Wine market in South Africa

South Africa is the country with the highest inequality in the world,^[2] with a Gini index over 60. The top 10 per cent of the South African population owns 90-95 per cent of the country’s wealth, with race still being a determining factor of wealth. An average White South African household, where the head is a high-school drop-out, has a higher net worth than an average Black household where the head has a college degree.^[3]

The country’s wine industry historically exploited racial inequality. Although many producers adopted the Fairtrade certification to improve their public appearance, there are reports that the country’s wine industry remains problematic.^[4] It is also reported that Black-owned wine brands constitute only about 1% of South African wine, and only 3% of vineyards are owned by Black families.^[5]

Wine consumption is not limited, however, to the white minority. Since the 1960s, cheap wine brands have been marketed towards the Black and Coloured (a distinctive group of mixed origin) population. A survey from 1965 found that 37% of Afrikaans-speaking and 31% of English-speaking whites preferred wine as a drink of choice. In contrast, among the Coloured population who weren’t teetotalers, 78% of urban and 87% of rural population indicated wine as their alcoholic beverage of preference. The Black population, however, strongly preferred traditional malted millet beer, with only 6.5% choosing wine.^[6]

It was sweeter styles of wine that has been marketed towards the non-white population since the 1960s. Red wine was perceived as something of higher status than white wine. The most popular alcohol brand in the country, 4th Street, is a range of sweeter-style wines distributed mainly in bag-in-boxes.^[7] On the other hand, in some Black communities wine is still stigmatized, and it may be unacceptable for certain Black women to buy wine. “Black Diamonds”, a cohort of the emerging Black middle class, is viewed as a prospective target market for domestic wines.^[8]

Only 34% of domestic wine sales correspond to wine in glass bottles, while account for bag-in-boxes account for 48%. As of 2024, dry still unfortified wine accounts for only 17% of total volume.^[9]

With the abundance of inexpensive wine marketed for domestic consumption, winemakers who want to sell abroad need to obtain an export license and a certificate from the Wine and Spirit Board that requires passing a tasting evaluation and laboratory analysis.^[10]

Compiled and checked by Ilya Zabolotnov