South Africa Report 2006

Published October 2006

SOUTH AFRICA
REPORT 06

CAPE ABILITY – BRAND DEVELOPMENT

CELEBRATING DIVERSITY – MARKETING INITIATIVES IN PRACTICE

VISITOR ATTRACTION – WINE TOURISM CLOSE UP

plus

ON-TRADE ANALYSIS
INVESTMENT TRENDS
INDUSTRY OPINIONS
FUTURE OUTLOOK

Click here to purchase a copy of the SOUTH AFRICA REPORT 06   PURCHASE REPORT

South Africa should be such an easy sell. The country contains spectacular scenery and arguably the most beautiful winelands in the world – visit Cederberg if you’re not convinced, a 1,000m-high vineyard buried in an unspoilt natural basin, dotted with sculpted rocks reminiscent of prehistoric beasts. Then there’s the sea and sun, the food, architecture, animals and, of course, the people. All the imagery is positive, and hence the great difficulty finding a seat on the many flights from Heathrow to the Cape – South Africa is the UK’s number-one long haul destination.
But while the country has managed to package itself in a highly appealing way, its wines have historically struggled to do the same.
Today however, despite the difficulties South Africa is having retaining market share in the UK, the outlook for the country’s diverse wine offer is looking healthier. The rand is weakening, ensuring export-focused businesses actually make a decent return. Investment in boutique estates and high-volume wineries is widespread, be it from retiring bankers or major multinational drinks companies. Partnerships with British-based importers have multiplied and strengthened, while visits from the UK wine trade have increased, notably as part of WOSA’s Escape to the Cape programme.

  Then there’s the wine, which has shown marked improvement over recent years, helped by international expertise and local young, skilled and passionate oenologists. An improved and extended wine tourism infrastructure is helping to showcase these vinous developments to the increasing numbers of visitors to the Cape – other wine-producing nations could learn much from South Africa’s organised approach.
Finally, there is the generic marketing, cemented in the tagline Variety is in Our Nature and promoting the record-holding diversity of plant species in the Cape, while encouraging sustainable viticulture. It’s both commendable and original. Whether the consumer will cotton on to the concept, it is too early to tell. But already retailers are embracing it, while winemakers are vitally conserving tracts of ancient ecosystems, previously at risk of destruction.
Overall, the foundations for the future success of South African wines are stronger than ever, although the country must continuously keep a close eye on its competitors, as well as consumer trends, if it is to build its market share.

Patrick Schmitt
report editor