Happy Birthday South Africa wine. It won’t be easy to penetrate the U.S. market
Monday was the 350th birthday of South Africa’s wine industry. The country is the world’s ninth biggest wine producer, and Wines of South Africa (WOSA), a trade group, is hoping to “reach a million people…worldwide” in promoting its wines.
Have you ever bought a South African wine? Neither have I. That’s exactly the problem for the South African wine industry, which has formed a brand new trade group, USA [Union of South Africa] Producer Association (USAPA), to promote consumption of South African wines here in the States.
The 100-member trade group, which had its first meeting on Jan. 20, the same day Barack Obama was inaugurated, could well have adopted the President’s catch-phrase of “Yes, we can.” Their stated aim: “to build a South African presence in the US market, set to become the biggest wine importer by 2012. We believe our mutual co-operation will help considerably to augment the impact of the South African wine category in this exciting market.” The South Africans have a certain resentment toward their fellow Commonwealth brethren, the Australians, “who just over a decade ago were only a fraction of the size of the South African industry,” but who conquered the American market through their Shirazes, Chardonnays and Yellow Tails. “Perhaps the time is ripe, now that Australia is starting to lose…consumers…, to make a relatively bigger noise in the right corners of the US market,” concludes a South African marketing guru, Greg Castle. He suggests appealing to “those [Americans] in more open minded wine circles, less blindly brand loyal to Californian or French wines; opinion leaders prepared to explore and try something new.”
Well, this is all well and good, and Castle and the South Africans are doing what they should be doing in promoting their country’s wines. But South Africa has a long way to go before it hits pay dirt the way Australia and New Zealand did in America. For one thing, South Africa has no particular image to hang its wines on, as Australia did and does. Australia is Oz, the Land Down Under, populated by friendly, grinning, good-looking types who toss shrimp on the barbie and who, descended from criminals, have a roguishness that appeals to Americans. But what is South Africa famous for, except (bless him) Nelson Mandela?
Then too, South Africa hasn’t attached its name to any particular wine types that aren’t already famous from other countries, with the possible exception of Pinotage — and who cares about Pinotage? Their Chenin Blancs are good, but I don’t see America being overwhelmed with Chenin Blanc-mania.
I don’t taste a lot of South African wines, so I went to Wine Enthusiast’s database to see what our other editors — primarily Roger Voss — think. Roger’s top-rated South African wines mostly are expensive ($30-$93), which is not the best way to break into the recessionary U.S. market. Castle wrote that “Once [Americans] get to try ‘Brand South Africa’, it must be ensured that they are suitably impressed by the value for money (not to be confused with cheap price) relative to the exceptional quality,” but it is not clear to me that “value for money” is a distinguishing feature of South African wines, the way it is with, say, Chile. Shifting “brand loyalty” is one of the most difficult tasks facing marketers, especially when economic times are uncertain; people tend to stick to the tried-and-true.
Finally, Americans already face a bewilderingly vast array of countries that produce good wine. They’ve shown their willingness to expand beyond California (and old Europe) to Australia, New Zealand, Chile and Argentina, not to mention wines from their own backyards; all 50 States now possess bonded wineries. So I just don’t see U.S. consumers embracing wines from South Africa in any number. I could be wrong.
If I were giving the South Africans advice, it would be to personalize their wines, to attach them to a famous individual, a celebrity endorser, so to speak. In 21st century America, the way for trends to start is through stars. And South Africa could do no better than President Obama, who famously celebrated his November electoral victory by popping open some Graham Beck Brut, a South African methode champenoise bubbly. USAPA ought to be announcing that in every corner of the U.S. market.