Lifting ban on alcohol: ‘Too little, too late’?

“It’s too little, too late.” 

That is how Francois Rossouw, CEO of the Southern African Agri Initiative (SAAI), described the government’s decision to lift the restrictions on the sale of alcohol, on 15 August. 

According to Rossouw, the lifting of the ban on alcohol has provided little relief to wine farmers. 

Harsh reality

The wine industry is believed to have lost more than R7 billion since the introduction of liquor sales restrictions in March, according to Maryna Calow, communications manager for Wines of South Africa (WOSA). 

“We anticipate job losses to go into the 20 000 mark and maybe more, and we are estimating that about 350 of our primary producers will have to either sell their businesses or uproot their vineyards and replant something else,” Calow said. 

It is estimated that up to 80 wineries will potentially close their doors, she added. 

“The reality is, it is a little bit too late. There’s a number of people who just won’t be able to make ends meet,” said Calow.

According to Francois Rossouw, CEO of the Southern African Agri Initiative (SAAI) the lifting of the ban on alcohol has provided little relief to wine farmers. PHOTO: WOSA website/Elim

The trouble with exports 

According to Mike Ratcliffe, chairperson of Stellenbosch Wine Routes, the biggest window for exporting South African wine is in the months of March, April and May. However, much of that period this year, was characterised by restrictions on the exporting of wine. 

Those early restrictions on exports are going to have the biggest impact on the wine industry, as all Stellenbosch Wine Routes’ clients in Europe and in the rest of the northern hemisphere had to make another plan, Ratcliffe said.

“So, [European clients] started buying from our competitors,” said Ratcliffe. 

According to Calow, wine markers are left with roughly 300 million litres of surplus stock due to the restrictions on exports and local wine sales. 

“The crates, which should now be empty, are now still full of wine and coming very soon, there’s going to be another harvest. So where is that [excess wine] going to go?” said Ratcliffe. 

Infographic: Victoria O’Regan

Building back better

According to Rossouw, SAAI is working on coming up with extensive strategies needed to stabilise the industry. 

“From our side it’s not just about court action – it’s about building back better, and building back better means we need to open new markets,” said Rossouw. “We can’t do things the same way we did it in the past…We have to find better ways of utilising the current stock that we have.”  

Wine makers are sitting with roughly 300 million litres of surplus stock, due to the restrictions on exports and local wine sales, according to Maryna Calow, communications manager, for Wines of South Africa (WOSA). PHOTO: WOSA website/Bosman Family Vineyards