Fairview still top SA red in USA
2007-04-12
FAIRVIEW continues to make inroads in the highly competitive American market.
While their Goats Do Roam red wine remains the top-selling South African red wine in the States according to the latest Nielsen ratings, Fairview has grown their total exports to America by more than 8% during the past year.
During the past year, the cheeky Goats do Roam label is currently close to the 100 000 case mark and still claims 60% of Fairview’s export selection to America.
According to Robin Back, Fairview’s marketing manager in the United States, they are satisfied with performance of Fairview’s extensive range of wines in the country as the annual growth figures were based on straight sales with no price promotions and special offers.
“South African producers are facing a tough challenge as we have to compete not only against other wine producing countries like Australia and New Zealand in this lucrative market, but the past year also saw the entry of several large South African producers.
“This is obviously great news for the general South African wine industry as the playing field is increasing, but the wines will have to sell on merit. Promotional campaigns and price discounts are not sustainable on a long term basis as it is cost prohibitive to try and buy your way into the American market.”
Back is of the opinion that an absolute commitment to quality should be the cornerstone for South African wines in this market.
“American consumers are becoming progressively more aware of South African wines and it is paramount that producers maintain the highest standards.
“As our wines are still relatively new to American wine drinkers, a bad experience can influence them negatively against the whole wine category and not only one specific winery,” reckons Back.
He is however adamant that the promotion of South African wines are suffering from lack of funding.
“Wines of South Africa is completely underfunded for the American market. Countries like New Zealand and Australia are combining wine promotion and tourism destination marketing with great impact, while our promotional efforts are dislocated.
“These countries are pumping significant budgets into generic advertising such as full-page advertisements in leading magazines and eye-catching billboards to capture an increasing consumer audience. We cannot compete with that.”
Back is currently in the country hosting a group of American distributors, retailers and importers on a week-long tour of leading wineries.
The group has been visiting key exporters such as Fairview, Spice Route, Hamilton Russell, Neil Ellis, Boekenhoutskloof, Mann Vintners and Stark-Condé as well as top tourism spots.
Back has accompanied the group on visits to Table Mountain, Robben Island, Cape Point and Boulders beach and treated them to an authentic Cape Malay lunch in the Bo-Kaap.
“It’s no longer enough to only promote the brand - it is the story behind the brand that sells the wine. It is therefore important that we position our wines within the context of our culture and our country.
“We extend these trade visits beyond tours to the various wineries to include places of cultural importance and create a story for our wines and ambassadors for our country.”
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