SA wine exports on the rise again

“Total exports across all markets for the first seven months of 2007 are 10% higher than the same period last year and we expect to be able to maintain that growth rate for the full year. Sales in the UK, still our biggest market, are also recovering well.  Reports from producers indicate that volumes sold into the British trade during this time are up some 3% on the corresponding period in 2006, although this is still to be reflected in the ACNielsen data, which records consumer purchases.”

Birch said the Nielsen figures for the 12 months to June 2007 showed that the average retail price per 750ml bottle had risen to £3.91.

She added that the Tesco launch in August of a much-expanded South African selection was not only an expression of confidence on the part of the UK's largest retailer, but was helping to raise the visibility of the category, particularly at higher price points.  “Tesco has increased its selection of South African wines by 35% to 80 wines, with many of them priced above £4,99.  What is particularly encouraging is that for the first time, the chain is stocking local wines in the £15 to £20 range, both white and red.”

Meanwhile, Sainsbury's, the UK's second biggest retailer of wines, reported a 25% growth in the volume of South African wines sold in the year to June 2007.

Local wines were now well represented in all the major multiple grocers and liquor chains, she said, while the South African rosé segment was currently the fastest growing in UK wine retail.  Other good news was that the country's biggest export brand, Kumala, had retained its status as one of the top 10 retail brands, despite the drop in sales that had followed a change in ownership. FirstCape, Namaqua, Pearly Bay and Robert's Rock also continued to show healthy growth, while brands such as Spier, Stormhoek, Douglas Green, Nederburg, Beyerskloof and Boschendal were making good headway.
 
South Africa's stronger showing in the UK comes just ahead of WOSA's Mega Tasting in Earl's Court, when 220 local producers will be exhibiting their wines to a pan-European audience.  “While the majority of delegates will be coming from the UK, we have a good representation from all over Europe, was well as some delegates registered from as far as Canada and Asia.”

Showcasing over 2 000 wines, the Mega Tasting exhibition will include a series of exclusive blind tastings for international media.  In a neighbouring venue, an independent Restaurant Show, running concurrently, will focus on an on-trade audience and will include food pairing demonstrations and advice on wine list compilations.

Birch said South African producers were heartened that the rate of value growth in the UK wine market was outpacing volume growth, with Nielsen data reflecting a 7,2% rise in value, compared with a 2,1% increase in volumes for the year to June.  “This suggests that margins will be under less pressure than in the past, offering sustainable trading opportunities.”

Meanwhile, South African wine exports to other important markets such as Sweden, Denmark and North America were continuing to rise. Birch was confident that last year's total exports of just below 270 million litres would climb to 300 million litres by 2009 when the country would be celebrating its 350th year as a wine producer.