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Media Feedback2016 Category Quantification Report
Wine in South Africa
2 / 2016 Annual Quantification Report: Wine in South Africa
Product Definitions
Product Definition
Wine
Natural Wine: A non-fortified and non-sparkling wine, including perlé wine which is wine
carbonated to the extent that the pressure in the container in which it is sold is between 75
and 300kPa. It also includes any grape juice or must and grape juice or must concentrate
used in the sweetening of such natural wine
Fortified Wine: Wine which has had alcohol added to it during its fermentation process to
raise the overall alcohol level (usually 15% to 20%) of the final wine. This is done in the
production of sherry and port
Sparkling Wine: Wine carbonated (either by fermentation or impregnation with carbon
dioxide) to the extent the pressure in the container in which it is sold is more than 300 kPa. It
includes any grape juice or must and grape juice or must concentrate used in the
sweetening of such sparkling wine
Channel Definition
On-Consumption• Includes restaurants, hospitality and pubs. These could be at work or recreational. Examples are quick
service restaurants, full service restaurants, accommodation establishments and sports clubs
Off-Consumption• Sale of beverage for consumption elsewhere, not at point of purchase
• Usually associated with alcoholic beverages
3 / 2016 Annual Quantification Report: Wine in South Africa
Market Trends
The South African local wine sales saw growth year-on-year during 2015 in terms of volume and value. The
country still produces more wine than can be consumed locally, with the sellers exporting more than half the
volume produced within South Africa. The local market growth may be attributed to new consumers entering
the market in sweet red and rose wine markets. It is believed that the increased marketing and promotional
activities also contributed to the high volume growth. The 3 litre and 5 litre BIB packs are said to be driving
the sweet wine industry as they are cheaper and considered value for money packs compared to the
traditional 750ml glass bottle.
The wine exports declined as the local producers focused on the South African market. The volume of wine
sold in bulk packaging continued to grow, putting pressure on the local packaging industry. The United
Kingdom remained the main export destination followed by Germany. The volume exported to the UK is not
expected to change much during the Brexit period. Other African countries like Angola, Kenya, Mozambique,
Mauritius and Zimbabwe continue to source their wine in South Africa, amongst other countries. The volume
imported by these countries increased from 2014 to 2015 whilst volume exported to Tanzania and Nigeria
declined.
The local regional distribution remained almost the same with Gauteng, KwaZulu-Natal and the Western
Cape showing good growth during the base year. The disposable income in these metropolitan regions is
believed to be above average with consumers able to purchase higher priced products, such as wine.
The channel distribution also remained similar to that of the previous year. The off-consumption channel is
growing in volume with more retail stores increasing their marketing campaigns in order to gain more
customers. Wine products are easily available online where they can be delivered rapidly to their
destination.
The wine market is expected to grow in 2016 but at a lower rate as the drought season affected the crops
planted and the yield expected to be harvested. The industry is expected to recover in the medium term from
the low yield and slow economic growth.
4 / 2016 Annual Quantification Report: Wine in South Africa
Product Breakdown 2015
94.2%
4.0%1.8%
Natural Wine Fortified Wine Sparkling Wine
Natural wine volumes saw growth during the base year, possible as more variants and brands were
introduced to the market.
5 / 2016 Annual Quantification Report: Wine in South Africa
Packaging 2015
The larger pack sizes showed higher growth from 2014-2015 driven by the bag-in-box (BIB) pack types in
sweet wine category.
2,4%
11,7%
9,3%
1,2%
0,0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0%
750ml
1 Litre - 3 Litre
4 Litre - 5 Litre
Various
6 / 2016 Annual Quantification Report: Wine in South Africa
Historical Average Industry Selling Price
7.5
%
3.4
%
8.6
%
7.2
%
7.1
%
6.5
%
5.0
% 5.6
%
5.7
%
6.1
%
4.6
% 5.5
%
1.5
0.6
1.5
1.2
1.5
1.2
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
2011 2012 2013 2014 2015 CAGR since 2011
ISP % Change CPI % Change CPI vs Industry Selling Price % Change
The average industry selling price of wine increased by 7.1% compared to CPI of 4.6% during the same
period. The increase in higher selling price wine may have attributed to the high price increase.
7 / 2016 Annual Quantification Report: Wine in South Africa
Channel Distribution 2015
51.7%
31.8%
16.5%
Export Off-Consumption On-Consumption
The wine industry exported more than half of the wine produced locally. The main export destination was
the United Kingdom and other European countries.
8 / 2016 Annual Quantification Report: Wine in South Africa
Local Regional Distribution 2015
Excludes Exports
9.9%
5.4%
36.2%
12.2%
6.4%
29.8%
E Cape FS/N Cape Gauteng KwaZulu-Natal Limpopo/NW/Mpum. W Cape
The three major metropolitan regions continue to dominate the wine industry in the local market. It is said
that the above average disposable income levels and new citizens moving to these regions contributed to
the increase in demand for the product. The regions also have an above average number of young adults
who are willing to try new products on the market. The non-metropolitan regions show limited change in
volume distributed.
BMi Solutions
10 / 2016 Annual Quantification Report: Wine in South Africa
Packaging Annual Beverage Publications
All reports Full Report (All reports below)
• Packaging overview
• Paper & Board
• QPM
• Quarterly Import
Alcoholic Beverages
• Flavoured Alcoholic
Beverages
• Malt Beer
• Sorghum Beer
• Spirits
• Wine
Non Alcoholic Beverages
• Bottled Water
• Carbonated Soft
Drinks
• Cordials and Squash
• Energy Drinks
• Fruit Juice
• Iced Tea
• Mageu
• Sports Drinks
Dairy Beverages
• Dairy Juice Blends
• Drinking Yoghurt
• Flavoured Milk
• Maas
• Milk
BMi Tracking Report Schedule 2016
Annual Food Publications Confectionery & Snacks On Request
• Canned Protein
• Dairy
• Desserts
• F&C Beverages
• Pasta
• Rice
• Wheat and Grain
• Ice Cream
• Packaging of Snack
Foods
• South African
Confectionery Market
• The Impulse Market
in South Africa
• Biscuits and Rusks
• Breakfast Foods
• Baked Products
• Baking Aids
• Eggs
• Fats and Oils
• Frozen and Par-
Baked Products
• Premixes
• Pre-prepared Meals
• Processed Meat
Products
• Protein
• Sauces
• Soup and
Condiments
• Sweet and Savoury
Spreads
• Value Added Meals
11 / 2016 Annual Quantification Report: Wine in South Africa
Commissioned
Instore
Category
Ranging
Mystery
Shopping
Shopper
Insights
Promotional
Effectiveness
Instore
Compliance
Shelf &
Promotional
Price Surveys
Solutions Consumer
Insights
Shopper
Insights
Business
Insights
Advertising &
Campaign Testing
Omni
Channel
Competitive
Advertising
Tracking
Advertising
Category Quantification
Beverages Food Packaging
Advanced Analytics
Competitive
Pricing Simulation
Statistical
Optimisation
Model60%
Price
Sensitivity
Promotional
Effectiveness
Predictive Analytics
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