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Cheaper wine in 2021: 300m litres of wine still unsold after alcohol ban

14 December 2020 7:17 PM
Tags:
Wine
Agriculture
Nedbank
The Money Show
Bruce Whitfield
VinPro
Lockdown
alcohol sales ban
wine industry
Daneel Rossouw
harvest

That is equal to South Africa’s entire wine sales in 2019. A bumper harvest is imminent; who will drink all that wine?

The prohibition on the sale of alcohol is still hurting the wine industry, months after it has been lifted.

South Africa’s winemakers are sitting on 300 million litres of unsold wine.

That is equal to the country’s entire wine sales in 2019.


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The new harvesting season is less than a month away, and a bumper crop is expected.

Consumers can expect cheaper wine in 2021.

Vinpro expects 80 wineries and 350 growing groups to fold in the next 18 months while Nedbank estimates there are 20 000 jobs at risk.

The Money Show’s Bruce Whitfield interviewed Daneel Rossouw, Nedbank Divisional Manager Agriculture: Southern Division.

There are more than 500 wine estates in South Africa…

Daneel Rossouw, Divisional Manager Agriculture: Southern Division - Nedbank

The industry has been under pressure for the past 15 years… Now, suddenly, we’re sitting with stock that can’t be sold… You can’t make up those months we were out of business…

Daneel Rossouw, Divisional Manager Agriculture: Southern Division - Nedbank

Vinpro has a recovery plan in place… talks about juice and hand sanitiser… We might see a lot more bulk wine at low prices; that’s not good for the industry… selling as a commodity…

Daneel Rossouw, Divisional Manager Agriculture: Southern Division - Nedbank

In 2019, we had good price increases… We established the brand much better. Now, putting more bulk into those markets won’t be sustainable…

Daneel Rossouw, Divisional Manager Agriculture: Southern Division - Nedbank

You see a lot of deals… but it’s not sustainable to drop prices too much… There are a lot more online sales…

Daneel Rossouw, Divisional Manager Agriculture: Southern Division - Nedbank

Trending, right now, on The Money Show:


Listen to the interview in the audio below.




14 December 2020 7:17 PM
Tags:
Wine
Agriculture
Nedbank
The Money Show
Bruce Whitfield
VinPro
Lockdown
alcohol sales ban
wine industry
Daneel Rossouw
harvest

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