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South Africa Wines Hit by Recession
The worldwide economic slowdown's war on South African booze continues... first, beer sales took a hit, and now it's South Africa's renowned wines. Effects of the recession have reached South Africa's wine regions of Paarl and Stellenbosch, with export orders slowing down, domestic consumption reduced, and high-end label sales dropping off.
This is a result of outside pressure: for every overseas restaurant that shuts down in these tough times, that's one fewer destination for the fruits of South African vines: over 12 million fewer bottles in the last year alone, though wine production is actually up.
A number of local producers' export orders had been cancelled, not because of low quality or bad service, but because of difficult trading conditions in the country's main export markets, he said.
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