Stellenbosch study: adapt with premium & tourism — or slide into discount loops
A Wine Economics and Policy paper led by Stellenbosch’s Melissa van der Merwe maps how 17 South African wineries answer demand-side shifts. Paths diverge: some fall into discount cycles; others build premium brands, tourism and diversified revenue — profitability tracks industry feedback loops more than simple volume reaction.
Cape strategy is splitting in two directions.
The Financial Analyst flags a Wine Economics and Policy study led by Melissa van der Merwe at Stellenbosch University. Interviews with 17 wineries and stakeholders track demand-side shifts — changing taste, sustainability pressure, softer traditional markets — and the business models that answer them.
Some houses trap themselves in discount loops: cut price to keep volume, then need the next cut to stay visible. Others invest in premium positioning, wine tourism and diversified income so margin can survive a thinner export pipe.
Mini-concept: profitability here is less about reacting to every lost litre and more about where you sit in the industry’s feedback loops. Discounting reinforces discounting; tourism and brand equity reinforce pricing power.
This is the strategy layer — not a reprint of the already-live SA–US export drop story. Volume loss is the weather; positioning is the roof.
For drinkers and investors, the tell is simple: ask whether a Cape label is buying attention with price, or earning it with place, experience and clear style.
Remember: Stellenbosch study of 17 stakeholders — discount loops vs premium, tourism and diversified revenue.
Source: The Financial Analyst