Before you bottle it, can you sell it?

You’ve found the wine. You have a name, a label and a story you’re excited to tell. But who is going to buy it? At what price? And will they come back for another bottle? These questions can get lost in the excitement of launching a wine brand. For Phil Bowes, Inclusive Growth Strategies Manager at South Africa Wine, the starting point is not necessarily the wine itself. It’s the customer.

He compares building a wine business to writing a song. Before choosing the music, you need to know who will be listening. “It’s all about the listener,” he says. A recent South Africa Wine analysis of the 85 Black-owned brands listed by Wines of South Africa (WOSA) found that virtual brands account for 41 of them. These businesses buy grapes or wine and use contract or leased cellar facilities, avoiding the cost of owning vineyards or a cellar. They are also the newest group, with a median age of eight years. The model lowers the cost of entry, but places greater pressure on the brand to win customers.

Know your customer before choosing your wine

One of the first decisions is identifying who you want to sell to. Are you targeting everyday wine drinkers or restaurant wine lists? Each audience has different expectations around price, packaging and availability. Phil also cautions against building a brand around a story that does not feel genuine. “South African wine businesses often force a story that does not carry,” he says. He compares it to a local musician singing with a fake accent. The lesson is to build a brand around something authentic rather than inventing a narrative simply because it sounds marketable. Ask yourself who your ideal customer is, why they would choose your wine and what would persuade them to buy it again.

Find out where the wine will be sold

Producing wine is only part of the business. Selling through restaurants, retailers or direct-to-consumer channels brings different requirements for pricing, volumes and delivery.

Phil references Valencia-based marketing consultant Domingo Miguel, who reminds clients that their wine will often need to replace another brand in a listing or on a wine list. Knowing what your wine is replacing is vital.

About 90% of the wine South Africans drink sells for less than roughly R90 a bottle, based on historical South African Wine Industry Information and Systems (SAWIS) retail sales data adjusted to current prices. The market above this price accounts for about 4.5% of national volume, or 22 million bottles annually.

Yet, among Black-owned brands on the WOSA list that publish prices, 66% have their cheapest wine above R90. Most are competing in a relatively small market where winning a listing can mean another brand loses it.

Phil encourages entrepreneurs to establish genuine customer and distribution interest before committing heavily to production. Compliments are not proof of demand. “Market interest seems to be about the seller,” he says. “It is always about the buyer.”

Testing interest also means considering whether distributors and retailers have enough incentive to sell the wine. Phil describes this as margin capture with downstream collaborators. If business partners can earn a reasonable return, they have greater reason to invest effort in selling the product.

Kumusha Wines offers a useful example. Founder Tinashe Nyamudoka built the virtual winery’s business through a compelling brand and dedicated work with distributors abroad, attending tastings and ensuring samples arrived on time. Reliability makes it easier for others to do business with you, particularly when your brand depends on external partners.

Make sure the numbers work

Beyond sourcing wine or grapes, entrepreneurs must account for packaging, logistics and the people needed to run the business. Price is a good starting point. If your wine sits above R90, your sales forecasts must reflect the limited size of that market. Of the 41 virtual brands documented on the WOSA website, only 20 publish prices online. Making prices available can help potential buyers compare products and assess whether the wine suits their needs.

Fulfilment is another consideration. Taking an order is not the same as delivering it reliably and profitably. What happens if sales are slower than expected, a supplier lets you down or customers pay later than anticipated? Phil advises entrepreneurs to seek financial input from people with relevant experience. Scenario analysis can test whether the business remains viable when input costs rise or turnover falls. A business plan must show that the venture can survive when costs or timelines exceed expectations.

Choose funding that fits the business

Access to funding is another challenge for entrepreneurs moving from an idea to a functioning business. “Fundraising is the love language of all stakeholders in the wine industry,” Phil says.

However, funders have different criteria. These may include transformation objectives, job creation and repayment ability. Entrepreneurs should understand what a potential funding partner requires before applying. South Africa Wine’s Wine Industry Production Scheme is the central strategic document underpinning the division’s programmes. It formed the basis for approval of the transformation levy and supports the work carried out through these programmes. Entrepreneurs should establish which funding opportunities suit their business and understand the obligations involved.

Build a team the business can sustain

New wine businesses often start with very small teams. For virtual brands, which depend on external suppliers for grapes and cellar facilities, the workload can be particularly demanding.

Employing additional staff before the business can afford them creates financial pressure. Expecting one or two people to manage an unsustainable workload brings different risks. Entrepreneurs need to identify who is responsible for each part of the business and plan for what happens when a supplier fails to deliver or a key person becomes unavailable.

Test the idea before betting everything on it

A brand story that appeals to its founder may not resonate with customers. A price that looks reasonable on paper may place the wine in a segment too small to absorb it. A production volume may be difficult to sell. Phil encourages entrepreneurs to test these assumptions early through conversations with potential customers and realistic financial planning. Being willing to reconsider an idea when the evidence suggests it may not work is part of building a viable business.

A good product and sufficient funding do not guarantee that customers will buy the wine or return for more. Before choosing the label or committing to a production run, ask yourself: do you have a wine you want to sell, or a business that customers want to buy from?

As Phil puts it, “It’s all about the listener.”