The True Worth of South African Wines

Timeless question in sales: What is a product worth? Uncovering the answer means peeling back layers of complexity, with hundreds of deciding factors involved.

It’s no different with wine, there are thousands of producers making millions of bottles across over 60 countries. With that in mind, how do the collective industry decide what a bottle is worth, and in turn how do consumers decide what they are willing to pay? To use an example from my own experience; Some customers are happy to pay €35+ for a bottle of Bordeaux, but refuse to pay €25 for a similar SA red of superior quality. For me this is down to marketing, education and mindset, because the price is already decided by the winemaker and retailer. We have to ask the question, why do you think that bottle is worth €35+ but the other is not worth €25, is it because the pricier product is better marketed, or you trust one over another? How did the consumer reach that conclusion? Consumer behaviour is one thing, but knowing and believing in the worth of a product and then helping to educate, market and change minds is a whole different ball game.

For years the value and reputation of SA wine in Ireland has been a contentious issue, due to a number of factors and influences.

Many Irish consumers associate premium wines with traditional regions like France and Italy, often overlooking South Africa’s exceptional quality and craftsmanship.

The dominance of lower-priced, mass-produced SA wines in supermarkets has created a perception that all SA wines are budget-friendly rather than premium.

Limited education and exposure to South Africa’s top-tier wineries mean that many wine drinkers in Ireland are unaware of the region’s world-class offerings and age-worthy vintages.

So, who is to blame for this trend / behaviour / mindset and lack of education, and more importantly, how do we rectify this?

To be clear, it’s not only established wine consumers in Ireland who need a mindset change, but many South Africans too. In fact, some Saffa’s I speak to (especially those who’ve been in Ireland less than 5 years), demand to pay the same price for their wine as they did back home. Let me repeat that; They expect to pay the same price for a bottle of wine that they did back in South Africa! I'm often baffled by this mindset. After all, that bottle has been imported into an Island nation many thousands of miles from origin, with heavy tariffs applied, passing through multiple points in the supply chain, so to expect a similar price tag once it hits the Irish market is frankly absurd. 

I was recently contacted by someone looking for a specific wine they had enjoyed on a trip to the Cape. I was able to source the bottle exclusively and offer it at a fair price, with a 3-week lead time (they wanted 2 cases). In the end they decided it was too expensive and they expected it to cost much less. In the interests of transparency, it was priced at 250 rand in SA (about 13 euro), and my price was €25.95. Bear in mind the SA price is cellar door (direct from the winery before any retail mark-up). My answer to this attitude is always the same; Our price is fair; it's not greedy and it's not just a figure plucked out of the air. The price reflects the current market in Ireland, factoring in shipping/logistics costs, EU import duties, Irish duty and VAT, our labour and business costs. This particular wine is positioned as a premium Stellenbosch Cabernet Sauvignon, and for good reason, it’s highly regarded among local Oenophile's and worldwide critics, and can be compared to many old-world Cabs that command €30+ per bottle (and that have not had the same perilous journey into the Irish market).

To anyone still not convinced SA wine is worth your hard earned cash, I say this; Educate yourself, there are thousands of papers, books and write ups on the region. Two of my preferred reference points are;

1.       Tim Atkin MW – South Africa Special Report (released annually around September): 2024 South Africa Special Report – Tim Atkin – Master of Wine

2.       The Platters wine guide – Available from good bookstores, including Amazon.

I also say don’t be afraid to try a label you’ve never heard of. All producers have a website that contains in depth details about their portfolio, their winemaking methods and their history. We only import wine we think is worth it. It’s never made sense to me to import a product of low quality to offer it cheaply and sell in bulk, but I do appreciate this section of the market is important.

Finally, I say; Let’s work together to increase the awareness, enhance the reputation and improve the value and worth of SA wine. Let’s give these fantastic producers what they deserve—respect, recognition, and a chance to show Irish consumers that their wines are worthy of a place among the world’s finest, that they are worthy of their price tag, and that they deserve to be appreciated.