Wines of South Africa (Wosa) is upbeat about 2019 exports – anticipating not only an improvement in the quality of the product but also in volume. According to Maryna Calow, Wosa communications manager, while it is still early days the harvest, which has already started, looks very promising following the good rains in 2018. Wine producers in the Western Cape have been hard hit over the past few years following one of the worst droughts in the province in decades. Until 2017, South Africa had a surplus of wine stocks, but that has since been depleted. “At this stage, supply is meeting demand,” said Calow. “It is difficult to say what the year ahead holds in store for exports as the bigger picture includes international harvests as well. Last year there were massive wine grape shortages across the globe, mainly as a result of fires, drought and black frost.”
But, she said, early indications were for a much better year all round and a lot of hope was being pinned on the 2019 harvest. The expectation, said Calow, was an increase in volumes compared to those recorded for 2018. “In all likelihood the crop volumes won’t be quite back to normal. As an industry, however, we are in a very good place following a year of positive media about the quality of our wine and our exceptional offerings to lovers of wine and visitors to our region.” Calow said there were still a number of challenges to overcome – including the availability of stock in coming months, in particular red wine, which is a remnant of the drought. “Another element that should be kept in mind is the upcoming elections which may affect our exchange rate, which inevitably would have an impact on exports.” She said pricing remained one of the biggest challenges faced by the industry, especially when selling to European retailers.
“This is slowly changing as consumers recognise that South Africa produces quality wines and are therefore willing to pay more.” Wosa has, in recent years, embarked on a very specific targeting strategy in promoting South African wines internationally in an effort to boost exports. “Maintaining relationships in our traditional markets, which are mainly Europe (the UK, Germany, Netherlands and Sweden specifically), remains a strategy,” said
Calow. “At the same time promoting growth and positioning our wines as a quality offering in markets such as the USA, Canada and Asia (with a focus on China, Hong Kong and Japan) is just as important. The African continent is also a big focus for us as an emerging wine-drinking market and we are very excited about opportunities on our doorstep.” She said Chenin Blanc continued to do well and gain popularity, but the country’s most popular white
export varietal remained Sauvignon Blanc, while Shiraz was the top red exported varietal. “We are seeing a rise in demand for Rosé-style wines; however this is mainly in bulk format, and our Methode Cap Classiques are becoming very popular. There has also been a solid rise in demand for our traditional varietal, Pinotage, as consumers are learning more about this grape and our producers are refining their winemaking techniques,” said Calow.
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At this stage, supply is meeting demand. – Maryna Calow
