Nederburg’s global penetration picks up speed

Ray Smuts LESS THAN a year after having been identified as a key target for large-scale international growth Nederburg - South Africa’s best known wine brand - has taken foreign markets by storm, growing by 31%. The largest brand in the Distel portfolio, Nederburg can look forward to an even brighter future. The Paarl estate’s R70 million cellar upgrade and expansion, focusing primarily on increased red wine production, is almost complete and a new-look label and brand image is about to be unveiled. International sales currently comprise 47% of total production. This is a substantial increase on previous years due to expanded production capacity, a more modern and desirable style of winemaking, a contemporary positioning and established marketing and distribution networks. Nederburg international brand manager Jeff Gradwell says brand sales in Germany, its biggest export destination, have grown by 41%, significantly outpacing the growth of 15% by the South African wine industry in sales of bottled wines in Germany last year over the previous year. The brand is up by 16% in Ireland - another major market - and has almost doubled sales in England and increased by 70% in Canada. Rising disposable income in Eastern Europe has also prompted a foray into Poland and Russia where wine sales are showing robust growth. Nederburg sales volumes have been boosted even further by listings with Government-run retail monopolies in Sweden, Norway and Finland.