Nedbank Vinpro Information Day, part 2
With other traditional export markets, particularly in Europe, having dwindled in the face of over-supply over the last decade, more and more producers are turning to the emerging markets to sell their wines.
Africa, shaking its feet of civil wars and international debt, has become a lucrative destination for South African wines. Economic growth in Sub-Saharan Africa is expected to reach 6% in the next four years. Speaker Mike Veseth rightly says that the best market for wine is your own backyard. The continent is experiencing an influx of foreign investment, monetary and in infrastructure, and there is a middle class with spending power that is growing fast.
Guy Lundy from Odgers Berndtson may surprise you with his rating of the top 10 best African markets, according to their risk profile:
3. South Africa
10. Cape Verde
When it comes to opportunity, though, he rates Nigeria, South Africa and Egypt as his top three choices. This is based on population size and growth trends, among other things.
Wines of South Africa (Wosa) is expanding its presence into Africa, particularly into Nigeria, Angola and East Africa. According to the body’s Matome Mbatha, south Africa competes with the wines of former colonial countries France, Italy and Portugal. “However, the presence of these wines is at a very entry level. For South Africa, opportunities are within the value adding in terms of the premium wine offering.” Read more here.