Sell up with

South Africa has

gained a reputation as
the value for money
Sauvies supplier,
but the challenge is
to push quality and
prices to the next level.
By Elona Hesseling

Sau
vig
non

However, the growth is still lagging

behind inflation and certain brands
could be driving this price.
Gavin explained that the style of
Sauvignon Blanc is key to the price
point targeted, with the fruitier/
tropical styles getting more volume
appeal. We have also seen a
decrease in Sauvignon Blanc blends;
it peaked at 17%, but has been
declining over the last few years to
12%, he said.
When considering the top
Sauvignon Blancs in retail, Gavin
observed that the below R40
range is the key retail price point.
This, while strong brands can do
well up to R70 per bottle, he said.
Activation such as broadsheets,
catalogues, discounts and visibility
also helps to drive volume.

Price wars
The Drinks Business recently published
an article by Lucy Shaw, titled South
Africa to ape Marlborough success.
The introduction read: South African
winemakers are seeking to piggyback
on the success of Marlborough
Sauvignon Blanc with their own
cheaper versions of the popular style.
The article continued to quote Jane
Robertson, category development
director for Accolade, speaking at
a press conference at The Beautiful
South tasting. South African
white wines are sexy right now.
Consumers who have bought into
the Marlborough Sauvignon Blanc
brand are now looking elsewhere for
a similar style of Sauvignon at a more
wallet-friendly price point and South
Africa can deliver on that front.

he Cape winelands
is second only to
Marlborough, New
Zealand, in terms
of Sauvignon Blanc
plantings, but despite
being the fifth most planted cultivar
in South Africa, more vines have
recently been uprooted than new
vineyards planted.

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This issue was highlighted by VinPro

viticulturist, Conrad Schutte, during
the Sauvignon Blanc Interest Group

(SBIG) technical seminar, sponsored

by FNB, which took place at the end
of 2014. While this negative trend
has started to show some positive
change during 2012/2013, Conrad
explained that we are still uprooting
more than we are planting.
The growth of Sauvignon Blanc sales
is similarly slowing, according to
Gavin Dittmar, managing director
of Meridian Wine Merchants. The
overall growth of Sauvignon sales is
8.8%, compared to 10.1% for white

wines in general. We are seeing

a slow-down in on-trade, but an
increase in retail due to more home
consumption, he said.
Within off-trade, the growth of
Sauvignon Blanc is lagging behind
overall growth in the liquor chain
and wholesale sectors, but we have
noted the opposite in supermarkets.
We have also seen a steady increase
in the average retail price of Meridian
portfolio wines sold in the trade, with
the average price per bottle at R63.

The flavour profile of South African

Sauvignon Blanc is similar to
Marlborough Sauvignon and can be
tailored to fit UK consumers taste
preferences, she said.
Comparing Sauvignon Blanc styles
of different countries without
taking the individual regions and
winemakers into consideration
may appear like a big generalisation,
but it is the consumers who have
the final say when making their
purchasing decisions.
And according to 2013 Nielsen data,
UK consumers are willing to pay
more for New Zealand wines, with

the average price per litre for New

Zealand Sauvignon Blanc at 9,19,
compared to 7,05 for a litre of
South African Sauvignon Blanc.
In an article on Harpers.co.uk, Erin
Smith notes, Sauvignon Blanc
continues to be the most popular
variety in the UK and no other
region is more synonymous with the
aromatic grape variety than New
Zealand, which continues to make
inroads in the UK market.

Lessons from
New Zealand
When it comes to Sauvignon
Blanc and rugby New Zealand
is undoubtedly one of our greatest
rivals. Erica Crawford, South Africanborn New Zealander, was a speaker
at the SBIG technical seminar and
shared some valuable tips on the
countrys success.
Erica and winemaker husband,
Kim, started the hugely successful
Kim Crawford wine brand in
Marlborough, New Zealand. From
small beginnings, with no vineyards
or infrastructure, this virtual winery
has grown to become the biggest
New Zealand brand in the USA
and Canada, and it is now part of
Constellation Brands.
For Erica, there are five reasons
for New Zealands success story.
We have strength in unity. At the
beginning, we did tastings together
and faced issues together as a
country, and while we are starting
to see some polarity as the industry
grows, the togetherness has really
been a key strength. This further
led to a successful establishment of
Brand New Zealand.

When it comes
to Sauvignon
Blanc and rugby
New Zealand is
undoubtedly one of
our greatest rivals.

Erica Crawford at the

SBIG technical seminar.

Our wines flavour profiles, as well as

the timing of these wines entering the
market, has also been crucial to our
success, she said. The use of screw
caps was another big help and we
got a lot of media and trade attention
with it. While we had reductivity
problems in some of the wines when
screw caps were introduced in 2001,
we learnt to fine at the right times and
around 99% of wine in New Zealand is
now under screw cap.

Selling up
Considering New Zealand
Sauvignon Blanc sales in the USA,
Erica explained that the countrys
biggest positive change has been
within the $12 to $14,99 region, with
a decrease between $3 and $5,99, as
well as $6 and $8,99. We find that
when it comes to Sauvignon Blancs
below $10, consumers tend to rather
opt for a Chilean or South African
bottle, she said.
While $10 may sound like a lot, it
roughly translates to only about
R40 to R50 a bottle in South Africa,
when taking import duties and taxes
into consideration.
This may be great news for value for
money offerings something South
Africa has become known for but
isnt it time we focused more on
the higher price categories as well?
Selling up and properly marketing
our own identity, instead of just
selling cheaper versions of the
popular (Marlborough) style, giving
New Zealand producers a proper run
for their money. w

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