PINOTAGE 2022/2023
Chairman’s Annual Report 2023
Key Focus Areas for 2023:
1.The Absa Vintage Pinotage Competition: We are delighted to announce the continued success of the Absa Vintage Pinotage Competition, which has become a renowned platform for showcasing the best of our varietal. The competition attracted an impressive number of entries this year, with exceptional wines that truly exemplify the potential and ageing ability of Pinotage. We will continue to enhance this competition, providing winemakers with an opportunity to showcase their craftsmanship and promote the excellence of Pinotage. 2.The Absa Top 10 Competition: Our commitment to recognizing excellence extends to the Absa Top 10 Competition, where Pinotage producers compete for the coveted title of being among the top ten Pinotage wines in South Africa. This competition serves as a platform to celebrate the pinnacle of Pinotage winemaking, and we are pleased to witness the innovation and dedication displayed by our members in crafting exceptional wines. 3. The Cape Blend and Rosé Competitions: In addition to Pinotage, we recognize the importance of showcasing other South African wine styles that complement our varietal. The Cape Blend and Rosé competitions have gained prominence in recent years, allowing winemakers to demonstrate their skill in producing outstanding blends and refreshing Rosé wines. We encourage our members to participate in these competitions, further strengthening the reputation of our industry as a whole. 4. Excellence Awards for Vini-Viticulturists: Recognizing the significant role played by vini-viticulturists in shaping the quality of Pinotage grapes and wines, we have introduced the Excellence Awards. These awards honour and celebrate the outstanding contributions of individuals who demonstrate exceptional skill, knowledge, and commitment to the vini- viticultural practices associated with Pinotage. Through these awards, we aim to highlight and promote excellence in the cultivation and nurturing of Pinotage vineyards. 5. Pinotage Work Integrated Learning Programme: As part of our ongoing commitment to education and skills development, the Pinotage Association continues to drive the Pinotage Work Integrated Learning Programme. This program provides valuable opportunities for students to gain practical experience and knowledge within the wine industry. By fostering the next generation of winemakers, viticulturists, and wine professionals, we aim to secure the future success of Pinotage and the wider South African wine industry. We are immensely grateful for Absa’s belief in our vision and their unwavering support, which enables us to fulfil our vision. Their contributions have not only elevated the Pinotage industry but have also enhanced the reputation of the South African wine industry as a whole. Their partnership has been instrumental in our success and has allowed us to achieve new heights in promoting and elevating Pinotage. In conclusion, the Pinotage Association is proud of the progress made. Our focus areas for 2023 encompass the Absa Vintage Pinotage Competition, the Absa Top 10 Competition, the Cape Blend and Rosé competitions, and our commitment to student development through the Pinotage Work Integrated Programme.
Pinotage continues to make significant strides in the wine industry, garnering recognition and appreciation both at home and abroad. Locally, Pinotage remains a beloved choice among wine enthusiasts, with a growing number of producers dedicated to its production. The consistent quality and distinct character of Pinotage wines have contributed to its popularity, and it continues to be a proud ambassador for our nation’s winemaking ability. Internationally, Pinotage has enjoyed increasing recognition and demand, earning its place on the global wine map. Our efforts to showcase the excellence of Pinotage and educate consumers about its exceptional qualities have yielded positive results. South African Pinotage is now prominently featured on prestigious wine lists and commands the attention of discerning wine connoisseurs worldwide. The latest Pinotage statistics (SAWIS) highlight a 0.6% increase in Pinotage vines planted, with 6,611ha in 2023 compared to 6,570ha in 2021. Pinotage ranks 3rd in the Red category and 6th in the Red & White category. In 2022, we boasted 19,856,306 litres of Pinotage, a slight increase from 19,719,810 litres in 2021. The top three districts, according to geographical distribution, are Swartland with 1,343 hectares, Paarl with 1,310 hectares, and Stellenbosch with 1,034 hectares. Another notable statistic is the decrease in exports: Bulk exports decreased from 11,831,458 litres in 2021 to 8,434,514 litres in 2022, and Packaged exports decreased from 8,138,113 litres in 2021 to 7,539,010 litres in 2022. Total exports decreased by 3,996,047 litres in 2022.
PINOTAGE COMMITTEE MEMBERS
Beyers Truter - (Chairman) De Wet Viljoen - (Vice-chairman) Abrie Beeslaar Etienne Louw
Prof Maret du Toit Johan Fourie Andries Blake Nicolaas Rust Albertus Louw Andre van Dyk Francois van Niekerk
We extend our gratitude to all members for their dedication, support, and contribution to the growth and recognition of Pinotage. Together, let us continue to raise the bar and showcase the extraordinary potential of our beloved varietal.
Thank you Beyers Truter
The above statistics reiterate the key role the Pinotage Association has in driving the premiumisation of Pinotage.
Confronting Climate Change: CARBON EMISSIONS AND THE FUTURE OF SOUTH AFRICAN AGRICULTURE By Anna Mouton
Global warming threatens South African agriculture as much by changing consumer behaviour as by changing climate. Growing awareness of the environmental impacts of agriculture is leading consumers to question how their food is produced and transported. Answering those questions have consequences for the future of our export industries.
And the pull from a South African perspective was to make sure that we were developing a pathway to reduce our emissions – to do the right thing.” Seed funding from the Department for International Development in the United Kingdom, along with support funding from the Post-Harvest Innovation Fund and the National Agricultural Marketing Council, kick-started the project. This was followed by substantial support from the Western Cape Department of Agriculture. The current partners in the project include the industry bodies for pome and stone fruit, citrus, table grapes and wine. Implementation is by sustainability consultancy Blue North.
For those in the persuit of the iconic
The push to quantify carbon emissions
The right tool for the job
A common perception among consumers is that so-called food miles – the distance between farm and fork – determine the contribution of a foodstuff to climate change. But distance is not everything, contends Hugh Campbell, General Manager of HortgroTechnical. Factors such as efficiency of production are among the many that also play a role. The South African fruit and wine industries recognised that maintaining market share would hinge on addressing consumer concerns. They combined forces and established the Confronting Climate Change Initiative in 2008. One of the main aims of the initiative was to develop a carbon calculator. “There was increasing pressure - a push - from the markets to know what our carbon footprint was”
The carbon footprint of a foodstuff is the sum of the greenhouse gases emitted in its production and transport. All the gases are converted to carbon-dioxide equivalents – CO2e. Sources of greenhouse gases in fruit production typically include electricity, fuel, agrochemicals and fertilisers. Sources in fruit packing include electricity, fuel and packaging. Working out a footprint starts with knowing the inputs – how much of each emission source was consumed. “Each of those in puts is multiplied by an emission factor,” explains Anél Blignaut, senior associate at Blue North. Emission factors relate the inputs to a quantity of carbon dioxide that is specific to that input. For example, container ships emit on average 0.02 kg of CO2 per cargo-tonne per km, compared to airfreight, which emits on average 0.53 kg of CO2 per cargo-tonne per km. The carbon- calculator tool guides users through the process of entering all their inputs, as well as their outputs – for example crop yields or tonnage packed. Blignaut emphasises the importance of basing the tool on international standards to ensure correct accounting for inputs.
www.grandpinotage.com
carbon credits. Carbon credits can be defined as the monetary value of reducing greenhouse-gas emissions. “Let’s say I produce a lot of emissions, and you have a way of capturing those emissions – I can pay you to offset my emissions,” explains Blignaut. “But I still need to reduce my emissions, and only offset those emissions that I can’t practically reduce.” There are standards for what counts as a carbon credit. Offsets must be measured and verified before they can be registered as carbon credits. The credits then become available for purchase on carbon exchanges. In theory, certain activities on farms could qualify as carbon credits. “By planting an orchard - planting trees - you don’t necessarily offset emissions because you are removing them 20 years later”
“Our tool has been reviewed by the Carbon Trust to ensure that we followed the standard correctly.” Users access the carbon calculator online. “We thought it would just be a matter of developing this online calculator,” says Campbell, “but we soon realised that a major part of its success would depend on doing extensive training.” The Confronting Climate Change Initiative holds workshops throughout the year, including free workshops for first-time users. Users also have access to support. “The user receives a very detailed report,” says Blignaut. “Your report will benchmark you against others in your area, in kg CO2 per kg fruit, as well as relative to the inputs that contribute the most to your overall carbon footprint. “One of the biggest benefits that’s come out of carbon footprinting is the information on operational usage which then translates into costs,” reflects Campbell. “The biggest one is electricity.” The shock of seeing the numbers motivated many in the industry to innovate and to reduce their electricity usage, resulting in substantial savings.
Trading in carbon credits
As growers have acted to reduce their carbon footprint, and to adopt sustainable practices, they’ve begun to wonder whether there could be additional financial benefits, in the form of
TAXING TIMES AHEAD
Criteria for carbon credits
For practical purposes, the ocean is the most important store of CO2 – the deep ocean contains significantly more carbon than the atmosphere, and the exchange between ocean and atmosphere is very slow, occurring over centuries. Plants and soil hold less than a tenth as much carbon as the deep ocean. Nonetheless, permanent vegetation and soils have an important role to play in carbon sequestration. Carbon capture and storage usually refers to artificial processes for sequestering carbon, typically in industrial settings. Carbon is either collected as it is emitted, or captured from the atmosphere, and stored in reservoirs.
Carbon Jargon Your quick guide to carbon Literacy
The threshold depends on the activity. Emissions from diesel and petrol for road travel are taxed separately through a levy on fuel. Agriculture is not currently subject to the carbon tax. That may change when the second phase of the tax is implemented in 2023, and growers may face taxes on emissions resulting from fertilisers, soil amendments, diesel generators and land-use changes, among other sources. Calculations published by Blue North estimate that the carbon tax on agriculture could amount to approximately R343,00 per bearing hectare. But the tax will impact the fruit industry regardless of whether agriculture is directly taxed or not. Eskom is also exempt for now, but their grace period expires next year. This could result in further significant increases in the cost of electricity. The bottom line is that activities which generate emissions will become ever more costly, either due to price hikes or due to direct taxation. Which brings us back to the carbon-calculator tool. “Your report will highlight your hotspots – those areas that contribute the most to your total carbon footprint,” says Blignaut. South Africa implemented a carbon tax in 2019. Carbon tax works much the same as income tax A tax is levied on emissions above a certain threshold.
For an offset to qualify as a credit, it must represent a reduction in emissions of 1 tonne of CO2e.
Furthermore, the reduction must meet five criteria:
By Anna Mouton
• Additionality. • Permanency.
CO, COe and GHGS
• Not overestimated. • Not double-counted. • Not environmentally or socially harmful. The first two are especially relevant to deciduous fruit and wine producers. Additionality means that the reduction is made in addition to any other reductions that would have been made regardless of a market for carbon credits. In other words, the main driver of the reduction is the anticipated financial gain from trading the carbon credit. If a reduction in emissions is a side-effect of something that would have happened anyway, it does not meet the criteria of ad ditionality. For example, if an entity is legally required to reduce its emissions, it doesn’t qualify for carbon-offset credits. Permanence means exactly what it says – a temporary reduction in or short-term storage of greenhouse gases doesn’t qualify for carbon- offset credits. A common convention is that permanence equals a century – far longer than the lifetime of an orchard or plantation.
Greenhouse gases (GHGs) in the atmosphere trap heat that would otherwise radiate into space.
The most abundant greenhouse gas in our atmosphere is water vapour, followed by carbon dioxide, methane, nitrous oxide, ozone, fluorocarbons and a few others. Carbon dioxide (CO) is the greenhouse gas most generated by human activities. The heat-trapping potential of other greenhouse gases is expressed in CO-equivalents (COe). This facilitates com parison between different greenhouse gases, and allows for their inclusion in emission-reduction programmes.
Offsets and credits
A carbon offset is a reduction in atmospheric greenhouse gases that is offset against emissions that happen elsewhere. The reduction can occur either through not emitting greenhouse gases in the first place, or through increasing the capture and storage of gases that have already been emitted. A carbon-offset credit – usually just called a carbon credit – is a tradeable certificate or permit that represents an emission reduction of 1 tonne of CO2e. In very simple terms, if person A captures and stores 1 tonne of carbon dioxide, or its equivalent, they can earn one carbon credit. They can then sell that credit to person B, effectively granting them the right to emit 1 tonne of carbon dioxide, or its equivalent. Carbon-offset programmes provide quality assurance for offsets in three ways: •They set the criteria for carbon-offset credits. •They review offset projects to ensure that credits meet the criteria. •They operate carbon registries to issue and trade credits.
Fixation is not sequestration
Carbon fixation is the process by which living organisms use inorganic carbon – mostly CO2 – to build organic compounds. Photosynthesis is the main mechanism for carbon fixation. Some of this carbon is incorporated into long- lasting compounds such as wood, but much of it is burnt as fuel during respiration by the plant, and by all the organisms that feed on the plant, either directly or indirectly. Respiration releases CO2, which is why carbon fixation by plants does not equal carbon sequestration.
“That will help you to prioritise, so you can address those areas that will deliver the biggest wins.”
But Blignaut adds, “we shouldn’t forget about the benefits of the carbon calculator for the industry as a whole. There are no other countries with comparable industry-wide projects to calculate carbon footprints. South Africa is the leader in this area.”
Carbon sequestration is the long-term removal of carbon diox ide from the atmosphere.
Most of the carbon on earth is held in rocks, and interacts with the atmosphere on geological timescales of millions of years.
Financing offered
Absa offers a range of bespoke financing options tailored to fit your needs, while a project’s cash flow and financial requirements are taken into consideration.
Absa’s Green Asset Finance product allows for the investment into solar to link to terms of 5 to 7 years, while funding through a Renewable Energy Term Loan enables the bank to lend up to 10 years, with funding of up to 100% of the cost of the project. Importantly, we lend against the assets and its cash flows without requiring additional security, structuring the loan such that it often results in a positive impact on cash flow over time. Deciding on an installer Finding a credible solar supplier is incredibly important as this decision will impact the installation quality in terms of meeting acceptable industry standards. When deciding on your solar supplier, we suggest taking the below into account.
I can invest in Renewable Energy
The supplier should have:
An understanding of Eskom’s regulation, municipal bi-laws, and the NERSA registration process.
An established and proven track record with the technical capability, know-how and experience to install a solar photovoltaic (PV) solution to meet your energy requirement.
Service level agreements in the form of after-sales services and maintenance contracts that must be offered.
Electricians employed or subcontracted that are qualified with proof of registration (a wireman’s license).
The necessary warrantees and guarantees for the installation and the various components of the system must be provided, this includes the solar panels, inverter, battery, and the structure of the system.
As electricity prices continue to soar, Renewable Energy is increasingly becoming a viable option. If you’re considering ways of integrating it into your business, Absa’s Green Asset Finance is the answer you are looking for.
Following a site visit, the installer should be able to produce a simulationor feasibility study of the electricity production estimate for the system for a year, incorporating the average weather at the site, and advise on the size of the components needed (solar panels, inverter, and batteries) to meet consumption requirements.
It is specialised asset financing that caters for the long-term nature of solar investments. What’s more, we can also lend against the asset and related cash flows.
Invest in Renewable Energy for your business, contact us at RenewableEnergy@absa.africa.
After completion, a Certificate of Compliance (COC) must be completed and signed off by a qualified electrician and certified by a professional engineer.
We do more so you can. That’s Africanacity.
www.absa.africa Authorised Financial Services Provider Registered Credit Provider Reg No NCRCP7 T&C apply
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Pinotage Overview 2022
EXPORTS
2021
Packaged
Total
Bulk
154 017
23 920
130 097
BELGIUM
71 307
-
71 307
7,47%
CANADA
7,30%
6,91% 6 921
7,21% 6,21% 7,0% 6 637 6 570 6 611
7 361 6 791
6,18% 6 240
263 846
194 800
69 046
Total Area Under Vines
DENMARK
6 873 712
6 353 533
520 179
GERMANY
2015 2018
2012
2020 2021 2022
315 927
24 020
291 907
SWEDEN
2010
(Hectares)
328 970
-
THE NETHERLANDS 328 970
USA 929 827 UNITED KINGDOM 2 139 220 2 263 305 4 402 525 472 507 457 320
19 856 306
Total Vines
2022
litres
TOTAL
11 831 458 8 138 113 19 969 571
5 045 965 Domestic Total Sales
16,36% ha 16,50%
Red Vines
2022
litres
Packaged
Total
Bulk
Geographic Distribution (Hectares)
Age Distribution (Hectares)
413 602
263 260
150 342
BELGIUM
64 530
-
64 530
CANADA
61
Cape South Coast
106
52
392 011
313 340
78 671
DENMARK
145 40 34 1034 545 416 771 1310 912 1343
Cape Town
> 40 Years 31 - 40 Years
5 207 243
-
Northern Cape Klein Karoo Stellenbosch Olifants River
290 828
GERMANY
2 788
184
290 828
24 020
291 907
SWEDEN
> 20 Years 16 - 20 Years
229 562
-
THE NETHERLANDS 328 970
1 180
1 539
455 405
457 320
472 507
USA
Worcester Robertson Paarl Breedekloof Swartland
11 - 15 Years 4 - 10 Years
UNITED KINGDOM 1 897 415 1 374 038 3 271 453
761
TOTAL
8 434 514 7 539 010 15 973 524
< 4 Years
Celebrating excellence: Pinotage has come of age! Every year, the Pinotage Association, a leading advocate for the promotion and recognition of Pinotage wines, honours the crème de la crème of the industry through its highly converted competitions. These prestigious events serves as a platform to celebrate the exceptional craftsmanship, innovation, and dedication displayed by winemakers who have mastered the art of producing exceptional Pinotage wines. The awards have become synonymous with excellence in the world of wine, elevating the reputation of Pinotage and its producers on a global scale. Established with the vision of showcasing the true ageing potential of Pinotage wines, the Absa Vintage Pinotage Excellence Awards are bestowed upon producers who demonstrate exceptional skills, innovation, and unwavering commitment to crafting outstanding Pinotage wines. Each wine is meticulously evaluated by a panel of esteemed judges, comprising of our renowned Cape Wine Masters. Their discerning palates and extensive knowledge ensure that only the finest Pinotage wines receive the prestigious recognition they deserve. As part of its ongoing commitment to excellence, the Pinotage Association has introduced exciting changes to the awards to further enhance their significance. The categories have been refined and expanded to encompass the diverse aspects of Pinotage winemaking. This expansion recognizes not only the quality of the wines but also the expression of terroir, the art of barrel maturation, and the implementation of sustainable practices. With each passing year, the awards continue to inspire innovation, quality, and global recognition for this unique South African varietal. As the Pinotage Association embarks on its mission to showcase the true ageing potential of Pinotage, wine enthusiasts eagerly anticipate the announcement of the Absa Vintage Pinotage Excellence Award winners, eagerly awaiting the opportunity to experience the best that Pinotage has to offer.
Absa Top 10 Pinotage Competition A proudly South African wine contest, the Absa Top 10 Pinotage Competition rates and reviews wines of this cultivar based on one important criterion: quality. South Africa has a rich heritage of winemaking that dates back to 1659 and has earned its place as one of the best wine-producing countries. For the past quarter of a century, the Pinotage Assocation and Absa have worked together to host this competition. The judging panel they have assembled comprises astute industry experts, whose task is to identify 10 wines that can set the standard for the development of distinctive South African Pinotage wines.
Perold Absa Cape Blend Competition Named in honour of the viticulturist who developed Pinotage, this category focuses on various Pinotage-oriented wines. Cape Blend describes a blended red wine that has Pinotage as its major component. The Perold Absa Cape Blend Competition annually identifies five such wines that demonstrate quality and style, and year by year shows an increase in the number of entries and participating producers. It is a showcase of the best expression of wines with Pinotage as the base and the award-winners claim the admiration of both wine masters and enthusiasts locally and internationally.
2022 Vintage Winners
Pinotage Rosé Competition A relatively new addition, in 2022 marking its fourth year, this competition presents an exciting challenge to local winemakers. The focus on rosé is a fitting enhancement of the overall competition and brings greater awareness to the various expressions of the grape. Reflecting the growing value and popularity of Pinotage rosé wines, this competition reiterates the vision of the contest as a whole: to illustrate the uniqueness of Pinotage in the international wine world while supporting various styles.
The story of Pinotage The name Pinotage is a combination of Pinot- (from Pinot Noir) and - age (from Hermitage). The historical timeline spans from 1925 where the first seeds were planted by Prof Izak Perold.
The Pinotage Association is founded.
19 97
The Absa Top 10 competition is launched, paving the way for numerousother wine cellars to be recognised both locally and internationally, for their own uniquely South African Pinotages.
1935 the four seedlings were rescued and nurtured at Elsenburg by Prof CJ Theron.
The first Pinotage was made by CT de Waal
The first classification of a South African variety - Grand Pinotage .
1943 the first commercial platings of Pinotage at Myrtle Grove farm in Somerset West.
Stellenbosch Farmers’ Winery (now Distell) combined the vintage of Bellevue and Kanonkop marketed as Lanzerac Pinotage 1959.
Pinotage turns 100!
There will always be a demand for good quality wine, it has been part of history for many centuries. Pinotage is just short of celebrating 100 years, not only because of the impact of three men, namely the man who created it (Abraham Perold), the man who grafted it (CJ Theron) and the man who helped bring it to the world stage (Beyers Truter), but also because of the resilience of our South African wine industry. The increasing number of informed wine consumers. The tenacity of our world class winemakers and viticulturalists who are in sync with their terroir and understand the fundamentals of making exceptional Pinotage wines. The future of Pinotage will continue to showcase this pinnacle of a proudly South African variety. Now 95 years later, Pinotage has the first classification of a South African variety – Grand Pinotage. The launch of the Grand Pinotage is a hallmark moment in South African wine and Pinotage history. This classification will contribute to the advancement of quality improvement, education and research for Pinotage. What does the future hold for Pinotage wines?
1973 Kanonkop bottled and sold under Kanonkop label, and Bellevue, 1999 being the first vintage of Pinotage sold under their own label.
In 1991 word Beyers Truter as Internasionale Wynmaker van die Jaar benoem en Pinotage geniet roem regoor die wêreld.
Pinotage Association AGM 6 June 2023
Pinotage Association Work Integrated Learning Programme
Programme 2023
The Pinotage Association is excited to announce a new students work integrated learning programme that will provide students with hands-on experience in the wine industry.
Partnering with Absa to Future proof your business — Dr Marlene Louw, Absa Bank
The 10-month programme will offer students the opportunity to learn about the production, marketing, and sales of Pinotage, South Africa’s signature wine.
Participants in the programme will work with experienced winemakers and industry professionals to gain a thorough understanding of the industry. They will also have the opportunity to work on real-world projects and develop their professional skills through networking and mentoring opportunities. This programme is open to students enrolled in a wine-related programme at a recognised institution, and the Pinotage Association is committed to providing the necessary support and resources to ensure their success. The Pinotage Association’s work integrated learning programme is a unique opportunity for students to gain valuable experience in the wine industry, and we are excited to see what the future holds for the programme and its participants.
The microbial diversity associated with Pinotage — Prof Evodia Setati, Stellenbosch University
For more information about the programme, please contact the Pinotage Association at brand@pinotage.co.za.
Political landscape 2023 — Prof Theo Venter, Political and Policy
About the Pinotage Association: The Pinotage Association is a non-profit organisation dedicated to promoting and protecting the Pinotage varietal. The association works to improve the quality and reputation of Pinotage through research, education, and marketing efforts.
specialist and lecturer at NWU Business School
021 863 1599
www.pinotage.co.za
info@pinotage.co.za @
@PinotageSA
@PinotageSA
@pinotagewines
This booklet was proudly designed and developed in Stellenbosch
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