CAPE TOWN: South African wine’s export value growth jumped ahead of export volumes’ last year as producers focused on premium bottled lines.
Total export sales in 2016 increased by 10% to ZAR9bn (US$686m), according to a Wines of South Africa’s export market report released today. In the same period, volumes edged up by 2% to 428.5m liters.
The sales jump was partly driven by a 14% drop in bulk value to South Africa’s top wine destination, the UK, which also saw a 15% increase in packaged sales. As a result, the total Rand per liter price for exports to the UK was up 9%.
Overall, bulk export volumes increased by 7%, but volumes for bottles under ZAR20 dropped by 29%. South Africa’s biggest export price point – under ZAR40 – saw volumes fall by 4%. Volume for bottles under ZAR60 increased by 29%.
Meanwhile, South Africa’s top six export countries by value all increased wine sales, including a 29% value jump for fourth-placed Canada. The UK increased sales by 1% to ZAR1.7bn, Germany (No. 2 by value) by 12% to ZAR1.2bn, Netherlands (No. 3) by 22% to ZAR701m and the US (No. 5) by 7% to ZAR568m.
White wine continued to lead in value growth, with Chenin Blanc top, closely followed by Sauvignon Blanc and Chardonnay. Shiraz was the top red wine in volume exports, while Pinotage, showed highest value growth, up 20%.
South African wineries have been hit by fires this year. Last month, Wines of South Africa confirmed that four wineries in the country’s Western Cape were damaged by fires in the region, with a fifth, in Paarl, being “practically burnt to the ground”.
