The South African wine industry topped its previous export record, with volumes sold in 2013 reaching 525.7-million litres, a 26% increase on the previous high achieved in 2012.
Strong year-on-year growth occurred in established and newer markets, said Wines of South Africa (Wosa) in a statement on Tuesday. Sales to the UK, which remained the country's biggest export destination, accounting for just over one-fifth of total volumes exported last year, rose 21% to 111.2-million litres. Volumes to Germany, where South Africa was the biggest New World supplier, increased by 24% to 96.5-million litres, while exports to Russia were up 18% to 37.3-million litres.
New Wosa CEO Siobhan Thompson attributed the dramatic rise in exports to the country's bumper harvest in 2013 that had allowed South Africa to fill the gap created by the poor European harvest, as well as penetrate new markets.
"It is encouraging that strong gains were achieved in the UK and Germany, our two biggest markets, where packaged wines in particular showed very healthy growth. Packaged wines [exported] to the UK were up by 31% and by 17% to Germany. Simultaneously, exports also grew across an increasingly broad range of other markets."
Thompson said the substantial growth in Russian sales was partly the result of the shortfall in the European harvest, where in some cases yields were the lowest in 40 years. "This was also the reason South African sales to wine-producing countries such as France, Italy and Spain increased so dramatically. However, we see as significant, the impressive growth in high-potential markets such as the US, where we are confident of achieving long-term growth. "
Thompson explained that exports to the US, a market of fast-growing importance to the country, increased by 37%, buoyed by improved distribution and ongoing positive media exposure. This included favourable reviews in high-profile wine publications such as Wine Spectator and The Wine Advocate, as well as amongst the influential blogger fraternity. The US is currently the world's biggest market for wines, added Wosa.
"South Africa is increasingly perceived as the source of interesting, original and well-made wines, able to appeal to Americans eager to expand their repertoire. This is a very good positioning from which to build our base, particularly as we target Millennials, who are especially eager to encounter new taste experiences."
Strong gains were also achieved in Denmark, Thompson noted, where packaged sales were up by 21%. The country was also making good inroads in many of Africa's major economies as well as in Japan, Thailand and the United Arab Emirates.
White wine sales had risen by almost 18% and reds by 22%. Sauvignon Blanc, Cabernet Sauvignon, Shiraz, Pinotage and Merlot saw the biggest increase in volumes exported.
Thompson commented that while bulk volumes had accounted for 65% of wines exported last year, up from 59% the previous year, this was largely a factor of the opportunistic buying on world markets prompted by the poor European harvest. It was also not a situation unique to South Africa, as other New World wine-producing countries were impacted as well.