Wednesday, July 09, 2008
‘Major coup’ for charity Jan Kriel wine auction
International leader in the wine industry, Mike Ratcliffe, will auction off a list of top wines at the prestigious London Jan Kriel Charity Wine Auction scheduled for Thursday, May 22. The 10th annual auction in the British capital is one of the city’s only charity events aimed at helping South African children with epilepsy and special educational needs.
Ratcliffe qualified as a business major before attending the University of Adelaide and was in the first graduating class for the Graduate Diploma in Wine Marketing.
He is now managing director of his family estate, Warwick, which is recognised as one of South Africa’s foremost wine estates.
Mike is also owner and partner in the first and only South African/American luxury winemaking joint venture – Vilafonte. In 1997 Ratcliffe founded Rootstock, an organisation dedicated to the upliftment and education of the youth of the wine industry with a practical focus on marketing and management.
He was an instrumental participant in reigniting the concept for a “Cape Blend” (Pinotage-blend) which has since become an integral part of the Cape high-end wine offerings.
Ratcliffe is a board member of WOSA, (Wines of South Africa), the generic export promotion board for the SA Wine Industry and has participated actively on the marketing committee of the Stellenbosch Wine Route.
He is keenly involved in black economic empowerment and land redistribution as deputy chairman of the South African Wine Industry Trust (SAWIT).
Ratcliffe’s presence as auctioneer at the London Jan Kriel Charity Wine Auction was described by project co-ordinator Marco Pereira “a major coup” for the event.
“As regular international wine judge, industry commentator and marketing coordinator, it gives the event international appeal,” Pereira said.
The event will take place at the New Connaught Rooms, 61 - 65 Great Queen Street, Covent Garden, London, WC2B 5DA. To secure a seat or a tabel at this event, contact Marco Pereira on 08702244081 or mail to info@jkwineauction.org.
Tuesday, January 08, 2008
Rootstock comes alive
Thursday, June 21, 2007
'Around the World Blog' 22 June 2007
In a contemplative mood on an international flight en route to New York, I started considering the latest environmental catch-phrase of 'carbon footprint' which pervades daily conversations, not to mention the global wine industry's agenda.
There are many examples in popular culture when a tipping point has been reached, which has changed an obvious and logical idea into a broadly accepted fact that can drive the perceptions of an entire generation.
The discussion on global warming was partially re-ignited when terminology such as 'CFC' and 'ozone-layer' were coined, and through sustained consumer pressure this lead to the widespread withdrawal of this 'uncool' ozone gobbling propellant.
More than a decade later and after a million flight miles by Al Gore, it would appear that even the most hardened denialist agrees that the concept of global warming has at least some credibility, and that the wholesale dumping of secondhand carbon pollutants into our atmosphere is the major factor driving the artificial warming of our planet. So what does 'carbon footprint' mean?
Wikipedia.org has it as follows:
Carbon footprint is a measure of the amount of carbon dioxide or CO2 emitted through the combustion of fossil fuels; in the case of an organization, business or enterprise, as part of their everyday operations; in the case of an individual or household, as part of their daily lives; or a product or commodity in reaching market. In materials, is essentially a measure of embodied energy, the result of life cycle analysis. A carbon footprint is often expressed as tons of carbon dioxide or tons of carbon emitted, usually on a yearly basis. There are many versions of calculators available for carbon footprinting.This is directly related to the amount of natural resources consumed, increasingly used or referred to as a measure of environmental impact. Carbon dioxide is recognized as a greenhouse gas, of which increasing levels in the atmosphere are linked to global warming and climate change.
'Carbon footprint' will almost certainly be the term, retrospectively, that defined the tipping point which brought climate change out of the laboratory and into popular culture. History shows that popular culture is what drives voters, gets politicians interested, and leads to meaningful change. So what should the wine industry be thinking - or rather doing - about this?
Over the past few years, Wines of South Africa (WOSA) have dedicated substantial resources to the conceptualisation, distribution and promotion of the 'Diversity Is In Our Nature' message - a campaign designed to communicate the 'eco-friendly' nature of our industry on the one hand, and to promote the massive diversity of our environment on the other hand. Critics of the WOSA campaign have been quick to slam the positioning claiming that it is irrelevant to the consumer, confusing, distorted and not easily understood by the producer community - that ultimately is funding the positioning statement through statutory levies. The wine industry has supported the campaign, but it is not uncommon to hear grumblings of discontent around the winelands' watering holes.
I would contend that the WOSA positioning statement, subject to one or two more consumer-friendly tweaks and some wording adaptations, might be one of the more forward-thinking promotional strategies ever seen in the world of wine. Let me explain… The world changes quickly. The major forces of producer fragmentation and retail consolidation that are shaping the global wine industry are not mutually supportive. The supermarkets are becoming bigger and are getting more focused on addressing the large impact that they have on the environment. While nobody can deny the intelligence and logic expressed by the Chairman of TESCO in his recent address on environmental awareness, some would question the rationale for this retail behemoth in placing such emphasis on the environment and in creating a plan to measure the TESCO 'footprint'. The future is being mapped out as TESCO has committed to pouring considerable funds into creating a usable and consumer-friendly methodology for accurately mapping and defining the complete 'carbon footprint' for each of the products on its shelf. South African producers dealing with TESCO should brace themselves for new packaging rules which will have them reflecting the carbon footprint of that particular wine on the packaging. Producers should also brace themselves for the additional cost of compliance as TESCO has never been shy of shifting costs onto its suppliers. It is not unreasonable to believe that TESCO will move quickly as they attempt to swiftly tap into the 'carbon footprint' wave of popular culture in an attempt to steal a march on their competitors, achieve first-mover status, gain much-needed positive PR and drive their ever burgeoning bottom-line (although analysts panned the stock this week for only growing sales by 4.7%). It is also reasonable to make the assumption that where TESCO and other global retailers lead, the world will follow; and that we are on the brink of a cultural paradigm shift where the common household starts assuming responsibility for climate change.
The power of the consumer, it seems, is going to be unleashed once again to manipulate the full extent of the supply chain to become more efficient - and to reward those that are the most efficient at becoming more efficient.
Note to readers: The author acknowledges the obvious contradiction in this column in that sitting on an international flight is not improving his own personal carbon footprint. No paper was, however, wasted in the writing of this column.
On Monday: Can WOSA's biodiversity campaign play into this pop culture momentum or will it be sidelined?
_______________________________________
Michael Ratcliffe
Sent via Blackberry handheld.
PO Box 2, Elsenburg, 7607, South Africa
Phone: +27 (0) 21 88 44410
Fax: +27 (0) 21 88 44025
mike@warwickwine.com
Thursday, January 25, 2007
Fire in the Winelands
Monday, December 11, 2006
The Vilafonte winery is almost finished.
Friday, December 08, 2006
WARWICK TRILOGY: Top 100 Wines of 2006/Wine Enthusiast Magazine
Congratulations Team
Mike
| |
| | ||||||||
| | Wine Enthusiast SELECTS Top 100 Wines of the Year December 7, 2006— Elmsford, New York – Wine Enthusiast Magazine, one of the world’s most respected and quoted publications in the field of wine and spirits, has named De Loach’s 2004 30th Anniversary Pinot Noir from California’s Russian River region “Wine of the Year” in its December 31st “Best of Year” issue, available this week. The Best of Year issue celebrates the Wine Enthusiast’s Top 100 Wines of 2006 and also recognizes the year’s Top 100 Best Buys, with a Washington State Shiraz as the number one best-buy choice. Carefully selected by the editors of Wine Enthusiast Magazine, the annual “Best of Year” selections are drawn from the nearly 10,000 wines tasted over the course of 2006 and represents the highest standards in quality, price, availability, newsworthiness, excitement and buzz! The list covers all five major categories of wine: sparkling wines, red and white table wines, fortified wines and dessert wines. Winners this year include wines from 13 different countries of origin. “More and more countries are making top-flight wines, and the 2006 list reflects the great improvements in winemaking that we’re seeing around the world,” said Wine Enthusiast Magazine Tasting Director and Senior Editor, Joe Czerwinski. The Top 100 Wines of 2006 The Top 100 Wines of 2006 include 56 New World wines and 44 from Since multiple factors were considered when selecting wines for this prestigious list, not all wines on the Top 100 list are necessarily the highest-scoring wines. Of those featured, the wines that received the three highest scores from the Wine Enthusiast 100-point rating scale were all Cabernet blends from the 2002 vintage in California, including: Sloan Cabernet Blend, Rutherford, unique recipient of 100 points; Rubicon Estate Cabernet Blend and Harlan Estate, Cabernet Blend, Napa Valley, both 99 points. The average score of Top 100 Wines is 94, while the average price of Top 100 Wines is $53, with the median price at $36. The Top 100 Best Buys of 2006 Less than 1% of all wines tasted over the course of the year make it onto the Wine Enthusiast Magazine’s Best Buy list. Wines designated as the Top 100 Best Buys of 2006 have wine-rating scores of 85 points or higher of the 100-point scale and generally have a suggested retail price of $15 or below. The grand winner this year was Columbia Crest’s Grand Estate Shiraz from Of the top 100 Best Buys, 52 wines are from the New World while 48 are
| | ||||||||
|
| ||||||||||
Wednesday, November 29, 2006
The Vilafonté winery is taking shape - mid November 2006
Sunday, October 29, 2006
The Vilafonte winery is taking shape
Tuesday, September 05, 2006
Construction starts on the new Vilafonte winery
Tuesday, August 22, 2006
WARWICK ESTATE: Challenge International Du Vin
Dear ‘Team
More good news!
The results are in for the Challenge International Du Vin 2006.
The Challenge International du Vin is the biggest French international wine competition with over 30 countries entering and 5000 wineries entering.
South Africa received 5 medals, of those, Warwick took home 1 gold, 1 bronze and 1 silver – a total of 60% of South Africa’s results.
http://www.challengeduvin.fr/result_search.php
Well done everyone … another positive result!
I hope that this info is useful.
Mike
_______________________________________________________________
Mike Ratcliffe
* PO
( Phone: +27 (0) 21 88 44410
4 Fax: +27 (0) 21 88 44025
( Skype: mikeatwarwick
ÿ mike@warwickwine.com
Tuesday, June 20, 2006
Next Rootstock meeting
The next Rootstock meeting is coming and we are going to have it soon- details will be posted on both the Rootstock blog as well as on the www.wine.co.za diary page. We are going to be talking technology in wine marketing, the significance of increased internet penetration and the opportunities that this holds globally for wine. Is there an opportunity in South Africa yet. We may talk blogging, podcasting and viral marketing - depends on where we go. We are putting together a panel of speakers to debate and discuss this hot topic. Sure, we may go off the point and will follow the discussion where it takes us - but it will be a good one.
I will try to get a representative from Telkom - wish me luck. Does anyone have other thoughts for speakers?? Let me know so that we can contact them.
Monday, June 05, 2006
Thoughts on Rootstock guest speaker???
Mike
Wednesday, May 10, 2006
Wine across America Blog - Los Angeles
Today's PODCAST from
Distribution in America is the key to success. Like anywhere in the world, ‘route to market’ is always going to be the killer attribute that can mean the difference between success and failure. Nowhere in the world is this more apparent than in the United States where the neo-prohibitionist hangover of federal liquor controls hangs thick in the air. Americans, it seems, have reached an uneasy state of acceptance of this extraordinary status quo where every facet of a wines journey to the end consumer pads somebody’s pocket. To recapr for those who are confised by these statements. America (generally) has a 3 tiered system of wine distribution whereby the non-American producer cannot legally sell wine to anyone but a wine importer. The absurdity starts when you understand that no single person or business entity may own both a distribution and import license. What this means is that the importer cannot sell wine to the consumer or even the retailer/restaurateur and can only sell wine toa distributor who in turn can also only sell wine to the trade. Technically speaking, the only place a consumer can gain access to imported wines is through the 3rd tier of the channel which is the retailer or restaurateur. Once you understand the vastness of the US market, it is understandable that perhaps this system would have evolved independently as few companies have the infrastructure and capabilities to own and distribute nationally with efficiency. But the system really falls down in the sense that it suppresses free market activities and that the larger National distributors have little in the way of competition. As a result of this and to further entrench this skewed power balance, the larger distributors are being consolidated at a rate that is unprecedented and fewer distributors are controlling more of the market. It feels sometimes that every medium-size distributor in the US is simply waiting for the ‘big guys’ to come along and buy them out. Might I be over-dramatising this? Maybe, but this is the feeling on the ground.
So what does this mean for South Africa? Well, for every distributor that gets purchased, this means fewer distribution slots for South African wines exist and fewer small producers are able to participate in what becomes a much larger structure. The larger a distributor gets, the larger the supplier has to become in order to become a meaningful contributor to bottom-line. The big brands become bigger and the smaller brands get squeezed out. The consolidation of distribution and ongoing production fragmentation continues apace. The two trends are not compatible and we will have to win over some serious buyers to grow South African wine in the US – usually at the expense of another global supplier.
So where are the opportunities?
The federal and state regulators are slowly (very slowly) dismantling the complex wine distribution laws, but a combineation of big business (distributor) lobbying in Washington, a very religious and conservative population and misplaced priorities is hampering this progress. A high-profile battle between retail giant Costco and the state of Washington recently threw up a couple of clues about the future when Costco won the
first step in the battle to allow it to ship directly from the producer. Of course this judgement will go to appeal and will probably be held up for years, but Costco is being aggressive and has set a valuable precedent which any sensible judge cannot fail to respect.
Is this a good thing? Well, yes and no as it si being championed by the mammoth retailers and you can be sure that they are not pursuing a Samaritanian endeavour to make money for the supplier – no, they are chasing margin for their bottom-line because they know that through direct imports and direct shipments, that they can leverage their massive nation-wide distribution network to exponentially multiply their sales and balloon already embarrassing margins.
Opportunities exist for South African suppliers to find routes to market that narrow the gap between importer, distributor and retailer. In some states, it is (kind-of) legal for the husband to own an import license, the wife to own a distribution license and the kids to own multiple retail licenses. It happens – another symptom of an idiotic system. Many California wineries drive a substantial volume of their sales through wine clubs and direct shipments to customers. Of course there is a limited amount of states that you can ship to directly, but this has been growing over the years. Is there a business model here for South African wineries. Is there an effective model for a South African winery to run a wine club for direct sales to customers? The answer must be yes, but there has to be demand first and brand South Africa must become more entrenched before this will work. So the hard work lies ahead in this massive market opportunity that is the USA.
Monday, May 08, 2006
Wine across America – California Dreaming!
The late night arrival of Team South Africa on the East Coast with an additional 3 time-zone changes was a minor shock as the road-show rolls on. After 3 months of non-stop rain that has been seriously affecting budding and shoot-development in California, the skies finally opened on the day of the Wines of South Africa tasting downtown, a stones throw from the eponymous Embarcadero. By many accounts, this tasting has been the most successful of the tour to date. Restaurateurs, retailers and eager consumers arrived in droves and kept everyone busy with an intense interest in learning more about South African wine. It is once again clear how closely linked tourism and wine are in selling brand South Africa. A large majority of the consumers had either been to South Africa or knew of someone that was going and this provided the key draw card, in my opinion. Americans have an embarrassment of choice and this is what has 
made America the enormous consumer culture that it is – or was it the other way around? The consumer, on the one hand, can be a little jaded and confused by choice. But if the message and the choice is communicated clearly and unambiguously to the consumer, they show an incredible willingness to open themselves up to trying something new. I have said this before – but feel that it is important to restate. Americans want us to teach them about our products and they want to buy them. We just need to start working on a clear message because at the moment our little wine industry does not have the financial or logistical clout to really get the message across. Sydney Harbour Bridge sells more Australian wine than you can imagine. ‘Finding Nemo’ and many other cultural icons has driven a whole generation to find Aussie interesting and exciting. We got close with Lion King – but it was really not there, was it?On the subject of repeating myself, If I hear another consumer complaining that the wines on the WOSA show are not available in the USA, I will scream. It is always going to be difficult to give ‘new entrants’ an opportunity to show their wines, but perhaps we are putting the cart before the horse on this one. Perhaps these producers have had an opportunity to learn a huge amount about the US market and get a feeling for how to go about positioning
themselves to enter the market, but it seems like an illogical and costly entry and market research solution. The tasting this afternoon in Costa Mesa, South of LA is being hosted by a prominent retailer called Hi-Time liquors. Once again the problem is going to raise its head as the consumers can only purchase the wines that the retailer stocks, and at best wines that have Californian distribution – it’s a tough school.Wow! The Costa Mesa Orange County tasting was a hit – the consumers came out in droves and we were run off of our feet. This tasting must have rated as one the most intense and focused consumer wine tastings that I have ever been privileged to participate in. Wines poured, winemakers sweated, consumers listened and the wines of South Africa touched the perfect Southern California market. It was a monumental tasting and even impressed the organizers. I arrived a little more than 10 minutes before the tasting started ( a little late) and had to fight through about 100 people queuing at the door to get in. Big thank must go to Hi-Time Cellars for their excellent organization and boundless energy – the show was great!
I would like to pay tribute to the WOSA team for the effort and organization in putting this tour
together – it has been an eye-opener for many producers and will be a catalyst for South Africa in this market. It is also a catalyst for greater cooperation in building South African wines in the US by building brand South Africa. One of the great minds behind doing just that is Yvonne Johnston at the SA International Marketing Council. It has been said that a bottle of wine in every wine shop and on every wine list in America will act as a positive reinforcer for Brand South Africa’s generic image. The wine industry has a lot to offer our marketing drive and we should not play second-fiddle. Tourism and many other SA industries engaged in marketing all have an excellent opportunity to harness synergies by partnering with WOSA – wine is exploding in America and we are in the right place at the right time – but there will not be more than one chance to get it right. 
