As the saying goes “paper is patient” (papier is geduldig) it has no relevance to the actual challenge of increased production by whopping 65% with the same equipment, same infrastructure with just a few hands more, on deck than last year. We have been very well prepared and for the first time in the history of our winery we have introduced a night shift team. This means harvest 2017 runs on a 24/7 scenario and has proven not only a lifesaver but the best thing since slice bread. Quality of the harvest up to know have been amazing! The Chardonnay and Pinot Noir grapes are healthy and surprisingly show text-book analysis despite the earlier December heatwaves. Great natural acidity, bright flavours and a good pH is the foundation that could be a ‘rock star’ vintage. Off-course it is early days and we are actually are concentrating all of our efforts to meet the demands of volume before the ’window-period’ ends. So far so good…..this is the most important factor for now, besides the attention to detail that never is lost in the hectic and frantic pace. There has been an unusual calm in the team even in times of crisis and breakdowns. We all seem to be focused on the major job to be done. Our cellar team remains my “dream team” I am truly blessed. We can comment that we cannot wait for the tsunami of grapes start to subside, which most properly be by next Thursday. Then only will Pierre and I (and off course our interns) get to look into the individual base wines form our Robertson Estate and that from the all important parcels from other geographical areas. This mix will be eventually be 80% Estate fruit from Robertson and the 20% from other areas to have the opportunity to build on the ever important aspect of consistency and continuity!
HARVEST “ROLLER COASTER”
The pace as you can see has been hectic and unbelievable on some days - I guess this translates to say that we are not ‘humans’ but ‘machines’. Below is the number of days of harvested so far and showing Chardonnay, Pinot Noir grape intake and juice intakes.
VINPRO—KEY INDUSTRY GOALS—UNLOCKING VALUE
At the recent annual VinPro information day the following key wine industry goals were shared. This is known as the WISE program of VinPro that has been implemented to meet challenges by 2025. 2015 Reality (Current status Quo) • Producer ROI – 2% • Production driven - 80,000 ton surplus • Black-owned land & water – 1.5% • Local wine sales: 350 million litres • Bulk vs Packaged export – 60:40 • Ethical Accredited Volume – 20% • Only 2 Free Trade Agreements • Market Ratios: USA : China : Africa (3%:2%:5%) • Wine Tourism R 6 bn • Industry levies R80 m: Government R11 m • Job Creation – 275 000 Ideal future state. This is to improve by 2025 to: 2025 WISE Program: • Producer ROI – CPI + 5% • Market and value-chain driven • Black-owned land & water – 20% • Local wine sales: 450 million litres • Bulk vs Packaged export – 40:60 • Ethical Accredited Volume – 100% • Key markets, lead Africa • Market Ratios: USA : China : Africa (7%:7%:10%) • Wine Tourism R 15 bn • Matched funding • Job Creation – 375 000 Quite a challenge but the industry needs it.
The South African wine industry is going through some tough times, but sustainable growth is on the cards. What’s needed is a clear game plan, a stronger domestic market focus, ingenious marketing and a collective drive towards higher price points. - VinPro Information Day 2017
RATTLE THE MARKETING CAGE!
Very interesting snippets continues: “Don’t think because you’ve got less wine the price will automatically go up. Wine prices are not driven by availability, but by demand from the consumer for wine as a commodity,” said Michael Fridjhon, wine critic and columnist who led a panel discussion on ways to unlock value in the industry chain.
According to Richard Rushton, group MD of Distell, disruptive marketing efforts and the emergence of five to ten scale brands will strengthen the industry’s brand as a whole. The higher wine prices that will be achieved through this will inevitably be passed down the value chain to the producer. “Building premiums will require time and patience though,” said Rushton.
Gavin Dittmar, MD of national distributor Meridian Wine Merchants, warned against using discounts as a marketing tool. “It’s the quickest race to the bottom. How will we build brands if discount is our only bargaining tool?” he said. He emphasised the value that distribution companies can add as collective marketing vehicle for South African wines. “If we’re the ham in the sandwich between producers and the trade – let’s be parma ham, not polony.”
Wine companies should make sure that their marketers travel extensively to build a relationship and trust with buyers. “You won’t get anywhere with your brand if you only visit an overseas market once a year for five days,” said Neville Carew, CEO of Origin Wine.
The same applies to the domestic market. Lebo Motshegoa, MD of marketing research company Foshizi, said the black market has its own social calendar. “Know it and interact with them at these events.” Many marketers make the mistake of using the “one size fits all” approach when targeting this market, while the range within this segment is wide and needs to be targeted properly. “They want a product they can relate to, a brand that cares about what they’re all about. And if you’re the first brand to introduce a new category, they will adopt your brand name as the category name and all other brands will have to work around that,” said Motshegoa.
Read more HERE (PDF)