Michael Malan, who has taken over as third-generation cellarmaster at the storied Simonsig Estate, is not going to be doing things the same way his father and grandfather did.
It’s a reflection of how times have changed, even for a well-known wine estate such as Simonsig, named for its panoramic views of the Simonsberg mountain. The estate was founded in the 1940s and Michael’s grandfather, Frans — who had married the owner’s daughter, Liza van Niekerk — took over in 1953.
Simonsig occupies a fundamental place in South Africa’s viticulture — it was Frans who, 52 years ago, created the first méthode cap classique (MCC) bubbly in the style of French Champagne, and named it Kaapse Vonkel. Frans also helped to launch the Stellenbosch Wine Route.
His son Johan continued the tradition and in 2020 won the Diners Club Winemaker of the Year award for the 2015 vintage of the Kaapse Vonkel Brut.
Johan has now moved to the CEO position and in January Michael took over as cellarmaster. Indications are he will have a tougher time than his forebears.
The wine industry remains economically crucial, contributing 1.1% (or R55bn) to GDP at last count, but state failures have put farmers under intense pressure. It’s not only electricity blackouts; chaos at the ports has fractured export volumes, since 50% of South African wine is shipped overseas every year.
All of which means wine farms have to adapt. Johan tells the FM that the future of the industry lies in specialisation.
“My father was a pioneer in many different styles and varieties — he was always the first to put [a new wine] on the market,” he says. “But the way forward would be to become a lot more specialised, more focused on what are the best wines we can produce in our soil and our terroir — we can’t be everything for everybody.”
Michael tells the FM he doesn’t plan to change anything “drastically”, but says it’s vital to stay in step with new wine styles and shifting consumer tastes.
There’s a fine balance between pushing your alcohol lower — it means it reaches peak maturity earlier and, after a while, I think your wines just get out of balance and hard, you get unripe characters. It’s about finding that balance in the grapes and the wines
— Michael Malan
For example, organic wine (which is expensive to produce) and low-alcohol wines are in vogue. But following this trend blindly isn’t a smart strategy either.
“There’s a fine balance between pushing your alcohol lower — it means it reaches peak maturity earlier and, after a while, I think your wines just get out of balance and hard, you get unripe characters. It’s about finding that balance in the grapes and the wines,” he says.
Packaging trends have also changed for a more environmentally conscious world. “Some of the countries we export to want wine in lighter-weight bottles, and a bag in a box because it is better for the environment,” he says.
And there has been a distinct shift towards more accessible ready-to-drink red vintages that are less heavy than the traditional favourites.
A judicious switch
Michael’s succession as cellarmaster is the culmination of a career-changing epiphany. Initially, he applied to study law and engineering, which suggested the dynasty might come to a halt. But a summer spent working on a grape harvest in Italy, in the Alto Adige region, changed his mind.
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“I felt at home — it felt good. By then, I’d already applied to study law, but then I phoned my dad and said I want to come and study winemaking ... ‘It’s in your blood,’ he said.”
But the family business has its own rules, one of which meant Michael had to work elsewhere for a few years, which in his case was on wine farms in Australia. It was hard work, far from his family — but it evidently paid off.
There’s another reason Michael’s succession as cellarmaster is notable: family-owned wine farms have become a vanishingly rare species.
Wine farming is an expensive (and not always profitable) business; so many estates have been snapped up either by foreign buyers or billionaire businessmen. Simonsig, however, remains one of a handful of the larger trading farms still owned by the original family.
“Family-owned wineries are almost a dying breed because big corporates are investing and buying wine farms for the lifestyle,” says Johan.
In his case, the Malan family — Johan, his two brothers and all their children — remain the owners.
Still, Johan argues the influx of investment from people such as Laurence Graff, who founded the eponymous London-based jewellery company and now owns Delaire Graff, has been good for the industry.
“They set the bar high — it’s not something we can achieve as a family-owned estate, but it increases the esteem of everyone in the industry because that draws a certain level of tourists to the country. It is to everybody’s benefit,” he says.
Simonsig is holding its own. Last year, it produced about 2,200t of grapes, which feeds through to 1.6-million bottles. Kaapse Vonkel still accounts for a large part of sales, despite growing competition — 200 winemakers now bottle an MCC, up from just 14 in 1992.
Government help wanted
Simonsig’s biggest export market is Scandinavia — with Sweden, where all liquor sales are controlled by the government, the dominant buyer. Sweden’s state-owned liquor chain Systembolaget issues tenders and bidders submit samples for approval. Simonsig’s other top markets include the UK and the Netherlands.
Johan says there’s a collegial atmosphere among wine farms and cellarmasters routinely share their secrets — which would be anathema in the finance, pharmaceutical or technology arenas.
“My neighbour will make a pinotage, and I will make a pinotage, and he can tell me exactly how he makes it or I can tell him, and it will never be the same. Our competition is not with my neighbour or the guy in Robertson — my competition is Australia, New Zealand or Chile.”
It’s easier for wineries in those countries, he says, as their governments provide plenty of support — something notably absent in South Africa. This, he says, is a shame since it would widen the export market not only for the owners, but also for the 270,000 people working in the industry.
The wine industry delivers billions of rand to state coffers — with excise duty, income tax — so just a fraction of that would be a huge help in promoting South African brands all over the world
— Johan Malan
“The wine industry delivers billions of rand to state coffers — with excise duty, income tax — so just a fraction of that would be a huge help in promoting South African brands all over the world. You can’t go with R10m to the US — it’s not even $1m,” he says.
Of late, there have been indications that the government is listening.
In his budget speech in February, finance minister Enoch Godongwana raised excise duties on wine by just 4.9%, below the inflation rate, which the industry lobby group Vinpro welcomed as showing “understanding for the financial realities that wine businesses face”.
Rico Basson, MD of Vinpro, says this offers some relief to wine businesses, which are experiencing “major challenges” such as a reduced harvest, the energy crisis and supply chain issues caused by the war in Ukraine.
It’s a small gesture by the National Treasury, but it suggests that estates such as Simonsig might have a future as a family-owned business, rather than being swallowed by one of the wine whales. And it’ll help to ease Michael into his new role.
Says Johan: “If we make the whole export cake bigger, everyone will benefit — not only the owners, but [everyone] working in the wine industry.”
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