Posted: January 23rd, 2012 | By Neil Pendock | Posted in Uncategorized | Tagged as , , , , , , ,

If last year was an annus horribilis for WOSA, 2012 is starting off even worse for Stellenbosch spin doctors with an elegant evisceration of the embattled organization by Richemont chairman Dr. Johann Rupert at the annual Vinpro Information Day on Thursday

As JPR said “Ek glo WOSA doen fenomenale werk, maar mense koop nie wyn as gevolg van biodiversiteit nie.” After praising the phenomenal job that WOSA is doing, Johann trashes the flagship project they have spent millions on. That WOSA senior management was not present to explain their strategies to concerned producers confirms the increasing irrelevance of the organization. With the WOSA R25 million annual budget essentially frittered away (the latest disaster is bringing sommeliers to SA who will not buy a single bottle when they go home as the restaurant owner places the orders), the challenge for the industry is to protect sales made within SA.

An example of just how many opportunities SA wine is missing is given by Laibach, an estate on the R44 between Stellenbosch and Paarl. Last year a Chinese lady arrived by taxi for a tasting. Liking the Ladybird brand, she bought a small amount – R900,000 worth – enough to fill a container. Safely returned to China, she ordered another three, buying a quarter of the estate’s production, by chance. As winemaker François van Zyl noted, the German owners have scrapped the marketing budget this year and now don’t even bother to send bottles to local wine writers for assessment. Sales are essentially a random event.

An observation echoed at Vergelegen the year before when a Chinese jeweller arrived unannounced and also bought R900,000 worth of flagship Bordeaux-style blend V. Last year, the order was R2.2m (R1.8m after discounts) – also 25% of production – for the jeweller and five friends, untasted. Which makes the decision by WOSA to spend 4% of their annual budget in China look crazy. How many tasting room poppies in rokkies or kêrels in khaki can speak Chinese? The WOSA budget would be far better spent on Chinese lessons for SA tasting room staff.

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Comments

 

Anton

January 25, 2012 at 8:54 am

Neil,
Isn’t everyone missing the obvious?

Wine marketers should be focusing on the Black Diamonds in Gauteng.

I know for a fact they are not. Black women, in particular, offer a huge potential market. They need to be contacted, recruited and maintained as regular drinkers.

To those who would say “No, Ja, South Africans only want the cheap stuff” I would remind them that SA is the 5th biggest scotch whiskey market in the world…….

 

Neil Pendock

January 25, 2012 at 8:59 am

I think Distell’s results for the last 6 months of 2011 (earnings up 20-25%) will confirm your view Anton. But not only Gauteng – the whole of Africa is the new Promised Land. Something WOSA has yet to realize.

 

Ross Sleet

January 25, 2012 at 9:21 am

Many brands are focussing on the so-called Black market in Gauteng and elsewhere. Most of my clients have specific strategies that they are working on which focus on these sectors in particular, some with more success than others. My advice for brand owners is to treat this market as consisting less of Black Diamonds and more as being made up of a demographic group that needs/appreciates wine education (i.e. engagement by wine brands with them as consumers in the places that they buy and drink wine in), and which refuses to be treated as second class citizens quality wise, are brand conscious, and will move towards using wine in a general social context and not only as part of a singular drinking occasion. In short, the same as any other developing wine market world wide.

 

Anton

January 25, 2012 at 12:15 pm

Well said, Ross Sleet.



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