CONSUMER INTELLIGENCE AND CONSUMER INTELLIGENCE AND INSIGHTS ON THE SA WINE INDUSTRYINSIGHTS ON THE SA WINE INDUSTRY

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31 MAY 201131 MAY 2011

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Reports filled with charts, graphs, tables and insights

SELECTED SA WINE/BRANDY CONSUMER FINDINGSCONSUMER FINDINGS

BOTTLED WINE AND BRANDY:BOTTLED WINE AND BRANDY:CONSUMER TRENDS CONSUMER TRENDS

The number of Wine consumers has increased from 1.87 million in 2005 to almost 3 million in 2010, an increase of just

over 1 million consumers. The proportion of Bottled Wine consumers has increased significantly between 2009 and 2010.

2005 2006 2007 2008 2009 2010

Total SA adult population (16+ years) 30,655,696 30,903,002 31,109,074 31,305,016 32, 498, 063 33,141,487

Bottled Wine consumers 1,871,161 2,055,546 2,089,911 2,231,898 2,417,961 2,993,857

% of total adult 6.1% 6.7% 6.7% 7.1% 7.4% 9.0%

12Source: AMPS 2010B

Sample Sizes : 25 160 (Total); 2768 (Bottled Wine consumed in past 7 days)

Note: all figures based on weighted numbers

2005 2006 2007 2008 2009 2010

Total SA adult population (16+ years) 30,655,696 30,903,002 31,109,074 31,305,016 32, 498, 063 33,141,487

Total Brandy consumers 3,676,161 3,983,019 4,315,259 4,058,813 3,960,362 3,859,396

% of total adult 12.0% 12.9% 13.9% 13.0% 12.2% 11.6%

There has been a decline in the number of Brandy consumers from a high of 4.3 million (13.9% of adults) in 2007 to just

over 3.8 million in 2010 (11.6% of adults).

Stronger branding and marketing of the Brandy category may be necessary to appeal to a wider consumer base and

encourage people to start drinking Brandy (again) rather than competitor categories like Whisky.

LSM GROUP PROFILELSM GROUP PROFILE

20%

40%

60%

80%

100%

29% 25%18%

37% 42%

36%

19% 19%

20%

15% 14%26%

LSM profile of consumers of brandy and bottled wine

LSM 9-10

LSM 7-8

LSM 5-6

LSM 1-4

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In 2010, 26% of Bottled Wine consumers lived in LSM 9-10 households compared to 14% of Brandy consumers.

Only 18% of Bottled Wine consumers lived in LSM 1-4 compared to the 30% among the total SA population.

Source: AMPS 2010B

Sample Sizes : 25 160 (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days)

Note: all figures based on weighted numbers

Frequency LSM 1-4 LSM 5-6 LSM 7-8 LSM 9-10

Total 9,890,145 12,527,080 6,450,923 5,151,512

Consumers of Brandy (past 7 days) 954,467 1,620,946 739,049 544,934

Consumers of Bottled Wine (past 7 days) 530,548 1,080,548 613,080 769,681

0%

20%

Total Consumers of brandy (past 7 days) Consumers of bottled wine (past 7

days)

29% 25%18%

GENDER PROFILEGENDER PROFILE

20%

40%

60%

80%

100%

47%

70%

50%

53%

30%

50%

Gender profile of consumers of brandy and bottled wine

Female

Male

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In 2010, the gender split for consumers of Bottled Wine was equal at 50%, similar to the total SA population.

Among Brandy consumers, 70% were male.

Frequency Male Female

Total 16,113,054 17,906,605

Consumers of Brandy (past 7 days) 2,707,455 1,151,941

Consumers of Bottled Wine (past 7 days) 1,494,908 1,498,949

0%

20%

Total Consumers of Brandy (past 7 days) Consumers of bottled wine (past 7

days)

Source: AMPS 2010B

Sample Sizes : 25 160 (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days)

Note: all figures based on weighted numbers

AGE PROFILEAGE PROFILE

20%

40%

60%

80%

100%

15%

14% 17% 13%

13% 18%18%

19%22%

21%

15%14%

15%

11%10%

11%

11% 7% 10%

Age profile of consumers of brandy and bottled wine

60+ Years

50-59 Years

40-49 Years

30-39 Years

25-29 Years

20-24 Years

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There was a significantly higher proportion of Brandy and Bottled Wine consumers aged 25-29 years (18%) compared to the total SApopulation (13%).

Frequency 15 - 19 20 - 24 25 - 29 30 - 39 40 - 49 50 - 59 60+

Total 5,132,944 4,898,527 4,420,522 6,559,332 5,248,618 3,678,657 3,901,899

Consumers of Brandy (P7 days) 469,775 662,346 706,056 836,505 537,981 370,638 254,693

Consumers of Bottled Wine (P7 days) 348,104 378,478 530,285 623,860 455,210 335,806 300,989

0%

20%

Total Consumers of Brandy (past 7

days)

Consumers of bottled wine (past

7 days)

15% 12% 12% 15-19 Years

Source: AMPS 2010B

Sample Sizes : 25 160 (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days)

Note: all figures based on weighted numbers

POPULATION GROUP PROFILEPOPULATION GROUP PROFILE

20%

40%

60%

80%

100%

75% 74%63%

9% 8%

8%

3% 2%

1%

13% 16%28%

Population group profile of consumers of brandy and bottled wine

White

Indian

Coloured

Black

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74% of Brandy consumers were Black compared to 63% among Bottled Wine consumers.

Frequency Black Coloured Indian White

Total 25,613,102 2,941,695 927,204 4,537,658

Consumers of Brandy (P7 days) 2,864,515 311,546 59,896 623,439

Consumers of Bottled Wine (P7 days) 1,891,546 242,145 35,982 824,185

0%

20%

Total Consumers of Brandy (past 7 days) Consumers of bottled wine (past 7

days)

Source: AMPS 2010B

Sample Sizes : 25 160 (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days)

Note: all figures based on weighted numbers

HOME LANGUAGE PROFILEHOME LANGUAGE PROFILE

20%

40%

60%

80%

100%

15% 18% 22%

12% 8%

17%22% 20%

18%15% 14%

8%9%

8%7%

8% 10%9%

10% 11% 10%3% 4% 3%3% 2% 2%2% 2% 1%1% 1% 1%

Language profile of consumers of brandy and bottled wine

Ndebele

Swazi

Venda

Tsonga

Tswana

South Sotho

North Sotho

Xhosa

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In 2010, 22% of consumers of Bottled Wine spoke Afrikaans as their home language compared to 15% of the SA population.

17% of consumers of Bottled Wine spoke English as their home language and 18% spoke Zulu .

Frequency Afrikaans English N.Sotho Ndebele S.Sotho Swazi Tsonga Tswana Venda Xhosa Zulu

Total 4,982,239 4,056,543 7,544,640 5,224,971 2,958,011 2,718,172 3,330,760 1,038,150 897,996 739,187 341,312

Consumers of Brandy (past 7 days) 707,886 327,340 775,771 559,543 309,671 387,814 406,729 153,587 78,152 72,675 51,837

Consumers of Bottled Wine (past 7 days) 652,088 514,502 538,097 249,161 205,072 269,957 306,731 95,471 53,444 33,304 35,408

0%

20%

Total Consumers of Brandy (past 7

days)

Consumers of bottled wine (past

7 days)

15% 18% 22%Zulu

English

Afrikaans

Source: AMPS 2010B

Sample Sizes : 25 160 (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days)

Note: all figures based on weighted numbers

PROVINCE PROFILEPROVINCE PROFILE

20%

40%

60%

80%

100%

2% 2% 2%6% 9% 8%14% 11% 8%

21% 17% 18%

7% 7%5%

11%10%

10%

20% 23% 28%

8% 10% 9%

Provincial profile of consumers of brandy and bottled wine

North-West

Gauteng

Limpopo

Mpumalanga

Kwazulu-Natal

Eastern Cape

Free State

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The highest proportion of Brandy and Bottled Wine consumers lived in Gauteng (23%).

Frequency Western Cape Northern Cape Free State Eastern Cape Kwazulu-Natal Mpumalanga Limpopo Gauteng North-West

Total 3,523,874 717,888 2,210,093 4,733,845 7,148,459 2,339,595 3,752,138 6,882,529 2,711,238

Consumers of Brandy (past 7 days) 448,978 87,329 329,896 421,858 665,132 265,956 373,037 884,329 382,879

Consumers of Bottled Wine (past 7 days) 363,409 65,670 249,961 234,033 531,032 149,254 289,825 829,139 281,534

0%

20%

Total Consumers of Brandy (past 7

days)

Consumers of bottled wine (past

7 days)

10% 12% 12%2% 2% 2%6%

Northern Cape

Western Cape

Source: AMPS 2010B

Sample Sizes : 25 160 (Total); 2883 (Brandy consumed in past 7 days) 2768 (Bottled Wine consumed past 7 days)

Note: all figures based on weighted numbers

CONSUMER TRENDS 2006CONSUMER TRENDS 2006--2010: 2010: POPULATION GROUPPOPULATION GROUP

60%

80%

100%

53% 55% 56%61% 63%

Bottled Wine Population Group Profile: 2006 - 2010

Black

Coloured

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There has been strong growth in the proportion of Black consumers Bottled Wine, from 53% in 2006 to 63% in 2010.

The proportion of White consumers Bottled Wine declined from 37% in 2006 to 28% in 2010.

0%

20%

40%

2006 2007 2008 2009 2010

37% 37%33% 31% 28%

1% 2%1%

1%1%

8% 6%9%

8%8%

Indian

White

Source: AMPS 2006-2010B RA (Adults 16+ years old)

Sample Sizes : AMPS 2006 (24 813); AMPS 2007 (21 068), AMPS 2008 (21 083); AMPS 2009 (25 170); AMPS 2010 (25 170)

Note: all figures based on weighted numbers

QUESTIONS THAT STILL NEED QUESTIONS THAT STILL NEED

TO BE ANSWEREDTO BE ANSWERED

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IMPORTANT QUESTIONS WE STILL NEED IMPORTANT QUESTIONS WE STILL NEED TO ANSWERTO ANSWER

How do we responsibly increase the number of wine and brandy consumers in South Africa?

Which consumer and product segments are growing?

Why do consumers prefer a certain alcoholic beverage category?

For which occasions do they prefer certain categories? Why?

What are the emotional benefits (image) derived from drinking a certain alcoholic What are the emotional benefits (image) derived from drinking a certain alcoholic beverage?

How do we position the Wine and Brandy categories to appeal to and target new consumer segments?

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