The Cape Wine trade show, held last month in Cape Town, brought together hundreds of wine buyers, importers, and industry professionals from around the world. Organized by Wines of South Africa, the event showcased the country’s progress in wine quality, consistency, and diversity over the past 15 years. Despite these advances, many international retail shelves and restaurant wine lists have yet to fully reflect the changes taking place in South Africa’s wine industry.
Cape Wine, now in its tenth edition, is held every three years and is considered a major event for the global wine trade. Attendees participate in tastings, dinners, and discussions that highlight both signature grape varieties and the country’s diverse wine regions. The event is unique in its scale and ambition, with a week-long program that extends beyond the main exhibition.
South Africa’s wine industry has grown significantly, supporting nearly 300,000 people and contributing about 1% to the country’s GDP, valued at 56 billion South African rand. The industry’s collective spirit is often cited as a key strength, with winemakers and producers working together to promote “Brand South Africa” on the international stage. This unity was emphasized by both government officials and industry leaders during the event, including the recently appointed Minister of Agriculture, John Steenhuisen, who pledged continued government support and partnership.
However, the industry faces challenges. Global market volatility, particularly oversupply in countries like Australia and New Zealand, has affected South Africa’s position in the commercial wine market. Buyers are able to source key grape varieties at competitive prices elsewhere, putting pressure on South African producers, especially at the entry-level segment. The UK market, a major destination for South African wine, has also become unpredictable due to changes in alcohol duty and shifting consumer preferences.
Despite these challenges, South Africa’s reputation for quality and value remains strong. The country is now the sixth-ranked wine exporter by value, accounting for 3.6% of global wine exports. While much of its wine is still exported in bulk, there is a growing focus on premium and bottled wines. The balance between volume and value is shifting, with exports to the UK now representing a higher share of value than in previous years.
Some producers are taking bold steps to reposition their brands. Oldenburg Vineyards, for example, has increased its prices to better reflect investment in quality, even at the cost of losing some listings. This strategy has led to higher profitability and new business opportunities. Others, like Journey’s End and Origin Wine, operate in both bulk and premium segments to maximize opportunities across different markets.
A recurring theme at Cape Wine was the need for stronger branding and more consistent messaging. Many buyers still associate South Africa with value wines, making it difficult for premium producers to command higher prices. Industry leaders argue that South African wines deserve greater respect and higher price points, especially in restaurants and independent retail. Some merchants, such as Cambridge Wine Merchants, are already listing South African wines at a wide range of prices, including premium offerings.
Strategic partnerships between UK importers and South African producers are becoming more common. Companies like Brand Phoenix and Off Piste Wines have established long-term collaborations with local co-operatives and winemakers, securing reliable supply and building brands that can compete in international markets. These partnerships allow for better planning and adaptation to changing consumer demands.
Innovation is also playing a role in keeping South African wines relevant. Producers are experimenting with new grape varieties, such as Malbec, and exploring emerging regions like Piekenierskloof. There is also interest in alternative wine styles, including orange and Pet Nat wines, to appeal to evolving consumer tastes.
During a panel debate at Cape Wine, industry figures discussed the importance of presenting a unified message and adapting to market needs. They highlighted the role of sustainability, social empowerment, and wine tourism in building South Africa’s global reputation. The consensus was that while buyers reflect consumer demand, producers must also assert what they can offer and set clear expectations for quality and pricing.
The Cape Wine trade show demonstrated both the progress and ongoing challenges facing South Africa’s wine industry. As producers continue to push for higher quality and greater recognition, the support of international buyers, retailers, and sommeliers will be crucial in elevating South African wines on the world stage.
Dining and Cooking