still much cheaper than buying land in Europe or in Napa and Sonoma Valley [in California], and what we produce is very good quality," she said. The production here is also more lucrative.
Major investments
Foreign investors come from all over the world, and their interest in South Africa is nothing new. However, it's the arrival of giants like Les Grands Chais de France that has been driving the sector lately. This family group from Alsace, Europe's leading wine producer and merchant, acquired Neethlingshof in 2022, which produces both reds and whites. In 2023, it also acquired Villiera, an estate known for its Method Cap Classique, the South African equivalent of a crémant sparkling wine.
"Demand for South African wines is growing, particularly among younger consumers in Europe, who are less concerned with the product's local origin. A lot of people like the profile and taste of South African wines, especially the reds. And many people are surprised by the quality of the sparkling wines," said Matthias Schwunk, executive director of the international wines and spirits division at Les Grands Chais de France.
The group has made significant investments and, in just three years, has managed to double the production at Neethlingshof, "a sleepy little place with a lot of potential," said Schwunk. "We've made South Africa one of our priorities because we anticipate very strong growth for South African wines worldwide." Without naming names, Calow, of Wines of South Africa, said she knew that French groups were looking to acquire other estates.
For these multinational beverage companies, having vineyards in both hemispheres means they have two harvests a year. This diversification also mitigates the economic risk of a climatic catastrophe affecting a vineyard. It also enables them to anticipate market trends.
Reaching new markets
"The aim is to be one step ahead, as we were on the 9-degree Sauvignon trend from South Africa," said Caroline Galmard, the communications manager for French group Cordier, which has been operating in the southern country since 2017. The group does not own any vineyards but works with cooperatives and estates to export wine in bulk or bottles for the northern European market.
The Kleine Zalze estate, located next to a tech park and nestled within a residential complex, may lack the charm of the wine route estates, but its chenin blanc is popular. It is the latest acquisition by French group AdVini, which purchased it in 2022, following Stellenbosch Vineyards in 2018, Le Bonheur and Ken Forrester in 2016, and finally L'Avenir in 2011.
Estates that are very well distributed in the country's supermarkets and restaurants. "There's wine for the gilets jaunes (Yellow Vests) and wine for the Elysée palace," joked Jean-Louis Leroy, Kleine Zalze's French sales representative, pointing to the range of wines available in the estate's modest tasting room, priced between €5 to €24 for a cabernet sauvignon.
Thanks to AdVini’s resources, the brand hopes to reach new markets. "I don't export anything to the US or China. With AdVini, it's supposed to be easier. They have an office in the United States, an import-export company and a team in Asia, so their goal is to help us expand our market," said Carina Gous, managing director of Kleine Zalze.
Low profitability
By offering new outlets, these investments strengthen a wine sector that is declining very slightly in Stellenbosch but more so elsewhere in the country, where other crops are preferred to vines for lack of profitability. Only 12% of South African estates are profitable.
Glenelly, the best-known French estate in South Africa, is part of this small group. "In 20 years, we've come a long way to create a brand with almost global distribution, and to be recognized as one of the great producers of Bordeaux red grape varieties," said Nicolas Bureau, the company's managing director.
Winemakers show how ancient wisdom can improve what’s in the glass
He represents his grandmother, May-Eliane de Lencquesaing, former owner of Château Pichon Longueville Comtesse de Lalande, a Pauillac Grand Cru Classé in the Bordeaux region. At 99, this pioneer is still involved in the estate she bought in 2003 to realize her dream of producing wine in the southern hemisphere.
In the cellar, a small corridor separates two glass-walled rooms. On one side are bottles of Lady May, Glenelly's premium wine. On the other are bottles of Château Pichon Longueville Comtesse de Lalande, from the former Bordeaux estate sold in 2006.
"The story we try to tell our visitors is that South African fine wines should be treated like the great Bordeaux wines. They need to be cellared because they age extremely well and every vintage is different," said Bureau. The director admits to promoting a somewhat "romantic" view of wine. This contrasts with consumer habits of drinking young wines and the industry's focus on volume in South Africa.
