South Africa has committed to reducing the amount of wine exported in bulk as part of a strategy to build the country’s international wine-making brand. It is a move that emphasises value over volume and is part of a bigger robust and adaptable strategy to drive profitability, global competitiveness and sustainability. According to Maryna Calow, communications manager for Wines of South Africa (Wosa), there is, and always will be, an important role in the market for bulk wine. “However, the reality is that bulk wine does nothing for the category of ‘Brand South Africa’. Millions of litres of South African wine get blended away once it reaches its final destination,” she said. “The wine, while it may be of a good quality, is also often bottled under ‘own-brand’ labels.” Whilst these labels did include the wording ‘Wine of Origin South Africa’, they more often than not ended up on shelves at the lower end of the scale, which also did not help to move away from the common perception that South African wine was “cheap and cheerful”, she said. “Another reason is that bulk wine sells on average for about R7 per litre, which ultimately means that the margins are minimal for the producer. In today’s economic climate, this becomes unsustainable,” said Calow. “While we have seen a marked increase in the price of our bulk wine exports as a whole, we are still one of the cheapest when it comes to bulk wine exports.” It’s a topic that stirs up heated discussion and the issue remains extremely sensitive. “It is important to state that we don’t want bulk wine to become a thing of the past, but we just want to see a more lucrative future for the industry – and the overarching message is to focus on Brand South Africa, something that bulk wine does not do, even if the wine bottle is labelled ‘South Africa’,” she said. The country currently exports at least 60% of its products in bulk.
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We don’t want bulk wine to become a thing of the past, but we just want to see a more lucrative future for the industry. – Maryna Calow