SA’s wine industry put the brakes on sliding exports in 2012, lifting volume 18% in the 12 months to November. It was a welcome recovery after a volume decline of 13% between 2008 and 2011, but one not greeted enthusiastically by all industry players.

The problem is the huge swing to bulk wine exports at the expense of packaged (bottled and boxed) wine products. Data from SA Wine Industry Information & Systems (Sawis) shows bulk wine export volume up 47% in the 12 months to November and packaged volume down almost 8%. Overall bulk exports accounted for 59% of total volume, up from 49% in 2011 and only a third in 2005.

“International buyers are acquiring large volumes of quality bulk wine, especially white wine, in SA at present,” says Erhard Wolf, Distell’s GM of grape and wine supply. Driving demand are poor grape harvests in Spain, France, Italy and Argentina, which have driven global stock levels to their lowest in decades.