| For the first time in the 12 years since achieving democracy, South Africa's wine export volumes are dipping. Biggest losses have been in the country's oldest markets, reports Cape Times. After a growth from 22 million litres in 1992 to 282 mil in 2005, a drop of about 5% is expected this year, adds the report.
But Su Birch, CEO of Wines of South Africa (WOSA) does not believe the recent drop in export volumes signifies a reversal of the growth trend. WOSA is the industry body responsible for the promotion of country's wine exports worldwide.
The market down-turn prediction was made by South African Wine Industry Information and Systems chief executive Yvette van der Merwe, and based on the latest available data. She says the decline is being driven by a 9% fall-off in sales of packaged wine - bottled and bag-in-box products - as market players seek to reduce ways of cutting supply chain costs in the face of a global oversupply.
In contrast, bulk wine export volumes have grown by an estimated 3.6%. Bulk wine is now expected to account for 34% of all exports in 2006, whereas in 2004, the figure was 28%.
Van der Merwe explains that importers of wine are bottling in their own countries to save on transportation and packaging costs.
The drop in export volumes has occurred primarily in the UK and the Netherlands, South Africa's largest and longest-standing export destinations. She says total volumes to the UK are down 17% year-on-year and to the Netherlands, 22%.
"I am confident that this year represents a temporary blip and that next year will see us regaining lost share', says Su. 'We have continued to build our reputation for producing... diverse and interesting wines in the premium sector, and for taking the lead, worldwide, in eco-friendly wine-growing. With all the new brand activity planned for next year, as well as WOSA's exciting 'Variety is in our Nature' campaign, helped by a weaker rand, I believe 2007 will offer good opportunities to exporters' she concludes.
For full report , visit http://www.capetimes.co.za
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