
02 Jun 2015 Packaging workshop on SA’s new bottled wine EU export drive
This ground-breaking event is the first of its kind in South Africa, bringing together wine industry and packaging experts to ‘start the conversation’ about the role of packaging for SA’s exported wine.
Last year, SA exported 303-million litres of wine to the EU – of which 62% was shipped in bulk. While export numbers of this level may sound like the industry is doing well, it’s actually not the case.
The current surge in bulk export has had hard-hitting impact on industry earnings. The loss in direct revenue to the country in 2014 was calculated by SA Wine Industry Information & Systems (SAWIS) at almost R1.9-billion.
Not only is there concern surrounding the decline in defining quality characteristics of SA’s wine abroad, our reputation leaning towards becoming known solely as a bulk exporter, and the need to protect and create jobs, but the packaging industry has also been hit hard by bulk wine exports.
Under the industry’s new bottling campaign, made possible by the recently-negotiated Economic Partnership Agreement (EPA), SA’s duty-free quota of wines exported to the EU will more than double (to 110-million litres) in 2016.
There is an opportunity to bottle locally and still remain cost-competitive while protecting margins. However, just 84-million litres – the amount currently shipped in bulk to the EU – is eligible for exemption under existing EU regulations. To take advantage of SA’s full duty-free quota, industry needs to increase its bottled output to the EU by another 26-million litres.
To help achieve this, SA’s bottling campaign, called Creating Value at Origin, was launched in at the London Wine Fair last month.
Besides the wine industry’s support of this initiative, Creating Value at Origin is music to the packaging industry’s ears – more bottled wine exports means more packaging at source.
This bottling drive has the full backing of packaging manufacturers and distributors of bottles, labels, closures and allied suppliers. However, the questions about how to address the perception of SA’s packaged wine and issues of quality, cost-effectiveness, innovation, and value and job creation remain.
In support of this initiative, and on the back of the ramification to the packaging industry of wine exported in bulk, the Institute of Packaging South Africa (IPSA)’s Western Cape Region is hosting a Wine & Packaging Industry Workshop, designed to stimulate robust debate and to share information.
The event’s main focus is a panel discussion, facilitated by Rico Basson (MD, Vinpro). Also on the panel are Rian Moore (CEO, Collotype Labels), Johan Visser (GM, Nampak R&D), Livingston Stanley (GM, Breerivier Bottelerings Ko-op), Neville Carew (MD, Origin Wine), and Charles Muller (Executive Director, Packaging SA).
The workshop offers ample opportunity for networking, and also features a table-top exhibition where packaging specialists will showcase innovative wine packaging products.
IPSA’s Wine & Packaging Workshop is being held on June 23, 2015, at Bistro 13, Stellenbosch Vineyards, from 08:30 until 13:00.
For more information or to book, contact [email protected] by June 15, 2015.
ABOUT THE INSTITUTE OF PACKAGING SOUTH AFRICA
The Institute of Packaging South Africa (IPSA) aims to promote high standards and professionalism in the packaging industry, to provide opportunities for networking and education and to promote the recognition of packaging as a profession. Key programmes and events are organised to further these aims.