The Save SA Wine campaign launched a feeding project for needy families in the Winelands in response to the third national ban on alcohol sales that the South African wine industry faces in a year.
The industry faces dire times as restrictions have a far-reaching negative impact on the country’s already precarious socio-economic predicament and the industry’s viability. There is no Temporary Employer/Employee Relief Scheme (TERS) for any of the SMMEs in the sector including taverns, restaurants and bars.
The alcohol ban actively fuels illegal alcohol supply channels’ operation angling to restock the market and contributes to the increased sale of illicit — and potentially dangerous — liquor.
According to the World Health Organisation, illicit alcohol accounts for an estimated 24% of the overall SA alcohol market and according to Euromonitor, costs the fiscus over R6.4 billion annually in lost tax revenue. These counterfeit products put the lives of consumers at risk, including reported cases of death.
The South African GDP declined by -8% in 2020, according to StatsSA. The alcohol sector contributes R172 billion (3% of GDP) to the SA economy. The Midterm Budget Statement from the Treasury in October estimated a -28% reduction in excise tax contribution from R47 billion in 2019 to R34 billion in the current financial year ending February 2021. We can expect those losses to deteriorate with every day and week that the current ban is maintained.
Vinpro, which represents 2 500 South African wine producers, cellars & industry stakeholders, said it estimated that in the 17 weeks following the prohibition in March 2020, the wine sector lost more than R8,0 billion in direct sales revenue.
Vinpro CEO, Rico Basson said:
With less than a week before the 2021 harvest commence, the South African wine industry faces a grim picture of business closures, job losses, downward price pressure, structural damage to subsectors, a decline in production without investment, quality deteriorating, a loss to the fiscus and diversification away from wine.”
These jobs and sales revenue losses will continue their downward spiral, inflicting more significant harm and damage to business and the country.
SALBA CEO, Kurt Moore said,
The Government did not indicate when alcohol sales will be allowed again. It is prudent that the industry applies all possible cost-preservation measures to keep it afloat: delaying excise tax payments is a significant factor. The industry and its entire value chain face an enormous financial crisis, and its capacity to make these payments is severely constrained.”
The Government’s nationwide ban on the sale of alcohol has far-reaching repercussions.
The Save SA Wine Feed A Family Project
With the feed a family project food vouchers to the value of R 250 will be sent to a family in the Winelands with each #SaveSAwine T-Shirt sold. The T-shirts are available on The Fishwivesclub boutique and will be shipped directly to buyers. Food vouchers are distributed to affected families via SMS.
Patrick Robertson, the CEO of the Fishwiveslub also announced that 10% of all sales on the Fishwives Club boutique will be donated to the Save SA Wine Project and challenged all other wineries and winelands businesses to participate.
About Save SA Wine
Save SA wine is an Non-Profit initiative to promote the South African Winelands and South African Wine.
Previous initiatives by Save SA wine
Save SA Wine recently concluded the 60in60 campaign spearheaded by Erica Taylor as well as the SAveSAwineMural campaign. More details on these projects are available on the Save SA Wine website: www.savesawine.co.za
