South African Wine Market Survey

Abstract

This is an update of the article in Number 3 of Volume 4 of the Journal in 1992. The omnipotence of KWV backed by the Afrikaans — led government shielded wine farmers to the extent that they became complacent both before and during the world sanctions. The change of government, downfall of apartheid, and lifting of sanctions all wrought revolutionary changes including a government enquiry into KWV and the wine industry as a whole. Incidentally, export inexperience of many wineries caused errors of judgement in that field. The most widespread was resultant local shortages in spite of previous reassurances to the contrary. The recent worldwide “fruit‐forward” wine style fashion puzzled South African farmers who reacted in various ways and completely out of unison. Nor were they helped by the realisation of the fact that there was widespread vine disease in the country. Nevertheless, exporting volumes quickly surpassed expectation, and consequently the total area under vines began to increase, with many new names entering the industry. The old price control disappeared and market forces began to take control once again. One example of these is the international shortage of red wine, leading to the previously unheard of importation of low priced red wine. Summing up, it is clear that South Africa, the eighth largest of the world's producers, is firmly back in the international wine and spirit market. This is assisted by increasing tourism to the beautiful Cape.

Citation

Garrett, P. (1997), "South African Wine Market Survey", International Journal of Wine Marketing, Vol. 9 No. 1, pp. 53-63. https://doi.org/10.1108/eb008667