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Wine exports on the rise again

Wine exports on the rise again
 
2007-09-13


SOUTH AFRICAN wine exports are back on track, after a temporary hiccup in 2006 when sales dipped around 5% after 12 straight years of growth, says Su Birch, CEO of Wines of South Africa (WOSA).

“Total exports across all markets for the first seven months of 2007 are 10% higher than the same period last year and we expect to maintain that growth rate for the full year.

“Sales in the UK, still our biggest market, are also recovering well.

“Reports from producers indicate that volumes sold into the British trade during this time are up some 3% on the corresponding period in 2006, although this is still to be reflected in the ACNielsen data, which records consumer purchases.”

Birch said the Nielsen figures for the 12 months to June showed that the average retail price per 750ml bottle had risen to £3,91.

She added that the Tesco launch in August of a much-expanded South African selection was not only an expression of confidence by the UK’s largest retailer, but was helping to raise the visibility of the category, particularly at higher price points.

“Tesco has increased its selection of South African wines by 35% to 80 wines, with many of them priced above £4,99. What is particularly encouraging is that for the first time, the chain is stocking local wines in the £15 to £20 range, white and red.”

Meanwhile, Sainsbury’s, the UK’s second biggest retailer of wines, reported a 25% growth in the volume of South African wines sold in the year to June.

Local wines were now well represented in all major multiple grocers and liquor chains, while the South African rosé segment was currently the fastest growing in UK wine retail.

Other good news was that the country’s biggest export brand, Kumala, had retained its status as one of the top ten retail brands, despite the drop in sales that had followed a change in ownership.

FirstCape, Namaqua, Pearly Bay and Robert’s Rock also continued to show healthy growth, while Spier, Stormhoek, Douglas Green, Nederburg, Beyerskloof and Boschendal were making good headway.



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