yvette vd merwe - sawis

OVERVIEW OF THE SOUTHOVERVIEW OF THE SOUTHAFRICAN WINE INDUSTRYAFRICAN WINE INDUSTRY

Winebiz ConferenceWinebiz Conference30 August 201230 August 2012

Yvette van der Merwe

NUMBER OF WINE GRAPE PRODUCERS“20% of producers probably produces 70%+ of the crop”

2871

WINE CELLARS”10% – 15% of cellars crush 70% - 80% of crop”

TOTAL SURFACE PLANTED TO WINE GRAPEVINEYARDS (excluding Sultana)

% of total

94 412 102 146

Total

100 568

DISTRIBUTION OF WINE GRAPE VARIETIES (%)PER REGION (excl Sultana)

% of total

NEW PLANTINGS AND UPROOTINGS

Hectares

AGE DISTRIBUTION - 2011

Chenin blanc38%

AREA – MOST PLANTED RED VARIETIES(2001 - 2011)

AREA – MOST PLANTED WHITE VARIETIES(2001 - 2011)

NET CHANGE PER REGION(RED & WHITE) 2007 - 2011

TOTAL WINE HARVESTTOTAL WINE HARVEST

* Estimate

UTILISATION OF THE CROPUTILISATION OF THE CROP

* Estimate

WINE – PRODUCTION, SALES AND STOCK

* Estimate

million litres

STOCK SITUATION – RED, WHITE AND TOTAL

BULK WINE PRICES (c/litre)Increase of 27% since 2007

AVERAGE GRAPE PRICES (producer cellars)AVERAGE GRAPE PRICES (producer cellars)2010 & 2011 preliminary

AVERAGE GRAPE PRICES (nonAVERAGE GRAPE PRICES (non--producer cellars)producer cellars)

DOMESTIC SALES OF WINE

million litres

12 Mth TREND TO JUNE+4.1%

6 Mth TREND TO JUNE+5.3%

2012 Estimate +2.6%

SALES OF NATURAL WINE - HP, MP AND SP

* Estimate

DOMESTIC SALES – PACKAGING TYPE

DOMESTIC SALES OF SPIRITS

million litres

12 MONTH TREND TO DEC 2011Whisky +9.0%White spirits +3.1% (Vodka +4%)Brandy -3.9%Beer +2.3%Wine +2.1%RTD’s +3.9%

Ales 100+ million litres

EXPORTS OF NATURAL WINE

million litres

12 Mth TREND TO JULYPackaged - 8.2%Bulk +25.0%Total + 7.2%

6 Mth TREND TO JULYPackaged - 7.8%Bulk +28.0%Total + 9.2%

Growth is in white, red stagnant

2012 Estimate + 7.4% (white)

TRENDS IN THE SA WINE VALUE CHAIN

DID YOU KNOW?DID YOU KNOW?

• Exports of wine grew by almost 200% from 2000 to 2008, peaking

at 407 million litres. Since then exports have been declining.

• South Africa currently sells more wine than the French in the UK.

• Drastic swing towards bulk exports. Currently approximately 53%

of all wines are exported in bulk. Trend is continuing.

107.3 Jobs are lost for every 10 million litres exported in bulk.

• Single biggest foreign exchange earner of all SA agricultural

exports in 2010 and previous years.

DID YOU KNOW?DID YOU KNOW?

• Only wine producing country in world - statutory environmental

sustainability scheme with full traceability back to vineyard (IPW –

Seal).

• Only wine producing country in world - ethical accreditation

scheme (WIETA Code and seal).

• R1 billion in spending indirectly linked to wine tourism.

• Has exceptional ability as creator of economic growth.

• Supports employment opportunities to the tune of 275 606.

• Labour/capital ratio = 5.54, much higher than economy as a whole.

QUESTIONS?

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