This archive report was first published on 21 June 2020.
South Africa's wine industry is facing a tough road to recovery after a six-week export freeze and a ban on liquor sales during the COVID-19 pandemic.
The ban, which was lifted on June 1, had a devastating impact on the industry, with wine producers in the Western Cape province concerned that the industry will struggle to bounce back.
"We were the only country in the world where wine exports were not allowed," said Boyce Lloyd, CEO of South African top wine and spirits producer KWV.
According to Lloyd, buyers in key importing countries such as Canada, Finland, and Sweden removed bottles that did not meet a minimum sales rate, leading to delistings and delays.
"When you do not have stock on the shelf obviously you can't record a sale and then you get delisted," Lloyd explained.
Delays at ports due to coronavirus outbreaks among staff have also exacerbated the risk of being delisted, with Cape Town harbour staffers not being spared.
"What we have been seeing in the last few weeks is major hold-ups at harbour terminals," said Wines of South Africa spokeswoman Maryna Calow.
Only 55 percent of KWV wine exported this month had arrived on time, down from the usual 90 percent, according to Lloyd.
Delays could be as long as three weeks, he added.
The ongoing closure of South Africa's borders and lockdowns across the world have also made it difficult for wine producers to import packaging material, such as cork from Portugal and glass from Europe.
"I'm talking about cork from Portugal, glass from Europe," Calow explained. "There is a major delay and backlog there."
Meanwhile, cellars bursting with unsold wine barrels could cause a drop in bulk price due to oversupply by year-end.
The combined effect could be devastating for South Africa's famed wine industry, which employs around 300,000 people.
"We are estimating around 18,000 jobs to be lost due to... bans on the sale of alcohol," Calow said, adding that 80 percent of wine cellars risked shutting their doors in the long term.
A spike in online wine sales has been a glimmer of hope for the industry, but courier companies have struggled to keep up.
"People have not had access to liquor for two months, so you are dealing with a substantial build up of orders," said Lloyd.
