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
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Hi Chris
Unfortunately this is very true. On my recent visit to SA, including many wineries, I was told that in many cases it is just not viable to export to the UK. A wine that retails at around £8, needs to be sold for £1.80. I also spoke to another winery where they sold their wine to a UK agent for £3 and I bought it in a restaurant for £30!
Another point about the UK market is that wine sales are dominated by the supermarkets. These treat British farmers very poorly and I guess the same is true with SA wines. The supermarkets are dominated by brands like First Cape, which I believe is a joint venture, including a British company. If you read the back of their labels this is bottled in the UK.
I am a real fan of SA wine and it probably makes up around 80% of my wine purchases, but I am finding it harder to find, and small local independant merchants are usually the best source.
Unfortunately I don’t see things changing in the short term
Lisa
Thank you for your feedback Lisa – how sad for this country’s wines.
I do hope that someone reading this will be able to advise you on an independent merchant in the UK.
Chris
i think part of the problem is the huge tax on each wine bottle imported in the UK.
if i’m not wrong, the Australian government pays this tax for the Australian wine sold in the UK. Maybe SA could do something similar to encourage the market?
Dear Lisa
My Twitter friends have recommended the following independents in the UK:
mijm 8:18pm via Web @WhaleCottage Have a look at Tanners http://www.tanners-wines.co.uk RT Can anyone recommend an independent wine merchant in the UK
AndrewRoyHarris 7:35pm via Twitter for BlackBerry® @WhaleCottage SA Wines Online. They have a shop in SW1 too…
mikeratcliffe 7:14pm via Twitter for iPhone @WhaleCottage has to be Handford Wines in South Kensington, London or for online in UK http://www.sawinesonline.co.uk
Grazie Massimo.
Good call – I hope someone from WOSA can respond.
Chris
Dear Lisa
BubblesFerreira Dec 12, 9:05pm via ÜberTwitter @WhaleCottage not so much on SA wines but a fabulous selection on of wines around the world is Phil Swiggot in Northcote Road Clapham
Chris
Thanks for the above suppliers. I do use sawines online and they do have a very wide selection.
I don’t see why the SA government should pay the tax and duty on your wine. Anybody exporting other goods to the UK has to pay the tax. You should sell your wine elsewhere, but unfortunately consumers like myself will miss out!
Long may the independent merchants hang on in there and take on the mighty Tesco!
Lisa