SA wine industry in trouble after losing R400m weekly during alcohol ban

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South Africa News News

The wine industry could turn sour, with 13 000 hectares of vineyards lost during the lockdown - and even at level 1, it is running at a R7.5 billion loss.

Under level 1 the sale of alcohol is allowed during the week at specific times. However, the sale of alcohol is prohibited over weekends, which makes it hard for wine cellars to sell alcohol to visitors.

Vinpro spokesperson Wanda Augustyn said: “The wine industry will never recover from the losses that occurred due to the ban on exports, as well as the ban on the sale of wine in the local market. The three-week ban on exports had a huge direct export revenue loss, but the damage to reputation of consistent supply and future market were also enormous. The industry lost R400 million every week when the local sale of wine was prohibited.

According to Vinpro, based on projections 60 to 80 wineries faced possible closure and an estimated 22000 jobs could be lost. “The industry faces significant cash flow challenges across the spectrum and the value chain we have already seen some closures,” Augustyn said. “The next 12 to 18 months will remain tough. A significant number of our wineries are extremely small in terms of turnover and rely on direct sales . Seventy-five percent of the 533 wineries have a turnover of less than R10million per year. This is why tourism is so important.”

 

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CoruscaKhaya That's good news. I see many cape addicts recovering! Perhaps is because of access to quality wine which was apparently exported before the pandemic. PaarlPearlmustfall

CoruscaKhaya If it didn’t sour then it wouldn’t be wine

The prices at “boutique wineries” are in most cases out of the reach for local consumers, particularly in the current circumstances. They should not expect much help locally....!! Unless, meaningful discounts are offered on bulk buys.

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