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SA wine industry set to<br />
rebuild and bounce forward<br />
Wine and wine tourism will remain resilient.<br />
By Rico Basson, Vinpro MD<br />
FOCUS<br />
Despite setbacks brought on by Covid-19<br />
over the past two years, South Africa’s wine<br />
and brandy industry is ready to not only<br />
bounce back to where we were before the<br />
Covid-19 pandemic hit, but to bounce forward. This<br />
sector, which provides job opportunities to close to<br />
269 000 people and contributes R55-billion to the<br />
economy, is on a path to rebuild.<br />
To achieve our vision of being robust, adaptable<br />
and competitive, the industry focuses on boosting<br />
exports and local sales, promoting inclusive growth<br />
and responsible consumption, and striving for<br />
sustainability in all facets of business.<br />
Apart from cutting off wine businesses’<br />
revenue in excess of R8-billion, trade restrictions<br />
in 2020 and 2021 resulted in a wine surplus, which<br />
drove down producer and cellar pricing and<br />
placed further pressure on the finances of wine<br />
businesses. To remedy this situation, the industry<br />
will have to continue to implement measures to<br />
reduce the surplus, including allocating grapes for<br />
grape juice concentrate and finding new markets.<br />
South Africa could seize export opportunities<br />
due to lower global wine production in 2021. East<br />
Africa, the UK and USA, Canada, China and Europe<br />
remain key markets. Logistical challenges at the <strong>Cape</strong><br />
Town Port Terminal are urgently being addressed to<br />
support these exports while negotiations to secure<br />
preferential trade agreements with China and<br />
African countries continue.<br />
Wine tourism is an important driver of growth<br />
in the local market, but its success will depend on<br />
no further alcohol trade restrictions. Therefore, the<br />
wine industry continuously engages with more<br />
than 10 national government departments to<br />
ensure fact-based decisions are made regarding<br />
Rico Basson, Vinpro MD<br />
trade restrictions, together with various targeted<br />
initiatives to promote responsible consumption<br />
and legal trade.<br />
We anticipate that transformation and<br />
the development of new businesses will gain<br />
momentum through dedicated funding and<br />
strategic initiatives. Furthermore, South Africa<br />
is a world leader in climate change and in line<br />
with Sustainability 360 as the theme of the<br />
<strong>Cape</strong> Wine <strong>2022</strong> international trade exhibition<br />
from 5 to 7 October <strong>2022</strong>, we believe that<br />
sustainability in its various facets will become<br />
even more intertwined in the activities of<br />
wine businesses.<br />
The road to recovery will be long and hard, but<br />
the wine and wine tourism industries will remain<br />
resilient, celebrating milestones along the way<br />
towards a stronger and more sustainable industry.<br />
About Vinpro<br />
Vinpro represents 2 600 South African wine grape<br />
producers, cellars and wine-related businesses,<br />
while providing strategic direction, rendering<br />
specialised services and supporting people<br />
development. ■<br />
Contact details<br />
Vinpro<br />
Tel: +27 21 276 0429 | Email: info@vinpro.co.za | Website: www.vinpro.co.za
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