South Africa Wine Research Projects 2026

4. TECHNOLOGY TRANSFER COMPLETED PROJECT

ACHIEVING INDUSTRY SUSTAINABILITY THROUGH AN EFFECTIVE PREMIUMISATION STRATEGY FOR SOUTH AFRICAN WINES IN GLOBAL MARKETS UCT JS 21-01 Dr Jonathan Steyn, School of Management Studies, University of Cape Town Project completed: 2025 AIM AND INDUSTRY RELEVANCE: This project examined how the South African wine industry could enhance its global competitiveness and long-term sustainability by moving up the value chain through premiumisation. In the context of declining vineyard area, evolving global consumption trends, and increased international competition, the study focused on identifying the key drivers of value creation and determining how South Africa could elevate its category status and export value through stronger positioning and differentiation. A mixed-method case study approach was applied. The research combined four components: (1) a PLS-SEM structural model to identify relationships between global industry variables and value creation; (2) a perception analysis exploring how international market actors viewed South African wine status and value; (3) a netnographic and pricing analysis of key wine subcategories; and (4) an assessment of discrepancies between theoretical and actual Old Vine (OV) grape pricing, including the factors contributing to these gaps. The findings showed that premiumisation was driven by four interconnected factors: status (market positioning), reputation (consistent quality), image (association with desirable subcategories), and transcendent value (ethical and sustainability credentials). High-status subcategories, especially Old Vine wines and Pinotage, played a key role in achieving price premiums. The South African wine brand had gained positive momentum since 2022, with growing global recognition and increased market interest. The revitalisation of Pinotage, supported by a shift toward site-specific expression and improved quality perception, had reinforced its significance as a flagship variety. Site-specific expression emerged as a critical value driver, with wines, particularly Old Vine Chenin Blanc, consistently achieving higher prices. However, structural challenges remained within the Old Vine value chain. Although premium value was realised at the consumer level,

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SOUTH AFRICA WINE RESEARCH 2026