Waterford Estate, Stellenbosch
Waterford Estate
Establishing a winery from scratch and having it counted as one of the industry’s top producers within 10 years is no mean feat, as Fiona McDonald reports.
Take an IT millionaire, add one of South Africa's top red winemakers, throw in a property on the Helderberg and build a spectacular winery... Seems like a recipe for instant success, right? But the above "recipe" would completely trivialise everything that Jeremy Ord, Kevin Arnold and the Waterford team have done over the past decade.
While it may appear at face value that Waterford has had an easy ride, and that within the very short space of 10 years it has established itself as one of the country's top wineries, it's only when chatting to members of the team that you appreciate how much hard graft and effort has gone into making the success seem effortless.
"It was always Jeremy's intention that Waterford should be a successful business and should pay its own way rather than be an ego project," said Waterford partner and MD Kevin Arnold. He's also frank about the winery not courting publicity. "We always wanted to fly under the radar until we were ready to announce what we are capable of."
And like the Springbok rugby team... the time is now and the statement of their intent takes the form of The Jem, a red blend that already has tongues wagging. It's the culmination of a decade of research, winemaking, ageing and blending. The team believes it's the best possible red wine from Waterford estate's vineyards. Work on this project started as early as 1998, when selecting the grapes best suited to the estate's rocky soils. But that's only part of the story.
It's a huge surprise to hear Jeremy Ord confess that he didn't actually want a wine farm. "It's all my wife's fault," he laughs. "She wanted to ensure that once I died she had a home in Cape Town to move to." "Kevin was called in to give advice and he identified this property which was part of the original Stellenrust landholding in Stellenbosch. We spoke to the owner and eventually bought what subsequently became Waterford."
Ord describes the first decade of Waterford as "most enjoyable". "As you can appreciate it's not a small investment, but the most important thing about Waterford is that it is surrounded by good people who share a passion for wine, a belief in what the farm could do - and all led and inspired by Kevin. "I've watched from the sidelines as these talented people have gone about their business and although the first seven years were cash-flow negative, the last three years has seen that situation reversed."
That there's mutual respect between Arnold and Ord is obvious. From Ord's side he respects Arnold's skill as a winemaker and team leader and from Arnold's side he has appreciated the faith, freedom and financial backing that Ord has provided.
Long term Ord wants to see Waterford continue to improve. "We can't sit back - we have to continue pushing boundaries and improving our wines - and that includes pushing the price point." The last is said in reference to The Jem's price tag of R680 which some might see as ambitious. "Yes, we're making a statement," says national brand manager, Gareth Robertson. "We didn't want to be the most expensive wine in South Africa just for the sake of it. We've obviously done a lot of research and taken into account what other wines are retailing for locally and abroad. There's a lot of noise around the R400 and R500 mark. Something else to consider is that you're not taken seriously in the American market if your price is too low. There's an automatic perception of quality at the $100 price point."
The team is aware that sticking their necks out at R680 is ambitious and is certain that they will take some flak for it but are confident that the wine delivers. It's all Waterford estate fruit and has been years in the planning and experimentation. The Jem is a blend of Cabernet Sauvignon (35%), Cabernet Franc (24.5%), Shiraz (15%), Mourvèdre (10.5%), Petit Verdot (6.5%), Malbec (3.5%), Merlot (3.5%) and Barbera (1.5%) - all estate grown and vinified. It spent 18 months in a mixture of new and second-fill barrels. The idea was to make a world-class wine which could express Waterford's potential, a wine displaying ripeness, elegance and spice on the palate that would comfortably last the distance and improve with age.
"We believe the quality is there. This is not something we've done on a whim," says Arnold. "The Jem has been a few years in the making. We're confident about what we're delivering with this blend." And in true marketing fashion Robertson is anticipating the release of the follow up vintages..."The 2005 and 2006 are crackers!"
So how did they get to this point?
Luck played a major role. It was Arnold's good fortune that he met Jeremy Ord and that they clicked. "Essentially Waterford has allowed me the freedom to do my own thing but with Jeremy providing the necessary investment."
It's something Arnold admits he'd dreamed of from his early days working at the then Stellenbosch Farmers' Winery, under Spatz Sperling at Delheim for nine years and then with Jannie Engelbrecht at Rust en Vrede. "I was lucky to have gained so much experience at each of those places - and was able to put into practice everything that I'd learned." Taking a rundown property and redeveloping it was a daunting task - but also a great opportunity with major responsibility.
"It was never a case of having been given a blank chequebook. We've been given the support we needed and not had to cut corners. But 10 years ago I had to make decisions that would have implications not just in my lifetime but for the next generation too. "We took a calculated risk in plantings grapes that were new to South Africa in order to explore wines which would potentially have greater palatability, mouthfeel and spice." Here he refers to the Mourvèdre, Barbera and other grapes such as Tempranillo. Arnold alludes to the story "outside the bottle", being part of those decisions to select, plant and finally vinify the wines. "What's in the bottle is a given. Our production team of (winemaker) Francois Haasbroek and Lombard Loubser (viticulturist) has to ensure that the fruit and the wine is good - that's a given. But something I tell our sales people is that to take something from scratch and build a brand takes a tremendous amount of time, energy and personal effort - and that's an investment that can't be calculated."
Establishing Waterford was virtually a greenfields project. Only Sauvignon Blanc and Chardonnay vines were retained. "One thing that stuck with me always was the international palate for red wines, especially the finesse and elegance of red wine. I know it goes against the grain because the modern school of thought is that wines should be big, bold, full of fruit - made extremely well and garnering good ratings, but I'm a purist and remain classical in my approach to red winemaking. The plan was to use Bordeaux varietals but take the wine to another level. Having spent time in the south of France and Italy Arnold believe that the Cape and the (rocky) soils at Waterford would suit varieties that are highly successful in similar climates and soils around the Mediterranean. Hence the Tempranillo, Grenache, Mourvèdre and Barbera. "Those varieties add the spice I was looking for. "But when it came to blending it's really one's own palate that is tested. For me, less is more. I want really fine tannins, integration, and length on the palate without being overblown or overtly wooded. Everything was aimed at making a wine that would create an impression through its subtlety and flavour nuances."
How has Waterford succeeded in such a short space of time?
Arnold admits that the first seven years of being cash flow negative were frightening. "We didn't have the luxury of time. We had to run a successful business. So I made sure I had young, dynamic, talented people on board."
Hence the appointment of young Gareth Robertson to handle marketing and sales. He'd started out working at Waterford while studying a business degree at Stellenbosch - and stayed! Waterford's marketing approach has been innovative, not following the path other wineries travel. Sales, distribution and marketing is controlled by the farm and the emphasis is on lifestyle. "You can't hand over your wine to a distributor and expect him to market your wine for you - so we decided to run that from the farm." Not only did that cut out the costs of the middleman but it also means that customers have a direct route to the farm.
A strong factor in the Waterford brand is the support from customers who almost feel part of the family. Arnold's wife Heather has to take a lot of credit for the look and feel of Waterford, with its surrounding orange grove, stone-clad facade and central courtyard. And no, the look and feel is not faux-Tuscan as so many think, but was inspired by old American mission-style architecture. "There's a definite sense of belonging and feeling part of the whole setup," Robertson says.
Waterford encourages students to visit and is quite happy for them to "kuier" the afternoon away. "We see them bringing their parents here after graduation... and becoming loyal customers once they're working. We believe they're our best brand ambassadors," says Robertson.
How many other wineries can boast that 20% of all sales take place at the cellar door? Their offering is also innovative. The standard tasting is R20, the chocolate and wine tasting is R45 and in the pipeline is a special reserve tasting for serious wine enthusiasts of R100 that will include The Jem and various unreleased blends or experimental wines. The welcome is warm, tastings take place while seated at comfy couches, and Arnold's dogs are usually lolling around.
Waterford is particularly proud that it won international recognition as the best cellar door experience from the Great Wine Capitals of the World network, beating wineries from Spain, France, Australia, America, Chile and Argentina, New Zealand and Italy - and won!
Another key member of the team is winemaker Francois Haasbroek, who already boasts experience working in France, New Zealand and America - and has yet to hit his 30's! "Kevin took a chance in appointing a young team but it's paid off." Haasbroek is not afraid to make controversial statements believing that the local industry is hamstrung by preconceptions that young winemakers should earn their stripes over years before being allowed free reign. "South Africans are a great nation of followers but few great leaders. We need to exert our own ideas about what works best for the country's wines rather than simply adopt and adapt what other countries are doing." "I've always been vocal," he admits, "and I'm lucky that Kevin allows me as much freedom as he does. That wouldn't be the case in other cellars...
Kevin is almost more of a technical director than a winemaker. He has his finger on the pulse of every aspect of the business. But this is a 450 ton cellar and it's a full time job just handling the winemaking 11½ months of the year. "His experience with red wine has been invaluable - you can't buy the knowledge that he has amassed over the years and I'm privileged to share that." When it comes to winemaking, balance is the be-all and end-all for Haasbroek. "It's not purely about expression. Yes, you get wines that leap out at you but at the end of the day you want to drink more than a glass of the stuff and it becomes exhausting. Elegance and balance is always going to reign supreme - that applies to both red and white wine. Wine doesn't age itself into balance! And that's where The Jem is so good. We talked about what style to strive for and agreed that subtlety, elegance and finesse were the way to go." Arnold has the final word: "Working towards creating something like The Jem couldn't have happened in anything less than 10 years - it was impossible! Even now we know that we can improve on what we've created as the vines get older. Therein lies the challenge."
