Tag Archives: Wines of South Africa

Corona Virus Lockdown: SA Wine exports put under lock and key, industry loss of R800 million per month!

 

One of the shock decisions by the Government during the State of Disaster during the Corona Virus Lockdown has been to make it illegal to export South African wines, and to transport wines from wine estates to the ports, just nine days after exports were allowed, and despite the export of fresh fruit and other agricultural products being allowed. The export wine ban means a loss of R200 million per week to the wine industry, says industry body VinPro.  Continue reading →

CapeWine 2018 largest wine trade exhibition in Southern Hemisphere, showcases diversity and quality of SA wines!

Despite a hugely challenging year for the wine industry due to the drought, CapeWine 2018 is an impressive showcase of optimism, friendliness, and proudly South Africaness, running at the Cape Town International Convention Centre until tomorrow. I attended yesterday, with my Parisian friend Aurelié Jullien, and we were both impressed with the magnitude and professionalism of the exhibition, held every three years, and attended by the local and international wine trade. Continue reading →

Devaluation of the Rand a double-edged sword for wine industry!

imageThe devaluation of the Rand, especially since President Zuma’s Nenegate in December, is not all plain sailing, having negative effects on the wine industry too, warns Wines of South Africa CEO Siobhan Thompson. The weak Rand is expected to dominate for a year.

The positive benefit of the devaluation of the Rand in making the country’s wines more affordable in international markets, will be counteracted by the increased prices of imported corks, barrels, equipment, yeast, and closures.  Increased inflation will be likely to drive up wages too, adding to cost increases.

Local wine farmers were advised to hedge their businesses against currency fluctuations, to balance wine exports and local sales, and to increase sales of premium wines.

Ms Thompson warned that the exchange rate devaluation would severly affect international marketing budgets by up to 25-30%, either leading to reduced marketing activity in overseas markets, or a substantial increase in marketing budget will be required. She warned that this could negatively affect building brand ‘South Africa‘ in international markets. She also said: ‘We need to stand true to our strategy of building value over volume. South Africa is serious about growing its image and higher price tier offerings and we need to continue doing so and not be pushed to lower FOBs and price points due to the Rand devaluing’.

Source: The Drinks Business

Chris von Ulmenstein, WhaleTales Blog: www.whalecottage.com/blog  Tel 082 55 11 323 Twitter:@WhaleCottage  Facebook:  click here