The weak rand and rising bulk wine prices in other wine-producing regions has made South African wine more competitive with overall exports increasing 26% in 2013. For bulk wine, the recent large harvest in Spain has made the bulk market more competitive and South Africa will need to seek out alternative markets in order to maintain continued growth. For bottled wine, export growth has been seen by those companies that have the ability to build strong brands and understand their consumer’s purchasing motives beyond price. Going into 2014, increasing yields in both Northern and Southern hemisphere producers has increased global wine availability. Bulk wine has taken market share from bottled, as it now accounts for half of all New World wine exports. However, as long as the two segments employ different strategies, both should be able to achieve growth.
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