Cost efficiencies push up bulk wine exports

RAY SMUTS WHILE SOUTH African export volumes of packaged wine remained virtually unchanged on the previous 12 months, bulk wine exports, in marked contrast, are up 24%. Don Gallow, international director for Distell, says contrary to the trend that has seen South Africa’s bulk wine exports grow as producers seek to curtail supply chain costs in an increasingly competitive market, Distell has increased its packed wine exports by 18% for the year to March, 2006. An interesting comment by Gallow is that a recent AC Nielsen study shows that 18% of wines in the US market feature an animal on the label and that annual sales of “critter-branded” wine have reached more than US$600 million.