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Introduction
In order that the picture of this market in the early part of 1997 may be better understood, this article firstly sets out basic conditions and forces existing before the lifting of sanctions against South Africa around 1993.
It then traces relevant interim changes and the consequent picture at the present time.
Finally, there is a venture into the future, encompassed by the momentum within South Africa as affected by relevant competitive international forces.
Before and During World Sanctions
Backed by an Afrikaans led government, the Kooperative Veeringing van Zuid Africa Beperk (KWV) was the all powerful quasi government cooperative which controlled vineyard total quantum acreage, minimum price of wine, and all surpluses thereof. All sales and purchases of wine were monitored by them, and wholesalers were not allowed to be growers, nor to retail. KWV had been formed in the lean years towards the end of the first world war, to secure adequate return for wine farmers' products. It had, by the time with which this section is concerned, overdone its job to the extent of coddling those farmers.
Over some years, a market led reply by way of a partial balance evolved from the merging of over fifty wholesalers to form an oligopolistic four, one of whom controlled over seventy percent of the South African wine market sales. With limited success that wholesale group did try to counter KWV's non fostering of quality by offering higher than minimum dictated prices for produce of better quality. Also some of them managed to assist local marketing by making financial arrangements with selected wine retailers. All this was taking place in a table wine consumer market of overwhelmingly white people, and virtually restricted to the Cape. The rest of South Africa preferred beer and grain spirits. KWV operated almost all of what little exports there were.
There was government certification of regulated front wine label statements. ("where, when and what" of the bottle contents). Even so there was little quality control akin to the French appellation system. There was no persuasion to match grape variety to an area or terroir. The encouragement to quality was certification including typicity and quality taste. This accent was on varietal wines rather than blends. Wine Routes had been...