Bulking up for the long haul

by | Mar 11, 2025 | Article, Business

The annual World Bulk Wine Exhibition provides an unparalleled overview of global wine market trends.

At the16th edition of the World Bulk Wine Exhibition (WBWE), which took place in Amsterdam in November last year, the event once again underscored its role in helping producers, buyers and stakeholders to navigate an increasingly complex and fast-moving industry. From the bullish white wine market to the surging focus on sustainability, the WBWE offered valuable insights and opportunities, especially for South African wine producers facing global economic and environmental challenges.

“Last year was a year of transition for the WBWE,” Vinexposium CEO Rodolphe Lameyse says. “We aim to be a part of the future of bulk wines and spirits, and apply our clear vision and proven resources while remaining committed to our role as a strategic industry partner.”

Changing global landscape

The WBWE was held from 25-26 November amid significant shifts in the global wine industry. Just days before the event the International Organisation of Vine & Wine confirmed another short crop for 2024 and the impact of reduced harvests was already evident on the WBWE trading floor. Many exhibitors, particularly from Spain and Italy, reported empty tanks and limited inventories.

“Because other countries harvested small volumes this year and we have no stocks, almost all our wines are sold,” says María José González Albo, export manager at Yuntero Winery in Spain. Giovan Battista Ivan Cappello of Sicily’s Colomba Bianca also reported a 50% drop in production due to drought conditions.

These realities underscore the importance of bulk wine as a stabilising force in the global supply chain.

A strategic player

For South African wine producers, particularly those specialising in bulk wine, the WBWE offers an important platform to adapt to these global dynamics. Representing about 30% of global wine production, bulk wine is vital in addressing market disruptions caused by climate-induced shortfalls and shifting consumer preferences.

The WBWE’s scale and reach are remarkable. Last year’s event featured 245 exhibitors from 25 countries and attracted nearly 2 000 visitors from over 70 nations. For South African producers, the exhibition’s business matching services, which facilitated over 500 meetings, provided invaluable opportunities to forge partnerships, diversify portfolios and expand market access.

“The WBWE has proved instrumental in opening new doors for South African bulk wine,” says Niel Groenewald, CEO of The Bulk Wine Centre and one of last year’s exhibitors. “We’ve seen particularly encouraging developments in several key markets. The UK continues to strengthen its position as a strategic destination for our wines, while Germany’s market has shown renewed interest in our offerings. What’s especially promising is new opportunities in markets such as Russia, the Czech Republic and, surprisingly, even Italy – a traditional wine-producing nation. These evolving market dynamics highlight the growing recognition of South African bulk wine’s quality and value proposition in diverse international markets.

“We’re operating in a highly competitive environment, particularly given reduced volumes from traditional powerhouses such as Spain. This has intensified discussions around pricing. Our current stock levels have pushed our wines into a higher price bracket, requiring strategic market positioning. We’re seeing strong demand for South African Chenin Blanc, which has proved to have a lasting market advantage. And despite our reduced presence at recent exhibitions due to smaller harvests over the past two years, our pricing remains strong. This is in a stark contrast to markets such as Australia, which is grappling with surplus stock, particularly in red wines.”

Cornerstone of bulk wine

Reflecting its growing importance in the wine industry, sustainability emerged as the star attraction at last year’s WBWE. Sessions such as “Navigating the Path towards Sustainability: How Bulk Wine Can Drive Both Efficiency and Profitability” offered practical strategies for integrating sustainability into production and distribution.

These insights into sustainability align with ongoing efforts to address climate change’s impact on viticulture. Bulk wine’s ability to reduce carbon footprints through efficiencies in packaging, transportation and resource use positions it as a key contributor to sustainability goals. “Sustainable credentials are now being built into our tenders,” says Lisa Mcbain, a buyer at Fullers in the UK. “We select suppliers based on their efforts to reduce emissions and improve sustainability.”

The networking opportunities at the WBWE have been invaluable for understanding global sustainability trends and identifying potential partners for future initiatives, Niel says. “While sustainability initiatives such as lightweight bottles are gaining traction industrywide, they’re not yet economically viable for South African producers,” he says, highlighting the complexities of adapting to market demands. “Our approach to sustainability focuses on practical, impactful solutions within our operational capacity. We’ve optimised our export model by utilising flexi tanks for bulk transportation and implementing bottling operations as close as possible to consumption points – either managing this ourselves or through our logistics arm, depending on buyer requirements. We’ve showcased Fair Trade wines at this exhibition, but haven’t seen them translate into significant demand.

The WBWE also highlighted interesting packaging innovations. “We’ve had requests from American and Russian buyers, especially for Tetra Pak solutions, even though South Africa currently has limited local options,” Niel says. “Alternative packaging remains an area where local suppliers could expand their offerings, especially the canned wine segment, which has shown growth potential.”

Aligning with global trends

The WBWE highlighted key growth areas, including the rising popularity of no- and low-alcohol wines, and sparkling and white wines. Producers such as Argentina’s Fecovita and Spain’s Cherubino Valsangiacomo are already capitalising on these trends, with initiatives to de-alcoholise wines and launch innovative products.

“There was a significant demand for lower-alcohol wines around 11% ABV, especially from the UK,” Niel says. “The enquiries were for wines in the mid to premium price range, so not on the cheaper side. Although this presents additional production cost challenges, South African producers can leverage these insights to align with shifting market dynamics. By exploring new product categories and investing in innovation, they can tap into emerging consumer preferences while broadening their appeal in international markets. There’s also a focus on expanding portfolios in South Africa, specifically targeting the mid to premium price segments in the lower-alcohol segment rather than competing in the budget category.”

Showcasing quality and innovation

WBWE’s Silent Tasting Room, featuring over 350 bulk wine labels, provided a platform for South African wines to demonstrate their quality and commitment to sustainability. The International Bulk Wine Competition recognised excellence across all categories, further reinforcing the global reputation of participating producers.

For South African bulk wine producers, opportunities such as these are invaluable. By showcasing the diversity and quality of their bulk wines, the country can position itself as a reliable supplier in a competitive global marketplace. Participation in initiatives such as the WBWE also underscores South Africa’s ability to innovate and adapt, and attracts buyers looking for forward-thinking partners.

Looking ahead

As the WBWE strengthens its ties with the Vinexposium Group, its significance as a strategic enabler for the global wine industry will only grow. The 2024 exhibition was clearly more than just an event, it was also an indicator for market trends, while the increased attendance cemented it as a vital platform for the global wine world.

Robertson Winery is a regular exhibitor at the WBWE. “We’ve seen robust interest in our mid- to premium-price wine offerings, demonstrating the evolving perception of bulk wine quality,” Robertson Winery senior winemaker Thys Loubser says. “What’s especially encouraging is how these exhibitions create long-term business relationships. We’re now receiving orders from contacts we met three years ago at previous exhibitions. While we regularly evaluate the return on investment of maintaining a presence at these fairs, this year has clearly demonstrated its value. The exhibition isn’t just about immediate sales – it’s about building relationships that mature into sustainable business partnerships over time. This long-term perspective has proven particularly valuable for our premium portfolio, where trust and consistency are crucial factors in buyer decisions.”

To explore more articles in our March issue, Local is lekker, purchase our digital or print magazine here.

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