HOW TO INCREASE SA'S WINE SALES RIGHT HERE AT HOME

South Africa’s wine industry has the potential to boost sales to the local market, especially those consumers who are in the emerging middle class. At the recent Vinpro Information Day, Brandon de Kock, director of storytelling at consumer insights agency Whyfive, outlined the changing consumer landscape in the country and its opportunities. Jeandré van der Walt reports.

- Jeandré van der Walt

There is a huge, untapped consumer segment in South Africa that has the disposable income and the thirst for something exciting to drink. This was the message of Brandon de Kock, a director at consumer insights agency Whyfive, to more than 500 wine industry role players at the 15th Vinpro Information Day held in Cape Town earlier this year.

NEW CONSUMERS

According to De Kock, nearly 12,5 million South Africans earn more than R10 000 a month, and economic transformation is altering the consumer landscape, creating a new economic elite. This has happened at the top end as well as lower down; since 2015, those earning more than R40 000 a month have grown by more than half a million.

“That’s a lot of people who can suddenly afford premium goods,” he says.

De Kock believes that middle-class and wealthier adults are a profitable group to target as they account for about 80% of South Africa’s consumer spending.

Another factor changing the consumer landscape is the ‘youthification’ of South African society. According to De Kock, 27% of the population are between 20 and 35, while 30% are between 35 and 65.

“We’re becoming a very young country, and our workforce is also very young,” he says, adding that marketing strategies require a paradigm shift.

“Your youth strategy is your strategy,” he stresses.

CELEBRATE ALL WINES

De Kock’s consumer insights indicate that 75% of middle-class and wealthier South African adults consume alcohol, with 45% drinking wine instead of beer (29%).

“This translates into a total potential premium wine market of about 5,6 million adults. That’s about the population of Johannesburg.”