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A study of the South African wine market with specific reference to the influence of low price wine on the industry

Thesis (MBA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: The wine industry in South Africa has the potential to produce wine of world-class
quality, but simultaneously large volumes of inferior quality wine are produced
annually and sold in the market in cheap, low-quality packaging, making up the
bottom end of the alcoholic beverage market.
The study investigated the South African wine industry to determine where the
industry is headed. The document focussed on inexpensive wine that is sold in
cheap packaging to determine who drinks it and what the effect is on the wine
industry. The methodology followed was to perform a literature study of the current
situation of the South African wine industry. Personal interviews were conducted
with members of wineries and companies to determine if the sales of foil bags
influenced the sales on their products.
The study found that the packaging, in which the inexpensive wine is sold is not the
problem, but rather the quality of the wine that goes into the cheap packaging. The
banning of wine sold in foil bags from the market in July 2005 shows a commitment
from the industry to improve the image of the industry. It will, however, not solve the
social problem of alcohol abuse in South Africa, as the profile of the inexpensive wine
drinker indicated that if cheap wine is not available, they would change to any other
form of cheap alcohol that is available.
It is recommended that the quality of the products sold in cheap packaging must be
improved. To improve the quality of the product, quality standards must be put into
place in the industry that suppliers must adhere to. Policing in the industry needs to
be improved to ensure that everybody adheres to the regulations. The industry must
help with policing by mobilising industry resources. / AFRIKAANSE OPSOMMING: Die Suid-Afrikaanse wynindustrie het die potensiaal om wyn van wêreldklas gehalte
te produseer. Tesame hiermee word wyn van lae kwaliteit jaarliks geproduseer wat
in goedkoop, lae kwaliteit verpakkings in die mark verkoop word. Dit maak die
laagste deel van die alkoholiese mark uit.
Die navorsing het gekyk na waar die Suid-Afrikaanse wyn industrie heen op pad is.
Die dokument het gefokus op die goedkoop wyn wat verkoop word in goedkoop
verpakkings, om te bepaal wie dit drink en wat die effek daarvan op die mark is. Die
metodologie wat gevolg is, was om 'n literatuur studie te doen van die huidige
situasie in die Suid-Afrikaanse wynindustrie. Persoonlike onderhoude met lede van
kelders en maatskappye is gedoen om te bepaal of die verkope van goedkoop wyn in
goedkoop verpakkings enige invloed het op hulle markte.
Die studie het gevind dat die verpakkings waarin die goedkoop wyn verkoop word nie
soseer die probleem is nie, maar eerder die kwaliteit van die wyn wat in die
goedkoop verpakking gebruik word. Die verbod op die verkope van wyn in papsakke
vanaf Julie 2005 wys die verbintenis van die industrie om die beeld van die industrie
te verbeter. Dit sal egter nie die sosiale probleem in Suid-Afrika oplos nie, aangesien
die profiel van die goedkoop wyndrinker aandui dat wanneer goedkoop wyn nie
beskikbaar is nie, hulle enige ander vorm van goedkoop alkohol sal drink wat wel
beskikbaar is.
Dit word aanbeveel dat die kwaliteit van die produk wat in goedkoop verpakkings
verkoop word, verbeter word. Om die kwaliteit van die produk te verbeter moet daar
kwaliteitstandaarde in plek wees waaraan die verskaffers moet voldoen. Polisiëring
in die industrie moet verbeter word om te verseker almal aan die regulasies voldoen.
Die industrie moet help met polisiëring deur die mobilisering van industrie
hulpbronne.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/49860
Date12 1900
CreatorsCornelissen, Hannalize
ContributorsLoubser, S., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format60 p. : ill.
RightsStellenbosch University

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