Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

HCI - Hosken Consolidated Investments Limited : WEAK RAND COULD MEAN GREAT VALUE SOUTH AFRICAN WINES

04/18/2013 | 02:40am US/Eastern

A leading producer believes favourable currency rates mean South African wines can now beat the likes of Australia in offering "exceptional value for money" at all price points.

While sterling is weak against the euro, the US dollar and the Australian dollar, it is showing continuing strength against the South African rand.

KWV chief winemaker Richard Rowe told OLN: "Recognised Australian brands are saying they are not going to continue in the UK market. They have a problem with the strength of the dollar, but that's not an issue with the rand.

"The position of the rand at the moment is particularly favourable for us to move into the UK."

Rowe believes KWV, one of South Africa's largest producers, struggled under the agency of Thierry's because "we gave them too much latitude".

He added: "There wasn't appropriate focus and we were selling entry level products at a price that wasn't sustainable."

But KWV has now appointed Myliko as its UK distributor and is set for a large-scale push in Britain, starting at the London International Wine Fair.

Rowe said: "With a new partnership there is new energy and new focus and we are looking to rebuild our market position.

"We want to present wines of exceptional value for money at entry level and to be selling products above £20."

He warned of the dangers of South Africa being pigeonholed as a producer of entry-level wine and stressed he wants KWV to have a "balanced pyramid".

It offers entry-level wines, the £7.99 KWV Classic range, the £9.99 Rooderberg range, the £19.99 Mentors range and wines all the way up to the £75 Perold label.

"It's a surprise to me that South African producers have pulled out of the UK saying it's too competitive," he said. "It's about getting your offering right."

Source: Offlicence News - Martin Green

distributed by
React to this article
Latest news
Date Title
05:11a NEFTYANAYA KOMPANIYA LUKOIL : Lukoil Starts Upgrade of Lube Plant in Austria
05:11a FUGRO NV : Maaskant Shipyards Delivers 2 Offshore Winches to Fugro
05:11a GAZPROM NEFT' : Neft Obtains First Shale Oil Inflows at Southern Priobskoye Field
05:11a VOLCANO : Philips Extends Tender Offer Period to Acquire Volcano
05:11a WOODSIDE PETROLEUM : NEB Approves Woodside Energy LNG Export Licence
05:11a SBM OFFSHORE : Reintroduces COO Position
05:11a INPEX : to Transfer 10% PI in Block R to Santos
05:11a ORIGIN ENERGY : Australia Pacific LNG project 88% Complete and Production & Sales for December 2015
05:11a KONGSBERG GRUPPEN : Maritime Expands Louisiana Office & Training Facility
05:11a ELECTROMAGNETIC GEOSERVICES ASA : EMGS Awarded $2.5m in Barents Sea Data Sale
Latest news
Advertisement
Hot News 
BANCO ESPIRITO SANTO : Drought woes spread to another Brazilian state
BERKELEY MINERAL RESOURCES : Obsidian IR
Gulf Resources Announced Finding of Natural Gas Resources Under Its Bromine Well in Sichuan Area
RAMBLER METALS & MINING : Implements Revised Plan at the Ming Copper-Gold Mine
UNISYS : posts 4Q profit
Most Read News
01/31 U.S. regulators recall 2.1 million vehicles in new air bag issue
01/31 Lafarge SA, Holcim near deal to sell $7 billion in assets to CRH - WSJ
01:19a GM and China’s SAIC to push into Indonesia with no-frills vans
01/31 LAS VEGAS SANDS : Price Target Lowered to $72.00 at Stifel Nicolaus (LVS)
01/31 Firms prepare for new tax rules as China vows crackdown
Most recommended articles
04:09a Fed's 'solid' growth view faces test as Greek drama unfolds
03:14a Austrians rue starting fashion for Swiss franc mortgages
01:20a GM and China’s SAIC to push into Indonesia with no-frills vans
01:12a Islamic finance looks to outgrow bad habits as it expands
01/31 China factory sector jolts by shrinking in January
Dynamic quotes  
ON
| OFF