A study of the South African wine market with specific reference to the influence of low price wine on the industry

Cornelissen, Hannalize (2004-12)

Thesis (MBA)--Stellenbosch University, 2004.

Thesis

ENGLISH ABSTRACT: The wine industry in South Africa has the potential to produce wine of world-class quality, but simultaneously large volumes of inferior quality wine are produced annually and sold in the market in cheap, low-quality packaging, making up the bottom end of the alcoholic beverage market. The study investigated the South African wine industry to determine where the industry is headed. The document focussed on inexpensive wine that is sold in cheap packaging to determine who drinks it and what the effect is on the wine industry. The methodology followed was to perform a literature study of the current situation of the South African wine industry. Personal interviews were conducted with members of wineries and companies to determine if the sales of foil bags influenced the sales on their products. The study found that the packaging, in which the inexpensive wine is sold is not the problem, but rather the quality of the wine that goes into the cheap packaging. The banning of wine sold in foil bags from the market in July 2005 shows a commitment from the industry to improve the image of the industry. It will, however, not solve the social problem of alcohol abuse in South Africa, as the profile of the inexpensive wine drinker indicated that if cheap wine is not available, they would change to any other form of cheap alcohol that is available. It is recommended that the quality of the products sold in cheap packaging must be improved. To improve the quality of the product, quality standards must be put into place in the industry that suppliers must adhere to. Policing in the industry needs to be improved to ensure that everybody adheres to the regulations. The industry must help with policing by mobilising industry resources.

AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse wynindustrie het die potensiaal om wyn van wêreldklas gehalte te produseer. Tesame hiermee word wyn van lae kwaliteit jaarliks geproduseer wat in goedkoop, lae kwaliteit verpakkings in die mark verkoop word. Dit maak die laagste deel van die alkoholiese mark uit. Die navorsing het gekyk na waar die Suid-Afrikaanse wyn industrie heen op pad is. Die dokument het gefokus op die goedkoop wyn wat verkoop word in goedkoop verpakkings, om te bepaal wie dit drink en wat die effek daarvan op die mark is. Die metodologie wat gevolg is, was om 'n literatuur studie te doen van die huidige situasie in die Suid-Afrikaanse wynindustrie. Persoonlike onderhoude met lede van kelders en maatskappye is gedoen om te bepaal of die verkope van goedkoop wyn in goedkoop verpakkings enige invloed het op hulle markte. Die studie het gevind dat die verpakkings waarin die goedkoop wyn verkoop word nie soseer die probleem is nie, maar eerder die kwaliteit van die wyn wat in die goedkoop verpakking gebruik word. Die verbod op die verkope van wyn in papsakke vanaf Julie 2005 wys die verbintenis van die industrie om die beeld van die industrie te verbeter. Dit sal egter nie die sosiale probleem in Suid-Afrika oplos nie, aangesien die profiel van die goedkoop wyndrinker aandui dat wanneer goedkoop wyn nie beskikbaar is nie, hulle enige ander vorm van goedkoop alkohol sal drink wat wel beskikbaar is. Dit word aanbeveel dat die kwaliteit van die produk wat in goedkoop verpakkings verkoop word, verbeter word. Om die kwaliteit van die produk te verbeter moet daar kwaliteitstandaarde in plek wees waaraan die verskaffers moet voldoen. Polisiëring in die industrie moet verbeter word om te verseker almal aan die regulasies voldoen. Die industrie moet help met polisiëring deur die mobilisering van industrie hulpbronne.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49860
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