One of South Africa’s largest wine export countries is facing a decline in sales due to the strong Rand and the slow recovery of the UK economy.
Wines of South Africa (WOSA) CEO Su Birch said that bottled wine sales from South Africa were declining as local producers no longer can supply wines “at the low price points demanded by the supermarkets”. Birch added that the local wine industry had prepared for these fluctuations by diversifying into other markets, reports Business Report. In addition, top end wine sales are still growing in the UK, given their success in international wine competitions.
UK importers are also buying South African wine in bulk, to bottle in their country, leading to a sharp growth in demand for these cheaper wine brands. South African wine sales have diversified, to include not only the UK, but also Sweden, Germany, the Netherlands, Denmark, Finland, Belgium, the USA and Canada. In the past 10 years wine sales to the USA have grown five-fold.
South African wines are diversifying, to the benefit of exports, with “more producers than ever, more brands, more labels, more competitions, more medals”, said Wineland magazine editor Cassie du Plessis.
Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.comTwitter: @WhaleCottage

