UK: South African wine on the up

22 January, 2010

Wines of South Africa (WOSA) is celebrating increased market share in the UK. The trade body said market share had risen from 10.4% to 12.3% during 2009, according to Nielsen off-trade stats.

According to WOSA, the category grew by 24% in value and 23% in volume for the same period. This follows increases in both volume and value during 2008.

South Africa’s market share is now only 0.1% behind France, which, according to AC Nielsen,  is in decline, falling to 12.4%, by volume.

Exports to the UK were up 14 percent by volume, to December 2009, maintaining the UK’s position as the leading export market for the South African wine industry, accounting for 32% of total global exports. Success from South Africa’s top brands helped to drive the category; sales of FirstCape, the number one South African brand in the UK, saw increases of 73% by value and almost 80% by volume. Other South African brands, including Kumala, Arniston Bay, Two Oceans and KWV, also grew during 2009.

A statement from WOSA said: “Encouragingly, growth in the South African wine category is not exclusively at the lower end of the market but across all price-points, with an uplift of 15 percent by value above £5, a 27% increase above £7 and an impressive 43% increase above £10. South Africa continues to out-sell new world rivals, Chile and the US, at the top end of the UK market.

“2010 is set to be another exciting year for the South African wine category as the country gears up to host the FIFA World Cup in June, increasing exposure for the wines through media coverage, marketing activities and tourism.  Furthermore, the current 2009 vintage is believed to have delivered the highest quality wines South Africa has produced, to date."

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