Even before the coronavirus pandemic started to sweep through the world, the South African economy was in trouble, with the unemployment rate sitting at above 30 per cent. Now, with even more job losses, the South African economy needs every little boost it can get. Yet, since the pandemic hit in March, the South African wine industry – the second largest contributor to agricultural exports after citrus has been seriously affected.
The wine industry has long been snared in the government’s attempts to curb the country’s endemic problem of alcohol abuse. In the southern hemisphere, the introduction of a slew of restrictions caused by the pandemic happened to coincide with the end of the grape harvest – leaving vineyards with just-picked grapes and tanks of fermenting wine left unattended.
Unfortunately on March 26th, the South African wine industry was ordered to cease selling wine completely (both domestically and internationally, which usually accounts for 45 per cent of all South African wine). These strict measures were applied to all alcoholic drinks.
The official reason given for the bans was that it would help to free up necessary hospital beds that would otherwise have been occupied by those patients suffering from alcohol-related conditions. Of course, the wine industry argued that banning exports was completely unfair and unnecessary.
Wine exports were banned for five weeks, domestic sales for nine. It’s been a bit of a rollercoaster for the industry; on the 1st June, sales of wine within South Africa resumed with strict restrictions attached, but on the 12th July they were banned again for another five weeks. Since mid-August, sales within the country have been allowed, but only Monday to Thursday between 9 am and 5pm; Friday sales between these hours have been permitted since September 21st.
Weekend wine tourism is normally huge in South Africa, accounting for up to half of sales for many wine producers. Wineries were closed to visitors for almost five months but have been able to open from mid-August. However, there is a major snag: orders taken from those weekend visitors can only be fulfilled during those restricted weekday daytime hours – and those who want the ease of a home delivery must order a minimum of 12 bottles.
Up to 2019, around 10 million tourists visited South Africa each year, with a major concentration between December and March when the Cape winelands would be packed with northern hemisphere visitors looking to escape a cold winter back home. In the peak tourist season, the top restaurants in Cape Town are usually booked months in advance. For the boutique South African wineries, tourism used to account for more than 40 per cent of the turnover.
As we head into this holiday season, the outlook is rather bleak – the industry as a whole puts its losses since March at around £300 million. The country’s 2,778 grape growers and their 40,000 strong direct employees are experiencing some real hardship. These wine producers have been forced into some creative thinking; turning their surplus grapes into juice, grape concentrate, brandy and even hand sanitiser.
So, the good news about South African wine? It is beautiful. The new-wave producers have it nailed with their old-vine Chenin blanc, Grenaches and Cinsault; and the ambitious young winemakers have affordable, characterful fruit to work their magic with.
