These 6 South African wines could be good investments – and they're all under R600
- Investing in wine is by no stretch of the imagination a guaranteed money-maker, but it has other benefits - you can't drink a unit trust, after all.
- Certain wines, many of them still quite young and relatively cheap, may be able to deliver an annual return of as much as 20%, according to one expert.
- South African bottles like Alto's Cabernet Sauvignon and Sadie Family's T’Voetpad from the 2015 vintage have proven to be hits with both local and international consumers.
Investing in wine is not as commonplace some other assets, but a wine collection can have real value - just ask some of the sellers at one of SA's top wine auctions held in September, where bidders splurged more than R5 million on various bottles.
Although most of the bottles at the auction were fine wines dating as far back as 1948, a select few wines from the year 2015 may deliver annual long-term returns of 10% to 20%, according to Roland Peens, a wine judge and expert, and director of Winecellar.co.za. But this is far from guaranteed.
These are the six SA wines the Winecellar team think may be investment-quality
1. Kanonkop Paul Sauer, 2015.
"With Paul Sauer 2015 selling out from the farm in record time, some retailers have already doubled the price due to local demand."
2. Meerlust Rubicon, 2015.
"The greatest modern day vintage, combined with maturing vineyards and a refinement in winemaking has pushed the Rubicon to a new level. With impressive scores and a low price relative to its peers, Rubicon 2015 is a great investment."
3. Thelema Cabernet Sauvignon, 2015.
"The price of Thelema Cabernet Sauvignon has been increasing below inflation over the last 5 years and we believe it is under-priced in the market. Expect future vintages to rise in price, making benchmark vintages ever more expensive."
4. Alto Cabernet Sauvignon, 2015.
"The 2015 provides momentum for it to regain the status it enjoyed in the 70s when it was atop of the industry. The 2015 is spectacular and will age well for decades."
5. Sadie Family T’Voetpad, 2017.
Though not a 2015 bottle, the 2017 T'Voetpad is among the winemaker's bottles that are produced in tiny quantities and snapped up on release every year, they quickly see the secondary market at great returns.
6. Restless River Cabernet Sauvignon, 2015.
Though not considered a ‘blue-chip’ stock, the Wine Cellar team feels the rising star of Restless River is an outside bet for great returns. "No other Cabernet sells out as quickly and it has built up a cult following locally and in Europe. The 2015 sets a new benchmark outside Stellenbosch."
Receive a single WhatsApp every morning with all our latest news: click here.
Also from Business Insider South Africa:
- Top Cyber Monday deals in South Africa right now
- This Google app that lets you track what your kids are doing – and can even lock their devices remotely - is now in South Africa
- These South African malls have impressive Christmas decorations this year
- We tried a Woolworths meal kit – this is how it compares to UCook, Daily Dish, and Checkers
- This 99-year old ship wreck, which belonged to Paul Kruger's grandson, has just been recovered off the Cape Town coast