UK Export Meltdown – Confusion Continues

A press release from Wosa (Wines of SA, the exporters’ mouthpiece) on the meltdown of exports to the UK made the front page of the Business Day site today and threw petrol on a smoldering fire. Quoting Jo Wehring, Wosa’s UK Market Manager, Business Day reports “Research by consulting firm ACNielsen shows the value of South African wine sales has dropped by £3 a bottle in the UK in the year under review. This figure translates into 48,5% of lost revenue for wine exporters…” Quite an achievement, given that most SA wine in the UK retails at £2.99, so presumably SA exporters pay UK winos 1p a bottle to drink their stuff.

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It looks like BD failed to understand the Wosa briefing on which the story was based: “according to recent AC Nielsen data, the major drop in value for South Africa in the UK market is sub £3.00, falling by 48.5% in the course of a year.” UK supermarket wine is sold in infamous price categories and it was the £3.00 one which fell by 48.5%.

Some other “facts” also look dodgy. According to BD, SA is the world’s 8th largest wine grower “produces about 1,6-million tons of wine annually. The bulk [no pun intended] of it goes to the UK.” An incredible improvement in production as Wikipedia reports 272,000 metric tons as recently as 2006 while big drinkers the Brits no doubt are, I always thought SA was the largest market for SA wine. But I may be wrong.