South Africa Wine Exports Fall in 2022

According to recent data released by Wines of South Africa (WoSA), export volumes dropped 5% year-on-year to 368.8 million litres of wine. Sales by value declined 2.9% to ZAR9.9bn (US$577m). WoSA advised that this was due to adverse weather and supply-chain disruption.

“The recovery of exports was hampered in 2022 by various factors out of the control of our producers,” WoSA CEO Siobhan Thompson said.

WoSA pointed to an “extended period of adverse weather conditions,” which hit the shipping port of Cape Town in April. In October, industrial action by port workers caused disruptions for two weeks that impacted the port’s export capacity.

South Africa’s largest wine market is the UK, which took in 96.9 million litres of wine in 2022, a rise of 5% on the previous year. However, the total value of exports to the UK dropped by 5% to ZAR2.4bn.

Germany, South Africa’s second-biggest export market, declined by 17% in value and by 9% in volume terms. WoSA attributed the results to inflation and “an emerging culture of drinking local wines”.

Exports to China fell by 38% in volume, accompanied by a decline in value of 26%. South African wines in the market had been showing “exponential growth” but China’s zero-Covid policy hit demand, WoSA said.

WoSA CEO, Siobhan Thompson comments “On a positive note, the image of South African wine continues to grow with South African wine being awarded various top accolades and ratings in a host of competitions and professional ratings. CapeWine2022, our premier industry showcasing, proved to be a major success and attracted top buyers, influencers and importers from around the globe and we hope to see the impact of this on exports going into 2023.”

view the infographic for further information pertaining to 2022 exports.

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South Africa’s Wine Exports Bounce Back After Two Years

The South African wine industry is making a comeback after facing serious challenges the past two years.

There was a distinct silver lining when wine exports recovered to a healthy“volume of 388 million litres, which amounted to R10.2-billion” according to a statement by Wines of South Africa.

There was a strong demand from UK, US and China, these three countries helped South African wine exports increase by 12.1% in value to R10.2bn in 2021.

Top Export Markets

The UK remains South Africa’s largest export market. Volume sales to UK increased 12% to 92.5 million litres; value sales up 20% to R2.5bn.

Germany was the second largest export market, with volumes at compared to the previous year.

Shipments to the US increased 134% by volume and 39% by value to reach R887m.

The Netherlands was the fourth largest export market (by value), followed by other African countries, with exports increasing 50%. Canada and France were also very strong.

The fastest growth came from China, with exports increasing 189% by volume and 59% by value to R458 million. China is now South Africa’s eighth largest export market.

The South African alcoholic drinks industry suffered a very challenging few years as the government imposed a series of domestic sales bans and export bans during the pandemic.

“It is good for our recovery efforts, as the alcohol industry has suffered almost five alcohol bans which amount to about 26 weeks of non-trading,” said National Liquor Traders Council spokesperson Lucky Ntimane. “So the announcement is a welcome relief, but people need to understand that this is also not a licence for non-compliance. It does not mean that Covid-19 is gone or disappeared.”

The popular trade show Cape Wine is set to take place in October, which could give the industry an added boost. It was initially scheduled for September 2021, but it had to be postponed due to a coronavirus outbreak.

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Portuguese Wine Exports Increase H1

Exports of Portuguese wines increased by 14.5 % in volume and 19.3 % in value, during the first six months of 2021, reaching almost €436 million.

“Portuguese wine exports had very positive behavior in the first half of 2021, registering a remarkable increase, both in value and in quantity, when compared to the same period of 2020: 14.5 % in volume, 19.3 % in value and 4.2 % in average price”, stated the Ministry of Agriculture.

Between January and June, Portuguese wine exports stood at €435.6 million, €70.5 million more than last year.

With regards to the community market, exports advanced 14.6 % in volume and 19 % in value in the first half of the year, while the average price grew by 3.8 %.

In turn, exports to third countries increased 14.4 % in volume and 19.6 % in value until June, compared to the same period in 2020.

France, United States, United Kingdom, Brazil and Germany were the most important markets during this period.

According to data from the National Institute of Statistics (INE), quoted by the Ministry of Agriculture, the agri-food complex grew 8.4 % in the first semester, compared to the same period of 2020.

“This is another sign of the sector’s resilience and capacity to adapt to the situation of a serious health crisis that we are still going through. The Ministry of Agriculture has always been on the side of producers and companies, with the necessary measures to guarantee predictability and stability in this period of greater uncertainty”, said the Minister of Agriculture, Maria do Céu Antunes.

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Wine News: Bourgogne wines held up on the International Market in 2020

BIVB has announced their 2020 export report –  After a very good November in terms of volumes, exports of Bourgogne wines over the first 11 months of 2020 were slightly higher than over the same period in 2019 (up 0.5%), confirming a trend already witnessed in October. Revenue was also close to the record level seen in 2019, down just 2.6% by the end of November, having recovered from being down 9% just a month previously.

However, these figures should be set within a sluggish economy, impacted by both COVID and the 25% Boeing/Airbus tax, which severely penalized sales to the United States, down 14% by volume and 21% in terms of revenue, representing a loss of some €44 million. However, with volumes up 16% equating to 2.2 million bottles, the British market almost entirely offset the loss in volumes from the United States and once again became the leading export destination for Bourgogne wines.

Several territories saw big upticks in numbers, like Sweden, up 18.4% by volume and 14.2% in terms of revenue compared to the same period in 2019, and Denmark, up 24% by volume and 25.6% for revenue. Others enjoyed more moderate growth but for big volumes, like Canada (up 6.4% by volume and 6% in terms of revenue) and Belgium (1.2% and 5.5% respectively).

In France, Bourgogne wines grew their position in the retail sector, up 4.7% by volume and 5.7% in terms of revenue over the first 10 months of 2019, thanks in particular to their popularity in convenience stores and via click-and-collect. As yet, there is no data regarding the restaurant sector, which is in free-fall, or for wine stores that are enjoying a boom.

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