The depressed prices caused by this out-of-balance supply and demand dynamic prompted the South African government to fund the formation of the Koöperatieve Wijnbouwers Vereniging van Zuid-Afrika Bpkt (KWV) in 1918.
Initially started as a co-operative, the KWV soon grew in power and prominence, setting policies and prices for the entire South African wine industry.
It wasn't until the late 1980s and 1990s when Apartheid was ended and the world's export market opened up that South African wines began to experience a renaissance.
The presence of flying winemakers from abroad brought international influences and focus on well known varieties such as Shiraz, Cabernet Sauvignon and Chardonnay.
In 1652, a Dutch surgeon named Jan van Riebeeck was commissioned with the task of building both a fort and farming community in the Cape.
[5] One of van Riebeeck's tasks include planting a vineyard, falsely believing the consumption of grapes and the wine produced from them is effective in avoiding scurvy among sailors on long sea voyages.
Other theories are that the name derives from one of the Dutch East India Company ships or possibly in honor of the virtues of constancy and faithfulness.
He issued official decrees that imposed a high penalty on growers harvesting grapes before they were ripe or fermenting wine in dirty barrels.
In the 1770s, Groot Constantia was sold to a businessman from Stellenbosch named Hendrik Cloete, who replanted the vineyards and rebuilt the cellars in an attempt to revive the reputation of the estate.
It was Cloete's dedication (and later that of his son, also named Hendrik) that raised the prestige of the estate and led to its prompt discovery by the British, who had recently gained control over the Cape.
After initially forcing their integration among Dutch and German immigrant communities the Cape Governor, Simon van der Stel, eventually gave the settlers land near Boschendal in what is now Franschhoek, known as the "French corner".
As they did for the French centuries earlier, the Dutch introduced the technique of adding sulphur to halt fermentation before all the residual sugar has been completely converted into alcohol.
With easy access to the lucrative British market, the South African wine industry experienced a period of prosperity that would last until the middle of the 19th century.
[4] Following the devastation of the phylloxera epidemic many growers gave up on winemaking, choosing instead to plant orchards and alfalfa fields to feed the growing ostrich feather industry.
[6] Depressed prices caused by this imbalance in supply and demand prompted the South African government to fund the formation of the Koöperatieve Wijnbouwers Vereniging van Zuid-Afrika Bpkt (KWV) in 1918.
Initially started as a co-operative, the KWV soon grew in power and prominence until it was able to set policies and prices for the entire South African wine industry.
[4] By 1924, nearly 95% of all vineyard owners belonged to the KWV, allowing it to exert enormous power on the pricing structure and direction of the South African wine industry.
It wasn't till the late 1980s and 1990s when Apartheid was ended and the world's export market opened up that South African wines began to experience a renaissance.
The presence of flying winemakers from abroad brought international influences and focus on well known varieties such as Shiraz, Cabernet Sauvignon and Chardonnay.
Vineyard owners and wineries that previously relied on the price-fixing structure to buy their excess grapes for distillation had to shift their focus to quality wine production in order to compete.