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| South
African wine consumers on the rise |
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| Traditional
stereotypes about wine in South Africa are
fading as a new generation of black wine
connoisseurs and producers enters the wine
scene. |
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South
Africa's wine industry is viewed as one
of the most progressive and successful
of many wine-producing countries. The
industry's transformation efforts have been
successful and new wine consumption trends
point to a new group of emerging wine consumers.
This is good news for the industry as it
shows the image of wine in South
Africa is changing.
Changing consumer profile
Matome Mbatha, Wines of South Africa
(Wosa) market manager for Africa and the
Americas, says that the industry has noticed
a shift in the profile of local wine consumers.
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"There has been a great interest
in wine from the black community,"
Mbatha says. South Africa's growing black
middle class is one of the reasons for the
change in wine consumption trends according
to Mbatha. "These people seek and
love fine things in life and wine, as a
lifestyle product, resonates well with that
need."
The availability of easy-to-drink wines
has also helped to grow a more diverse consumer
base. "Many black wine drinkers
start to appreciate wine on a casual basis
and gradually upgrade to more serious wine
once they gain confidence in their wine
knowledge," he says.
Wine festivals also play an important
role in making wine more accessible
and debunking the myth that drinking wine
is a highbrow affair. At wine festivals,
people who would ordinarily not drink the
beverage have an opportunity to sample a
wide variety of wine styles.
An event such as the Soweto
Wine Festival, now in its seventh year,
is helping to cultivate an appreciation
for wine. Last year's Soweto Wine Festival
attracted more than 8 000 visitors.
Benefits of a wider consumer base
Charlaine Opperman, author of a 2010 report
that investigates the marketing of South
African wine to the country's emerging black
market, says the industry and economy
stands to benefit from this growing consumer
group.
"If wine producers can sell their
products to the emerging black market of
South Africa, and create a strong and loyal
customer base, the implications are astronomical,"
she says in the report, which was written
as part of her MBA degree at Stellenbosch
University.
Wine companies that can promote their
brands to the black middle class group
stand to benefit from an increased market
share with more profit and a wider spread
of products in the domestic market.
Opperman says that another positive implication
could be job creation.
Companies would have to expand their production
facilities, create new distribution channels
and employ marketing agents to focus on
the new market segment.
"Bigger profits for the wine industry
could lead to new innovations and better
production facilities that will influence
the industry positively," she
says in the report.
Transformation success stories
Transformation of the wine industry has
brought about significant changes to ownership
of wine brands and farms. Mbatha says that
Wosa has noted an increase in the
percentage of black-owned wine businesses
and wine brands.
Thandi Wines and Sizanani
are two examples of successful transformation
projects in the wine industry. Thandi
Wines became a ground-breaker in the
local wine industry when it was established
as a stand-alone wine company in October
2009.
It is South Africa's first agricultural
Black Economic Empowerment (BEE) project.
The company is owned by 250 farm worker
families who hold 55% shares in the company.
The Thandi community also holds farm land
ownership over three farms, ranging between
50% to 100% shareholding. According to Thandi
Wines, it is very rare in the South
African wine industry for a BEE group of
this size to own both land and have shares
in the business.
It is also the country's biggest black-owned
wine exporting company, as well as the first
wine brand to receive Fairtrade
accreditation.
Sizanani Wines, the empowerment
company set up by Bellevue Estate, is now
100% owned by the workers at Bellevue.
Sizanani's MD Randall Peceur says the
empowerment of farm workers is the main
focus of the company.
"Before, workers would work all
day in the vineyards and the winery but
had no knowledge of what their future would
hold for them," Peceur says.
"With this project they have a tangible
link to their future, and more importantly,
to the future of their children."
Sizanani Wines has had export success
and the company has secured a contract to
supply its label Chenin and Pinotage to
UK supermarket chain Morrisons.
South Africa's wine industry growing
Transformation in the local wine industry
is far from over, and the potential of
the domestic market is still very much
untapped.
According to 2010 figures, South
Africa ranks eighth in overall volume production
of wine. South African wine is
also the fastest growing in the new world
wine category in most Canadian markets.
"South Africa has gained popularity
in this market especially after the 2010
Fifa World Cup," Mbatha says.
According to Opperman, South Africa is
classified in international wine circles
as one of the 'new world' wine producers,
along with Australia, New Zealand, Chile,
Argentina and the US.
There are just over 100 000 hectares
of wine varietals under cultivation in
South Africa. White varieties comprise
56.2% of the national vineyard and reds,
43.8%.
By Wilma
den Hartigh (MediaClubSouthAfrica) |
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