24 Jun 2004

South African wines are popular in Sweden – so popular that South Africa as a wine country is on its way to bypass France in the Swedish market. In Systembolagets statistics the trend is clear; South Africa will be a greater supplier of wine to Sweden than classic France before the end of the year.

During the ten years of democracy, South African wine exports have increased by a thousand percent! From a zero base, South Africa has become one of the biggest wine producers in the world. Currently only Spain, Italy and France are greater exporters of wine to Sweden.

KWV International is the leading brand builder of South African wines in global markets, and the Nordic Countries are one of the company’s major focus areas. KWV was one of the first on the export market after the start of the democracy process in South Africa. There has been co-operation with Arvid Nordquist in Sweden from the start. Arvid Nordquist was established 1884 and is associated with high quality products. Wine has been an important part of the business from the beginning.

We were the first in the market with South African wine, as well as with those from KWV Limited, once the trade embargo was lifted ten years ago. The business relationship has deepened over the years and is today characterised by great mutual trust. This has resulted in this Nordic alliance.

“We share common views on how the Nordic market should be managed, in the most efficient way”, says Sara Norell, Director of Arvid Nordquist Wine and Spirits division.

Bryan Anderson, KWV International Business Manager, adds that when KWV International started formulating a strategy for a Pan-Nordic approach to their business, the synergies and shared business ideals with Arvid Nordquist made them the ideal match.

“We have been present in the Nordic countries since 2002 with several of our brands on the food side which has taught us a lot. We have chosen to grow the Nordic business in close co-operation with our producers rather than by acquisitions of local companies. Our concept has been very successful and it feels like the natural next step for our wines to follow,” says Erik Nordquist, Managing Director Arvid Nordquist HAB.

Then why is South Africa as a wine country so successful in the Swedish market?
“The Nordic is a pioneering market. We are curious and less bound by traditions and therefore more open for wine from new countries. This is true also for new products and containers,” says Staffan Dahlgren. “This is why it is natural for us to introduce new products first.” Staffan Dahlgren at Arvid Nordquist’s Wine and Spirits division is responsible for the joint Nordic establishment with KWV International.

Dr. Willem Barnard, CEO KWV Ltd, emphasises that KWV, through the alliance with Arvid Nordquist, hopes to attain a higher degree of integration and efficiency of distribution in the Nordic region.

“This will benefit the consumer. We are closer to the market in these countries which enables us to efficiently follow, but also to create trends. We are looking forward to launching new products into these markets. The South African growth in the Nordic region is tremendous and without comparison, which indicates that the Nordic market will be even more important for us in the future,” he said.

KWV Limited is also a pioneer at home. In recent days, KWV Limited, as the first major company in the wine industry, has sold 25,1percent of the company to a Black Economic Empowerment group. This is the biggest empowerment deal in the South African agricultural sector so far.