In the year to end-October South Africans have scaled down their wine and brandy consumption, but in export markets more South African wine has flowed from bottles than in the previous corresponding period.

A statement issued by Yvette van der Merwe, managing executive of SA Wine Industry Information & Systems (Sawis), reported that domestic sales of natural wine fell 5.7% over the 12 months, and those of brandy 8.8%. Bulk wine exports were 20% down.

Exports of packaged wine, however, increased 9.4% during the period.

The combination of the economic downturn, which caused a drop in sales, and the 2010 Fifa World Cup, which should boost sales, is expected to result in domestic sales of wine and brandy remaining more or less stable in 2010, the statement continued.

Van der Merwe said there are various factors affecting wine exports, and it is therefore impossible to make any forecasts. These factors included the strong exchange rate, the economic chaos in South Africa’s principal export markets, the non-profitability of South African wines in core markets such as Britain, and the availability of the product.

Arniston Bay Brand News

South African wine brands like Arniston Bay are doing exceptionally well in the UK market. The Arniston Bay wine brand has experienced a marked sales increase over the past year – latest figures reveal that off-trade sales are up 29% by value and 31% by volume (AC Nielsen: 52 weeks to 05 September 2009).

Source: fin24.com