WINE: SA producers feeling the pinch?

wine-bottle.jpg Sobering facts about South Africa’s wine situation at the recent VinPro conference:

South Africa’s domestic wine market is stagnant and wine producers’ profitability is the lowest in eight years. “Of a bottle of wine sold at R70 in a restaurant, the waiter receives a R7 tip, whereas the producer only receives R3. Producers’ income did not keep up with soaring production costs,” said Phillip Retief, head of Van Loveren Vineyards.

Apparently the new-generation wine drinker enjoys consumer-driven wine styles, Chenin Blanc, sweet reds and MCC and sparkling wines. Wine consumers also avidly seek wine information online.

The message? Drink more wine people. And spend a little more.