Should SA reposition itself as ‘the vineyard of Africa’ rather than a supplier of cheap and cheerful wine to the Northern Hemisphere?
In the last few years, the South African wine industry established itself as a small, yet formidable force to be reckoned with on the global wine stage. The slow & steady slog to veer away from predominately producing cheap and cheerful wines and breaking onto the international market is starting to pay off since 1994. Subsequent government initiatives – some more successful than others - along with more market access, has acted as a springboard to gain international footing. This afforded South Africa recognition as a serious wine producing country. The challenge however, is to avoid tunnel vision and be a progressive and unified brand, focusing on great quality across the board. This will solidify and position South Africa as the driving force for wine production in Africa.
The growing international demand for not only South African wines has given us much needed exposure for our mid- tier and premium wines. Exports have grown from a mere 50 - million liters in 1994 to a staggering 313 - million liters in 2015. According to MEC Alan Winde, Department Trade and Industry, exports are bound to increase another 13 % over the next decade. The focus should not be on only fine or plonk wine, but wine exports as a whole. The Wine Industry Strategic Exercise (WISE) is setting the tone for great things to come. These holistic guidelines light the way forward for South Africa as an exciting wine brand, urging wine producers across the board to stay dynamic whilst developing not only their individual brands, but South Africa as a brand as well. Emerging market interest in the likes of China and the United States is a golden opportunity for South African wine to cement a reputation for good quality, be it plonk, mid-tier or fine wines.
Over the last couple of years it has not been only our wines attracting foreign interest. The Advini group - a major role player in the global wine scene - recently bought 51% of Ken Forrester. The French company has partnerships with Le Bonheur and L’Avenir Wine Estate, with plans to grow these particular brands to its full potential. Several other wine farms have been purchased by foreign companies over the last few years. Although South Africa certainly needs trade and foreign investment, it is alarming that ‘colonization’ of our premium vineyards is taking place. If we need any further proof that we can and we should be playing in the premium leagues, this is it.
It is of utmost importance for the South African wine industry to read and participate in the international fine wine market. Instead of playing second fiddle to larger wine producing countries, we should focus on our individual character. Although cheap & cheerful is fun, quality should never be compromised. The fact is that we entered way to low into the global wine market in the post – Apartheid era. The challenge is to raise the prices of our wines whilst not compromising our current market share. There should be determined as to what will justify higher prices – what do we have to offer the world and not what the world has to offer us. This should be done as a joint venture between wine producers and the government to ensure collective growth. There is no cookie-cutter way of doing this, but innovation can come in many different forms. It is imperative to be quality driven in brand driven world – especially one as cut-throat as the global wine industry.
The way forward for South African wines are very exciting. The WISE initiative is set on rebranding not only our wines, but the wine industry as well. Our wines, ethics and the industry should be of exceptional quality, thus creating trust in the wine brand, South Africa. We are the biggest wine producing country in Africa and have the means to be the best as well. This requires thinking smartly broadly about what we need to become “the vineyard of Africa”. South Africa needs to focus on our real point of difference in the global market & produce wines of exceptional quality – be it plonk or premium.
Blog: Out with the old, in with the new.
Catea Sinclair
November 2016.
A couple of decades ago, you, the wine producer or marketer, steered public opinion on your wine by means of clever advertising or accolades. These days, every user that consumes your product can give their honest, unbiased opinion on the spot by sharing it on the many social media platforms available across the Internet. Intimidating? Yes. And it will replace traditional wine guides sooner than you think.
With the touch of the button or a question to the ever available SIRI, you can have several pages of information about any wine from any part of the world in mere seconds. Paging around in a wine guide is so 1999. When we enjoy a glass of wine, we not only share it with those physically close to us. The moment and wine is shared, discussed and liked (or disliked) across the world. Where a wine guide speaks at you, you can now speak to an audience that responds in real time, with real opinions. The pull is so much stronger for us, as social beings, to announce our likes and dislikes on social media. You can do it anonymously or, if you have had enough wine and feel confident, as you. Edited, of course, to sound like a connoisseur. It is much less intimidating as well, as wine can be quite daunting to the majority of people. We are all carrying our own pocket guide to wine in our, well, pocket. The true benefit is that you can have a record of what you liked, disliked and may like, according to what you enjoyed at a particular time. The possibilities are endless for us as wine producers as well, the versatility reaching audiences previously unimagined. Although grim, wine guides are on the brink of extinction and will not be missed.