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Vinpro’s Rico Basson estimates that between 80 wineries and 350 grape growers could close their operations in the next 12 to 18 months.
CAPE TOWN – After losing an estimated R7.5 billion in sales revenue, South Africa’s wine industry fears the situation will worsen with the reimposed ban on alcohol sales, which is in place to slow the spread of the coronavirus.
Earlier this week, President Cyril Ramaphosa reinstated a ban on the sale and transportation of alcohol in an effort to reduce pressure on hospitals.
It has been a difficult year for the wine industry and now, with another ban in place, the wine sector is concerned about the dire consequences.
Vinpro’s Rico Basson said Wednesday that following recent bans, jobs had been lost and several wineries and tourist facilities had to close their doors.
“The previous bans had a devastating impact on the wine sector with a loss of more than R7.5 billion in sales due to lack of trade for 14 weeks in the local market and five weeks in exports.”
Basson estimates that between 80 wineries and 350 grape growers could close their operations in the next 12 to 18 months.
He adds that many lessons have been learned from lockdown levels 5 and 4, including that restricting the legal trade in alcohol fuels the growth of the illicit market.
WATCH: End of 2020 in sobriety as alcohol prohibition is reintroduced
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