JOHANNESBURG—South Africa’s $1.5 billion wine trade is reeling after a sequence of pandemic-induced shocks, together with successive bans on the sale of alcohol totaling some 14 weeks.

The nation’s Chardonnays and Cabernet Sauvignons have turn out to be family staples world-wide, and wineries centered within the rolling farmlands across the Western Cape are amongst South Africa’s most profitable and profitable industries. As alcohol gross sales resumed nationwide this week, many of those companies have emerged battered, and a few may not survive.

The wine trade in South Africa—the world’s eighth largest producer and exporter—employs about 290,000 individuals, whereas the broader liquor trade accounts for roughly 1 million jobs. Liquor gross sales and taxes usually account for about three% of South Africa’s $351 billion financial system and 10% of its whole tax income, in accordance with the South African Liquor Model Homeowners Affiliation, which represents producers and distributors within the liquor trade.

However the measures taken by the ruling African Nationwide Congress authorities to halt the unfold of the coronavirus have dealt twin blows: two bans on booze gross sales—together with shorter bans on wine exports—and the closing of South Africa’s borders, for the reason that wine trade’s income is carefully intertwined with tourism.

Wines of South Africa, an trade group that promotes the nation’s wines in worldwide markets, estimates the trade has misplaced in extra of seven billion South African rand ($406 million) in income and roughly 21,000 jobs. VinPro, an trade group that represents South African wine producers, cellars and stakeholders, expects greater than 80 wineries and 350 wine-grape producers to exit of enterprise.

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