Vinpro Survey: SA Wine Industry At The Edge Of A Cliff
The South African wine industry is at a tipping point, with many wine businesses, especially smaller companies and those under black ownership, facing potential closures in the next three to twelve months due to the recurring and now fifth domestic wine sales restrictions. This according to a survey by Vinpro in the past week.
According to the Impact of Covid-19 on the Wine Value-Chain Survey that Vinpro conducted early in July 2021 among wine grape producers, wineries and other wine-related businesses, 58% of the 549 respondents indicated that their businesses would have to make drastic changes over the next year to be able to overcome the current challenges related to Covid-19, and 22% will in all probability not be able to survive at all. Even more alarming is the fact that 46% of black-owned brands and farms believe that their businesses won’t be able to survive the next year.
Around two thirds of all respondents’ revenue is generated from domestic wine sales, which reiterates the importance of domestic trade for the survival of the industry. The local market is of particular importance to smaller wineries and black-owned brands which are heavily reliant on sales channels such as their tasting rooms, hospitality offering and ecommerce.