Simonsvlei top seller
2005-09-22
THE quality promise of Simonsvlei wines help them to stand out amongst the now 6 000 labels on the domestic market, says manager Kobus Louw.
He was commenting on the newly released ACNielsen figures which revealed that Simonsvlei International is South Africa’s fastest growing wine brand in the premium sector of the domestic retail market.
For the 12 months to May, this popular brand’s share of the 29 million litre premium off-consumption market grew by 46% compared to the previous 12 months, far outpacing other top performers in the sector.
After Simonsvlei, those brands showing the biggest market share increases in this category were Van Loveren, DGB’s The Saints range, Robertson Winery and Graham Beck Wines.
The domestic market has become an increasingly important channel for the country’s wine producers, as a strong rand and global wine glut put the breaks on export growth.
Simonsvlei managing director Kobus Louw says the local market has always been critically important to the winery, with the brand sold through the major grocers and liquor chains countrywide.
“Our positioning is premised on easy-drinking, easy access and reasonable pricing on consistency and continuity of supply.
“That you can count on readily finding Simonsvlei at your local supermarket, hypermarket or liquor store at a price that more than over-delivers in terms of quality, value and packaging is part of the brand’s growing appeal. It is a simple strategy that relies on very carefully orchestrated execution for success.”
Growing market share in an already crowded domestic market, where annual per capita consumption figures still languish below 7 litres, says Louw, has been made possible by sticking assiduously to this positioning and ensuring prices remain highly competitive by curbing costs within the value chain, while simultaneously upping quality.
“We don’t take short cuts and continue to be rewarded with accolades in wine competitions, as the three gold and three silver medals awarded on the 2005 Michelangelo International Wine Awards demonstrate.”
Louw says sales are equally split between local and export markets, with the UK, Germany, Sweden, Denmark and North America among the winery’s key foreign destinations.
“Despite the strength of the rand and pressure on margins, we have still been able to increase the value of our export sales by 40% year on year for the 12 months to end July.”
He says that Simonsvlei is further strengthening its positioning by continuously advancing quality and the introduction of a campaign later this year that will offer all South African consumers a money-back or replacement guarantee if wines in the range are found not to meet the winery’s standard specifications.
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