Argentina outstrips SA in lucrative UK wine market

Ray Smuts SOUTH AFRICAN wine producers may not be crying for Argentina just yet but should take note that their counterparts in the Land of the Pampas are about to launch a full-frontal assault on the so-called ‘price-sensitive’ export market. Wines of South Africa c.e.o. Su Birch says Argentina has several thousand hectares coming into production soon which will increase competition in the price-sensitive market. Latest news from the United Kingdom is that South Africa has outstripped all but one of its competitors - Argentina - in that market by reflecting a growth of 20% in the value of exports for last year compared to the previous. The UK is the world’s most keenly contested market among New World wine producers. What is more, South Africa’s value share of the UK rose to 4,5% from 3,5% in 1999 and boasted two local brands on the top 20 in the UK, Kumalo in 7th position and KWV in 17th. (The UK takes up 40% of South Africa’s wine export market). Birch says although South Africa’s UK volume share has grown to 6% from 5,2% in 1999 it is vital that average per litre retail prices are increased as part of a strategy to improve returns to producers. During the first two months of this year, selling prices had averaged just below £4 for a 750ml bottle, this average still being 66p below that of Australian wines. “South Africa has to focus on improving its quality positioning and we are confident that important shifts in perceptions are taking place.” Central to WOSA’s strategy are two major initiatives currently underway, a world wine tour in September in which over 30 local wine producers are participating and a local exhibition of South African wines next April in which all WOSA members will be involved. About 500 foreign media, wine buyers for specialist wine stores, supermarket chains and licensed establishments in the UK, Europe, United States, Canada and Japan will be invited to attend Cape Wine 2002 at Nederburg in which 150 of the country’s top wine producers will be represented.