Logistics remains one of the biggest challenges for the export of South African wine – most of which is exported in bulk. This comes despite a strategy to shift from bulk to bottled wine exports. According to Maryna Calow, communications manager for Wines of South Africa (Wosa), the move to reduce bulk exports has proved to be extremely challenging. “There has not been much change since the decision to move away from bulk export,” she told FTW. “It is, however, important to note that we have just come out of a huge drought where many of our producers suffered major losses. Add to this the fact that our yield was down for two consecutive years. However we remain positive that this picture will change somewhat by 2020 after two good rainfall seasons.” The wine industry has been under tremendous pressure in recent years. Not only because of the drought and the declining yields, but also because of low margins. The result has been unprofitable estates leading to far less vineyard planting. The country’s total hectarage under vine has dropped by 10% from 102 000 hectares in 2008 to an estimated 93 000 at present. The huge rise in the cost of bottles in recent years has also not helped the move away from bulk. “Our goal is to see South Africa export at least 60% of its wine bottled and only 40% in bulk. By growing our packaged offering in the export market, the industry will be able to ‘premiumise’ on our offering and become more sustainable in the long run. Furthermore, we believe that our wines should be able to reach better price points, especially in our traditional markets. Wines that are made and packaged in South Africa also add to job creation opportunities, which in turn help to stimulate the local economy,” said Calow. Logistics she said was possibly one of the biggest challenges due to the country’s geographical location. “We are far from the most of our large export markets. While it is a challenge, it does also present an opportunity for packaging manufacturers to design packaging that is more lightweight and more eco-friendly. If our competitors can do it, then so can we. It is also important to note that our neighbours in Africa are right on our doorstep and this market is becoming increasingly important for us. Here we have the benefit of being closer than most other wineproducing countries,” said Calow.