In a bid to build on South Africa’s extremely
successful track record in the Netherlands and develop
sales in the country’s premium and more profitable
arena, Wines of South Africa (WOSA) is embarking on
a new marketing strategy.
With a strong accent on consumer and trade education
and wine tourism, it will focus on South Africa’s
consistent and reliable populist brand champions,
its estate and icon wines. The intention is to address
more vigorously the potential for packaged wines in
the €3 to €5 price segment and higher.
The programme follows on extensive research undertaken
for WOSA by international agribusiness specialist
Arend Heijbroek of Rabobank International, together
with wine consultant Cees van Casteren.
Its goal is to strengthen South Africa’s already
well-entrenched position in the Dutch market, where
it is the largest New World player and second only
to France. In 2008, South African wines accounted
for 18,7% of retail sales volumes.
“However, we want to shift from building volume
to building value in this critically important market,
which is one of the top four destinations for South
African wines,” says WOSA CEO Su Birch.
“Currently, South Africa is over-represented
in the market below €2, and while it is trending
well in Holland’s €5 to €8 segment,
it has not fully realised its potential in the mid-priced
band, where there are still many opportunities on
which local producers can capitalise.”
This, she believes, will require a concerted effort
to build distribution partnerships for both on and
off-consumption channels. Producers will also need
to collaborate closely and work collectively towards
enhancing the country’s reputation for quality
and exciting wines across the stylistic and price
spectrum. “We have to establish a positioning
of uniqueness that defines us and separates us from
our competitors.”
She says the new programme will be underpinned by
the Variety is in our Nature positioning that highlights
South Africa’s diversity of wine style, wine-growing
terrain and cultures. In addition to advancing the
cultural and historical links between South Africa
and Holland, it will concentrate on features such
as the country’s highly progressive principles
of production integrity applied throughout the wine-growing,
winemaking and wine marketing processes and that promote
sustainability and conservation.
“This is an approach that is serving us well
in the UK, where South Africa continues to consolidate
its position and remains the fastest-growing player
in the market.”
The Dutch campaign will be led by South African marketing
specialist Annette Badenhorst, who spent five years
representing South African wines in New York, where
she worked for Cape Classics before moving to Amsterdam
two years ago to represent a number of South African
brands.
“Her exposure to intensely competitive markets,
as well as to a number of South African producers
gives her the appropriate breadth of experience for
the new phase in the development of South African
wine in the Dutch market,” says Birch.
She adds that that the timing of the new campaign
is particularly apposite given the widespread interest
in South Africa and the 2010 FIFA World Cup, with
the Netherlands having qualified to play in next year’s
tournament. “This is translating into great
enthusiasm around South Africa, and could also result
in higher than usual tourism to our country, which
should impact positively on our wines.”
According to the Department of Trade and Industries,
South Africa’s wine exports rose in value from
R4,7bn in 2007 to R6,2bn in 2008.
