With the third budget speech for the year and the eagerly anticipated meeting between Trump and Ramaphosa both set for the same week, there were a lot of topical references at the annual South African Wine Summit that also took place this week. Trump’s tariffs and the state of our economy both have significant impact on the wine industry and it is interesting to listen to the various perspectives. What I can’t forget, however, is Rico Basson’s remark that the retail sales value of Carling Black Label in South Africa, is the same as for all the wines combined!
Knowing the wine industry’s production and diversity with about 9000 different wine labels, such a reference makes quite an impact. Why is Black Label so popular in South Africa? Is it strong marketing and the right positioning? Surely it can’t be attributed to the fact that its alcohol is a little higher? Perhaps there is something very special to its taste and quality or is it selling at just the right price point? Can it be that Black Label is just the most refreshing option during long and hot SA summers?
Most of these reasons might contribute to the brand’s local success. There is of course also its strong association with sport and it even has a sport-related nickname! Black Label is often referred to as Zamalek. The name comes from Zamalek FC, an Egyptian football team with a reputation for being one of the strongest sides on the continent and with a jersey in the same colours as the Black Label packaging. Many of us might think that Black Label is authentically SA, but we will be wrong. Although it has been produced by SAB in South Africa since the 1960’s, it was originally developed in 1840 by the Canadian, Thomas Carling.
Other than Black Label, what are South Africans drinking?
Sources differ a little, but most agree that water, tea and coffee are the three most consumed beverages in the world. Following them are beer, fruit juice, soft drinks, milk, wine and spirits. The sequence differs from one list to the next and one list even includes coconut water and another, soup! While we might believe that water, tea and coffee are also the top three in South Africa, there is no denying that South Africa is a nation of beer drinkers. The beer market has experienced steady growth driven by competition between major players and the development of premium brands diversifying the offering.
A recent survey by the South African Rooibos Council came to some interesting findings. The study focused on the drinking habits of South African men. One of the findings were that, while 46% of the SA men in the survey start their day with a cup of coffee, 32% end their day with Rooibos, 19% with beer and 12% with coffee. But even more interesting was that Rooibos and beer were tied at 47% for the preferred drink in a social setting. When asked about this, men said that their choice would be influenced by the occasion and setting, but also by the taste and health considerations. I guess we choose tea when visiting the in-laws and beer when the rugby starts.
What does this mean for my two favourite beverages, wine and coffee?
For me, the positive takeaway here is that there is still a lot of potential to introduce South Africans to alternative beverage choices. We will continue our focus on the international market, but Trump’s tariffs and favourite tipple (which is diet Coke!), do not have to be deal breakers when we still have such an untapped market in our own country!