Despite ongoing efforts to switch bulk wine exports to bottled products, 60% of wine is still exported in bulk.The industry’s goal is to reverse this to 40% bulk and 60% bottled.According to Maryna Calow, communications manager for Wines of South Africa, this is because the present focus is on “premiumisation” of both bulk and bottled wine exports.“Bulk will always have a place in our industry,” she told Freight News. “The problem, however, is that at present the majority is exported in bulk – and while this is not necessarily wrong as it carries benefits, especially when it comes to carbon footprint, there is a f lip-side to that as well.”She said job creation remained of critical importance in the wine industry, and with the majority of products leaving the country in bulk, the industry was losing out on being able to create more employment.Another concern for winemakers is that some of the bulk exports get blended into non-South African products. While this is not the case for all bulk exported wine, it does mean that in cases where the wine is blended, the country loses value from a brand perspective.Calow, however, stressed that while attempts were being made to export more bottled products and less bulk, there was still value in exporting wine in bulk.In 2021, for example, it played a crucial role in correcting the stock situation that was caused by the number of bans imposed on local alcohol sales during the height of the Covid-19 pandemic.According to Calow, the value of bulk wine exports (excluding industrial wine) increased by 33.6% in volume year on year (YOY). “In 2021, the white varieties dominated, with Y-O-Y growth being driven particularly by the demand for Chardonnay, which was up by 167%, and Sauvignon Blanc up by 79%.”She said it was also positive to note the long-term growth in rand per litre of bulk wine, with an increase of 8% in total bulk exports and a pleasing 32% in still white wine between 2018 and 2021.With bulk exports performing so well, increasing by 33.6% compared to the 6.7% increase for packaged exports, the move to reverse bulk wine exports from the current 60:40 ratio could be questioned.“Bulk does not equal bad,” explained Calow. “South Africa will always export wine in bulk. What is important is that we ensure that we reach fair prices for our bulk wine and, where possible, that our bulk wine ends up in bottles that are labelled as ‘Wine of Origin South A f r ic a’.”She said several markets also preferred packaged products to bulk. “Other markets take more bulk wine. There are different reasons for each market. Requirements are also directly related to what is happening in the wine market globally. For example, last year there was a shortage of white wine due to the decrease in European volumes following a devastating frost in the main wine-growing regions in Europe in April 2021. This pushed up demand for bulk wine. Another example is the trade war between China and Australia. Australia supplied a lot of bulk wine to China – and the trade war led Chinese buyers to buy bulk from other producing regions. It’s a very demand-led segment.”
