Wine exports come too late for some
Two years ago, SA’s first black female winemaker, Ntsiki Biyela, watched anxiously as the worst drought in a century scorched vineyards across the Western Cape. After surviving that, Biyela’s small business, Aslina Wines, recovered and was poised for growth in 2020 — until the coronavirus pandemic struck, threatening a bitter harvest as domestic and export sales tanked during nine weeks of lockdown.
Two years ago, SA’s first black female winemaker, Ntsiki Biyela, watched anxiously as the worst drought in a century scorched vineyards across Western Cape.
After surviving that, Biyela’s small business, Aslina Wines, recovered and was poised for growth in 2020 — until the coronavirus pandemic struck, threatening a bitter harvest as domestic and export sales tanked during nine weeks of lockdown.
“We are 30% down in terms of exports, but also [local] sales we are down,” she said at the cellars of Delheim wine estate in Stellenbosch, where Biyela makes and bottles her own red and white wines.
“I am anxious that we are not going to grow ... but as long as we can survive for the time being,” she said. “Everyone is struggling to survive.”
BROADER STRUGGLE
Aslina’s woes reflect a broader struggle in one of the world’s top 10 wine producers. According to domestic industry body Vinpro, it is unlikely to make up the nearly R3bn in direct revenue lost during lockdown, with export losses alone amounting to R200m a week.
As well as strangling exports, SA’s lockdown, one of the toughest in the world, includes a local ban on the sale of alcohol, although under looser restrictions announced by President Cyril Ramaphosa, alcohol will be sold for home consumption at certain times from next week.
Biyela is one of an increasing number of black entrepreneurs breaking into an industry traditionally seen as the preserve of wealthy white landowners who have thrived since SA made its first wine in 1659.
Aslina Wines, named after Biyela’s late grandmother, who helped raise her in the village of KwaVuthela on the east coast, was founded in 2016 and sells about 36,000 bottles a year, mainly to the US, Japan and the Netherlands.
Its first export since lockdown started in late March is scheduled to leave Cape Town for the US on June 1, Biyela said, but demand is down and instead of the usual container load, “they are only taking about five pallets, which is like half”.
Rico Basson, MD at Vinpro, said: “It is our estimation that around 80 wineries, with almost 350 producers, could be out of business ... that equates to some 15%-20% of the sector.”
Across the entire liquor industry in SA, which includes craft brewers, job losses stood at 117,600, he said.
It is unclear whether opening up after two months of zero revenue is enough to save the year. “The implications already are irreparable,” he said.
IT IS OUR ESTIMATION THAT AROUND 80 WINERIES COULD BE OUT OF BUSINESS … THAT EQUATES TO SOME 15%-20% OF THE SECTOR