Franschhoek wine has been one of the important cornerstones on the South African wine industry for many years. The question is how will the economic pressures we are all feeling at the hand of the recession going to affect this important export industry.
Those in the know postulate the following:
1. Most wine producers will become price takers. Sharp increases in the cost of labels, bottles and foil closures are foreseen and this will drive the price of the average bottle of wine relentlessly skywards. This at a time where most producers are battling to keep the prices of their merchandise within the budget of the average cash-strapped consumer.
2. Wine producers will have to reevaluate their customer relations. Value can be added to a product in more ways than one. Instead of improving brand image or slashing prices, producers should focus on client relations, response time and clarity or communication.
3. Wine producers will have to embrace the Web. There is currently over two billion consumers logged into the internet and South African wine producers can no longer afford to ignore this fact. Not having an online presence is tantamount to professional suicide in most industries and the wine industry is certainly no exception. Whether this is done by blogging, link-building or a fully-fledged optimisation campaign will be up to the slice of the income pie the producer can viably dedicate to marketing.
4. Wine producers will have to comply with international Warning Label laws. Gone are the days when the producers had sole discretion when it came to their labels. Government regulators are putting their sizable feet down and it seems that the dreaded consumer warning label will soon become a South African reality.
Will all of this in mind, the only thing that is certain is that we are in for a few drastic changes. On a positive note consumers can expect 2009 to be the year that wine producers show that they truly care. In an economic recession the brand that is the most involved with its buyers is the one to survive. So next time you enjoy a glass of premium Franschhoek wine, bear in mind the turbulent waters which constitute its origin.
