Threefold increase in exports affirms healthy wine industry

Industry research body the SA Wine Industry Information and Systems (Sawis) reports that the country’s wine exports have increased threefold in the last ten years. For the 12 months to August 2009, offshore sales volumes reached a total of 405,1-million litres, representing a 12% year-on-year growth.

The Department of Trade and Industry reports that the value of South Africa’s wine exports increased from R4,7-billion in 2007 to R6,2-billion in 2008.

South African wine industry association Wines of South Africa (Wosa) reports that the UK accounts for more than one-quarter of South Africa’s exported wine volumes.

“The country remains the fastest-growing category in the competitive UK market and holds a volume share of more than 11% there. Other key markets include Germany, Sweden, Holland and North America. Markets in Africa, Eastern Europe and Asia are also assuming increasing importance,” asserts Wosa CEO Su Birch.

She adds that the country is acknowledged for its capacity to produce a wealth of wine styles across the pricing continuum. “South Africa is recognised as a leader in ecosustainable wine growing and production, as well as in conservation of indigenous habi- tats in the winelands, which fall mostly in the Cape Floral Kingdom, the flora of which is among the most highly concentrated and diverse in the world. “Members of the industry have committed more than the equi- valent of the national vineyard of 100 000 ha to conservation,” she points out.

However, the country’s winery industry does face a few chal- lenges. Wine producer Nederburg global brand manager Rudolph du Toit says that a significant challenge is to grow South Africa’s profile in the premium wine sector and build sustainable and endurable brands. Wosa is encouraging producers to participate more actively in this segment of the market, where profit margins are more flexible than in the extreme value price band.

“Wosa recently launched a brand blueprint, developed as a tool for expressing the vocabulary of quality needed by the South African wine industry to enhance its image. “Its four cornerstones are leadership in production integrity from the soil to the glass, the winelands as an extraordinary natural environment, the proud heritage of 350 years of wine- making, and the warmth and hospitality of all South Africans,” notes Du Toit.

Meanwhile, the industry has a signifi- cant demand for skills in winegrowing and winemaking, as well as in wine marketing, distribution and packaging and support services for wine tourism.

Du Toit explains that Nederburg, as part of the Distell group, is actively engaged in skills-transfer projects, as well as in preferen- tial procurement across the value chain from black economic- empowerment suppliers.

“Distell supports a range of bursary schemes to raise the involvement in the industry of skilled people from previously disadvantaged communities. “It also regularly liaises with government and actively engages with all the key wine-industry research and professional bodies,” he says.

Many of Distell’s most senior specialists are represented on indus- try boards and technical committees, helping to shape national policy and approaches to wine- growing, winemaking and winemarketing, while also liaising with industry and research organisations abroad. Further, where it is appropriate, it makes the findings of its own internal research available to the wider industry to enhance winegrowing and winemaking standards.