From 1 August, South Africa’s wine exports to the US will face a 30% tariff, pushing retail prices up as much as 50%, warns Jeremy Sampson, chairperson of Brand Finance Africa.
“This escalation in trade tensions arrives at a precarious time for the global wine industry, which is already contending with declining consumption, inflationary pressures and rapidly evolving consumer preferences,” he says.
Sampson sees this as a “catalytic moment” to reinvent strategies by pivoting to Asia and BRICS markets, doubling down on provenance storytelling and accelerating premiumisation.
Listed French wine company Advini recently acquired five prominent South African wine producers in Stellenbosch, which contributed to 13% of the company’s turnover in 2024.
“The fact that South Africa is the only wine country outside France in which Advini has invested in land, vineyard and infrastructure underscores our belief that there is still a lot of untapped potential in the country’s wine industry,” says Naretha Ricome, vice-president of Advini South Africa.
“We did look at other wine countries, including Chile, but nowhere was more opportunity seen than in South Africa.”
Read more: Vintage gold, tariff cold: SA wine’s perfect harvest meets Trump’s cold shoulder
Yes, people might be drinking less, but Ricome sees growth in focused market segments internationally, such as Europe and Canada, where demand for premium South African wines is climbing.
With consumers increasingly buying “according to belief”, authentic storytelling about terroir, transformation and craft will be key, says Sampson. Pair that with innovations such as digital sommelier programmes and climate-smart farming, and the industry could turn adversity into an advantage.
Although not all is bubbly on the home front, luxury still sparkles in the world of champagne. Brand Finance’s Alcoholic Drinks 2025 report shows Corona and Moët & Chandon holding their crowns as global leaders while health trends and looming US tariffs reform the industry.
Global alcohol brands are toasting a new era of drinking – one fashioned by premiumisation, lifestyle aspirations and a growing appetite for moderation. Brand Finance’s Alcoholic Drinks 2025 report reveals who’s winning and why.
Read more: South Africa’s resilient wine industry learns to adapt and survive in tougher environment
Moët still pops
Moët & Chandon retains its title as the world’s most valuable champagne and wine brand, now worth $2.1-billion thanks to enduring luxury associations such as its Golden Globes partnership and having Roger Federer as an ambassador.
California-based Barefoot ranks as the second-most valuable brand and Australia’s Penfolds climbs to third with a valuation of $1.1-billion. But, with the best score on the Brand Strength Index, 86.2 out of 100, Penfolds is considered the world’s strongest bubbly and wine brand.
Corona Extra remains the world’s most valuable beer brand, with a brand value of $13.4-billion, according to the Alcoholic Drinks 2025 report. The Mexican favourite outpaced Heineken and Budweiser, which ranked second and third, respectively.
Mexican brand Modelo Especial leapfrogged Bud Light for the fourth spot, and Michelob and China’s Tsingtao made their debut in the global top 10. Guinness also returned to the top 10 after a seven-year absence.
Tsingtao is now the world’s strongest beer brand, with a Brand Strength Index of 95.6 out of 100, a testament to its enduring popularity in China. Financially, the Chinese brewer is holding steady: current earnings stand at $4.5-billion, with its profits for 2024 up slightly compared with 2023.
Filipino beer brands Red Horse Beer and San Miguel Beer also rank among the strongest globally, reflecting a surging demand in Southeast Asia.
A defining trend in this category is that of no- and low-calorie beers (NoLo). Brand Finance’s data shows that non-alcoholic beer drinkers differ significantly from the mainstream.
“Non-alcoholic beer drinkers are 68% more likely to be interested in sport and more than twice as likely to be interested in running, compared with the general population,” says Henry Farr, valuation director of Brand Finance.
This is a trend that reflects a growing consumer focus on moderating alcohol intake and prioritising health without giving up the social experience of enjoying a drink, says Farr, making it a key growth area in the alcoholic beverages market.
Brands such as Guinness are well positioned to appeal to both alcoholic and non-alcoholic drinkers and enhance their brand value, according to Farr.
Viticulture researcher and lecturer at Stellenbosch University Dr Erna Blancquaert also points out that alcohol consumption is falling globally because of Gen Zers drinking less, health reasons, lifestyle changes, financial pressures and political issues such as import taxes and tariff wars.
China’s Moutai, a spirit distilled from grains such as rice, wheat or barley, remains the world’s most valued spirits brand for the 10th consecutive year and is now worth $58.4-billion.
Six Chinese brands dominate the global top 10.
When it comes to brand strength in the spirits category, Mexico’s Don Julio leads the charge with a Brand Strength Index score of 94.2.
Data from Statista forecasts that South Africa’s tequila market is expected to grow 6.15% in 2026, with per-person consumption reaching 0.04 litres in 2025.
As tariffs and health-conscious behaviours challenge traditional models, brands that innovate, whether through NoLo options, luxury experiences or authentic storytelling, seem to be setting the pace. DM
This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
