Local wine company seals major deal in China

Friday, May 18, 2018

A South African wine company has secured a deal which will see it export wine to China.

The Western Cape’s Thandi Wines has secured a one-year contract with a Chinese distributor to export their range of premium wines to China.

The contract was agreed to on the margins of the 19th SIAL China International Trade Fair for Food currently underway in Shanghai. About 23 local companies are participating in the food fair led by the Department of Trade and Industry (dti).

Managing Director of Thandi Wines Vernon Henn said that the contract value sits at more than R700 000.

“We will commence the contract with a shipment of two containers that will be having more than 26 000 bottles. We will then follow that up with another two containers. Thereafter the contract will be renewed on an annual basis,” Henn said on Thursday.

The company’s main export destination has been Europe which accounts for over 85% of the company’s sales.

However, the company recently started experiencing stagnation in growth in Europe.

“This compelled us to repackage our marketing strategy and explore other markets, in this instance the Asian market. That decision has presented us with some welcomed rewards, more especially because this is a growing market with a lot of potential customers.”

“The main ingredient required is timing and the dti nailed it on the head by bringing us here at this stage. The timing is impeccable because people are already looking to make purchases in preparation for the Chinese new year which will be during the end of February next year,” said Henn.

Thandi Wines was established in 1995 as South Africa’s first agricultural Black Economic Empowerment (BEE) project. It is owned by 250 farm worker families who hold 62% shares in the company.

The food fair, which got underway on Wednesday, is regarded as a leading platform for international producers and manufacturers of food products, wines, spirits and food service equipment. It will conclude on Friday. – SAnews.gov.za

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