Business Maverick: Wine exports are now legal, or are they? By Kim Maxwell
News went out on 7 April 2020 that a special dispensation had been granted to the South African wine industry to allow wine exports during the Covid-19 lockdown period. An industry financially strangled by legislation allowing no local alcohol sales heaved a small sigh of relief.
“It’s our interpretation of the Government Gazette of 7 April that cellars, firstly, may proceed with any wine export orders sitting in the harbour port. Secondly, they can export all finished wine , if it only involves transporting it from your winery or warehouse to the harbour port.” No road or rail freight is allowed for cross-border transport. No service providers may print labels, provide bottles or capsule closures for winesVan Loveren Vineyards CEO Phillip Retief sat in on the export task team, one of a few producers asked to offer operational guidance. “Although it varies from winery to winery, about 50% of SA wine is sold locally; 50% exported as a rule,” said Retief.
The finished wine orders are headed for Scandinavian markets. “We’re trying to get those orders out to comply with Scandinavian tender requirements. There’s a clause in the contract fine print that decides whether this tender opportunity will continue,” said Louw. “We’ve got 26 orders to process now; I loaded seven containers this morning,” head winemaker Tertius Boshoff toldon 9 April. “We’ve got a few more for next week that we’re trying to get out. With Easter weekend, the port is not operating on Good Friday or Easter Monday.”
The irony for Stellenrust is that since exports of bottled and bulk wine have been allowed during lockdown, orders are streaming in from Europe. But unless wine can be legally bottled, assessed and certified, future orders will not be serviced.Creation Wines is a medium-sized family-owned business in the Hermanus Hemel-en-Aarde Ridge valley, producing about 350,000 bottles a year. Co-owner Carolyn Martin waited all week to get the lockdown go-ahead.
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