South African wine volumes have overtaken French for the first time, according to latest Nielsen UK off-trade figures.
In January, volumes of Cape wines stood at 12.3 million cases, which was just enough to push France into fifth place by the tiniest of margins: four cases.
But with French volumes falling 12% in the year to 23 January and South African climbing 20%, the trade is expecting the gap to widen.
France still retains the upper hand from a value perspective for now. Its sales in the take-home sector fell 5% to £726m during the year, while South Africa's grew 21% to £568m.
"Given that South Africa only really entered the international wine market after 1994, this is amazing progress to have made in a short space of time considering the strength and history of its European competitors," said Sainsbury's wine buyer Michelle Smith.
The growth had been driven by a combination of quality wine, affordable prices and South Africa's increasing popularity as a holiday destination.
South Africa's average off-trade bottle price is £3.86, according to Nielsen comfortably below the market average of £4.32.
Steve Barton, director of Brand Phoenix, whose First Cape brand leads the South African sales charts, said the country's value-quality ratio had been "the most crucial point". The rand's rise against sterling could affect prices, he predicted, but added "there's still quite a bit of room before South Africa reaches the market average".
The World Cup in South Africa this summer would also keep South Africa's profile high, he said.
In January, volumes of Cape wines stood at 12.3 million cases, which was just enough to push France into fifth place by the tiniest of margins: four cases.
But with French volumes falling 12% in the year to 23 January and South African climbing 20%, the trade is expecting the gap to widen.
France still retains the upper hand from a value perspective for now. Its sales in the take-home sector fell 5% to £726m during the year, while South Africa's grew 21% to £568m.
"Given that South Africa only really entered the international wine market after 1994, this is amazing progress to have made in a short space of time considering the strength and history of its European competitors," said Sainsbury's wine buyer Michelle Smith.
The growth had been driven by a combination of quality wine, affordable prices and South Africa's increasing popularity as a holiday destination.
South Africa's average off-trade bottle price is £3.86, according to Nielsen comfortably below the market average of £4.32.
Steve Barton, director of Brand Phoenix, whose First Cape brand leads the South African sales charts, said the country's value-quality ratio had been "the most crucial point". The rand's rise against sterling could affect prices, he predicted, but added "there's still quite a bit of room before South Africa reaches the market average".
The World Cup in South Africa this summer would also keep South Africa's profile high, he said.
No comments yet