PHOTO: Wines of South Africa website
“Horrendous.”
That’s how the sales manager at Ridgeback Wines in Paarl, Luan Aucamp, described sales for 2020 so far.
Ridgeback Wines, like most other South African wine estates, have been hit hard by the ban on alcohol sales, that has been in place since the start of the national lockdown on 27 March this year.
The ban on wine exports was lifted on 7 April, banned again on 16 April, then lifted finally on 1 May.
Although the recent allowance for exporting wine has helped the wine industry, it continues to experience losses.
This is according to local wine farmers and Wines of South Africa (WOSA).
While being allowed to export wine again has helped the industry, it is relative to each producer, said Maryna Calow, communications manager for WOSA.
Due to the Covid-19 pandemic, international trade shows – where winemakers normally showcase their latest vintages – were postponed or even cancelled, said Calow.
This is where many would have signed new export deals, she said.
According to WOSA’s latest available statistics, 51% of the wine produced in South Africa in 2018, was exported.
Although exports have helped some wine estates, not all South African vineyards export their wine. PHOTO: WOSA website/Bosman Family Vineyards.
Handling the crisis
According to Aucamp, Ridgeback Wines is, under normal circumstances, majorly dependent on the income from wine sales.
Although being allowed to export their wine has helped, there has still been a drop in sales, said Aucump.
“We’re just hoping at this stage,” he said.
Winter pruning at Ridgeback Wines. The wine making process was not interrupted throughout lockdown, which saved the 2020 vintage. According to Luan Aucamp, Ridgeback Wines’ sales manager, as a wine brand, it is important to stay visible online during this time. PHOTO: Supplied/Ridgeback Wines.
Many in the industry are trying to get people to pre-order or pledge to buy wines once the ban ends, according to Aucamp. Many parties are taking this route, which decreases its effectiveness by saturating the consumer with marketing, he said.
“There is no guarantee it will translate into sales,” said Aucamp.
Instead, Ridgeback Wines has chosen to scale back on their marketing for now, so that when sales resume, they will be able to maximise their exposure, he explained.
Not all wine farms export
Part of the vineyard at Pink Valley Wine. Pink Valley winemaker, Schalk Joubert, says that they love what they do, which is why they don’t want to offer massive discount incentives after the ban. This could jeopardise the brand for the sake of moving stock, he said. PHOTO: Supplied/Pink Valley Wines.
The situation has not been forgiving to newer farms either.
Pink Valley Wine, a four-month-old brand that does not export, is facing severe challenges during this time, according to Schalk Joubert, CEO and experienced winemaker at Pink Valley Wine.
Joubert was worried that the industry would begin to see wine “dumping”. Some wines, such as Chenin Blanc and Rosé – both produced on Joubert’s farm – are not meant to age and cannot be stored forever, Joubert said.
Pink Valley Wine will aim to battle the current crisis on a service level, working on their product delivery after the ban, said Joubert.
According to Joubert, he did not want to compromise his brand by offering heavy discounts, which a number of wine producers have begun to do. As a new label, this would make it difficult to recover the brand image, following the return to normalcy, he said.