UK wine buyers bullish on South African wine prospects
UK wine buyers are bullish about prospects for South African wine sales, despite smaller yields this year and the possibility of rising prices.
The country’s 2018 crop is around 15% down on the previous year, according to industry body Vinpro, with Bibendum’s Paul Meihuizen calling it “the most challenging I have ever known”.
However, despite the problems, retailer buyers are optimistic when it comes to South Africa. Mark Jarman, head of wine operations at grocery chain Morrisons told Drinks Retailing that customers need to be taken on a journey. “The encouraging evidence is that they are prepared to come on this journey with us and have a real thirst for new and exciting South African styles,” he claimed.
“We have worked hard to champion South Africa’s potential to produce great wines from the dry-farmed regions, such as the Swartland.” He added that following a trip there he has changed around 80% of the range, with the current offer now more closely reflecting the diversity of the country’s wine. The sales of these new wines have been “extremely encouraging”, he continued, proving that customers are keen to try new South African wines that they were previously unfamiliar with.
Waitrose buyer Victoria Mason agreed that customers are keen to try SouthAfrican wines. “The sales growth trend within South African wine of the past four years continues at Waitrose. Our performance against the market is still strong.Waitrose has strong long-term relationships with its supply base in South Africa and sourcing the volume required has not been a problem, in spite of the drought and the shortages. Pinotage and Chenin Blanc are two varieties that she said she expected to see growth across all price levels, while international varieties such as SauvignonBlacn and Pinot Grigio will also continue to experience growth.
“There will be new interest in South African Malbec, off the back of the success of Argentinian Malbec, continued focus on Rhône varieties, both red and white, and more regional identity emerging, with more site-specific wines."
Phil Innes, owner of Birmingham-based Loki Wines, said he found it easy to sell South African wines in part because of the good quality to price ratio. “South Africa still offers great value for money, while having a really diverse array of styles and varieties. A lot of the producers are still making European-style wines, which appeal to the more traditional customer, whereas there is also a large natural wine movement there as well.