SA wines bestsellers in UK

Cape Town - Retail sales figures released by AC Nielsen for the UK show that South Africa continues to rank as the fastest-growing wine category in the UK, increasing its volume share of the market to 12.3% for 2009, up from 10.4% in 2008.

And according to Su Birch, chief executive of Wines of South Africa (Wosa), exports of packaged wines could grow 10% in volume this year so long as the rand doesn't strengthen materially.

According to the Nielsen figures, SA is still in fourth place in the British market, but the country is now virtually at par with France, which occupies third position, behind Australia and the US. All that is separating South Africa from France, with its 12.4% volume share of the market, is a mere 0.1%.

Total South African supermarket wines sales grew 24% in volume and 23% in value last year. According to the latest export data from SA Wine Information Systems (SAWIS), South Africa's packaged wine sales to the UK for the year were up 11% on 2008.

"The most encouraging development of all has been the impressive expansion of South African wine sales at price points of £5 and higher," Birch said. "The sale of wines in the category of £5 to £6.99 grew 15% in value. Those retailing for £7 to £9.99, representing a slightly smaller segment of the market, rose 27% and those above £10, also a smaller category than the wines selling for £5, increased by 43%."

"It has long been the goal of South African producers to shift away from the extreme value segment in order to ensure the industry's long-term sustainability," Birch said. "That such growth has been achieved despite the severity of the global recession gives us a good measure of confidence in the country's well-established reputation for providing exciting wines across the pricing continuum. However, we remain concerned by the effect of the economy on profit margins."

- I-Net Bridge