The auction, held at Spier in the Stellenbosch Winelands, kicked off with a record breaking bid of 7,000 rand for its first wine. A total of 2,833 cases of wine were sold at an average price of 4,210 rand.
(WATCH VIDEO: Has S.Africa developed an investment thirst for wine?)
The cost of wine in the country has increased due to several factors including the global wine production shortages – as reported on by Morgan Stanley Research in 2013 – as well as farm workers' strikes.
Andries Burger, the chairman of Cape Winelands Guild, says the increase in the cost of wine has not deterred consumers. He says consumers are attracted to South African wine as it is of world class quality.
“You’re buying something very unique because these wines are only available once in a year, at our auction,” he said.
In comparison to last year, the auction has seen a substantial increase in buyers. A reported 90 per cent of the wine was sold locally while the other 10 per cent went mostly to European countries.
The top buyers included Tsogo Sun – who spent close to 2,47 million rand – and Alan Pick of the Butcher Shop and Grill – who spent 1,9 million rand.
“There is a lot of new people coming into the market and new entrants buying into wine. You just have to look at the success of the Soweto Wine Festival that’s been going on now, I think, for four or five years and it’s growing every year."
Burger says the success of next year’s auction will reply on attracting new buyers and increasing their visibility in foreign markets.