A raft of macroeconomic issues hampered exports of wine from South Africa last year, according to recent figures, although the decline by value was smaller than the volumes slide.
For the 12 months of 2022, total exports from the country in value terms dipped by 2.4% on the year prior. The numbers, from trade association Wines of South Africa, also included a 5% decrease in volumes, indicating relative success in retaining a premium profile abroad.
Among the issues raised by the organisation as contributing to the performance were “adverse weather conditions, which prevented ships from docking during April as well as the two-week long period of strikes by port workers in October”.
Disappointingly for South Africa's wine industry, the opportunity to capitalise in China on Australia's battle with tariffs failed to materialise in 2022: Exports to the country slumped by 26% in value and by 38% in volume. WoSA blamed "the extended extreme lockdown measures" to deal with localised COVID outbreaks throughout the year.
Also of concern will be the -5% value/+5% volume showing in the UK, South Africa's largest export market. Mitigating the performance, WoSA claimed, were "higher-priced bulk exports", referring to wine bottled in the UK, which is traditionally less premium than bottled-at-source.
“Our South African producers and exporters should be commended for the responsible manner with which they approached the marketing of wine during the past year," said Rico Basson, MD of producer trade association Vinpro. "Our exporters remained focused and notwithstanding massive cost pressure, supply chain disruptions and surplus stock, did not follow a short-term approach to discount their product, which would have eroded the work that has been done over the past few years to reposition South African wines.”
What to watch for in wine and spirits in 2023 – Market Intel
