Vinpro said the findings of a new survey into the impact of Covid-19 on the wine value chain has revealed how many businesses may have to shut their doors for good or unable to pay wages if alcohol ban is extended. Picture: Neil Baynes
WINE body Vinpro said a recent survey among its members found that businesses in the sector face potential closure in the next three to 12 months.
The body, which represents as many 2 600 businesses, said the South African wine industry was at a tipping point in the wake of another ban on the sale of alcohol.
On Wednesday the body’s urgent application in a bid to overturn the restrictions on the sale of alcohol was postponed for the second time in the Western Cape High Court after the organisation approached the courts on June 29.
Today, the body released the findings of a survey conducted with more than 500 participants on the impact of Covid-19 on the wine value chain which was conducted in the first week of July.
More than half “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,” said Vinpro’s Rico Basson.
“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.
“Many wine businesses are at the edge of a cliff and the livelihoods of thousands of employees are being endangered in the process. South Africa is the only country in which liquor sales have been banned with no financial assistance from national government, despite repeated requests from the wine industry. Instead, government chooses to close our industry without reliance on empirical evidence to back their decisions and seem apathetic towards its citizens’ plight for survival.”
According to the survey, many businesses who had already laid off workers since March 2020, are once again faced with the inability to pay staff full salaries.
“Should the ban continue for another six weeks after July 11, 2021, respondents in the survey indicated that they would only be able to fund 51% of their normal monthly payroll. Compared to this, black-owned brands and farms will only be able to fund 31% of their payroll, leaving more than two thirds of their staff without an income,” he added.
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