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Plenty entrepreneurship opportunities to be found in locally sourced and produced wine biz

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The sweet taste of economic upliftment: The Local Wine Expo will foreground South African wine and the talents driving them.
The sweet taste of economic upliftment: The Local Wine Expo will foreground South African wine and the talents driving them.

South African wines are praised the world over and enjoyed equally by local consumers. This industry is also among the most prosperous in this country and growing continuously.

This growth is being tended to painstakingly by wine producers in South Africa but there can always be improvements made. 

With this in mind, Proudly South African is gearing up for The Local Wine Expo from 13-15 July 2023 at the Prison Break Market in the north of Johannesburg.

Beyond offering those who visit the expo the chance to engage with winemakers and their delectable wares, this event will offer wine producers the chance to interact with buyers to further stimulate the growth of this industry.

Eustace Mashimbye (44) has been the CEO of Proudly South Africa since December of 2016. Speaking to Drum, he explains the mechanics driving this gathering and what you are likely to expect should you visit it. 

"The Local Wine Expo is a special, Proudly South African project. In 2021, we were faced with the realisation that our local wine member companies were struggling to penetrate the retail market due to a lack of knowledge of the industry players. 

We boldly decided to create an access to market opportunity for our members in the wine industry to bring them face to face with retail buyers and industry players who would equip them with the ins and outs of getting into the retail space. The purpose of the Local Wine Expo is to provide access to market opportunities for local wine brands and ensure liquid on lips for consumers."

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Mashimbye saysnthe expo is likely to unfold with a wide range of wine flavours on offer and the opportunity to be in a space with like-minded individuals and lovers of this celebrated nectar. 

"The South African wine industry is rapidly booming, as we’ve seen that it now ranks first on the continent, and in the top 10 on the planet. The event will preserve this rich value chain and create more opportunities for aspiring winemakers. All winemakers have one element in common: they create for consumption, so the wine producers who will be on the expo floors are adding more value to the system. It’s great news that the industry is booming; this means that jobs are retained and created while the economy is also slowly being revived," the native of Mamelodi said passionately.

The industry is on the up and Mashimbye commended the certain aspects of this trade that are being executed at a high level.

"What we are really doing well is being consistent with and maintaining the quality of our wines, and that’s why they are world renowned. Secondly, the value chains involved in the production of our wines are entrenched within our borders, creating thousands of jobs across the length and breadth of our nation. Our grapes are sourced locally, supporting local farms that employ local people. The bottling, branding, packaging, and logistics are by and large done locally. Our wine brands, therefore, support our economy in a big way. This talks to the values of Proudly SA and that’s why we’ve chosen to support the industry in this way."

As is the case in most fields of business there are of course a few other things that could be intensified or done better.

"Opportunities for improvement lie within the uptake of our wines by local markets. There is room for improvement among retailers and other markets to do better to accommodate new entrants and lesser-known brands, especially those from black owned companies. Seventy percent of the brands at Proudly SA’s upcoming Local Wine Expo are owned by black women and many of whom have faced challenges with getting on to shelves and penetrating various markets," he laments.

Despite those challenges which this CEO believes are not insurmountable he did offer a few words of encouragement to anyone either on the cusp of starting a wine brand or winery and to those who might still be tinkering with the idea.

"The pie is big enough for everyone. You just need to start, however, it's critical to do your research about the industry and the target market you will be catering for because that will influence your starting point. It’s important for any business owner to know and understand their audience or consumer behaviour. Before they start actioning any plans, one must create or produce something that is needed by that demographic. This is marketing 101."

He is of the impression that "When you create something that already has a consumer, your chances of surviving an industry that has been blooming will be high instead of too competitive."

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This second iteration of the Local Wine Expo following the first which was held last year, will boast 20 companies from the Proudly South Africa database and 10 from their collaboration with the Wine Arc [the first black owned wine farm in Stellenbosch]. In total, you can expect around 30 local wine exhibitors showcasing their wines to expected wine lovers. 

"We brought them [local wine makers] in through our membership database," Eustace says.

"Proudly South Africa is a membership based company that has member companies from all sectors whether they produce goods or render services. Our selection strategy is two-fold. We have member companies that communicate their interests with us during the year that we consider when making decisions. Additionally, we reach out to the members via our internal systems informing them about the opportunities."

As for how this event will directly benefit the wine producers and traders involved Eustace brags: "Anyone can create or produce, but without access to the market the business will not be able to function. This expo addresses those challenges for the companies that will be exhibiting. Our main goal is to see the companies succeed so that more jobs can be created."

The local wine industry is one of our country’s most celebrated sectors on the international stage. Eustace emphasise that it is crucial to have this industry bolstered by anyone who can because of its potential to increase job creation and its economic impact on various value chains within the wine production ecosystem. 

"Our wine industry accounts for half the tonnage that Africa produces, making it Africa’s largest wine producer. In the past financial year, we have seen a 5% decline in our wine exports, owing to the economic climate the world over. But it would be interesting to note that in 2021, South Africa exported $773 million in wine, and in the same year, our local wine was the 23rd most exported product in South Africa. The main destinations of wine exports from South Africa are the United Kingdom, Germany, the United States, the Netherlands, Namibia and Russia."

The Local Wine Expo is taking place at Prison Break Market in Johannesburg from July 13 to 15. Entry into the event is free but registration is required which you can do using the link below. Register here.

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