WINE NEWS: ALCOHOL BAN LIFTED, BUT A LONG ROAD TO RECOVERY FOR THE SOUTH AFRICAN WINE INDUSTRY

The South African wine industry acknowledges today’s announcement by President Ramaphosa to resume local trade and distribution of alcohol under alert level 2 from midnight 17 August 2020, but says the industry still has a long road to recovery.

“Although we are grateful to start trading and delivering online sales again, we are dismayed at the extent of the damage caused to our industry during the temporary ban on exports and extended restrictions on local sales,” says Rico Basson, MD of the wine industry organization Vinpro.

“It might be too little too late. Many wine businesses have already closed down and a long road to recovery lies ahead for the industry as a whole,” says Basson.

The industry is believed to have lost more than R7 billion since the introduction of sales restrictions in March 2020. Following the initial nine-week ban on local sales, five-week ban on exports and second domestic sales ban, Vinpro estimates that more than 80 wineries and 350 wine grape producers would go out of business over the next 18 months, with a potential loss of more than 21 000 jobs across the value-chain.

Vinpro has been working closely with industry partners on a disaster recovery plan to address the urgent need to stabilize the sector, including the extension of further excise relief for the current year, as well as the 2021 season, addressing bottlenecks and challenges at the Cape Town Port and formulating solutions to reduce a current wine surplus of around 300 million litres.

“The wine industry is geared to reopen domestic trade and distribution with all necessary health and safety regulations in place, while focusing on changing behaviour with regard to responsible production, promotion, trade and consumption.”

 

Provence Wine Council approves a €21 three-year strategic marketing plan for export markets

At its AGM last month, the Provence wine council (CIVP) approved a three-year action plan costing €7 million a year, which includes drives in no fewer than 15 export markets. From 2019-2024, Provence’s producers have established a clear agenda to support premiumization of their wines; increase the share of exports from 37% to 45%; and diversify shipment destinations, particularly towards the Asia/Pacific region (more specifically to China and Japan).

“Our actions in France and abroad are aimed at constantly increasing the reputation and image of our appellations across the globe. A levy increase is never taken lightly. This bold decision is a sign that producer companies are aware of the challenges to be met and the collective resources that need to be deployed”, states Jean-Jacques Bréban, chairman of the Provence wine council.

https://www.vinsdeprovence.com/en/civp