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Swartland wines take US market by storm

It was one of the most talked-about developments among wine farmers in the Swartland, but the news that a local winery had been chosen to supply wine to one of the world's top five wine producers became one of the region's best kept secrets.

“E&J Gallo didn't want us to say too much about Sebeka on their behalf,” explained Suzanne van Dyk, assistant marketing manager at the Malmesbury-based Swartland winery. “But now that the wines have done so well, it's just impossible to keep quiet.”

There was certainly nothing secretive about the launch of the new brand in the US.

“We tapped into our huge distribution network,” Gallo's Diego LoPrete, marketing manager for the Sebeka brand, explained. “And we aimed for the sweet spot in the US market. That's the wines that sell at between $8 and $14 a bottle, and appeal to the young, affluent consumers, the ones that are looking for new things and can recognise the exotic appeal of South Africa.”


Diego LoPrete and winemaker Andries Blake.
The strategy certainly worked. In the year since the launch, the wines have taken a string of major awards. Sebeka beat 264 competitors to be ranked at number one new wine brand in the “2007 Table Wine Top 10 New Brands” published by Information Resources Inc (IRI), the leading global provider of consumer, shopper, and market insights for CPG, retail, and healthcare industries. This award is even more significant when you realise that Sebeka was launched into the market almost three months into the 52-week evaluation period from January 7, 2007 to January 6, 2008. Influential publications such as Wine Spectator and Wine Enthusiast have also given it strong scores and it also achieved a “Best Buy” recognition from USA Today.

Gallo is a major player. It holds 57% of the market share in the US and sells about 17 million cases of wine each year with a total sales value of $3.5 billion. The Gallo brand is marketed into 90 countries around the world.

“When we heard that they were looking for a South African partner, we made sure that they visited the Swartland. It was a huge coup for us when they chose us,” Andries Blake, chief winemaker said. “The Sebeka brand is not marketed as a Swartland wine of origin, though, because Gallo needs such big volumes that we buy in grapes from other regions in the Western Cape as well. But all the wine is made and bottled here, at Swartland Winery.”

Interestingly, the name of the wine has nothing to do with the Swartland region. Sebeka was the name of the orphaned cheetah cub which was the inspiration for the formation of the Hoedspruit Centre for Endangered Species. The Sebeka label features a cheetah running in full stride and a portion of the profits from Sebeka sales are sent back to Hoedspruit.

The Sebeka range includes a Cabernet Pinotage, Shiraz, Cape Blend (60% Shiraz, 40% Pinotage), Cardonnay, Sauvignon Blanc, and for 2008, Chenin Blanc.

“The Pinotage amazed us,” LoPrete commented. “We didn't expect it to be such a huge seller, but the market responded to the fact that it is so uniquely South African. People are looking for something authentic. We're excited the Chenin Blanc this year too. It's an authentic, aromatic wine. chenin from South Africa is going to be the next big thing among US wine lovers.”

If the enthusiastic response of a group of top US leisure magazine journalists who visited Swartland Winery last week (Thursday 15) was anything to go by, the Sebeka range has a bright future.

“We've just touched the tip of the market,” LoPrete said. “There's still a huge potential for South African wines, not just in the US but other parts of our distribution area as well.”

Click here to read more about Swartland Winery



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