The SA sparkling wine market has gained traction amid the global economic upswing, with recent trends indicating growing demand driven by increased consumer interest in local products.
According to global data and business intelligence platform Statista, SA’s sparkling wine market revenue reached $28m (R530m) in 2024 with an expected compound annual growth rate of 2.24% in 2024-29.
As the market evolves, local players face opportunities and challenges, particularly in competing with established French champagne brands.
Despite this competitive landscape, the House of BNG, founded by the media personality Bonang Matheba in 2019, has emerged as a notable player, establishing itself as a luxury beverage brand within a niche market.
Business Day caught up with Matheba to discuss the evolving sparkling wine market while gaining insight into House of BNG’s strategy and plans for future growth.
What inspired you to venture into the sparkling wine market, and how has your brand been received?
House of BNG was born out of the desire to create a luxury brand that celebrates African excellence and resonates with local and international audiences. Sparkling wine, particularly Méthode Cap Classique (MCC), has a rich heritage in SA and I saw an opportunity to elevate this by introducing a brand that blends sophistication, innovation and celebration.
Since its launch in 2019, the brand has been embraced as a premium lifestyle choice, with its products featured at prestigious events such as the presidential inauguration and the Miss SA pageant.
How does the SA sparkling wine market compare with dominant global markets, such as France and Italy, and what opportunities and challenges does this present for local players?
SA’s sparkling wine market is unique, offering high-quality MCCs at competitive prices compared with French Champagne and Italian Prosecco.
While global markets benefit from entrenched legacies and wider brand recognition, SA producers have an opportunity to capitalise on authenticity, terroir and innovation.
Challenges include limited global awareness and navigating distribution channels, but there is significant potential to grow by emphasising the exceptional quality and value of SA MCCs on the international stage.
Terroir refers to the unique combination of environmental, geological and climatic conditions that give a wine its distinct flavour, aroma and character, reflecting the specific region or vineyard where the grapes were grown.
Who are your key partners and distributors, and have you been approached by investors to help expand your reach domestically or internationally?
We work closely with a network of distributors and partners to ensure our brand is accessible across key markets. Halewood is our main distributor.
Domestically, partnerships with major retailers, such as Woolworths and premium outlets, have been instrumental in our success. Internationally, we are exploring collaborations to expand our footprint.
There has been interest from investors and while we remain open to strategic partnerships, we are deliberate in aligning with those who share our vision and commitment to excellence.
What are the major cost drivers in producing high-quality sparkling wine and how do you manage these costs while maintaining profitability?
Producing high-quality MCC involves meticulous attention to detail, from sourcing premium grapes to adhering to traditional production methods, including extended bottle maturation. Packaging and branding also represent significant investments to ensure the product aligns with luxury market expectations.
House of BNG manages costs through efficient production processes, strategic sourcing and volume planning, while maintaining profitability by delivering value to our customers.
French Champagne has long dominated the market. How does your brand differentiate itself and what space do you see for it in this competitive landscape?
We differentiate ourselves by combining world-class quality with an African narrative. We embrace our local roots, celebrating the uniqueness of SA terroir and the innovative spirit of our people.
The brand occupies a distinctive space as a luxury lifestyle product that speaks to sophistication and inclusivity, offering consumers a premium alternative that champions African excellence.
There’s a growing trend in the nonalcoholic beverage market. How has this affected your business strategy and what role do you see House of BNG playing in this trend?
The growing demand for nonalcoholic options aligns with our commitment to inclusivity and innovation. Recognising this shift, we introduced the BNG Nectar Rosé nonalcoholic variant, catering to consumers seeking sophisticated, alcohol-free alternatives.
This addition reflects our adaptability in a competitive market and addresses emerging consumer preferences within the luxury beverage space.
How do you balance quality and affordability in your products, and what pricing strategy has worked best for you?
Balancing quality and affordability is a cornerstone of our strategy. While we prioritise delivering a premium experience, our pricing remains competitive within the luxury beverage market.
By leveraging efficient production processes and economies of scale we ensure that our products are accessible, without compromising on quality. Our pricing strategy has resonated well with consumers.
What role does sustainability play in your operations and how do you incorporate eco-friendly practices into the business?
Sustainability is integral: from sourcing locally to reducing our carbon footprint through eco-friendly packaging, we are committed to making environmentally responsible choices.
Our BNG Nectar range, for instance, features recyclable cans designed for convenience and sustainability. These practices reflect our dedication to aligning with global sustainability standards while meeting consumer expectations.
What does success look like for House of BNG in the next three to five years and what milestones are you aiming to achieve?
Success for us will be cementing our legacy as a globally recognised African luxury brand. Over the next three to five years, our milestones include expanding into key international markets, diversifying our product range and strengthening our position as a leader in innovation within the sparkling wine industry.
Looking ahead, what trends or innovations do you see shaping the sparkling wine market, and how will you adapt to these changes?
Trends such as the rise of nonalcoholic beverages, sustainability and experiential marketing are shaping the future of the sparkling wine market.
House of BNG is well-positioned to adapt by continuing to innovate, prioritising eco-friendly practices, and creating unique experiences that resonate with consumers.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.