The partial lifting of the alcohol ban announced by President Cyril Ramaphosa last night will help restore some of the local wine sales revenue to more sustainable levels – but the industry has a long and difficult road to recovery.
That’s according to MD of wine industry body Vinpro, Rico Basson, who says the 20-week loss of sales since March last year has resulted in an overall loss of R8 billion in direct sales revenue and still threatens the survival of cellars, wine grape producers, and the livelihoods of 27 000 employees in the wine industry value-chain.
As a priority, Vinpro will build on various actions on which the organisation has focused over the past 10 months. “We must first ensure that our industry is not again switched on and off nationwide like a light switch by government, regardless of variation in Covid-19 status in the respective provinces.”
The organisation will therefore go ahead with a court application that was launched in the Cape High Court on January 27 seeking relief that would afford the Premier of the Western Cape the power to adopt deviations to enable off- and on-consumption sale of liquor in the province. Ultimately similar relief will be sought in respect of the other provinces.
“Covid-19 remains a serious reality that endangers the lives and livelihoods of South Africans. We as an industry are committed to proactively implement preventative measures from farm level to retail to protect employees, consumers and broader wine industry communities. Furthermore, we will continue to participate in discussions around a risk-adjusted approach to open up the economy even further, and ensure that it remains open,” says Basson.
Vinpro is finalising a social compact, which includes other liquor sectors, government and civil society, to collaboratively find more sustainable solutions to social problems around alcohol abuse and to change behaviour over the long term.
“We will continue to turn to government for financial relief to protect the livelihoods of our 533 wineries, 2 778 wine grape producers, and 269 000 employees in the wine industry value chain,” says Basson.
