The wine industry is tough. One needs only to visit a local liquor store and be overwhelmed at the product offering to realise what a feat it must be to have your label capture the consumer's attention, and keep it long-term.
South Africa boasts around 1 100 individual wine brands, compared with whisky that only has about 15. This makes wine highly competitive, and wineries require a whole arsenal of tools to keep their product in wine glasses around the country. As a result, the industry is rapidly consolidating, with Vinpro stating that 100 primary producers have been exiting the industry each year since 2003.
The trend is not unique to South Africa as wine countries the world over turn to economies of scale to beat the cost-price squeeze. "Europe has always been the biggest consumer of wine, but that has changed," says Phillip Retief, CEO of Van Loveren Vineyards (VRL), in Robertson in the Western Cape. "Their population is ageing and the younger generation, which is more health conscious, drinks less and enjoys alternative products to their parents. Despite consolidation in the global industry, wine production is actually increasing, which means that in most years there is more supply than demand."
FAST FACTS
Van Loveren Vineyards has gone from strength to strength while many wine farmers are exiting the industry.
Vertical integration has been key to their success.
Good relationships form the basis of negotiations.
SPOTTING OPPORTUNITIES
VRL has been making wine since 1937, with the Retief family building the business into the successful company it is today. Today the third generation is at the helm, comprising brothers Hennie and Bussell, and Phillip and Neil. Together they are the famous four cousins, whose faces adorn the label of their most popular wine.
هذه القصة مأخوذة من طبعة 29 March 2024 من Farmer's Weekly.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة 29 March 2024 من Farmer's Weekly.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
R17m donation of tractors, bulls and infrastructure
Small-scale farmers in KwaZulu-Natal have been given an opportunity to grow into sustainable commercial businesses through a holistic integrated programme that will provide mechanisation, infrastructure and sector expertise.
Top dairy products revealed
Lactalis South Africa has won the South African Dairy Product of the Year Award for six of the past eight years. This year it won with a 10-month-old Gouda made especially for Woolworths.
Poor waste management highlighted on Earth Day
Most of South Africa’s waste ends up in dumps, if not strewn across open spaces or littering streams and oceans.
Kenya hosts soil health summit
The health of African soil was discussed at length by gathering of experts, writes Jeff Kapembwa.
Report shows the impact that heat has on agricultural workers
The UN’s International Labour Organisation (ILO) recently released a report showing the impact of climate change on the health of workers.
Factors to bear in mind when dipping livestock
It is important to consider the intervals at which you dip livestock in relation to the specific season in which ticks become more or less, writes Shane Brody.
Good outlook for pome fruit
Varieties of fruit could be the key in growing the pome fruit sector, writes Glenneis Kriel.
Building a sustainable agriculture sector in the Western Cape
Technology, research, financial mentorship and more will be required, writes Marinda Louw Coetzee.
PwC research shows food crisis impact
A new report details how the looming food crisis will affect Africa, writes Jyothi Laldas.
Braaied meat and soft-boiled egg Thai salad
This salad with maize, peanuts and eggs will turn leftover braai meat into a completely different meal. Recipe and photo: South African Poultry Association.