Local wine producers face European competition

The European Union (EU) has warned South African wine producers that they can expect some tough competition on the EU market from 2009. As the South African wine industry celebrates a record export figure of 300 million litres in 2007, the EU has been revamping its own industry to to win back market share.

Its taken years of proposals, debates and compromises, but the EU will have its new wine regime in place by the end of this year. It is a plan to use the multi-billion euro budget on competing with the flood of win imports rather than subsidising local wines that nobody wants and costs that billions to dispose of.

The EU agricultural spokesperson Michael Mann says: "We'll get rid of our wine lake for a start. and put more money into marketing, we improve our labelling rules, we also allow people to make new styles of wine so we think that, hopefully, when this comes into place we will be able to be more competitive."

South African wines, along with those from countries like Australia, Chile and the USA, have made massive inroads into the European market. The EU are all to aware that winning back consumers is not going to be a walk in the park.

If the growing popularity and demand for South African wine across Europe is anything to go buy, many European producers may find themselves with a case of sour grapes.