Tag Archives: Su Birch

South African bottled wine sales decline in UK

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

SA wines fastest growing in UK

South African wines are the fastest growing in the United Kingdom, and make up a market share in volume of 12,3 %, as measured by A C Nielsen.  

South Africa has the 4th largest market share, on a par with that of France, and follows Australia and the USA.   Wines priced R 60 – R 84 grew by 15 % in value in the past year.  Those costing between R 84 – R 120 increased by 27 % in sales value, and South African wines costing over R120 grew by 43 %, even though they have a small market share.   South Africa’s top-selling brand in the UK is First Cape, which increased by 80 % in sales volume and by 73% in sales value.   Other strong South African brands are Kumala, Arniston Bay, Two Oceans and KWV. 

Wines of South Africa (WOSA) CEO Su Birch is expecting growth of 10 % of South African wine sales in the UK in 2010, if the Rand does not strengthen “materially”.

South African wines also performed well in Sweden (18 % increase) and in Canada (11% increase), while sales in the Netherlands, Germany and the USA were on a par with the previous year.

WOSA is an industry-funded body marketing South African wines generically internationally.

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com

New World wines unite

An alliance of New World wines, including South Africa but excluding Australia, has been formed for wine marketing purposes, reports The Sunday Times.

South Africa, Argentina, Chile, New Zealand and California will package themselves jointly at international wine trade shows, as the New World Wine Alliance, thereby combating the strong European presence at such shows. 

The first exposure of the new wine marketing Alliance will be at the Prowein trade fair in Germany in March next year.   The trade fair attracted 35 000 delegates from 50 countries, 3 200 exhibitors and 1 000 journalists this year.   Not only will the Alliance exhibit jointly, but it will also use the platform to offer seminars and talks by leading wine retailers, academics, growers and producers.

Su Birch, CEO of Wines of South Africa, said: ” Although we are all competitors, we are confident of the potential to further advance the New World’s share of the global wine market by working smarter in these difficult economic times”

Whale Cottage Portoflio: www.whalecottage.com

WOSA to bring wine writers to 2010 World Cup

Wines of South Africa (WOSA) is planning to bring wine journalists to South Africa during the 2010 World Cup, to enjoy the soccer and wine feast the country has to offer next year, reports Cape Business News.

Su Birch, CEO of WOSA, said that many wine producers are planning to bring European importers to the country for the top soccer event, and have designed incentive programs.   “Our intention is to ensure visiting foreign trade and media are exposed to our producers and activities in the winelands while they are here.   We’ll give them a taste of true South African hospitality for which we have become famous.   They’ll experience the spontaneous African warmth and excitement surrounding the games and get to taste our wines in a new context” she said.

Given the 2010 World Cup focus, WOSA will not be putting on Cape Wine in 2010, and will next host it in 2012.

Birch recently received the honour of being named “Woman of the Year” by The Drinks Business, a British journal, “for her role in the enormous advances made by the South African wine industry on international markets over the past decade.”  South African wine exports have grown three-fold in the past ten years.

South Africa is the ninth largest producer of wines, and represents 3 % of total world wine production.  Currently just over 400 million liters are exported from South Africa, a growth of 17 % compared to the year before.  Sales have grown by 27 % to the UK, by 12 % to Germany, and by 26 % to Sweden, the top three South African export markets.