S AFRICA: Off-trade disappoints S African wines
Despite burgeoning sales figures in the UK, South Africa is likely to miss most of its targets in its attempts to boost sales of wine above £5, Wines of South Africa (WOSA) admitted today (2 March).
In 2003, WOSA outlined a three-year plan in which the country would be selling half a million cases of £5+/bottle wines, accounting for 13.5% of the market by value, and selling at an average per-bottle price of £4.16 by 2005.
While the country is hopeful that it will meet the first target - sales for 2004 were 420,000 cases - growing the country's value share and average bottle price have proved more difficult.
Currently, South Africa accounts for just below 10% of the UK market by value and the average bottle price of £3.72 is £0.06 below the UK's average. WOSA admits that their three-year goal will not be achieved.
While disappointed that the off-trade has proved resistant to trading-up, the generic body is optimistic about its plans to grow value by a greater targeting of the on-trade from 2005 onwards.
"(The on-trade) is a very important area for value," said Sophie Waggett of WOSA UK. "It's the high end of the market and important for South Africa's image."
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