South Africa: From cheap bulk wine to excellent top wines

Wednesday, 11 January, 2023
Meiningers, Clemens Gerke
South Africa's wine industry has long oscillated between cheap bulk wine and excellent top wines. Crises and successes seem to constantly accompany South Africans.

Facts and figures

Between 2011 and 2021, South Africa's vineyard area shrank by 10% to 90,500 ha. There is one main reason for this: the lower profitability of viticulture compared to other agricultural products.

Grape growers

This is also shown by the fact that the number of grape growers has dropped by 26% in the same period. Small producers in particular stopped growing grapes. A process that will continue due to economies of scale, since most grape producers (983 or 37.6%) still produce less than 100 tonnes. Another 33.9% do not reach 500 tonnes.

Wine producers

The situation is different for wine producers. The number of cellars also declined between 2011 and 2021 to 536, but the dynamic is nowhere near as strong (- 8%) and the trend is not steady. For example, in 2021, some private businesses reopened, while some wine traders closed their doors.

Renting winemakers

In addition, there is the phenomenon of 'renting winemakers', who are responsible for a lot of dynamism in the South African wine scene. They do not have the capital for their own cellar but rent barrels and buy wine from winemakers before using their know-how to produce sometimes spectacular wines. Hence, the number of producers entering the industry is even higher.

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