Wine industry embarking on essential repositioning for value growth

Despite being the seventh-largest in the world and celebrating small triumphs in the wine world, the South African industry is under extreme pressure,

- Glenneis Kriel.

Wine businesses will have to rethink their strategy to remain financially viable. This was the message of Rico Basson, chief executive officer of South Africa Wine at the South Africa Wine Summit, titled ‘Blend and Bond’ this year and held recently in Cape Town.

Basson said the industry had transformed over the past 30 years; the area under production was similar at 87 848ha in 2024 compared to 84 030ha in 1994 but production had increased from 1 020 337t to 1 099 055t.

Chenin Blanc, Colombar, Muscat d’Alexandrie, Palomino and Cape Reisling accounted for 66% of production in 1994 whereas Cabernet Sauvignon, Merlot, Pinotage, Shiraz, Sauvignon Blanc and Chardonnay only accounted for 8%. Today, Chenin Blanc, Colombar, Sauvignon Blanc, Pinotage and Shiraz are the top five cultivars produced.

Exports over this time increased from 50 million litres to 306 million litres whereas domestic sales increased from 365 million litres to 474 million litres. In 1994, KWV had to remove a surplus of 210 million litres.

The industry’s contribution to gross domestic product increased form R10 billion in 1994 to R56 billion in 2024 and job creation increased from 211 874 to 270 364 people over this time.