Since local wine sales have been stagnant for some time, and export revenues have fallen despite moderate volume growth (mainly because of Rand strength), producers find themselves battling rising costs with no easy way to improve their income flows. For those whose primary export market is the UK, Rand revenue per litre sold is down between 20% and 30%.

The domestic market at least pays in the same currency in which producers incur costs. It's hardly surprising that those in the volume (rather than luxury) trade are willing to increase their discount structure to shift literage. A 15% price deal can still leave them 10% better off than supplying their UK agents.

Obviously there is some anxiety about how to claw back price levels when (and if) the crisis abates. Some of the so-called supermarket lines will inevitably remain exactly that - commercial weapons to move unwanted stocks as efficiently as possible. However, there are also high volume primary producers who do not have the luxury of dealing strategically with what is accumulating in their tanks. Their domestic market price points are forced upon them by whatever their competitors are doing in the supermarket and multiple trade.

Some cellars specialise in this kind of product. Accordingly they have refined their packaging and distribution overheads so that the wine value (relative to dry goods, handling and route-to-market costs) is quite high. Du Toitskloof is a frequent laureate in the Best Value tastings conducted by Wine magazine. I recently sampled its 2010 Chenin Blanc (wine doesn't get much younger than this) and discovered it was delicious. This is a R25 bottle of wine (cheaper, no doubt, at a discount trader) that is dry enough to please all but the most austere palate and fruity enough for those seeking a a little sweetness on the finish. In this respect it is not vastly different from the Fleur du Cap Natural Light 2009, a wine which never fails to surprise me for its intrinsic quality and easy drinkability, together with a palate balance which accommodates a wide range of tastes. At under 10% alcohol, it's also gentler on the body than most premium offerings.

Zandvliet in Robertson has been selling (at just over R30 per bottle) a couple of great value wines for several years, under the "My Best Friend" label and here the dry white - chardonnay, chenin and colombard - is the one to seek out. The Goede Hoop Estate in Stellenbosch brands under the Domaine name for its competitively priced offering (though even the premium range is unbelievable value). The red - a blend of Cabernet and Shiraz - sells for R30 and is probably the best value red I've sampled in recent tastings totalling over 500 wines.

None of these wines are targeted at the entry level of the trade - in other words, to people wanting to drink wine, but who have not yet acquired the habit. The Australian wine industry taught the world that the (relatively discreet) use of sugar is a valuable weapon in the battle between alcoholic beverage categories. In this newcomer-to-wine market segment there are several clever products, plush on the palate (thanks to a dose of Mary Poppins' fix-it-all), and remarkably easy drinking.

The Obikwa range even includes a couple of varietal labels, with palate weight rather than unacceptable sweetness. The Merlot (for example) is rich rather than tannic, and closer to the commercial ideal of the American market than many more expensive examples from the Cape. The DG Sunkissed White has rather more sugar, but also plentiful grapiness - all for about R20 per bottle.

Deals like this cannot last forever. The growers are compelled to sell their fruit and need Rands, not pounds. The cellars must clear tank space for the next vintage. At this stage survival demands that they ignore replacement costs. Reality will inevitably catch up: the version they are hoping for is a weaker Rand, rather than the Grim Reaper.

From Business day 28 April 2010