It has been two weeks since the President announced that a ban on liquor sales and transport would be reintroduced. In post, I wrote about the devastating impact this would have on the wine industry and the surrounding local economy in the Eastern Cape. It seems that this is already starting to take place.
This week The Faremers’ Weekly wrote about how large cellars we’re canceling grape orders for 2021. Lower yield vineyards and those infected with viruses were excluded from orders. With Restuarant trade of liquor banned, the demand for high end wine has fallen.
We have already heard how wineries are struggling to bottle their 2020 vintage because of the lack of floor space caused by previous vintages. The surplus of wine is expected to equate domestic wine consumption.
Wine farms have joined the #jobssavelives campaign, drawing attention to the number of families dependent on their businesses for survival.
Again, the export market seems to be the only opportunity for some respite. While Other countries have not also banned alcohol sales there is also some surplus in the market. For instance, sales of French Champagne are down due to the cancellation of weddings and other celebrations due to the pandemic.
We can only hope that because of the lower value of the rand South African wines will be able to increase either their profit share or market share.
Don’t Cry Over Spilt Wine 