Wine Marketing Archives

Wines of South Africa Export Report 2023: Positive Value Growth, Despite Challenging Global Economy

The year 2023 will undoubtedly be remembered by the world’s wine fraternity as one of the most challenging.

This rings true in the context of South African wine exports as well, with volume declines of 17%, resulting in total export volumes of 306 million litres. The silver lining for South African producers can be seen in positive value growth of total exports to a respectable US$540 million (R10 billion), despite the volume decline.

Harvest 2023 saw production volumes decline by 14%, a scenario echoed by the OIV report which highlights smaller harvests globally for the year, however, the realities of excessive stocks in both northern and southern hemisphere producing countries, has had an adverse effect on pricing on the whole. This can especially be seen at the lower- and entry level segment of the wine markets where trading is particularly competitive and pricing within this commodity sector leading to a ripple effect throughout the value chain.

Despite these challenges, South African wines are still making waves internationally with continuous positive recognition from critics such as Tim Atkin, MW in his latest South African report and Anthony Mueller’s latest report on the Wine Advocate platform. It is this reputation for top quality wines that seem to be setting South African wines apart from many of our counterparts and fueling the positive premium growth trajectory.

“The consistent positive ratings and accolades achieved by South African wines has most certainly solidified our positioning in international markets. Quality remains our focus and the consistency that we have seen, along with viticultural improvements, embracing new technologies both in the vineyards and cellars, will allow for the continued upward trajectory in this regard. This is why buyers remain confident in their support of our wines,” comments Wines of South Africa CEO, Siobhan Thompson.
She adds, “Thanks to our unique terroir, our producers are known for making wines that are unique and representative of our rainbow nation.”

In addition to this, wine tourism in South Africa is projected to have further bolstered growth, adding to the overall sustainability of particularly the small and medium sized entities.
In an upcoming report following a wine tourism impact study (due for release on 1 February 2024), preliminary figures have shown exponential growth in numbers and turnover at cellar doors, with full recovery following the Covid pandemic. This growth can be accounted for by both local and international visitors to the Cape winelands.

South African white wine continues to win the popularity contest with Sauvignon Blanc leading the charge, followed by Chenin Blanc and Chardonnay. All three cultivars also showing solid value growth. On the red wine side of things, Shiraz takes the lead, closely followed by Pinotage and Cabernet Sauvignon.

Producers continue to face several localised challenges. One of the main issues is the ongoing infrastructure and equipment challenges at the Port of Cape Town, which has had a major impact on all products and commodities that are heavily reliant on this harbour.

Newly formed wine industry body, South Africa Wine, together with exporters, are continuously engaging with port authorities and have taken a proactive approach in finding ways to support producers in this regard. However, a long-term strategy needs to be implemented to truly negate and ultimately correct these challenges.

“Order fulfilment is key in the international wine business and we cannot allow delays due to a below-standard logistical performance to tarnish our reputation as a reliable supplier of quality wine,” says Christo Conradie, stakeholder engagement, market access and policy manager at South Africa Wine.

“Transnet (Port of Cape Town) is a crucial enabler to ensure we deliver on our global promise and we have the undertaking that Transnet will step up to the mark, focusing on the controllables via a collaborative effort. Notwithstanding some real logistical challenges, we are confident for the future and are committed to honouring all agreements.”

There is no doubt that 2024 will continue to see challenges for the South African, and indeed, the global wine industries as geopolitical pressures will continue to play a major role in the world economy. Despite this, South Africa and the South African wine industry remains open for business and the export of South African wine remains a major focus.

For more information, visit www.wosa.co.za

Source: Wines of South Africa

“Ungrafted Vines” hits the silver screen in 2024

He’s a winemaker, a rebel, an iconoclast and an outspoken critic of Bordeaux’s “industrial soup” style of winemaking – and now Loïc Pasquet is an unlikely movie star.

Pasquet’s battles with the Bordeaux establishment have seen him dragged to court, fined and forbidden from using the Bordeaux appellation because of his commitment ungrafted vines and native Bordeaux varieties. However, he has had the sweetest of revenges by producing a wine that has become the most expensive Bordeaux-produced wine – and now a movie about his achievements is hitting the screen.

The 51-minute documentary will air via Apple TV next year and features Pasquet documenting his battles with bureaucracy and his dedication to recreating the pre-phylloxera wines of Bordeaux. It also features input from respected wine writers like Jane Anson and Jacky Rigaux.

Pasquet, who bought his first bottle of wine when he was just 11 years old, believes that wine is a European cultural treasure and that it has been debased by too many Bordeaux producers in order to pander to critics, rather than simply making wines that reflect the terroir.

“Why destroy that heritage to make one style of wine? They are saying to [wine critic Robert] Parker ‘What wine do you like? We will make it for you.’ They are making industrial soup,” he told journalists at a preview of the film.

The launch of Pasquet’s 2015 vintage of Liber Pater at a staggering $33,000 (subsequent vintages have also hit that mark) was the spark for the documentary, but he was open about his pricing policy.

“This is what my customers will pay to drink something that nobody else can. If you go into space, how much does it cost?”

He was referencing his wines being made from grapes grown on ungrafted vines, an anomaly in Bordeaux.

“If you try a Bordeaux from 1860 [before phylloxera prompted the grafting of vines onto disease-resistant rootstocks] and 1960 you can taste the difference. Grafting changes the chemical composition of the wine.”

Source: Wine Searcher

Taste-Driven AI Algorithms Enhance Wine Selections

For wine enthusiasts, choosing a bottle of wine can be challenging when scanning unfamiliar labels, while shopping. Questions that come to mind: What does it taste like? What was the last one I bought that tasted so good? Vivino, Hello Vino, Wine Searcher and other apps let wine buyers scan labels to get information about the wine and read reviews of others. These apps have been built from artificially intelligent algorithms.

Using taste or other sensory inputs as data sources is entirely new.

Now, scientists from the Technical University of Denmark (DTU), the University of Copenhagen and Caltech have shown that you can add a new parameter to the algorithms that makes it easier to find a precise match for your own taste buds: Namely, people’s impressions of flavour.

“We have demonstrated that, by feeding an algorithm with data consisting of people’s flavour impressions, the algorithm can make more accurate predictions of what kind of wine we individually prefer,” says Thoranna Bender, a graduate student at DTU who conducted the study under the auspices of the Pioneer Centre for AI at the University of Copenhagen.

More accurate predictions of people’s favourite wines
The researchers held wine tastings during which 256 participants were asked to arrange shot-sized cups of different wines on a piece of A3 paper based upon which wines they thought tasted most similarly. The greater the distance between the cups, the greater the difference in their flavour. The method is widely used in consumer tests. The researchers then digitized the points on the sheets of paper by photographing them.

The data collected from the wine tastings was then combined with hundreds of thousands of wine labels and user reviews provided to the researchers by Vivino, a global wine app and marketplace. Next, the researchers developed an algorithm based on the enormous data set.

“The dimension of flavour that we created in the model provides us with information about which wines are similar in taste and which are not. So, for example, I can stand with my favourite bottle of wine and say: I would like to know which wine is most similar to it in taste – or both in taste and price,” says Thoranna Bender.

Professor and co-author Serge Belongie from the Department of Computer Science, who heads the Pioneer Centre for AI at the University of Copenhagen, adds:

“We can see that when the algorithm combines the data from wine labels and reviews with the data from the wine tastings, it makes more accurate predictions of people’s wine preferences than when it only uses the traditional types of data in the form of images and text. So, teaching machines to use human sensory experiences results in better algorithms that benefit the user.”

Thoranna Bender points out that the researchers’ method can easily be transferred to other types of food and drink as well:

“We’ve chosen wine as a case, but the same method can just as well be applied to beer and coffee. For example, the approach can be used to recommend products and perhaps even food recipes to people. And if we can better understand the taste similarities in food, we can also use it in the healthcare sector to put together meals that meet with the tastes and nutritional needs of patients. It might even be used to develop foods tailored to different taste profiles.”
The researchers have published their data on an open server and can be used at no cost.

“We hope that someone out there will want to build upon our data. I’ve already fielded requests from people who have additional data that they would like to include in our dataset. I think that’s really cool,” concludes Thoranna Bender.

Key Facts:
1. Wine apps are using AI algorithms to assist users in selecting wines based on labels and reviews.
2. Researchers integrated people’s flavor impressions into the algorithms for more accurate wine recommendations.
3. This approach can be extended to beer, coffee, and personalized food recommendations, benefiting various industries.

Source: Neuroscience News

Pernod Ricard UK Launches New Wine Brand “Greasy Fingers”

Pernod Ricard UK is disrupting the wine category with the launch of a new wine range “Greasy Fingers” which challenges traditional boundaries of wine and food pairings by ripping up the rule book and delivering two, bold wines, expertly crafted to cut through greasy food and provide the perfect match for gourmet fast food.

Greasy Fingers is a wine for moments of pure indulgence with friends and the brand is launching two varieties within its range. First up is Greasy Fingers Luscious Red 2022, a medium-bodied, fruit-forward blend of Shiraz and Grenache, with luscious cherry and strawberry flavours, as well as soft, approachable tannins. Second in the line-up is Greasy Fingers Big Buttery Chardonnay 2022, which boasts refreshing flavours of peach, vanilla, and cinnamon spice with a buttery mouthfeel.

Lucy Bearman, wine and champagne portfolio director at Pernod Ricard UK, said: “The wine category is ripe for disruption and Greasy Fingers goes back to the heartland of wine by pairing it with food in a way that breaks the traditional conventions of the category”.

She further added: “We believe passionately in a wine and food match made in heaven, but it doesn’t need to come with a white tablecloth and a qualification. This simple yet hugely effective pairing is about whipping up some burgers for friends to eat together at the weekend or indulging in a mid-week takeaway and putting your feet up, whilst enjoying a bold and unpretentious glass of wine.”

Launching in Sainsbury’s, Morrisons and Asda from this month with a £10 RRP, the brand will also be going live on Amazon and Ocado later this year. The launch comes at a time when Pernod Ricard UK has driven positive value share results in the Off-Trade for its top three wine brands, Campo Viejo, Brancott Estate and Stoneleigh, with all three brands delivering value share growth in the last 12 weeks. Greasy Fingers complements the wider Pernod Ricard UK wine portfolio with a disruptive proposition that aims to re-engage and recruit a young adult shopper into the category at a time when the number of wine drinkers under the age of 34 has been reduced.

Wine News: Trade in Wine and Vine Products Continues to Raise

The first edition of the Vine and Wine World Trade Forum was held a few weeks ago in Dijon, France. It has revealed that international trade in wine and vine-related products has grown significantly over the past two decades.

The market has also become more diversified as consumer tastes have changed. While traditional winemaking economies, such as France, Italy and Spain, maintain their dominance in wine exports, “new world” winemakers, such as Australia, Chile and the United States, are also making major inroads. However, the share of China as an importer has declined following a period of growth, possibly due to global disruptions, such as the COVID-19 pandemic.

According to the World Trade Organization, International trade in wine and vine products, have almost tripled over the past two decades. Its value steadily rising from US$ 17.7 billion in 2000 to over US$ 50 billion in 2021 and 2022. Wine accounted for the majority of this trade (76 per cent in 2022), while the remaining 24 per cent consisted of fresh and dried grapes and grape juice.

The “old world” continues to dominate wine exports with France, Italy and Spain holding the top three positions in both value and volume. From the “new world,” Australia, Chile and the United States are the main suppliers in terms of value, although their shares in the international market remain smaller than those of the top three.

On the imports side the primary wine-importing countries include Germany, the United Kingdom and the United States. They are closely matched in terms of volume, but the United States takes a clear lead in value. A surge in China’s wine imports began in 2005 and peaked in 2017, but it has more than halved since then. This decline may be due to short-term disruptions, such as the COVID-19 pandemic, as well as longer-term structural shifts, such as increased domestic production and possible changes in consumer preferences.

For further stats and details: https://www.wto.org/english/blogs_e/data_blog_e/blog_dta_20oct23_e.htm

Source: World Trade Organization