South Africa pins wine growth on local consumption

January 20, 2011
CAPE TOWN — After years of limited growth, the South African wine industry expects sales to rise as the economy continues to recover and local consumer interest is piqued.
However, industry players cite the strong rand as a possible hurdle to growth.
The wine industry is a significant contributor to the economy. The South African Wine Council last year estimated the industry contributed nearly R16bn a year to SA’s gross domestic product and employed about 300000 people in the Northern and Western Cape.
The industry also boosted the state’s coffers by R3,5bn annually in excise duty and taxes . Wine tourism employed more than 59000 people, according to the council.
Su Birch, CE of Wines of SA, said yesterday that the industry was expecting increased growth this year. “There has been no significant growth in the past few years, (but) we might see local growth this year as the economy continues to recover,” she said.
However, Ms Birch said the strong rand might negatively affect exports and the industry’s ability to compete with international players. “There was some impetus in some new countries because of the World Cup but now that the World Cup is gone, we might struggle this year.”
In recent years, South African wine markets have diversified, adding Sweden, Germany, the Netherlands, Denmark, Finland, Belgium, the US and Canada.
In the past 10 years wine sales to the US have grown fivefold.
More local consumers were buying premium wines and this could be attributed to the country’s slightly higher economic growth as it pulled out of its first recession since 1992, said Natalie Visser, m anager at eWine, an online wine retailer.
Chairman of the Institute of Cape Wine Masters Bennie Howard said the industry would be able to make gains this year as overseas markets are expected to grow.
Although rand strength would create challenges there was still hope that the sector would have “an excellent year” as South African wines were renowned across the world.

Source: http://www.businessday.co.za/articles/Content.aspx?id=131330

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Clark Wine Center
Bldg 6460 Clark Observatory Building
Manuel A. Roxas Highway corner A Bonifacio Ave,
Angeles Clark Freeport Zone, Pampanga 2023
0922-870-5173 0917-826-8790 (ask for Ana Fe)

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YATS Wine Cellars
Manila Sales Office
3003C East Tower, Phil Stock Exchange Center,
Exchange Rd Ortigas Metro Manila, Philippines 1605
(632) 637-5019 0917-520-4393 ask for Rea or Chay