R/€ = 14.94Change: 0.05
R/$ = 14.11Change: -0.02
Au 1070.95 $/ozChange: -5.11
Pt 835.50 $/ozChange: -7.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Nov 11, 2011

SA wines have a place in Pan-Asian market

© Reuse this

South African wine producers should thoroughly research their individual potential markets in Asia and should avoid thinking of the region, which is home to 57 countries, as a homogenous entity, Master of Wine and inter- national wine judge and consultant to producers trading in Asian markets Debra Meiburg said.

Earlier this year,

during a seminar hosted by nonprofit industry organisation Wines of South Africa, in Stellenbosch, in the Western Cape, the US-born wine specialist discussed ways of approaching markets across the Pan-Asian region.

She stated that Hong Kong, China, was like the Wall Street of Asia and the home of fine wine, deep pockets and big cellars; however, this market remained bipolar, with people either routinely drinking Bordeaux first growths and other fine wines at outrageous prices or buying low-end products.

Now was a great time for South African producers to enter this market, as there is enormous growth potential for midpriced wines, she said.

Nevertheless, low barriers to entry meant that the Hong Kong market was fragmented and populated by high numbers of agents and distributors.

“It is important to work with importers who are good at trading and brand building,” she said.

Further, Meiburg emphasised the importance of Hong Kong as a springboard to accessing the Mainland China market.

She stated that in China alone, there are nearly 1.4-billion people in 34 provinces, which each have their own diverse demographics.

“Throughout the country, over 100 dialects are spoken. There is no national cuisine, as is sometimes perceived by Westerners, and wine producers need to consider localised palate preferences in what they bring to market,” said Meiburg.

She added that only 10% of China’s middle class drank wine but that the wine market was growing at a compound annual growth rate of 15%.

The Chinese middle class may be very prestige conscious but they are also price conscious. “They are immensely brand loyal and although French wines enjoy the strongest support, there is a rising curiosity about other wine-producing countries, on which South Africa can capitalise,” she said.

South Africa can establish a good reputation if it enters the Chinese market with its high-profile wines instead of low-end wines.

Meanwhile, she pointed out, education in China was greatly valued and people are highly receptive to learning about wine and the narratives associated with individual producers.

“The Chinese find Western lifestyle and luxury intriguing, and they also understand the typicity of origin, giving wine- makers ample scope for communication,” she noted.

In addition, nearly all wine consumed in China is red, but there is a growing interest in sparkling wines and this could be an opportunity to find ways of encouraging consumers to extend their repertoires by drinking white wines.

“Currently, white wines are perceived as insipid, but there could well be a way to change that and perhaps the conduit could be seafood,” she added.

There are very few national distributors in Mainland China and producers should target specific markets within the country and find appropriate distributors. Second-tier cities where populations are frequently significantly larger than in many mainstream Western cities offer good potential, she said.

Producers could carve a niche for themselves by running cuisine-specific promotions. “Pick a dish and promote an appropriate wine as a way of engaging new consumers,” said Meiburg.

She highlighted gift-giving, festivals such as the lunar New Year, midautumn and other national celebrations, as well as large-scale receptions for weddings and corporate events as providing marketing opportunities.

However, she suggested that local winemakers should also look at developing brand names that were easier to pronounce than many of those currently available on international makets.

Further, Meiburg said Japan was close to a mature market and one of the few in Asia where more women than men bought wine. With the Japanese tradition of celebrating events, South African producers could look at potentially using a national South African holiday as the platform for promotional activity.

She also identified South Korea as a wealthy, sophisticated, well-educated and fast-growing market. “Koreans are fond of German wines and Chilean winemakers are building a strong support base, owing to a favourable bilateral trade agreement with the country,” Meiburg stated.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other Brewery and Winery News
QUICK INSTALLATION Verni’s Supaflor PU HD 6 mm polyurethane screed is a heavy-duty monolithic flooring system that is quick and easy to install
Corrosion protection, epoxy flooring and waterproofing company Verni Speciality Construction Products, has provided a brewery in Botswana with a heavy duty flooring system to assist in maintaining hygenic conditions.  The Supaflor PU HD 6 mm polyurethane screed, that...
ADDING TO THE COUNTRY’S LAGERS MBco’s Loadshed Lager was born out of the brewery’s realisation that South Africa comprises mostly lager drinkers
Being the first brewery to open in the Western Cape’s Worcester region, at the Klipbokkop Mountain Reserve, has benefited local brewery Mountain Brewing Company (MBco) significantly, as it is now able to access an “untouched” natural spring situated 600 m from the...
INSTALLING A BREWING SYSTEM E3 Energy Group of Companies had to custom design the 10 000 ℓ storage vessel it installed at Cape Brewing Company
Western Cape-based brewery Cape Brewing Company (CBC) has, with the help of renewable-energy company E3 Energy Group of Companies (E3), produced what it says is South Africa’s first commercially available green beer, using water heated by the sun. The beer-brewing...
Latest News
Updated 38 minutes ago The World Bank on Tuesday unveiled a new plan that calls for $16-billion in funding to help African people and countries adapt to climate change and build up the continent's resilience to climate shocks. The Africa climate business plan, titled ‘Accelerating...
Updated 50 minutes ago The International Finance Corporation (IFC), a unit of the World Bank, issued on Wednesday its first South African rand-denominated green bond, raising around $71-million for climate-friendly investments in emerging markets. The nine-year R1-billion paper was issued...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
Additive manufacturing, better known as 3D printing, has the potential to completely change the relationships between individual consumers, professional designers and manufacturers. So argued Loughborough University Reader in Computer Aided Product Design Dr Ian...
Airbus Defence and Space: Military Aircraft has highlighted that its A330 Multirole Tanker Transport (MRTT) has significant commonalities with the Airbus A330-200 commercial airliner, upon which it is based. The South African Air Force (SAAF) once operated a fleet of...
Financial services provider Nedbank launched the second edition of its Carbon Footprinting Guide earlier this month, which is aimed at demystifying carbon footprint approaches and help readers grasp the main concepts of carbon measuring, monitoring, reporting and...
This year marks the thirtieth anniversary of Caterpillar’s first backhoe loader. This also coincides with the worldwide release of its latest-generation F2 series backhoe loader, which was launched at supply chain services company Barloworld Logistics’ Big Dig Day in...
BARRY DWOLATZKY The CPD programme provides advanced skills required locally, and provides a stepping stone to Wits University’s Master of Engineering degree in software engineering
A shortage of software engineers is leading to fewer information technology (IT) projects in private and public sector organisations. This also places a dampener on the economy, as IT is an integral part of business and civil service, says University of Witwatersrand...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96