South Africa: there will be less bulk and more bottled wine

Special Simei Drinktec. One of the strategic objectives of the industry is the reversal by 2025 of the ratio of production of wine in bulk and packaged wine, increasing the latter to 60%. The development will also involve an increase in exports to the US and China and new trade agreements

Olio Officina

South Africa: there will be less bulk and more bottled wine

WISE, the acronym for Wine and Industry Strategic Exercise, is a strategic development plan drawn up by the South African wine and spirits industries, projecting up to 2025.

Work on its drafting began in 2014 and has involved a team consisting of representatives of trade associations and organisations such as: VinPro, Salba (South African Liquor Brandowners Association), SAWIS (SA Wine Industry Information and Systems), WOSA (Wines of South Africa) and Winetech (Wine Industry Network of Expertise and Technology).

The need for a strategic plan for the sector stems mainly from the difficult situation facing the South African wine industry, where today only 13% of wine-makers (VinPro data) secure a reasonable profit from their work, 44% are working at breakeven and 40% at a loss (see also what we have said here).

Among the main strategic objectives, the WISE aims to move the wine industry towards a greater production of packaged wine. In fact, if today the ratio of bulk to bottled in South African wine production is 61:39, the long-term goal is to reach 40:60 by 2025.
The “health” of the South African wine industry is also likely to benefit from commercial treaties with the major key markets in exports, a growth in exports to the US (from the current 1% to 7% by 2025), China (from 1% to 7%), Africa (from 5% to 10%), in addition to a general increase both in production (from 3,30 to 4,30 million hectolitres) and in the wine tourism sector.

Source: Simei / Unione Italiana Vini

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