Wines of South Africa CEO: What the resumption of wine exports means for the industry

The resumption of wine exports in South Africa under Level 4 of the Covid-19 lockdown has brought both challenges and opportunities for the wine industry in the country. Siobhan Thompson, CEO of Wines of South Africa, discussed the impact of the lockdown on wine farmers and the export markets in a recent interview with CNBC Africa. Thompson highlighted the efforts required to prepare for exports after the lockdown restrictions were lifted. She explained that while some farmers were ready to ship their products immediately, others had to gear up their production lines and containers, causing delays in the exporting process. The lockdown restrictions, particularly under Level 5, had a significant impact on the industry as bottling lines and processing were halted. This resulted in a disruption of the supply chain, leading to empty shelves overseas as consumers stocked up on wine amid the pandemic. As a result, South African wine producers now face the challenge of regaining their shelf space in the export markets, competing with other wine-producing countries like Australia, Chile, and Argentina. Thompson emphasized the importance of efficient shipping processes and market strategies to recover lost ground and establish a strong presence in the international market. She estimated that it could take up to two months for South African wines to reach consumers after production and shipping, with a potential timeline of two to three years to regain significant shelf space. Despite these challenges, Thompson remains optimistic about the resilience of the South African wine industry and its ability to bounce back from the impact of the lockdown, showcasing the quality and unique characteristics of South African wines that appeal to global consumers.