A roll call of who’s who in South African wine is leading the charge – and surprisingly healthy returns – at New Generation Wines. Jo Gilbert catches up with MD James McKenna
Commercial viability and social sustainability carry a different kind of weight in South Africa. Operating within one of the world’s poorest farming communities, the country’s wine industry sits at the intersection of breathtaking natural beauty, deep cultural complexity and intense commercial pressure, where both the economic and the social are in constant tension. Producers here are increasingly making world-class wines with cult status and providing employment, education and infrastructure in regions where state support is often limited. At the same time, the industry is struggling to turn a profit, with prices among the lowest in the international wine trade, despite major improvements to quality.
Given this context, it is especially encouraging to discover the health of the South African category at New Generation Wines – the agent importer which was founded by former city trader James Booth and winery owner Anthony Record in 2006, partly as a route to market for Record’s South African estate, Domaine Gayda. Granted, the portfolio boasts some of the top names the Cape has to offer. Its largest supplier is Boekenhoutskloof (based in Franschhoek but with vineyards in Stellenbosch, with popular brands like Chocolate Block). Also among its ranks are Reyneke (Stellenbosch’s Polkadraai Hills), Robertson Winery (Robertson); Krone (Tulbagh, specialising in Cap Classique) and Swartberg Wingerde (Piekenierskloof ).
Reyneke in particular stands out for its sustainable ethos, via owner Johan Reyneke’s 25-year commitment to regenerative farming and providing housing and education for his employees through various initiatives, including the “give back” Cornerstone range. The estate is one of the jewels in New Gen’s crown: it attracted two long tables worth of industry heavyweights at the recent relaunch of its range. But even Reyneke, South Africa’s first and only certified biodynamic estate, has had to get serious about a portfolio restructure in order to secure long-term profitability.
According to New Gen MD James McKenna: “There’s no sense of entitlement among the growers we work with. I’m always amazed by the level of dynamism and open mindedness those guys have. You can forget all the stereotypes of the old-school wine trade. They’re open to ideas and challenging the status quo. No one would have given Johan a business plan 25 years ago to launch a biodynamic wine brand in South Africa. It was his vision that forged the path.”
Reyneke is emblematic of the kind of partnerships New Gen has as a staple: premium and energetic with an edge, often focused on forward-thinking winemakers or smaller, family-run organic/biodynamic estates with sustainability commitments, while aiming to revamp tired structures.
“James [Booth] wanted to enter the market as a disruptor – to do businesses in the London wine trade without the baggage of legacy brands. He wanted to shake things up and work with new producers,” McKenna says.
New Gen has made the business of selling South African wine in the UK work – not always an easy task. While total exports of packaged South African wines fell by 6% in the year to September 2024 (Wines of South Africa), the country accounts for the vast majority of New Gen turnover, thanks largely to its partnership with South Africa’s largest independent wine wholesaling company, Vinimark. The company now owns a third of New Gen, having been brought into the fold via Anthony Record’s network.
Key to New Gen’s success is its focus on precision in the UK. The business has cultivated a lean portfolio which offers a full UK-market solution for a small group of exclusive agency brands. Indie merchants remain the company’s most important channel, both in terms of turnover and strategy.
“You just can’t give that level of focus with a bursting portfolio. When we relaunched Reyneke, we made sure it hit every sector in the UK. So many are firefighting rather than being proactive. The more successful we get, the more who want to work with us. Every day we’re approached by someone new,” McKenna says.
The South African focus is mirrored by a strong presence in New Zealand, where the range is led by the likes of Pegasus Bay, one of New Gen’s foundational brands. “There’s a real connection with the next generation of the Donaldson family there,” says McKenna. “They’re putting their stamp on the wines and the business.”
PORTFOLIO UPDATE
While McKenna says no to the majority of new approaches, the company continues to update its portfolio. That includes Elderton in Barossa and, more recently, Domaine Stéphane Ogier from the northern Rhône. The latter was introduced via New Gen board member Marc Kent, owner of Boekenhoutskloof and a “Rhône fanatic”, says McKenna. “Ogier had very little presence in the UK. As we’ve been taking them to out to the trade, the market has been blown away by how good the wines are,” he adds.
Like others, New Gen isn’t immune to the pressures of duty hikes, EPR and rising operational costs, but McKenna remains optimistic: “As a trade, we all feel the impact of government policy but, happily, New Gen finds itself in very good place. That’s down to focus. We’ve stayed close to our core customers and suppliers.”
McKenna’s own experience adds to the picture. Two recent meet-ups with Drinks Retailing revealed a background that includes a formative year with Majestic via its graduate scheme, followed by stints at Codorníu and Mentzendorff, working with brands such as Champagne Pol Roger and Taylor’s port.
“Mentzendorff taught me how to curate a portfolio and build brands with focus,” he reflects. “Codorníu gave me a deep understanding of large-scale distribution and brand consistency.”
With more producers wanting in than New Gen can possibly take on, the company’s future will continue to be defined by selectivity and strategic alignment. As Johan Reyneke said at last month’s relaunch, “change is multigenerational”, while reflecting on his own 25-year journey towards social and economic longevity.
It’s a sentiment that echoes New Generation Wines’ ethos: acting as a long-term partner to a new class of winegrowers who are taking a bootstrap approach in both the vineyards and in business, ultimately shoring up profitability for the long haul.
