Holding fourth highest market share in volume terms in UK Ray Smuts SOUTH AFRICA is sprinting away from the opposition in the UK retail wine stakes where exports are up 25% over last year according to latest AC Nielsen data. This is in marked contrast to the growth of 6% achieved by Britain’s total retail wine sector for the period in question. South Africa now has 9.5% of the value share of the UK market, up from 8,1% a year ago and behind Australia, France, Italy and the US. In volume terms the country ranks fourth with 9,9% of the retail market. This country’s second largest market, the Netherlands, is showing strong growth, now commanding 16,1% of the value share of the Dutch market compared with 14,4% a year ago. What is more, higher retail prices buck the trend for Dutch consumers who mostly pay less for their wines. The primary significance of the Nielsen figures is that South Africa’s quality/value formula has remained highly attractive and consistent despite fluctuations in currency values. “Even with the very tight squeeze on our margins resulting from a stronger rand and higher domestic wine prices, we are holding to our promise of over-delivering. “This does of course place pressure on our industry’s long-term sustainability and explains why we are shifting our focus away from the very price-sensitive segment towards the five pound per bottle category and higher within the retail sector,” says Wines of South Africa CEO Su Birch. The country’s strengthened position makes WOSA confident of achieving its goal of a 13,5%. value share of the UK market by 2005, which should exceed the projected volume share. “By then,” says Birch, “we aim to export 500 000 cases of wine to the UK retailing at five pounds per bottle or more, representing a significant increase from the 140 000 cases sold in this category last year.” Giving credit where it is due Birch acknowledges the role of the media in advancing the country’s reputation as a quality producer with an exciting diverse offering.
