British consumers turn their backs on SA wine

WINE EXPORTS to the UK took a 7% drop in the second half of last year, after good showings in the previous two years. Rising prices and no accompanying quality improvement appear to be the reasons, says London-based Jane Hunt, director of Wines of South Africa.
Speaking at a week-long conference organised by Cape exporter Longridge Winery, she pointed to the phasing out of the government's general export incentive scheme as having a good deal to do with the drop.
Wine exports to the UK grew 38% in 1995 and 30% in 1996, she said, but both the lack of the incentive scheme and unreliable supply had a marked effect on South African exports.
When government assistance dried up, producers increased their prices to maintain their profit margin, she said.
Quality did not lift with the prices and consequently British consumers turned their backs on South African wines.
This rot in exports can be stopped by concentrating the marketing effort at the top end of the British market. South Africa should export more top quality wines.
Currently South Africa has a fair share of the lower and middle price markets, where consumers have little loyalty to brands and supply countries. In the high price market consumers are far more loyal and that is where South African producers should aim.
According to Alex Dale, export director at Longridge Winery, overall wine exports are still growing, with new markets constantly being added to traditional markets.
But, he says, its is cause for concern when the biggest market suddenly takes a dip at a time when more growth was expected.