Following a few very tough years, the South African wine industry
is optimistic on the back of record export levels, good prospects for this
year's harvest, the penetration of new markets and growing praise from
high-profile wine critics, says Wines of South Africa CEO Su Birch.
South African wine exports for 2012 reached 417-million litres,
10-million litres more than the previous record of 407-million litres achieved
in 2008 and a 17 percent increase on volumes in 2011, Birch said on Monday.
"The record levels are the result of a more favourable
currency as well as the global shortage of wines stemming from a significant
drop in the recent harvests of competitor wine-producing nations in Europe,
Latin America, Australia and New Zealand," Birch said in a statement.
Birch said all indications were that this year's local crop could
be the third-biggest in recorded history.
"This is assuming that good weather conditions continue,
there is a speedy and peaceful resolution to the farmworker strikes and
harvests come in on time.
"The anticipated crop size is despite a decrease in total
plantings, thanks to one of the best winter seasons in the Western Cape for
many years."
Birch said that while bulk (i.e. non-packaged) exports accounted
for 59 percent of volumes in 2012, this was in line with a growing global
trend. She explained that over the past decade, bulk wine exports from the
major New World wine-producing countries had risen from around 20 percent to
over half of wine volumes traded, against the background of protracted
recessionary market conditions.
"The reality we face also confronts Australia, Chile,
Argentina and even New Zealand."
She said while packaged wines generally offered higher returns,
local producers had been forced to accept that, to compete globally, they had
to provide what the mainstream markets wanted.
"Obviously we would prefer the accent to be on packaged
wines, from a reputational perspective for Brand South Africa, in terms of job
retention in the packaging industry and also to maintain sustainable profit
margins for producers. We are therefore greatly encouraged by the recent growth
of packaged exports to North America, Japan, China as well as several
increasingly affluent African nations, all to regions where we have been
increasing our marketing investment."
She said the industry had also been buoyed by the growing
confidence in South Africa as a top wine-producing country among high-profile
international critics, whose opinion carried great weight in the global wine
business fraternity as well as with consumers.
"Over the past few weeks we have had praise from the likes of
Neal Martin, who reviews for Robert E Parker's world-famous The Wine Advocate,
and who has singled out South Africa as currently the most exciting New World
wine country, as well as from Stephen Tanzer of the International Wine Cellar,
the UK's Oz Clarke, Tim Atkin MW and Sarah Ahmed and Germany's Eckhard
Supp."
Birch said that while the industry regretted the current labour
unrest in the Western Cape, huge strides were being made to ensure decent
working conditions on all wine-producing farms.
"The
local Fairtrade office has confirmed that South Africa now has the highest
number of Fairtrade-accredited wineries worldwide, with 65 percent of Fairtrade
wines sold globally coming from our country."
At the same time, Birch said, there was steadily growing
support for the Wine and Agricultural Industry Ethical Trade Association
(Wieta), with increasing numbers of producers subscribing to its code of good
conduct. This was particularly after the international market reacted
positively to last year's launch of the Wieta ethical seal, a world-first that provides
a guarantee of fair labour practices.
"Wieta accreditation for rigorously audited fair labour
conditions has accelerated since last year and with the increase in producer
and worker training sessions scheduled, prior to auditing sessions, we expect
many more labels to qualify during this year," Birch said.
Some of the South Africa's biggest producers have already
earned Wieta accreditation for their labels, including Distell, Spier, Fairview
and Robertson Winery.
Culled from: SouthAfrica.info.
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