Wine marketing will not be the same again if the planned provisions in the proposed amendment to the Western Cape Liquor Act and Regulations are introduced. However, some changes are positive.
Wine.co.za reported about the implications the “stern regulations” for wine estates in South Africa, as well as for persons selling wine, or just collecting it.
The proposed regulations give municipalities a greater say in wine marketing, with wine licence applications costing R 1 000 for the application alone, R 2 000 for the granting of a wine licence, and R 4 000 per annum for the renewal fee.
The new Act, according to Danie Cronje, of Cluver Markotter Incorporated, and a speaker at the recent South African Wine Tourism Conference, demands that wine estates must have a licence to produce wine – previously they needed it to sell wines. The new Act only exempts garagistes who make wine for themselves and do not plan to resell it, from the licence. Producers who use other producers’ wine cellars will also have to apply for a licence, as will wine estates who sell their stock to existing licence holders, such as hotels, restaurants and liquor stores, currently being exempt from a licence requirement.
The article refers to the Act allowing wine estates to now charge for winetastings, but this has been done for some time now. The winetasting times are subject to the municipal regulations. So, for example, it is proposed that liquor stores, wine shops and supermarkets be allowed to open from 9h00 – 18h00, while restaurants, hotels, clubs and pubs can trade from 11h00 – 2h00, if they are not in a residential area, where the trading time is reduced until 21h00.
Licence applications will also have to be advertised in local newspapers, displayed on the premises, and submitted to the municipalities and ward councillors, the Act proposes.
Wine estates may not sell more than 30 litres of wine, 10 litres of spirits, or 100 litres of beer per day to a person who does not have a liquor licence. It would also be an offence to have more than this quantity of liquor in one’s possession, even in one’s home, a major knock for wine collectors, who would be forced to get a liquor licence as well.
One good aspect of the proposed legislation change is that supermarkets may sell wine up to 16,5 % alcohol content, compared to 14 %, once the legislation is passed. Also, wine sales on Sundays in supermarkets could also be allowed, subject to municipal approval thereof as to the trading days and hours.
Another positive aspect of the Act is that open bottles of wine may not be transported, and one may not drink alcohol and drive, with heavy fines to be implemented.
Cronje has recommended to the wine industry that liquor licence applications should be done before the new Liquor Act is legislated, because it will become a more cumbersome and expensive process once the Act is legislated.
Whale Cottage Portfolio: www.whalecottage.com
