BOTTLED, THEN THROTTLED: Wineries out of business, jobs lost – the reality of the booze ban

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With alert Level 3 lockdown regulations extended, including the ban on alcohol sales and on-site consumption at restaurants and tasting rooms, wine businesses are reeling. Not all of them will recover.

The underlying reasons for the government enforcing yet another ban on alcohol sales – on- and off-site – are not up for discussion here; there’s a lot of blame and finger-pointing going on already. I was going to say “too much” but perhaps it’s “not enough”.

That’s the financial side. There are human casualties too, some of whom have been in the wine world for generations, others who are young dreamers. “The impact and ripple effect is massive and will be damaging for some time to come,” continued Bowman. “In hospitality many sommeliers, wine waiters, sales people either had their salaries cut, or lost their jobs. And to put figures to that: 5,809 people are directly and permanently employed in wine tourism, together with 2,655 casual employees.

‘Buying online helps the most as it gives us the cash flow, oxygen for a company to stay alive,’ says Black Elephant Vintners managing director Kevin Swart. The biggest impact is obviously the restriction of local sales, which not only affects the money coming in but the capability to bring more in as the 2021 harvest is imminent,” said Hyland. “Their storage spaces are full of unsold wine, the barrels are full of unbottled wine, but budgets, lack of sales and cash flow make this impossible.

The numbers: 5,809 people are directly and permanently employed in wine tourism, together with 2,655 casual employees. During the peak season an additional 4,414 casual workers are employed. “Local wine consumers should support their favourite brands, buy online for later delivery – that worked very well for the previous lockdowns. The discounted prices make it more attractive, however that really cuts the cloth very fine for the producers at the end of all this.”

“Please consider my plea for a reduction in liquor licence fee for 2021. This year has been incredibly tough with a strong restriction not only on alcohol sales but on restaurants operating in general. I have a small, 18 seater restaurant so operating at 50% capacity is not a viable option and I actually lose more money than staying closed. It’s not a restaurant where guests come to drink as much as they wish, we host curated wine pairing dinners.

“The renewal fee paid by license holders is utilized to fund the costs of regulating the liquor industry in order to reduce alcohol related harms. These costs continued being incurred even during the early stages of the lockdown and the alcohol ban. Renewal fees are payable in terms of section 63 of the Act and as such is not linked to the ability of a license holder to trade in liquor, the volumes of liquor sold nor their turnover.

“The restaurant one I paid for 12 months but used probably for only seven or eight months during the last year. I was lucky to get the second licence in mid-December . “So what I am recommending for liquor licensees is not tax revolt, which is generally illegal, but rather making use of the legal remedies in the Consumer Protection Act. The stated purpose of the Act is to protect consumers from unconscionable, unfair, unreasonable, unjust or otherwise improper trade practices, including those by Government, and providing for an accessible, consistent, harmonised, effective and efficient system of redress for consumers.

Theo Nel is an advocate and hotelier. “I had to pay R4,750 for each of my two liquor licences last week,” he said. “The one is my hotel liquor licence – which I only used January to March 2020 – and then when we reopened in November 2020 for six weeks before it was closed down.

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Sad alcohol ban diaries

I have just placed an order with one of my favorite wineries to help a little bit. At this point, we need to help these guys with their cash flows and order as much as possible. Unfortunately this won't help with the storage crisis from the incoming new harvest. Lift this ban!

Now the ANC and the indigenous political elite can pock up some bargains. Method to this madness🤣🤣🤣 beautiful. This is the way👍🏻😁😁

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