Wine Mar 2017

Executive Summary

Sector Overview

This sector fact sheet aims to give the reader a general overview of the latest developments within the wine sector

globally and how South Africa fares in terms of current production, consumption and trade patterns.

Global wine production increased to 274.4 million hectolitres (mhl) in 2015, some 5.8 million hectolitres (mhl)

more than that produced in 2014. This comes despite a fall in the total area under vine globally in 2015, which

decreased by 7kha compared to 2014s hectarage under cultivation (International Organisation of Vine and Wine

- OIV, 2016).

South Africa is the 8th largest producer of wine globally and is ranked 12th in terms of surface area under vines

(South Africa’s vineyard surface area is based in the Western Cape).

Local wine per capita (per annum) consumption has increased in recent years, estimated at 7.73 litres in 2015,

up from 7.32 litres in 2014 (Sawis, 2016).

Trade and Investment

China is noted as the country that has contributed most to trade growth due to growth in domestic demand. (OIV,

2016). The country saw a significant increase in wine imports in 2015 (an increase of 44% - particularly in bulk

wine). This was accompanied by an even higher increase in value, due to an increase in bottled imports (OIV,

2016).

In terms of the world wine market (excluding must), the bottled export share is dominant in terms of volume and

value, relative to bulk wine and sparkling wine exports.

South Africa is predominantly a bulk exporter of wine. According to the OIV, 58% of South African wine exported in

2015 was in bulk, with the balance of 42% exported as packaged wines. The largest destination market for South

African wine exports is the United Kingdom, followed by Germany and the Netherlands.

The South African wine industry has recently received a boost with respect to the Economic Partnership Agreement

(EPA) signed in June 2016 between the European Union (EU) and the South African Customs Union (SACU). This

is expected to boost Western Cape wine exports to the EU.

South Africa’s top export markets in 2016 were the United Kingdom in first position (USD109.37m), followed by

Germany (USD80.37m) and the Netherlands (USD51.93m) in second and third place respectively.

South Africa’s top import markets for wine in 2016 are France in first position (USD23.51m), followed by Italy

(USD2.28m) and Portugal (USD0.73m) in second and third position respectively.

Key African export markets in 2016 were Namibia (USD33.27m) as the top ranked African country, followed by

Kenya (USD10.69m) and Mozambique (USD8.24m) in second and third position respectively.

Key source markets for investment in the global wine industry have been France, the United Kingdom, Spain and

the USA over the period January 2003 – June 2016. South Africa was listed as the 9th largest source market in

terms of foreign direct investment into the wine industry for the said period (FDI Intelligence, 2017).

2

Table of Contents

1 Sector Overview ......................................................................................................................................... 3

1.1 World Wine Production ...................................................................................................................... 3

1.2 World Area Under Vines .................................................................................................................... 5

1.3 Global Wine Consumption ................................................................................................................. 6

1.4 The South African Wine Industry ....................................................................................................... 6

1.4.1 South African Wine Production ...................................................................................................... 7

1.4.2 Domestic Wine Consumption ....................................................................................................... 11

2 International Trade ................................................................................................................................... 14

2.1 Global Trade of Wine ....................................................................................................................... 14

2.2 Imports ............................................................................................................................................. 15

2.3 South African Wine Trade ................................................................................................................ 15

3 Foreign Direct Investment (FDI) ............................................................................................................... 17

3.1 Global FDI in the Wine Sector .......................................................................................................... 17

3.2 South African FDI in the Wine Industry ............................................................................................ 19

3.2.1 Inward Investment ........................................................................................................................ 19

3.2.2 Outward Investment ..................................................................................................................... 19

4 The Price of Wine in South Africa in terms of Volume and Value ............................................................ 20

5 Tariffs applied to South Africa Wine ......................................................................................................... 21

6 Technical Wine Training in South Africa .................................................................................................. 22

7 Wine Hospitality Training in South Africa ................................................................................................. 22

3

1 Sector Overview

Wine refers to wine of fresh grapes, including fortified wines, and grape must (excluding juice).

Five global megatrends that will impact the wine industry identified by PWC in their publication “The South African Wine

Industry Insights survey 2015” include:

Global demographic changes imply that participants in the wine industry will be required to understand consumer

segmentation and demographics, as can be seen in relatively new markets such as China.

Climate Change and resource scarcity – wine industry participants will need to have contingency plans in place

to combat the effects of climate change and water scarcity. E.g. recent drought experienced in South Africa and

other wine producing regions in the world.

Technological advances – not only in terms of bringing about increased efficiencies in terms of production but

also technological advances in how the world communicates with respect to social media etc.

Accelerating urbanisation – more and more individuals are moving from rural areas to cities. India, China and

Nigeria account for over one third of global urban population growth. The increase in urbanisation is seen in a

positive light as they are considered to be more likely to adopt a culture of drinking wine as an alcoholic drink of

choice.

Shift in Economic Power – China has contributed most to recent trade growth (OIV, 2016) and is expected to

replace the USA as the world’s largest economy by 2030 in market exchange rate terms (PWC, The South African

Wine Industry insights survey 2015).

.

1.1 World Wine Production

According to figures released by the International Organisation of Vine and Wine (OIV, 2016), total world wine production

(excluding juice and must) was relatively higher in 2015 than in 2014, with production increasing by 5.8 million hectolitres

(mhl) to 274.4mhl (OIV Estimate – Wine production is valued at a mid-range estimate between 271.3 and 277.5 mhl).

Within the European Union, vinified production was expected to reach 165.8mhl in 2015; an increase of 6mhl for the year,

and above average according to the OIV. Significant growth was recorded in Italy with production estimated at 49.5mhl in

2015 (an increase of 5.3mhl compared to 2014), placing the country firmly as the largest wine producer worldwide in 2015.

In turn, Spanish production levels declined by 2.3mhl to 37.2mhl compared to 2014, while France and Germany’s

production remained relatively stable at 47.6mhl and 8.9mhl, respectively (OIV, 2016).

Outside of the European Union:

- USA production figures in 2015 (22.1mhl) almost matched that of 2014 (22mhl), but overall both years were lower

than 2013s level of production which equalled 23.6mhl (OIV, 2016)

- South America: Argentina’s wine production declined by 12.1% to 13.4mhl in 2015, while Chile showed an

increase in production to 12.9mhl in the year. Brazilian production was relatively stable at 2.8mhl vinified.

- In 2015 South Africa’s vinified production reached high levels for the third consecutive year, with production

estimated at 11.2mhl, marginally lower than the 11.5mhl produced in 2014. South Africa was ranked 8th in terms

of global wine production in 2015 (OIV, 2016).

- Australia continues to experience a decline in its vineyard surface area, although managed to reach production

levels of 12mhl in 2015. New Zealand recorded a decline of 2.3mhl in comparison to the 2014 year which saw

production at 3.2mhl (OIV, 2016).

4

South Africa, is the 8th largest wine

producer globally. (Sawis, 2o16)

Source: OIV, 2016 (excl. Juice and Must)

The top fifteen global companies in terms of volume of wine produced (2015) is shown below:

TOP 15 GLOBAL WINE PRODUCING COMPANIES, 2015

RANK COMPANY COUNTRY OF

HQ % OF WORLD

VOLUME

1 E&J Gallo Winery Inc United States 2.8%

2 Constellation Brands Inc United States 1.8%

3 The Wine Group Inc United States 1.5%

4 Accolade Wines Ltd Australia 1.1%

5 Castel Groupe France 1.1%

6 Viña Concha y Toro SA Chile 1.1%

7 FeCoVitA Coop Ltda Argentina 1.0%

8 Treasury Wine Estates Ltd Australia 1.0%

9 Grupo Peñaflor SA Argentina 1.0%

10 Pernod Ricard Groupe France 0.9%

11 Cantine Riunite & CIV SC Agr Italy 0.7%

12 Distell Group Ltd South Africa 0.6%

13 CAVIRO - Cooperative Agricole Viti Frutticoltori Italiani Riuniti Organizzati Scarl

Italy 0.6%

14 Trinchero Family Estates United States 0.5%

15 Rotkäppenchen-Mumm Sektkellereien GmbH Germany 0.5%

Source: Euromonitor International, 2016

E & J Gallo Winery is the largest winery in the world and was established in 1933. The organisation employs approximately

6,000 employees’ worldwide, offering a total of 90 brands.

49.5Italy

47.5France

37.2Spain

22.1United States

13.4Argentina

12.9Chile

11.9Australia

11.2South Africa

11China

8.9Germany

THE TOP TEN WINE PRODUCING COUNTRIES (MHL), 2015

5

1.2 World Area Under Vines

According to the OIV, the total area under vines globally in 2015 (the total area planted with vines, whether vines are ready

for production/harvest) declined by 7000 hectares, to reach a total area of 7,534kha 5.

Spanish vineyards - which saw a significant decline in area under vine between 2008 and 2011 - have now stabilised with

approximately just over 1 million hectares.

South Africa has seen an overall decline in areas under vine in recent years. Of importance here is that a decline in area

under production isn’t necessarily a negative development, as a smaller industry could well be a healthier and more

profitable industry, particularly for producers (Vinpro).

In China, the total area under vine continues to grow, and this continues to be one of the dominant drivers of growth

globally with respect to new areas under vines (increase of 34 thousand hectares in China from 2014 to 2015). China had

the second largest vineyard surface area worldwide in 2015 according to the OIV.

THE TOP COUNTRIES LISTED WITH RESPECT TO WINE PRODUCTION

TOP COUNTRIES LISTED WITH RESPECT TO AREA UNDER VINES

RANK COUNTRY

WINE PRODUCTION (LITRES) - OIV ESTIMATES

% OF TOTAL WORLD

PRODUCTION RANK COUNTRY

KHA 2015 (OIV ESTIMATES)

1 Italy 4 950 000 000 18.1 1 Spain 1021

2 France 4 750 000 000 17.3 2 China 830

3 Spain 3 720 000 000 13.6 3 France 786

4 USA 2 210 000 000 8.1 4 Italy 682

5 Argentina 1 340 000 000 4.9 5 Turkey* 497

6 Chile 1 290 000 000 4.7 6 United States

419

7 Australia 1 190 000 000 4.3 7 Argentina 225

8 South Africa

1 120 000 000 4.1 8 Portugal 217

9 China 1 100 000 000 4.0 9 Chile 211

10 Germany 890 000 000 3.2 10 Romania 192

11 Portugal 670 000 000 2.4 11 Australia 149

12 Romania 350 000 000 1.3 12 South Africa 130

Source: OIV, 2016

* While Turkey has significant hectarage under vine, the country produces a relatively small proportion of wine compared

to other nations. This is partially ascribed to the fact that it is a Muslim predominant nation, and as a result, consumption

per capita is low.

The graph below shows the top 10 areas under vines (vines for wine grapes, table grapes or dried grapes, in production

or awaiting production) and trends identified for the period 2012 to 2015.

6

Source: OIV, 2016

1.3 Global Wine Consumption

World wine consumption has stabilised overall at around 240mhl since the economic and financial crisis of 2008 (240mhl

is an OIV Estimate, mid - range).

The United States’, consumption was estimated at 31mhl in 2015, rendering the country the largest domestic market in

the world. China’s consumption in turn was estimated at 16mhl in 2015 (OIV estimate), marginally higher than 2014s rate

of 15.5mhl.

Consumption in South Africa grew by 7% to reach 4.2mhl in 2015. This ranked the country 12th in the OIV ranking of top

wine consuming nations.

Two countries that produce less wine

than they consume are the United

States and Germany.

To this end, the United States

produced 22.1 mhl, but consumed 31

mhl in 2015, showing a deficit of 8.9

mhl (OIV, 2016).

Germany in turn produced 8.9mhl but

consumed 20.5 mhl in 2015, resulting

in a deficit of 11.6mhl. (OIV, 2016).

Source: OIV, 2016

1.4 The South African Wine Industry

According to the South African Wine Industry Information and Systems (SAWIS), the wine industry in the South African

context is much wider than signified by the ordinary meaning of the word “wine”. Brandy and its component parts (wine for

brandy and distilling wine) have always formed a significant part of South Africa’s wine industry. In recent years grape

juice and grape juice concentrate for use in non-alcoholic beverages, and not just for the sweetening of wine, have also

come to the fore. The South African wine industry thus encompasses wine (natural, fortified and sparkling), wine for brandy,

distilling wine, brandy and other spirits distilled from distilling wine, and grape juice and grape juice concentrate for use in

wine and non-alcoholic products (Sawis, 2016).

Spain China France Italy TurkeyUnitedStates

Argentina Portugal Chile Romania

2012 1017 707 792 713 497 412 222 233 206 192

2013 1021 757 793 705 504 422 224 229 208 192

2014 PROVISIONAL 1022 796 791 690 502 419 226 224 211 192

2015 PROVISIONAL 1021 830 786 682 497 419 225 217 211 192

0

200

400

600

800

1000

1200

KH

ATOP 10 AREAS UNDER VINES

31United States

27.2France

20.5Italy

20.5Germany

16China12.9

United Kingdom

10.3Argentina

10Spain

8.9Russia

5.4Australia

TOP TEN WINE CONSUMING COUNTRIES (MHL),2015

7

Source: Sawis, 2016

The production landscape can be divided into private Cellars, producer Cellars, wholesalers and retailers.

Private wine cellars are smaller operations, and are usually considered boutique winemakers. Confirmed

numbers of private wine cellars in South Africa totalled 494 in 2015 (Sawis, 2016).

Producer cellars consist of co-operatives and ex-co-operatives (co-operatives that have formalised their structure,

e.g. forming a shareholding company), and are generally larger operators. Confirmed number of producer cellars

in South Africa totalled 48 in 2015 (Sawis, 2016).

Wholesalers can be subdivided into export-only, general wholesalers and producer wholesalers. In general,

wholesalers will buy wine in bulk from producers and private wine cellars and market, distribute or export the wine

either in packaged or bulk form. A key difference where producer wholesalers are concerned is that they will

produce their own wine and buy wine in from either other producer cellars or private wine cellars. Producer

wholesalers often also have a small number of their own vineyards. Producer wholesalers are responsible for the

majority of exports from South Africa. Confirmed number of producer wholesalers in South Africa totalled 24 in

2015(Sawis, 2016).

Retailers, the final level of the wine distribution chain are the distributing/marketing agents and retail outlets from

which consumers are able purchase wine from. Supermarkets handle between 35% and 39% of all off-trade wine

consumption (by value) in South Africa Larger discounters such as Massmart and Metcash, handle about 41%. On-

consumption would be sales at restaurants, B&B’s, hotels and the hospitality trade in general. The remaining sales

are done through bottle stores, specialists and direct sales (which would include cellar door sales).

1.4.1 South African Wine Production

According to the study titled “Macro Economic Impact of the Wine Industry on the South African economy”, which was commissioned by the SA Wine Industry Information & Systems (SAWIS) and published in January 2015, the key impacts of the wine industry on the South African economy are as follows:

- In 2013, the wine industry contributed R36 145 million in terms of GDP to the national economy. This was equivalent to 1.2% of the total GDP of South Africa in 2013. With respect to the Western Cape, the contribution to GDP was calculated at R19 287 million in 2013, equating to an approximate contribution of 4.6% to the total provincial GDP of the Western Cape in that year. This created 167494 employment opportunities in the Western Cape alone. (2013). Source: SAWIS, 2013

In South Africa, viticulture (the cultivation of grape

vines) takes place mainly at a latitude of 34° South in

an area with a mild Mediterranean climate. South Africa’s wine industry is mainly located in the Western Cape Province.

Minimal amounts of viticulture exist outside of this province. Currently 98 597 hectares of vines producing wine grapes

are under cultivation in South Africa.

2012 2013 2014 2015

Wine 871 916 959 968

Wine for brandy 62 42 54 42

Distilling wine 124 141 134 113

Grape juice concentrate andgrape juice

40 59 35 31

0

200

400

600

800

1 000

1 200

Mill

ions o

f Litre

s

SA WINE PRODUCTION IN MILLIONS OF LITRES

MACROECONOMIC IMPACT OF THE WINE INDUSTRY ON THE SOUTH AFRICAN ECONOMY (2013)

MACROECONOMIC INDICATORS

RAND IN MILLIONS

Contribution to GDP 36 145

Contribution to Capital Investment

62 277

Impact on Balance of Payments 17 783

EMPLOYMENT NUMBERS

Total Contribution to Employment 289 151

Skilled Employment 43 644

Semi-Skilled Employment 84 769

Unskilled Employment 160 738

8

Source: WOSA,

The table below shows that geographically, the area of wine grape vineyards is fairly evenly distributed in four wine

regions (Stellenbosch 16.14%, Paarl 15.90%, Swartland 13.50% and Robertson 14.47%). These areas cover more

than 60% of total area planted during 2014. Of these, Paarl, Stellenbosch and Robertson are dominated by vineyards

owned by farmers that are members of cooperatives (or shareholders of companies that are ex cooperatives). Paarl

has both independent and cooperative grape growers and cellars. The wine industry in Stellenbosch is overwhelmingly

operated by independent growers and cellars.

GEOGRAPHIC DISTRIBUTION OF SOUTH AFRICAN WINE GRAPE VINEYARDS PER WINE REGION (EXCLUDING SULTANA), 2015

WINE REGIONS NUMBER OF VINES % OF TOTAL

VINES AREA

HECTARES % OF TOTAL HECTARES

Stellenbosch 48 149 247,00 16,48 15 911 16,14

Paarl 46 965 951,00 16,08 15 678 15,90

Robertson 48 145 807,00 16,48 14 264 14,47

Swartland 33 760 580,00 11,56 13 315 13,50

Breedekloof 41 602 795,00 14,24 13 029 13,21

Olifants River 27 689 442,00 9,48 10 263 10,41

Worcester 27 772 945,00 9,51 8 824 8,95

Northern Cape 10 000 095,00 3,42 4 687 4,75

Klein Karoo 8 005 044,00 2,74 2 625 2,66

Total 292 091 906,00 100,00 98 596 100,00

Source: Sawis, 2016

Chenin Blanc, Colombar(d) and Sauvignon Blanc hold the top positions with respect to the white wine varieties in terms of

hectarage under cultivation (Chenin Blanc and Colombard are also used for base wine in brandy production).Cabernet

Sauvignon, Shiraz and Pinotage are the leading red varieties in terms of hectare size.

9

WINE GRAPE VARIETIES PER REGION, 2015

WHITE VARIETY TOTAL

HECTARES RED VARIETY TOTAL HECTARES

Chenin blanc 17 965 Cabernet Sauvignon 11 170

Colombar(d) 11 839 Shiraz 10 347

Sauvignon blanc 9 263 Pinotage 7 364

Chardonnay 7 061 Merlot 5 939

Muscat d'Alexandrie 1 904 Ruby Cabernet 2 406

Semillon 1 152 Cinsaut 1 863

Viognier 837 Pinot noir 1 120

Muscat de Frontignan (Muscadel) 821 Cabernet Franc 842

Other white varieties 3 006 Other red varieties 3 697

Total White Varieties 53 849 Total Red Varieties 44 748

Total Wine Grape Hectare Size (red and white varieties) 98 597

Source: Sawis, 2016

Vinpro (the representative organisation for wine producers and cellars in South Africa) calculated that the annual cost

incurred to prepare the 2014 crop comprised cash expenditure (direct cost, labour, mechanisation, fixed improvements

and general expenses) and provision for replacement, excluding all tax, interest and entrepreneurial remuneration.

Compared to 2013, the industry average total production cost (excluding Malmesbury because this area requires an

alternative production, cost and capital structure) increased by 8% to R38 674 /ha in 2014 (Vinpro, 2016)

Total cash expenditure increased by 10% from 2013 to 2014 to R29,235 /ha in the 2014 production year – mainly driven

by an increase in the minimum wage 2014 was the first year that it was applied in full).

The cost component differs among the various areas due to the level of mechanisation, although the total production cost

does not differ significantly from one area to the next (Vinpro, 2016).

The provision for renewal cost/replacement cost refers to capital items that have to be replaced to ensure a running

concern e.g. tractors, tools, buildings, vineyards etc. Total provision for renewal amounted to R9,439 /ha in the 2014

production year – a 4% increase from 2013 (Vinpro, 2016)

Because the total production cost increased by 8% from 2013 to 2014, this caused the break-even in terms of rand per

tonne to increase from R2 042/tonne to R2 186/tonne in 2014. This meant that the first R2 186 a producer received for a

tonne of grapes during the 2014 harvest was applied for total production cost – no entrepreneurial remuneration, interest

or tax had been taken into account yet. The average yields differed considerably among the districts, as well as among

the various cultivars, while the production cost did not differ to the same extent. This gave rise to large differences in break-

even prices in terms of total production cost in the respective district and among the various cultivars (Vinpro, 2016)

According to SAWIS white varieties constitute 55% of the plantings for wine, with Chenin Blanc comprising 18% of the

total.

Red-wine varieties account for 45% of the national vineyard. The most widely planted red variety is Cabernet Sauvignon, accounting for 11% of the total. Shiraz accounts for 10%, while Merlot accounts for 6% and Pinotage, which is indigenous to South Africa, represents 7%.

10

Below are the varietal compositions (%) per wine region for 2015.

Source: Sawis, 2016

Source: Sawis, 2016

The Stellenbosch area incured the highest production cost for wine grapes in 2015 at a cost of R4 649 /ha. The Paarl region placed second at a cost of R2 663 /ha, while Robertson was third at a cost of R2 239 /ha.(Sawis, 2016)

Two key unique selling points in terms of the South African Wine Industry:

The Pinotage red varietal is considered to be a uniquely South African grape variety (a cross between Pinot Noir and

Cinsault). Although there now are plantings in other countries, the origin of the Pinotage is South African and it has

achieved international success (http://www.pinotage.co.za/).

In 2014, Audacia Winery launched the world’s first “No Sulphites or Preservatives Added” red wine created by using

indigenous Aspalathus linearis (Rooibos) and Cyclopia genistoides (Honeybush) toasted wood chips which assist in the

preservation and flavouring of the wine. This process of preserving the wine with Rooibos and Honeybush also creates a

unique taste for wine enthusiasts (http://www.audacia.co.za/).

0

5

10

15

20

25

%

RED VARIETAL COMPOSITION PER WINE REGION(%), 2015

Cabernet Sauvignon

Shiraz

Pinotage

Merlot

Ruby Cabernet

Cinsaut

Pinot noir

Cabernet Franc

Other red varieties

0

10

20

30

40

50

60

%

WHITE VARIETAL COMPOSITION PER WINE REGION (%), 2015

Chenin blanc

Colombar(d)

Sauvignon blanc

Chardonnay

Muscat d'Alexandrie

Semillon

Viognier

Muscat de Frontignan (Muscadel)

Other white varieties

11

SOME OF THE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS OF THE WINE PRODUCTION SECTOR IN SOUTH AFRICA

STRENGTHS WEAKNESSES

• The exceptional export growth over the last 12 years. The SA wine industry is making inroads as a global player. • The sound development of an aligned and focused statutory levy system for the industry to support industry activities like generic marketing. • South African wines are perceived internationally to be less fruity than other New World wines such as Australian wines and have some structure and elegance of Old World wines such as French wines. • South Africa has a great variety of terroirs (total natural environment of any viticultural site)

• South Africa does not have strong brands for mid-range quality wines sold over €7/£5. This is the fastest growing segment and the margins are healthier • Lack of serious investment due to small margins • Price competition amongst South African producers and high unit costs renders the wine industry increasingly marginal, a “price taker” and economically unstable. • Fragmentation of production entities. There are too many producers who produce small quantities. This too makes the industry economically unstable.

OPPORTUNITIES THREATS

South Africa should take the opportunity to capitalize on the global increase in red wine demand.

Increased competition from fellow Southern hemisphere countries like Chile, Australia and New Zealand

Source: DAFF, 2015

The Distell Group is by far the largest contributor in volume terms to total wine production in South Africa, as can be

seen in the table below.

TOP 10 SOUTH AFRICAN COMPANIES, 2015

RANK COMPANY % OF SA VOLUME

1 Distell Group Ltd 31,4%

2 KWV Group 4,6%

3 Van Loveren Wines 2,4%

4 DGB (Pty) Ltd 1,4%

5 The Co of Wine People (Pty) Ltd

1,2%

6 House of JC Le Roux Ltd 1,1%

7 Boland Kelder 0,6%

8 Robertson Winery 0,5%

9 Vinimark 0,4%

10 Backsberg 0,3%

Source: Euromonitor International, 2015

1.4.2 Domestic Wine Consumption

South Africa has the highest beer consumption in Africa. Its alcoholic drinks industry is well developed particularly the wine

and beer categories. (BMI South Africa Food and Drink Report Q2 2016). Beer represents nearly 80% of the market in

volume terms and 55% of the market in value terms (Sawis,Liquor consumption patterns in South Africa, 2015).

12

Source: Sawis,Liquor consumption patterns in South Africa, 2015

The South African wine consumer is generally considered to be more price-sensitive and less likely to venture into higher

priced products. Another contributing factor to comparatively low domestic consumption patterns of wine relative to the

consumption of other alcoholic beverages, is the fact that approximately 1 million of the white population has emigrated

and added to a decreasing wine drinking population. (Final Report – Macro Economic Impact of the Wine Industry on the

South African economy, 2015).

Source: Sawis, 2016

The increase in per capita consumption is mainly attributed to new entrants into the sweet red and rosé sectors driven by

female consumers in urban areas (Sawis - Liquor consumption patterns in South Africa, 2015).

The South African Wine and Brandy industry developed the need for a comprehensive industry-wide strategic exercise to

help it become more competitive internationally and assist in the transformation of the domestic industry by 2025). The

vision is to develop a robust and adaptable approach to drive profitability, global competitiveness and sustainability. The

Wine Industry Strategic Exercise (WISE) has a task team made up of representatives from the following industry bodies:

VINPRO (Representative organisation wine producers and cellars);

Salba (South African Liquor Brand Owners Association, representing 22 wholesale manufacturers and

distributors of liquor);

Sawis (SA Wine Industry Information and Systems, the business unit tasked with managing statistics and the

Wine of Origin Scheme);

Spirits20%

Wine11%

Fortified Wine1%

RTD's (Ready to Drink)13%

Beer55%

SA MARKET SHARE OF ALL LIQUOR CATEGORIES, 2015

6.936.98 6.98 6.95

7.32

7.73

6.4

6.6

6.8

7

7.2

7.4

7.6

7.8

2010 2011 2012 2013 2014 2015

LIT

RE

S

PER CAPITA CONSUMPTION IN SOUTH AFRICA

13

Wosa (Wines of South Africam the business unit responsible for generic export promotion);

Winetech (Wine Industry Network Exercise and Technology, the business unit co-ordinating research and

development; and

A range of role players throughout the wine and brandy value chain.

Below are a number of key targets set by the WISE task team to be reached by 2025.

2015 TARGET 2025

2% Producer Return on Interest CPI +5%

Production driven Business Model Market and Value Chain

Driven

2.50% Black-Owned Land and Water 20.00%

325 million litres Local Wine Sales 425 million litres

60:40:00 Exports Bulk:Packaged 40:60

20% Ethical Accredited Volume 100%

2 Free Trade Agreements Market Focus Agreements for Key

Markets

1%:2%:5% Export markets USA:China: Africa 7%:7%10%

R6bn Wine Tourism R15bn

R80m:R11m Industry: Government Levies Matched funding

275 000 Employment Levels 375 000

Source: WISE, 2016

14

2 International Trade

2.1 Global Trade of Wine

The OIV projected that global wine exports would reach 104.3mhl in terms of volume in 2015; an increase of 1.8%

compared to 2014) and equal to a value of EUR 28.3bn (an increase of 10.6% when compared to 2014). Wine exports

were dominated by Spain, Italy and France, which together accounted for 56% (58mhl) of the volume of the global market

in 2015, and 57.4% of exports in terms of value - EUR16.2bn (OIV, 2016).

Source: OIV, 2016

Spain remained the largest exporter in volume, exporting 24 mhl (a global market share of 23%) in 2015. Staying with

volume, other key exporting countries that identified significant growth in 2015 included New Zealand, Chile, Australia and

Spain (OIV, 2015).

In terms of value, France was the biggest global exporter of wine in terms of value at EUR 8.2bn in 2015, equivalent to a

market share of 29%. 2015 also saw larger increases in the value of exports from the United States and a number of

countries in the Southern Hemisphere as opposed to some European countries (OIV, 2016). Spain saw an increase in

exports with a growth of 1.7mhl compared to the previous year, but bulk wine accounted for 62% of these exports, resulting

in a lower average price for its overall exports compared to Italy and France (OIV, 2016).

TOP TEN GLOBAL WINE EXPORTERS - VOLUME (EXCL

MUST)

TOP TEN GLOBAL WINE IMPORTERS - VOLUME (EXCL

MUST)

COUNTRY VOLUME (MHL) COUNTRY VOLUME (MHL)

2014 2015 2014 2015

Spain 22,3 24 Germany 15,4 15,1

Italy 20,4 20 United Kingdom

13,6 13,6

France 14,3 14 United States

10,7 11

Chile 8,1 8,8 France 6,9 7,8

Australia 7 7,4 China 3,9 5,6

South Africa

4,2 4,2 Canada 3,8 4,1

United States

4 4,2 Russia 4,7 4

Germany 3,9 3,6 Netherlands 3,8 3,5

Portugal 2,8 2,8 Belgium 3,1 3,2

Argentina 2,6 2,7 Japan 2,7 2,8

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

VOLUME (MHL) 60 65 68 72 77 79 84 89 90 88 96 103 104 101 102 104

VALUE (BN EUR) 12 12 15 15 15 16 18 20 20 18 21 23 25 26 26 28

0

5

10

15

20

25

30

0

20

40

60

80

100

120

VA

LU

E (B

N E

UR

)

VO

LU

ME

(M

HL)

GLOBAL EXPORTS OF WINE, 2000 - 2015

15

Globally, bottled exports are still dominant in terms of volume compared to bulk wines. Sparkling wine exports accounted

for 8% of the total exports in 2015, an increase of 5.6% y-o-y. Bulk wines and wines in containers of 2 litres or more,

experienced an increase in terms of volume (an increase of 3.8% from 2014) (OIV, 2016).

In terms of value of exports, bottled wines still accounted for 72% of the total value of exported wines in 2015, with sparkling

wines at 18% of total value exported. Bulk wines or wines in containers of 2 litres of more, comprised 10% of total value

and 38% of the world market in terms of volume (OIV, 2016).

Source: OIV, 2016

2.2 Imports

In 2015, global wine imports rose to 102.6 mhl (an increase of 1.3mhl) compared to 2014. The top 10 importing countries

- which represented 70% of world imports in terms of volume - saw 3% growth in import volumes and 9.4% growth in

terms of value when compared to 2014 (OIV, 2016).

Germany remained the top country in terms of volume, even though imports decreased in volume from the previous year.

A similar reduction could be seen in the value of imports reported for 2015 (OIV, 2016).The United Kingdom imported the

same volume but at a higher value. The United States saw an increase volume and experienced growth in value ensuring

that it was the largest importer in terms of value, while being third to Germany and the United Kingdom in terms of volume

(OIV, 2016). France saw significant growth with respect to imported volume. It was a demand for bulk wine from Spain

due to a deficit in relation to entry level wines that saw a lower correlated growth in import value (OIV, 2016)

China in turn saw significant growth in its wine imports in 2015, particularly in bulk wine relative to bottled (which

experienced an increase too). The increase seen in import volumes was underpinned by increased domestic demand. (It

is important to note again that China was the biggest contributing factor in terms of volume to global trade growth in 2015)

(OIV, 2016).

The largest decrease in both import value and value was in Russia. This was likely as a consequence of the embargo and

the economic difficulties induced thereby (OIV, 2016).

2.3 South African Wine Trade

General challenges that the wine industry in South Africa is currently facing are as follows:

Global over-supply;

Sensitivity to the outside economic shocks such as exchange rate fluctuations, , tax increases,;

High subsidization regimes by the competitors especially developed countries;

Increased production costs; and

Surplus removal schemes.

(DAFF, 2015)

The Economic Partnership Agreement (EPA) signed in June 2016 between the European Union (EU) and the South African

Customs Union (SACU) stands to boost Western Cape wine exports. Under this agreement, the Tariff Rate Quota (TRQ)

of South African wine to be imported duty-free into the EU is set to more than double from the current 50 million litres to

Bottle54%

Sparkling8%

Bulk and Containers >2L38%

GLOBAL VOLUME OF EXPORTS BY PRODUCT TYPE, 2015

16

110 million litres in the first year of implementation for bulk and bottled wine. Sparkling wine did not form part of this duty

free quota, as it has already qualified as duty free under the Trade, Development and Cooperation Agreement (TDCA)

treaty previously concluded between South Africa and the EU. In the interests of promoting South African wine and the

sustainability of its exports, initially 70% of the 110 million litre quota would be directed to packaged wines, which are those

in bottles or other containers of 2 litres or less. Thereafter, it is likely that the packaged quotient of the allocation will be

increased further (Vinpro, 2016).

South Africa is predominantly a bulk exporter of wine with 58% exported in bulk in comparison to 42% exported as

packaged wines in 2015 (Sawis, 2016).

Record exports of 526 million litres were recorded in 2013, owing to harvest shortfalls that were experienced in Europe

and North America. Improved international harvests since caused exports to drop to 423 million litres in 2014 and 420

million litres in 2015.

Source: Sawis, 2016

The largest export market for South African wines is the United Kingdom, followed by Germany and the Netherlands. The

largest growth has been recorded in the Chinese export market (18.05%) for the period 2012 to 2016. The top import

markets are shown below, France in first position, followed by Italy and Portugal in second and third place respectively.

The largest growth has been recorded in the import of wines from New Zealand for the period 2012 to 2016 (45.14%)

SOUTH AFRICA'S TOP EXPORT MARKETS, 2016 SOUTH AFRICA'S TOP IMPORT MARKETS, 2016

RANK DESTINATION

MARKETS

VALUE 2016

(USDm)

% GROWTH

2012 - 2016

% SHARE

RANK SOURCE

MARKETS

VALUE 2016

(USDm)

% GROWTH

2012 - 2016

% SHARE

1 United Kingdom 109.37 -3.97% 16.40% 1 France 23.51 8.17% 81.99%

2 Germany 80.37 -4.91% 12.05% 2 Italy 2.28 4.20% 7.96%

3 Netherlands 51.93 -4.19% 7.79% 3 Portugal 0.73 -0.81% 2.54%

4 Canada 39.50 0.06% 5.92% 4 Spain 0.51 19.16% 1.78%

5 United States 38.29 1.15% 5.74% 5 Australia 0.20 26.65% 0.68%

6 China 38.16 18.05% 5.72% 6 Chile 0.19 -6.85% 0.67%

7 Sweden 35.37 -15.68% 5.30% 7 Argentina 0.16 28.49% 0.55%

8 Denmark 34.88 -1.56% 5.23% 8 United Kingdom

0.12 -16.95% 0.43%

9 Namibia 33.27 -2.01% 4.99% 9 New Zealand 0.11 45.14% 0.37%

10 Russian Federation

18.86 24.29% 2.83% 10 United States

0.04 -10.99% 0.15%

TOTAL EXPORTS 666.92 -3.32% 100.00% TOTAL IMPORTS 28.67 5.76% 100.00%

Source: Quantec, 2017

South Africa’s top export markets in Africa are shown in the table below. It is important to note that some countries are

either members of the Southern African Customs Union (SACU) or the Southern Development Community (SADC) or

members of both. Namibia is the top export market in Africa in 2016, USD33.27m, accounting for 33.20% of all exports to

2011 2012 2013 2014 2015

DOMESTIC SALES (MILLIONLITRES)

353 361 368 395 425

EXPORTS (MILLION LITRES) 357 417 526 423 420

0

100

200

300

400

500

600

Mill

ions o

f Litre

s

DOMESTIC WINE SALES VS EXPORT SALES (MILLIONS OF LITRES)

17

Africa. Kenya is second (USD10.69m) accounting for 10.67% of exports to Africa. Mozambique is the third largest export

market (USD8.24m), accounting for 8.22% of all exports to Africa.

SOUTH AFRICA'S TOP EXPORT MARKETS IN AFRICA, 2016

RANK DESTINATION

MARKETS VALUE 2016

(USDm) % GROWTH 2012 - 2016

% SHARE

1 Namibia 33.27 -2.01% 33.20%

2 Kenya 10.69 5.65% 10.67%

3 Mozambique 8.24 19.97% 8.22%

4 United Republic of Tanzania

7.66 12.31% 7.64%

5 Botswana 5.90 -6.56% 5.89%

6 Mauritius 4.01 -0.34% 4.00%

7 Zambia 3.61 -4.16% 3.60%

8 Zimbabwe 3.16 -5.41% 3.15%

9 Angola 2.99 -21.90% 2.98%

10 Nigeria 2.73 -22.47% 2.72%

TOTAL EXPORTS 100.21 -4.77% 100.00%

Source: Quantec, 2017

3 Foreign Direct Investment (FDI)

3.1 Global FDI in the Wine Sector

China was the largest recipient of foreign direct investment (FDI) globally in the wine industry from January 2003 to June

2016, both in terms of projects (22 projects) and capex (USD588.4m). Hong Kong followed in second position, with the

United States and France in third and fourth place, respectively.

DESTINATION MARKETS FOR GLOBAL FDI INTO THE WINE SECTOR, JAN 2003 - JUNE 2016

RANK DESTINATION

COUNTRY PROJECTS

% PROJECTS

CAPEX (USDm) %

CAPEX JOBS CREATED COMPANIES

1 China 22 15.83% 588.40 20.72% 1 696 22

2 Hong Kong 18 12.95% 319.60 11.25% 719 18

3 United States 10 7.19% 195.70 6.89% 312 10

4 France 7 5.04% 203.20 7.16% 669 7

5 Germany 6 4.32% 58.60 2.06% 188 6

6 Russia 6 4.32% 87.90 3.10% 453 3

7 Australia 6 4.32% 76.00 2.68% 101 6

8 Bulgaria 5 3.60% 173.40 6.11% 202 5

9 Mexico 5 3.60% 76.20 2.68% 54 5

10 Singapore 4 2.88% 95.50 3.36% 97 4

Other Countries 50 35.97% 965.40 33.99% 3 184 16

TOTAL 139 100.00% 2 839.90 100.00% 7 675 102

Source: FDI Intelligence, 2017

The top source markets for FDI in the period were France, the United Kingdom and Spain.

18

SOURCE MARKETS FOR GLOBAL FDI INTO THE WINE SECTOR, JAN 2003 - JUNE 2016

RANK SOURCE

COUNTRY PROJECTS

% PROJECTS

CAPEX (USDm) %

CAPEX JOBS CREATED COMPANIES

1 France 25 17.99% 549.30 19.34% 1 686 16

2 UK 19 13.67% 317.00 11.16% 467 12

3 Spain 12 8.63% 270.30 9.52% 726 9

4 United States 11 7.91% 276.80 9.75% 846 7

5 Australia 9 6.47% 142.30 5.01% 228 7

6 Chile 7 5.04% 131.30 4.62% 201 5

7 Hong Kong 7 5.04% 144.00 5.07% 209 3

8 Italy 6 4.32% 86.60 3.05% 181 6

9 South Africa 6 4.32% 139.70 4.92% 1092 5

10 New Zealand 5 3.60% 77.00 2.71% 92 3

Other Countries 32 23.02% 705.60 24.85% 1 947 29

TOTAL 139 100.00% 2 840 100.00% 7 675 102

Source: FDI Intelligence, 2017

The top 10 investing companies in the wine industry are shown in the table below.

THE TOP 10 INVESTING COMPANIES GLOBALLY (JAN 2003 - JUNE 2016)

RANK INVESTING COMPANY COUNTRY PROJECTS CAPEX (USDm) JOBS

CREATED

1 Sarment Hong Kong 5 95.0 110

2 The Antique Wine Company United Kingdom 5 77.0 92

3 Belvedere Bulgaria Bulgaria 4 51.8 320

4 Accolade Wines (Constellation Wines Australia and Europe)

Australia

3 50.1 74

5 LVMH Group France 3 68.9 390

6 Opus One United States 3 57.0 57

7 Trapiche Argentina 3 57.0 66

8 Vina Concha y Toro Chile 3 57.0 66

9 Agrovin Spain 2 25.4 92

10 Berry Bros & Rudd United Kingdom 2 38.0 44

Other companies 106 2 262.7 6364

TOTAL 139 2 840 7 675

Source: FDI Intelligence, 2017

Investing activities have predominantly been in Sales, Marketing and Support activities – leading both with respect to capex invested and number of investment projects.

INDUSTRY BUSINESS ACTIVITIES, WITH RESPECT TO GLOBAL FDI INTO THE WINE INDUSTRY, JAN 2003 - JUNE 2016

BUSINESS ACTIVITY PROJECTS CAPEX (USDm) JOBS

CREATED COMPANIES

Sales, Marketing & Support 77 1342.5 1620 54

Manufacturing 42 1075.2 4795 37

19

INDUSTRY BUSINESS ACTIVITIES, WITH RESPECT TO GLOBAL FDI INTO THE WINE INDUSTRY, JAN 2003 - JUNE 2016

BUSINESS ACTIVITY PROJECTS CAPEX (USDm) JOBS

CREATED COMPANIES

Logistics, Distribution & Transportation

10 276.6 855 10

Headquarters 6 69.3 269 6

Business Services 3 68.5 57 2

Retail 1 7.8 79 1

Total 139 2 839.9 7 675 110

Source: FDI Intelligence, 2017

3.2 South African FDI in the Wine Industry

3.2.1 Inward Investment

Between January 2003 and June 2016, one FDI project was recorded into the South African wine industry. It represented

a total capital investment of USD19m, and a total of 22 jobs were created. The company that invested in February 2012

was Vina Concha ya Toto (Chile), who opened a subsidiary company in Cape Town.

FDI INTO SOUTH AFRICA'S WINERIES SECTOR, JAN 2003 - JUNE 2016

DATE INVESTING COMPANY

SOURCE COUNTRY

DESTINATION STATE

DESTINATION CITY

SUB SECTOR

INDUSTRY ACTIVITY

CAPEX (USDm)

JOBS

2012 Vina

Concha ya Toto

Chile Western Cape Cape Town Wineries Sales,

Marketing & Support

19 22

Source: FDI Intelligence, 2017

3.2.2 Outward Investment

Between January 2003 and June 2016 a total of 6 FDI projects were recorded from South Africa into the global wine

industry. These projects represented a total capital investment of USD139.7m. During the period, a total of 352 jobs

were created.

OUTWARD FDI FROM SOUTH AFRICA INTO THE WINERIES SECTOR. JAN 2003 - JUNE 2016

DATE INVESTING COMPANY

SOURCE COUNTRY

DESTINATION COUNTRY

SUB SECTOR

INDUSTRY ACTIVITY

CAPEX (USDm)

JOBS

Jun-15 Origin Wine South Africa

United States Wineries Sales, Marketing & Support

19 22

Oct-14 Wines of South Africa

South Africa

Hong Kong Wineries Sales, Marketing & Support

19 22

Dec-13 Origin Wine South Africa

Sweden Wineries Sales, Marketing & Support

19 13

Jul-08 Bright World

South Africa

Hong Kong Wineries Logistics, Distribution & Transportation

35.1 92

20

OUTWARD FDI FROM SOUTH AFRICA INTO THE WINERIES SECTOR. JAN 2003 - JUNE 2016

DATE INVESTING COMPANY

SOURCE COUNTRY

DESTINATION COUNTRY

SUB SECTOR

INDUSTRY ACTIVITY

CAPEX (USDm)

JOBS

Mar-06 Distell Group

South Africa

Namibia Wineries Logistics, Distribution & Transportation

1.5 4

Feb-05 Lourensford Wines

South Africa

India Wineries Manufacturing 46.1 199

TOTAL 139.7 352 Source: FDI Intelligence, 2017

The most recent investment in 2015 was by Origin Wine, a fairtrade wine specialist, which opened a new office in the

United States (US). The new sales office will serve the North American market and help the firm to establish a global

sourcing footprint. It will also open up a more direct supply route for the company’s brands. Origin Wine opened a new

office in Stockholm, Sweden in 2013 as part of its strategy to drive distribution in key markets around the world. This office

is to service the Nordic region.

The investment in Hong Kong by Wines of South Africa (WOSA) is a regional office aimed at serving the whole of Asia.

4 The Price of Wine in South Africa in terms of Volume and Value

The table below displays the market breakdown of high priced wine sold in South Africa. Red wine held the majority share,

both in terms of volume and value.

TYPE OF

WINE

HIGH PRICED WINE IN SA

Volume % Value %

2006 /2007 2013/2014 2014/2015 2006 /2007 2013/2014 2014/2015

Red 41.4 45.6 46.8 50.6 53.2 53.4

White 38.1 35.8 35.6 34.1 34.1 34.3

Rosé 20.5 18.6 17.6 15.3 12.7 12.3

Total 100 100 100 100 100 100

Source: SAWIS, 2016

The table below shows medium priced wine held the top position recently in terms of volume in South Africa for the

2014/2015 year. In the 2014/2015 year, high priced wine held the top position in the domestic market in terms of value.

Source: SAWIS, 2016

TYPE OF

WINE

SOUTH AFRICAN DOMESTIC WINE MARKET

Volume % Value %

2006 /2007 2013/2014 2014/2015 2006 /2007 2013/2014 2014/2015

Sparkling Wine

2.8 2.5 2.4 9.1 8 8

High Priced Wine

15.4 16.7 16.5 37.1 34.8 34.3

Medium Priced Wine

24.4 32.9 35.4 19.8 25.8 27.6

Standard Priced Wine

42.2 29.1 27.6 19.8 14.9 14.1

Perlé 15.2 18.9 18.1 14.2 16.6 16

Total 100 100 100 100 100 100

21

5 Tariffs applied to South Africa Wine

The table below displays various tariffs applicable when exporting South African wine to various countries in Africa.

TARIFF FACED BY SOUTH AFRICA IN THE EXPORT OF

WINE (HS 2204 – WINE OF FRESH GRAPES, INCL. FORTIFIED

WINES )

TARIFF FACED BY SOUTH AFRICA (%)

Namibia 0

Mozambique 0

Angola 30

Kenya 24.9

Nigeria 20

Tanzania 0

Botswana 0

Zambia 0

Zimbabwe 10

Mauritius 0

Swaziland 0

Lesotho 0

Ghana 20

Democratic Republic of the Congo 18

Malawi 15

Uganda 24.9

Seychelles 0

Madagascar 0

Senegal 20

Côte d'Ivoire 20

Cameroon 29.6

Rwanda 24.9

Sudan (North + South) 40

Liberia 13.5

Ethiopia 35

Benin 20

Sierra Leone 30

Algeria 30

Gambia 20

Congo 20

Djibouti 26

Tunisia 36

Burundi 24.9

Gabon 29.1

Chad 29.6

Source: Trademap, 2016

22

6 Technical Wine Training in South Africa

The following institutions offer technical qualifications in Winemaking

Stellenbosch University

- Bachelor of Science in Agriculture majoring in Viticulture & Oenology (4 years)

Elsenburg College

- B. Agric Degree Programme (In association with the University of Stellenbosch) Main study fields: Cellar Management, Viticulture, Oenology (3 years)

- - Higher Certificate in Agriculture course specialising in Viticulture (2 years)

CPUT (Wellington Campus)

- National Diploma in Agriculture - Viticulture and Oenology (3 years) -

Wine Training South Africa

- National Certificate in Winemaking at NQF level 3 Food Beverage SETA accredited (15 months)

7 Wine Hospitality Training in South Africa

The Cape Wine Academy (http://www.capewineacademy.co.za/index.php)

- Founded in 1979, the Cape Wine Academy is recognised as the official wine education and training institution in South Africa covering the Gauteng, Kwazulu-Natal and Western Cape regions with conveniently located course facilities.

- The Cape Wine Academy provides a range of social and professional wine courses for individuals and tertiary institutions.

- The core courses are: South African Wine Course, Certificate Wine Course and Diploma Wine Course constantly updated and kept relevant.

- The Cape Wine Academy course development has concentrated its focus on vocational training for the wine and hospitality industry, and the expansion of lifestyle courses.

The Wine and Spirit Education Trust (https://www.wsetglobal.com/) courses through The International Wine Centre (http://thewinecentre.co.za/v2/)

- The Wine and Spirit Education Trust (WSET) provides globally recognised education and qualifications in wines, spirits and sake, for professionals and enthusiasts.

- Currently offers nine qualifications covering wines, spirits and sake. - The International Wine Education Centre (IWEC) was established in 2011 as the first Approved

Programme Provider for the internationally-recognised Wine & Spirit Education Trust (WSET) in Africa. WSET is the largest global provider of wines & spirits qualifications and their wine and spirit courses are the accepted industry-standard in more than 60 countries with over 56,000 people sitting a WSET exam in the last twelve months alone.

- Led by WSET International Educator of the Year, Cathy Marston AIWS, the IWEC offers a full range of WSET courses from entry level to Level 3, both online and as classroom courses. The IWEC also liaises with the London Wine & Spirit School to help facilitate WSET’s flagship qualification, Level 4 Diploma, now into its second successful year.

- The IWEC regularly teaches courses throughout South Africa, specialising in Western Cape and Gauteng, and can run bespoke courses anywhere in the country for individual companies or groups of interested wine-lovers. The IWEC has also run courses in Mauritius and Namibia and is happy to consider future courses throughout Africa to meet demands.

Wesgro has taken every effort to ensure that the information in this publication is accurate. We provide said information without representation or warranty whatsoever, whether expressed or implied. It is the responsibility of users of this publication to satisfy themselves of the accuracy of information contained herein. Wesgro cannot be held responsible for the contents of the publication in any way. © Wesgro, 2017.