SA wine producers take on the world

South African wine producers, whose combined exports rose by 32 percent in volume and 47 percent in value last year to a total of $778 million (R6.3 billion), have entered an alliance with four other New World wine-producing countries to compete more effectively with those in the EU that are subsidised heavily by their governments.

The four, represented by Wines of Argentina, the California Wine Institute, Wines of Chile and Wines of New Zealand, have agreed to collaborate with the local industry to present a combined exhibition at the annual Pro Wein show in Germany next year.

Su Birch, the chief executive of Wines of SA, the generic marketing body for South African wines, said on Wednesday that this was the first time competing wine-producing countries had agreed to operate as a team.

A spokesperson said: "Although we remain competitors, we believe the potential exists to further advance the New World's share of the global wine market by sharing best practice.

"We have already benefited from each other enormously by exchanging viticultural and cellar research, and innovations in packaging, marketing and logistics."

Despite the global credit crisis, which caused a drop in global wine sales, all five New World producers have continued to grow wine exports. Those from South Africa to the UK - its biggest export market - rose by 27 percent in the year to April, and local wines are now the fastest-growing segment of the UK market, occupying fifth position with a 10 percent market share. They have the biggest share of the market in Sweden and the fourth biggest in Germany.

This is likely to increase after the Pro Wein show in Duesseldorf next March, which is attended by buyers from all over the world.

The five New World alliance partners are optimistic about the initiative. They believe their combined stand at the Pro Wein show will generate worldwide interest. At first they considered having their own international show. But research convinced them that they would do better to use the established platform of Pro Wein.