Tariffs jolt wine industry as global brands toast a new era

As a 30% US tariff looms over South African wine, the industry faces its biggest shake-up yet, but from Stellenbosch to Shanghai, smart alcohol brands are turning headwinds into headway

- By Kara le Roux

From 1 August, South Africa's wine exports to the US will face a 30% tariff, pushing retail prices up as much as 50%, warns Jeremy Sampson, chairperson of Brand Finance Africa.

"This escalation in trade tensions arrives at a precarious time for the global wine industry, which is already contending with declining consumption, inflationary pressures and rapidly evolving consumer preferences," he says.

Sampson sees this as a "catalytic moment" to reinvent strategies by pivoting to Asia and BRICS markets, doubling down on provenance storytelling and accelerating premiumisation.

Listed French wine company Advini recently acquired five prominent South African wine producers in Stellenbosch, which contributed to 13% of the company's turnover in 2024.

"The fact that South Africa is the only wine country outside France in which Advini has invested in land, vineyard and infrastructure underscores our belief that there is still a lot of untapped potential in the country's wine industry," says Naretha Ricome, vice-president of Advini South Africa.

"We did look at other wine countries, including Chile, but nowhere was more opportunity seen than in South Africa."

Yes, people might be drinking less, but Ricome sees growth in focused market segments internationally, such as Europe and Canada, where demand for premium South African wines is climbing.