• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Analysis of the South African Wine Industry

Extracts from this document...


The South African Wine Industry Competitors: Many of the large South African 'players' in the industry have begun to carve out US growth. Despite exports decreasing by 3million cases, shipments to the US rose by 17%. Distell and its 'Two Oceans' label are the largest exporters of premium wine in SA and intend to reach a critical mass in the US through a major volume driver. Industry experts state that SA does not need a huge new brand but rather a critical mass on the volume side to help drive the category. SA needs to develop its own unique styles rather than try to compete against the likes of Chile as they lack in vineyard scale. Elegant new styles of Pinotage are what have been exciting consumers who are willing to pay a premium for wines, which they view as fantastically good-value when compared to France. Climate: A number of acute water shortages took place in the Western Cape over the last few years, driven predominantly by changing weather patterns and rapid urbanization which is a concern. In the long-term, wineries won't be able to expand their volumes, however, can definitely look at using their energies to improving their quality. This year's harvest was "short, intense and an exceptionally difficult year from a logistical point of view," owing to such weather conditions. ...read more.


Agility - One of the main ways to achieve an agile response lies upstream of the company, in the quality of rationalized supplier relationships, which can be achieved in SA. By reducing complexity and forging strong relationships with suppliers, W&W will be able to become agile. There needs to be an exchange of information on demand and inventory levels along with collaborative working relationships across the entire chain. W&W could incorporate an emergency delivery service via a logistics provider if demand begins to suddenly increase, providing customer satisfaction over the standard cheaper delivery. Adaptability - Not only a requirement for success but an enabler of profitable growth by shortening the time needed to respond to customer demands. W&W should look to build stocks of finished products in order to help rapidly service the market needs especially being such a distance from the US. These stocks will then be potentially life saving for W&W if there is a bad harvest. Alignment - The supply chain strategy should represent W&W corporate strategy and drive alignment throughout the supply chain on objectives and aspirations from the grape farmers to senior managers through clear communication. This must be handled sensitively in SA to make sure that everyone involved understands. ...read more.


2 (2011) Annual Production (Gross Litres) 827.5 million (2011) 920 million (2011) 1,870 million (2010) Annual Export (Gross Litres) 725.3 million (2011) 950 million (2011) 417 million (2010) World Ranking in Wine Production 7th or 3% overall volume (2011) 5th 4th or 10% (2011) Getting Electricity (x/183) 124 (2011) 39 (2011) 17 (2011) Employees associated with the industry 275,606 (2011) n/a 1.1 million (2010) Litres exported to the USA 9,969,575 (2010) n/a n/a Wine Sale growth to the USA (%) 20% (2009-10) 29% (2011) 2.2% (2009-10) Trade Agreements SA Chile USA WTO member WTO Member WTO member FTA with the EU FTA with the EU FTA with 17 countries AGOA FTA with the US TIFA's New Member to BRICS BIT's Zero Tariffs to SACU Summary of Findings - From this selected statistical point of view, the data suggests that the USA would be the best country to expand into. However, these figures do not represent W&W's objectives and does not take into account market saturation, competitors or gaps in the market. These results are a simple overview and we cannot generate a prediction from these alone. Chile's results are noteworthy; due to a high GDP growth rate, low corruption, knowhow of how to export and positive ties with the US wine industry and population. SA cannot be discounted at this stage either. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Case Study of South African Breweries.

    Many believe that for a Brewery the size of South African Breweries and with such international presence the company needs to have a major brand in the developed markets. Whilst in South Africa there is a strong presence of the Beer, Castle lager and of other such alcoholic fruit juices,

  2. The South African Breweries (SAB) has been operating since 1895 and holds 98% of ...

    Underlying margins grew strongly, and volumes in Poland & China were both up over 30%. As SAB's strategy to acquire and develop beer operations in selected international markets grows with earnings and volumes rising as seen in their annual report, the desire to merge becomes advantageous as a way to add profitable growth potential.

  1. Market Analysis - Cement industry in India

    89.02 102.90 Investments 1398.11 1415.26 Inventory 539.95 548.89 Receivables 429.65 497.85 Other Current Assets 969.09 556.52 Balance Sheet Total 6600.62 6281.73 Liabilities Rs cr Rs cr Equity Share Capital 91.67 91.67 Reserves 2879.37 2615.21 Total Debt 2040.12 1959.59 Creditors and Acceptances 552.69 609.03 Other current liab/prov.

  2. Marketing Analysis of the Carbonated Soft drink Industry in Thailand

    We have not to mention that the taste is actually palatable. The cola from Red Bull is a unique blend of ingredients, all from 100 % natural sources. In addition, it is the only cola which contains both the original Kola nut and the Coca leaf.

  1. export policy

    This makes it, after Norway and Iceland, the most sparsely populated country in Europe." 18 Population aging has had many negative effects for Finland. Finland also has a problem with uneven population distribution in the country. There are more people living in the south of Finland which has led to overcrowding and negative effects for the environment and social conditions.

  2. Analyse and evaluate the industry environment in which Marks and Spencer operates

    Social responsibility 5.1 8 Quality of management 5.7 7 Financial soundness 4.9 8 Long-term investment value 4.6 11 Quality of products/services 6.9 4 Globalness 5.6 (Source fortune.com) Table 2.3 indicates that M&S Exceed Industry averages in terms of innovativeness, employee talent, and quality.

  1. PESTEL analysis on the external business environment of Malaysia based whisky industry.

    The advertising expenditure of the whisky in Malaysia is expected to be dropped as government proposed to impose service tax on paid television broadcast services in future. This will definitely cause the fall in the will of whisky manufacturers and sellers to advertise through the powerful media, television.

  2. Starbucks Complete Analysis

    Energy used for the coffee equipment, water used to clean and to make the beverages, among other fixed costs are very high for companies such as Starbucks, Caribou Coffee and McDonalds that have many stores around the US and the world.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work