While South African producers like to compare their finest tipples to top examples like Bordeaux blends or New Zealand Sauvignons, it is pertinent to also focus on the lower, value for money price points – those wines competing in large categories for limited space on supermarket shelves.
With international wines now readily available in South African supermarkets – albeit on a small scale – producers should be using this opportunity to compare these budget wines to their own offerings. After all, that is what the consumers will be doing.
Checkers, Ultra Liquors and Woolworths have some of the best imported selections, and in an attempt to see how these compare, a panel of judges* tasted 11 best-selling supermarket imports, ranging between R40 and R80. At the time of going to press, this roughly translated to between £2.3 and £4.5, or US$3.5 and US$7.
Checkers launched their Wines of the World concept three years ago and the selection has grown to include more than 50 wines from 10 countries – the latest addition being a Pinot Noir from Romania. National wine buyer for the Shoprite Checkers Group, Stephanus Eksteen, explains that their aim is not to replace local wines, but rather to educate and expose local consumers to imported wines at affordable prices.
According to Ivan Oertle, buying manager for wines at Woolworths, their customers feel that the imported wines compare very favourably on every level to the local offerings – “the fantastic sales alone show this point,” he says.
However, Mark Norrish, general manager of the wine division at Ultra Liquors, believes that with the weakening rand, imported wines at lower price points will become less popular in the next three years. “Imports are getting more and more expensive – especially at lower prices,” he says. “Consumers in South Africa generally also prefer the consumer profile of wines produced locally and foreign brands within a certain price category are merely a sideshow.”
Tasting the selection of wines from Italy, France, Germany, Australia, Chile, Portugal, Argentina and Spain, it is interesting to note that, in general, the international reds within this price range show great value for money.
The top scorer was a very easy drinking Italian Red from Woolworths, selling at R54,95 for a one litre bottle. This wine was described as unassuming and attractive, with ripe red fruit and a fresh, crunchy palate.
Another red that impressed, was a Portuguese blend, Atlântico Vinho regional Alentejano, selling at R44,99. This wine is made from Aragonez, Trincadeira, Alicante Bouschet and Entre Outras.
At 12.5% alcohol, it is a pleasant and light sipper. The common thread among most of these top rated reds is freshness, lightness and a bright red fruit core. For Roland Peens, director of Wine Cellar, some of these wines are simply delicious and offer great value for money. “South African winemakers should taste these wines – especially the reds. They need to take note of the styles,” he says.
On the white side, a Riesling from the Pfalz in Germany performed best, primarily because of its freshness and good balance. This, while the Pinot Grigio-based Italian whites were fairly neutral and past their youthful prime. The German Riesling may be good value for the cultivar at R79,99, but it isn’t difficult to find an even better value for money South African white wine between R40 and R80.
In the end, the overall feeling from the judges was that South Africa’s budget white wines are generally much better than the reds, with the easy drinking, value for money international red sippers posing more of a threat in the market.
South Africa is currently the fifth most important country in the UK off-trade and it is not surprising that our white wines are better sellers by volume and value than our reds. According to AC Nielsen statistics, the volume sales of South African white wine in 2013 was 39 950 000 litres, compared to 35 276 000 litres for red. With regards to value, South African white wine sales reached £250 619 000 in 2013, compared to £222 985 000 for red.
When it comes to price categories, the £3 to £4 and £4 to £5 categories are most important for South African sales, both in terms of value and volume of 750 ml bottles. The biggest competitors within the £3 to £4 category for value and volume are Italy, Spain and Australia, while the USA replaces Spain both in terms of value and volume in the £4 to £5 category.
Benchmarking against relevant competition within specific price categories is crucial and with the affordable and readily available selection of lower price point imported wines in our local supermarkets, South African producers don’t have any excuses.
It is no secret that South Africa has a lot to offer when it comes to value for money, but this is no time to be complacent. With the delicious drinkability and overall quality of particularly international red wines at lower price points, it is crucial for producers to keep benchmarking, learning and evolving in order to stay relevant.
*The tasting panel was chaired by Higgo Jacobs, with Roland Peens, Frans Smit, Cathy van Zyl and Edo Heyns. Sarah-Jane Jackson also joined the panel as a ‘consumer taster’.
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Ranking
International wine
Vintage
Shop
Price
Average score
1
Italian Red 1 litre Botter Casa Vinicola – Italy
NV
Woolworths
R54,95
15.42
2
Dr. Deinhard Deidesheim Riesling Trocken – Pfalz, Germany
2012
Checkers
R79,99
15.25
3
Atlântico Vinho regional Alentejano – Portugal
2011
Checkers
R44,99
15.17
4
Santa Julia Malbec – Mendoza, Argentina
2013
Checkers
R49,99
15
5
Jaume Serra Cava Brut Traditional Method – Spain
NV
Ultra Liquors
R54,99
14.92
6
Casillero del Diablo Merlot – Chile
2011
Ultra Liquors
R69,99
14.83
7
Lakefield Cranswick Chardonnay – South Eastern Australia
2012
Checkers
R64,99
14.67
Lamberti Delle Venezie Pinot Grigio – Veneto, Italy
2012
Woolworths
R59,95
14.67
9
Italian White 1 litre Botter Casa Vinicola – Italy
NV
Woolworths
R54,95
14.33
Domaine Grier L’Aqueduc Côtes du Roussillon Shiraz/Carignan/
Grenache – France
2010
Woolworths
R79,95
14.33
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Corked
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