South Africa’s wine industry could be forced to destroy stock worth R1.5 billion. It has run out of space to store excess wine, as the government’s third alcohol ban begins to bite.
The industry currently has 640-million litres of wine stored in tanks and barrels, which is, according to Business Day, double the amount it normally stores. This is further compounded by the fact that the season’s harvest is due to begin shortly.
According to an industry body, Vinpro, this is the most wine that has ever been stored in the wine industry’s nearly four-century-long history.
Johan van Zyl, of Distell, said that if the alcohol ban is not lifted by the middle of February the industry will be forced to destroy 250-million litres of wine, worth about R1.5 billion.
The alcohol ban has hit the country’s wine industry hard with an estimated 20 000 jobs lost in 2020.
The South African liquor industry has also sent a request to National Treasury to defer the payment of sales taxes until the alcohol ban is lifted.