ProWine: Driving SA wine exports to China
Here’s how Standard Bank is helping the wine industry grow its export footprint through market access opportunities and trade missions to China.
In South Africa, the wine sector significantly contributes to the country’s gross domestic product (GDP) and employment.
Nearly 50% of all South African wine is exported to 130 countries worldwide, valued at approximately R9.9 billion – which equates to a daily consumption of roughly 18 million glasses of wine consumed globally.
This makes wine South Africa’s second-largest exported agricultural product after citrus.
Another impressive fact: Over 265,000 people are employed in the wine industry in South Africa, and it’s estimated that for every job created on a wine farm, 10 additional jobs are generated in the downstream value chain.
Tapping China’s export market
For local wineries with an eye on expanding their export footprint, China, with a population of approximately 1.4 billion, represents an attractive market.
Despite a recent decline as the country’s economy slows, China remains one of the world’s top 10 wine-consuming nations. In 2023, China imported over 152 million litres of wine, valued at approximately US$1 billion, from destinations including France, Chile, Italy, Spain, Hong Kong, and others.
“For South African wineries, China is a key export destination for growth,” explains Sithembile Dlamini, Head of Africa-China Banking at Standard Bank. “But given the vastness of the country, the complexities of trade regulations and the steep language barrier, gaining market access can be difficult.”
Over the past 19 years, Standard Bank has firmly established itself as the leading bank in the Africa-China corridor, assisting its agribusiness clients in the wine sector and other industries to overcome these challenges with market-leading import and export solutions and trade initiatives.
Supporting South Africa’s wine industry
As a long-time supporter of the local wine industry, the bank has proudly sponsored the annual Standard Bank Chenin Blanc Top 10 Challenge since 2014. This initiative helps to elevate South Africa’s premium Chenin Blanc wine brands and has donated over R2.6m to education, youth development and healthcare projects benefiting wine-worker communities to date.
In recent years, white wines have been finding increasing favour with Chinese consumers, particularly amongst younger consumers with disposable income in major and second-tier cities.
“This growing adoption of white wine in China sets the stage for South African Chenin Blanc to reach new audiences in the country,” says Dlamini. “That’s why our Africa-China Trade Solutions team, together with our partners, participated in ProWine Shanghai 2024, to showcase the winners of this year’s Standard Bank Chenin Blanc Top 10 Challenge along with other leading local wine producers.”
China’s premier wine and spirits trade fair
ProWine Shanghai is China’s leading international trade fair for wines and spirits. The three-day event, which took place from 12-14 November 2024, provides a platform for both international dealers and producers (80% of participants) and for local suppliers to present their products and establish contacts with professional buyers.
This year’s event featured 650 exhibitors representing 32 countries and over 20,000 trade visitors.
“ProWine attracts wine producers from across the globe, creating a stage for our South African brands to compete with the world’s best,” says Dlamini. “It’s a unique opportunity for our local wineries to gain greater awareness, for Standard Bank to help build Brand SA in China and for exhibitors to connect with high-calibre influencers and buyers.”
Transforming possibilities into opportunities
Standard Bank partnered with Wines of South Africa (WOSA), Wesgro, the Chenin Blanc Association and the Western Cape Government Department of Agriculture to make this trade mission possible by handling logistics and subsiding the costs associated with exhibiting the wineries.
In association with its strategic partner, the Industrial and Commercial Bank of China (ICBC), Standard Bank also provided translators to facilitate communication and invited hand-picked reputable Chinese buyers banked by ICBC to meet with the South African wineries.
The centrepiece of the event was a special 90-minute Chenin Blanc Masterclass sponsored by Standard Bank and organised by WOSA. Esteemed wine master Julien Boulard hosted the session. The audience was treated to a tasting of award-winning wines and an informative presentation on the factors that make South Africa’s Chenin Blanc grape unique.
“At Standard Bank, we’re constantly and proactively seeking ways to help our clients expand their businesses through Africa-China trade,” says Dlamini. “Our participation at ProWine Shanghai 2024 trade fair is the latest in a number of international expos and matchmaking initiatives we’ve hosted in conjunction with ICBC over recent years.”
“Our participation in these programs is a tangible way we’re contributing to driving Africa’s growth and transforming possibilities into opportunities for our clients,” she concludes.
More information
Find out how Standard Bank can provide your business with an unrivalled competitive advantage in the Africa-China trade corridor by emailing [email protected] or clicking here for details.