China International Import Expo: South African wine producers seek opportunities in China
Updated 10:09, 31-Oct-2018
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South African companies are preparing for November's China International Import Expo in Shanghai. For many businesses, the event is a golden opportunity to expand their economic reach into China's dynamic market. South Africa's wine industry is no exception and the sector has high hopes that growing Chinese demand can help outweigh the waning thirst for its product in Europe. CGTN's Travers Andrews has more from Cape Town.
The vineyards are being prepped, the weather is heating up and the grapes look to be in good form. Harvest time may not be till February, but producing quality wines DOES take time. Some of these wines are destined for the global market, including the United States and Europe. But with margins as low as 1%, making wine for the West has become unsustainable for many here. China though offers great hope, as the market lacks preconceived notions and bias towards the quality and pricing of South African wines and some producers here, are shifting their focus east as a result.
GREG GUY INTERNATIONAL SALES DIRECTOR/DGB LTD "The industry initiative is to focus, its two biggest markets are China and the USA, because collectively as an industry we all see opportunity in those two markets, where our perceptions are not locked in, Europe it's a bit tougher and it's also a lot more competitive for South Africa because we've been there for so long, so yes we are focusing more and more time particularly on China."
DGB Ltd is one of the largest wine producers in the Western Cape. It exports wine labels such as Boschendal and Tall Horse to the Chinese market through COFCO, the country's largest buyer of foreign food and beverage products. The China International Import Expo provides DGB, and other wine producers like it, the chance to find a more sustainable market for their pours.
GREG GUY INTERNATIONAL SALES DIRECTOR/DGB LTD "South Africa doesn't have the negative price perception as badly in China as it does in Europe, our long-established market, because we are relatively new in the market and we are relatively small, so it's up to us to come in and price our wines where they should be at."
Wines of South Africa is the industry body tasked with marketing local wines overseas and the upcoming expo in Shanghai provides them with a golden opportunity to do just that.
MARYNA CALOW, COMMUNICATIONS MANAGER WINES OF SOUTH AFRICA "We are actually excited to see how the expo unfolds, it's certainly something we have not done before, we are hoping to showcase some of the South African wines, but we are looking forward to unleashing any available opportunities that may come our way and have some good conversations with local importers in that market."
For now, though, the wine sector and the agricultural industry as a whole, are shifting with the changing times. And many are quite eager to embrace the potential that may lie in markets yet to be tapped.
TRAVERS ANDREWS CAPE TOWN "Stakeholders within the local wine sector are hoping that South Africa's close relationship with China, will bear fruit at the expo, and that the event will prove to be a stepping stone to the sustainability that so many in the industry have been searching for. Travers Andrews, CGTN, Cape Town."