WeeklySA_AdminSCENARIO: Economic challenges, altered consumer behaviour, looming tariff wars pose a major concern for the wine industry…
By Len Maseko
Thousands of wine industry personalities from across the globe will gather at the international wine and spirit trade fair – ProWein Dusseldorf 2025 – which takes place in Germany from March 16 to 18.
This year the theme of the annual show is “Discover The Taste of Tomorrow”. The wine fair covers the latest trends and innovations shaping the world of wine and attracts more than 5 500 exhibitors and over 61 500 visitors to sample wines from a whopping 300 growing regions from across the world. During the three days of the event, experts and industry personalities will discuss the future of wine and spirits, including sharing insights into the upcoming buying season and speculate about who will spearhead sustainable organic wine growth and supply.
For 30 years, ProWein has been the only international trade fair for wines and spirits that intensively covers the entire global market.
This year, the fair takes place against the background of economic challenges and altered consumer behaviour which continue to be a major concern for the wine industry.
How to successfully counter these concerns is the subject of the latest ProWein Business Report, which will certainly drive the tone of discussions at the fair.
Commissioned by ProWein, Geisenheim University polled over 1 300 experts from more than 30 countries on the general situation in the industry.
The Report for 2025 reportedly flags up the most important challenges facing the industry amid the on-going economic crisis. At the same time, it proposes solutions that experts believe might help wine distribution adapt to changing consumer needs.
“The wine industry is at a key turning point. While the worst impacts of rising costs for producers seem to have been overcome in most countries, producers and wine merchants now face the challenge of adapting to rapidly changing consumer preferences,” explains Prof Simone Loose, head of the Institute for Wine and Beverage Business at Geisenheim University
“The development of new products and innovative communication strategies will decide whether wine remains competitive versus other beverages. It is important for the sector’s value creation to continue conveying the benefits of premium products to both today’s and tomorrow’s generation of consumers.” For its part, South Africa’s wine export sector weathered a steadily contracting global wine market to reflect modest value growth in 2024.
Providing the country’s wine export assessment, Wines of South Africa (WoSA) CEO Siobhan Thompson confirmed that year-on-year, total export sales, comprising packaged and bulk wines, rose 4% in US$ value to US$562m (R10,3 billion) on virtually unchanged volumes of 306,2m litres.
Packaged wine sales increased 4% in value to US$430m (R7,9 billion), on 123,4m litres (+5%), while bulk sales grew 6% to US$132m (R2,4 billion) on lower volumes of 182.8m litres (-3%).
There has been an ongoing decline in global wine consumption in recent years, dropping some 10% between 2008 and 2023, according to the International Organisation of Vine and Wine (OIV). Per capita consumption in the UK, South Africa’s biggest market, peaked in 2009. In the US, the world’s biggest wine market by value, per capita consumption has declined since 2017.
The decreases had been further exacerbated over the past year in an environment of mounting geopolitical tensions, with inflation continuing to erode the disposable income of wine lovers, Thompson pointed out.
She said the growth in South Africa’s packaged wines, “critical to reputational enhancement, had been very encouraging” as evidenced in several key focus markets, such as the Netherlands, Canada and Japan, and in Africa, led by Tanzania, Zambia, Ghana and Mozambique.
Thompson said WoSA was excited – though – to be participating in international events this year, such as ProWein. She concluded that, given the likely continued austerity in consumer spending and the potential impact of any tariff wars that could play out this year, it was difficult to project how exports would fare.
In an ominous development underscoring Thompson’s predictions of geopolitical uncertainties, this week four US congressmen asked President Donald Trump to revoke South Africa’s access to the United States market through the African Growth and Opportunity Act (AGOA) as well as consider breaking diplomatic relations, accusing it of undermining American interests globally.
In a letter dated February 11, Republican congressmen Andrew Ogles, Tom Tiffany, Joe Wilson and Don Bacon said South Africa “had a vendetta against Israel, was allegedly committing human rights violations and was friendly with China’s Community Party”.
Inevitably, this development poses a serious threat to several sectors within the country as AGOA gives South Africa duty-free access to the US market for about 20% of its exports. This has helped make South Africa the US’s largest trading partner in Africa.
Leading exports from South Africa to the US are citrus fruit, nuts, wine, grapes, edible ice, ethyl alcohol, cane sugar, fruit juices as well as preserved fruit and vegetables, each with more than $10m (R183 million) in US exports during 2022.
For now, it is a tense wait for the local wine industry and other sectors as the coming weeks of uncertainty play themselves out.
EVENTS
GROOTE POST IN BLOEM
Groote Post estate will host a canapé and wine tasting evening at Nebo Venue in Bloemfontein on February 20.
Groote Post is a historic 18th century farm on the Cape’s West Coast where winemaking traditions have been revived by the Pentz family. Situated on the West Coast in the Cape, the winery enjoys cool climatic conditions of the Darling Hills that yield superlative fruit.
The event, which starts at 18h30, will involve tasting of fine wines and delectable canapes hosted by Peter Pentz from Groote Post. The venue is situated on 6 Avenham Street. Upon arrival, guests will be greeted with a refreshing glass of Cap Classique, setting the tone for an evening of indulgence and sophistication. Peter Pentz will guide attendees through a tasting experience featuring four wines. Tickets are priced at R370 per person and can be purchased through Quicket.
PRETORIA’S FIJNWYN FEST
Gauteng’s annual event – Fijnwyn Wine & Food Market – is back and will take place at its usual venue in Pretoria East on March 21 and 22.
It will take place at the Shokran Events Venue, situated at 99 Luiperd Street Tiegerpoort, Pretoria East, and will involve a celebration of exceptional wines, mouth-watering food and live music. Guests will be exposed to 30 wine estates showcasing their finest offerings.
Each participating farm will have at least one bubble to taste, along with a selection of white, rosé, and red wines. There will also be an array of delicious street food options that perfectly complement the wines, offering a culinary adventure for your taste buds.
The line-up includes vibrant music that will set the perfect backdrop for a day of relaxation and enjoyment. Tickets cost R220 a person and includes a tasting glass and access to unlimited wine tastings, so you can sip and explore to your heart’s content. The event will start at 10am and last until 5pm.
PRETORIA GIN FEST
The annual Schweppes Gin Festival is back – and this year visitors to the event can expect an incredible variety of craft gin brands to indulge in.
There will also be an assortment of food trucks available, and of course some of SA’s top DJ’s on the decks. The event will once again be hosted on the lawns at the beautiful Fire & Wine venue in Pretoria East. Camp chairs and picnic blankets are welcome.
Tickets cost from R290 (general access); R550 (sip and pain) and R850 (VIP, only 50 available). They include a complimentary gin cocktail on arrival, and full bottle of gin for VIP patrons in a comfortable setting. Food options for every taste and budget available on the day. Gates open at 12:00 and the show closes at 22:00.
ZIMBALI HOSTS GROOTE POST
Cape West Coast winery Groote Post will treat guests to an exclusive evening of wine tasting and education at Zimbali Country Club in Ballito, north of Durban.
Nestled within Zimbali Country Club’s forest canopy is the Crowned Eagle Restaurant, which is the venue for the evening of wine tasting and education, hosted by Peter Pentz of Groote Post. Located on the Cape’s West Coast, Groote Post is a historic 18th-century farm renowned for its winemaking traditions, unique vineyard conditions, and award-winning wines.
This event will offer guests the opportunity to indulge in fine wines, explore your palate, and learn about the artistry and heritage behind Groote Post’s exceptional offerings. The cost is R250 per person. Reserve your spot via foodandbev@zimbalicc.co.za or call 032 538 1041.
WINELANDS HORSE FEST
Experience two days of action-packed equestrian displays, shopping, food, and live music at the Winelands Horse Festival 2025 at Mistico Equestrian Centre in Paarl tomorrow and Sunday. Whether you’re a horse lover or just looking for a fun weekend out, this festival has something for everyone (26 Performances over the weekend).
Activities include a full-day of equestrian displays (9am – 6pm) – Dressage, Show Jumping, Eventing, Endurance, Working Equitation, Tent Pegging and more. Live music performed by John Casey tomorrow night is one of the highlights, including market shopping of equestrian gear at unique lifestyle stalls. Featured will be local favourites like Ayama Wines, Bee-Ristas, Jaffel Hoekie, Holy Macaroni & more. There will be special appearances by the world-famous South African Lipizzaners and top riders like Nichola Mohr, Lizelle Garland and Dawn Newman.
A portion of ticket sales goes to SARDA (South African Riding for the Disabled Association. Tickets costing between R150 and 300 a person available via Quicket.
GIN FEST IN VAAL
Hordes of gin lovers – donned in their favourite jeans – will enliven the ambience at the Gin and Jeans Tasting Festival, which takes place at Vaal’s The Palace in De Deur on March 22.
They will be exposed to the world of gin and embark on a journey through the diverse and fascinating realm of the spirit at our exclusive tasting festival! Whether you’re a seasoned gin enthusiast or a curious newcomer, there’s something for everyone to enjoy. The event starts at 2pm. Tickets cost between R30 to R100. – Compiled by Len Maseko
