Meridian Wine Merchants has once again been named as the leading wine distributor in South Africa's on consumption sector, according to the latest Wine On-Premise Report on the local industry from Australian wine specialists survey company Wine Business Solutions (WBS). For its 2023 report on the state of wines listed and consumed in the South African hospitality sector, WBS surveyed some 40 000 individual listings on wine lists, including suburban restaurants, fine dining, hotels, pubs and clubs and game lodges, finding Meridian to be the top wine distributor in this environment responsible for 22.5% of all wines finding their way onto the wine lists of these establishments.
In all the on consumption premises surveyed throughout South Africa, 39 wine brands represented by Meridian were found listed at 4 187 different hospitality establishments, with the company representing eight of the top 20 most listed brands. Meridian also dominates the wine-by-glass segment with 23% market-share.
WBS found that Gauteng represented the bulk of South Africa's on-premise wine consumption establishments, with 43% found in the province, followed by the Western Cape at 23% and KwaZulu-Natal at 13%.
The WBS report states that in 2022 some 51 million 9-litre (12 bottles) cases of wine were consumed in South Africa. This was 16% higher than in 2021 and the highest local consumption ever recorded. Of this, it is estimated that around 11 million cases of the country's wine consumption - 22% - occurs in the on-premise sector. This is higher than in markets such as Germany, the UK and the USA where between 18% and 19% of all wine consumption is of the on-premise variety.
Highlighting the importance of wine brands' access to on-premise wine listings, the WBS report emphatically states the on-premise sector is "one of the only true 'brand building' opportunities many wineries will ever experience."
Shane Allchin, Managing Director of Meridian Wine Merchants, which has been distributing premium wine brands into the South African market since 1997, says that although not the biggest wine distributor in South Africa, Meridian's strength is the quality of their people, portfolio of premium brands and on consumption customer proposition. "Meridian's success as a wine distributor in the on-premise environment can be attributed to two primary factors," says Allchin.
"The first is undoubtedly the strength of the wine brands we represent, brands of premium image and desirability which business owners see as complementing their on-premise wine offering. Secondly, Meridian's strategy aimed at proactively ensuring our brands get onto these wine lists has allowed us to become strategic partners to on consumption establishments. This is done by building relationships and offering exceptional service to ensure Meridian's wine strategy adds value to the hospitality sector in general."
According to Allchin, the South African on consumption sector has, over the past few years, shown an affinity to premiumise its hospitality offering in terms of food, wine and the overall dining and wine consumption experience.
"In this, Meridian has been a partner in the premiumisation of the hospitality sector by underscoring the role our range of premium wine brands play in complementing the offering of on consumption establishments, by tailor-making wine lists to improve the customer experience, as well as outlet revenue,” he says.
"Concerning the WBS report placing Meridian at the top of the list of South African wine distributors in terms of the number of listings. For us it is not only about the number of listings, but the quality of the establishments where we place our wines. Here, Meridian has ensured it is not seen as a mere wine deliverer and administrator between the restaurant or hotel and the brand whose wine we list. Our relationship with our customers allows us to be accepted as a trusted wine advisor in terms of wine list compilation to unlock value for the total wine-offering, as well as to help the establishment ensure its customers receive the best possible wine experience – not only that provided by the various wines themselves but in terms of levels of service and attention to detail."
Damian Ganes, Meridian's National Sales Executive, says presence on a wine list is one of the key brand building components for any winery. "Meridian understands this, also that it comes with a responsibility to ensure the customer's on-premise wine experience reflects the reputation of quality and excellence of the wine brands we represent," he says.
Allchin says that with premiumisation currently being one of the keywords in the wine industry, South Africa's world-renowned hospitality industry plays a profound role in increasing the reputation and image of the world-class wines the country has to offer.
"Meridian's continuous efforts in giving our wine brands a substantial presence in this sector makes us an active partner in the premiumisation of the South African wine industry, not only to the benefit of the brands we distribute but to the wine industry and the perception of our country's wine offering as a whole."