Wine exports shatter previous records

GLOBAL ECONOMIC gloom notwithstanding, South Africa’s wines soar in defiance, exports breaking all previous records. The country sold more than 363 million litres offshore during the year to July, a 27% hike on the corresponding period in 2007. This, says Su Birch, Wines of South Africa (Wosa) CEO, is “way ahead” of the anticipated 2010 target of 300 million litres a year. Commenting just weeks before this month’s Wosa-hosted, Nedbank Cape Wine 2008, South Africa’s biggest wine exhibition to date, Birch said: “The momentum appears to be increasing, despite even tougher trading conditions since the start of the year. “Export volumes are up 31% for the first seven months, thanks not only to a weaker rand and the continued strength of big brands in markets such as the UK, Sweden and Canada, but also the emergence of buyers in developing markets, including Angola and South-East Asia.” Most significant about export levels achieved is that sales occurred over a far wider geographical area than previously, thereby reducing the country’s dependence on any single market. Five years ago, the UK and the Netherlands combined accounted for 72% of all South Africa’s packaged wine exports; today they, together with Sweden, Germany, Denmark and the US, account for 72% of sales. Even though the UK’s relative contribution to total wine exports has diminished, it remains South Africa’s largest export destination. * Nedbank Cape Wine 2008 takes place at the Cape Town International Convention Centre from September 23 to 25.