FOR YOUR INFORMATION
We would like to share the following items which describe the impact that the coronavirus pandemic is having on the industry. Please contact the FIVS Secretariat with items that may be of interest.
Opening Up
South Africa: Government lifts alcohol ban – In a televised address on 01 February 2021, South Africa’s president announced the cabinet has decided to lift a number of pandemic restrictions. Restrictions on the sale of alcohol beverages for off-site consumption will be eased, allowing sales from Mondays through Thursdays from 10 am until 6 pm. Sales will also be allowed during normal licensed operating hours in duty-free shops, registered wineries, wine farms, micro-breweries, and micro-distilleries. The sale by licensed premises for on-site consumption, such as restaurants and taverns, will be allowed throughout the week from 10 am until 10 pm.
- South Africa: Exports only bright spot for South African wines – Although the export of South African wine was banned for five weeks in 2020, export volumes reportedly remained almost stable at 319.2 mill. liters (-0.2%), and export value increased by 7.7 percent to 9.1 billion rand (about US$608 million). A winegrowers association has reportedly estimated, however, that approximately 80 wine producers and 350 winegrowers in South Africa may close their businesses, resulting in the loss of about 21,000 jobs.
- South Africa: Lessons from the alcohol ban – The report, “Prohibition, illicit alcohol and lessons learned from lockdown,” analysed the impact that strict restrictions on the production and consumption of alcohol beverages had during the early stages of the pandemic. The research – which was featured in a panel discussion hosted by the OECD and conducted by the Transnational Alliance to Combat Illicit Trade – found that alcohol prohibitions promoted the development of parallel illicit markets, plunged industries into a financial abyss, and reduced much-needed government revenue. The report’s recommendations included ramping up enforcement measures to ensure that illicit trade activities do not become permanent features of the post-pandemic economy.
Thailand: Restrictions easing through much of the country – The Covid-19 Situation Administration reportedly announced that restrictions are being relaxed throughout most of Thailand where the disease is under control, but strict restrictions will continue in greater Bangkok. In those areas, entertainment places, pubs, bars, and karaoke shops will remain closed, and although restaurants may reopen, they may not serve alcohol beverages and must close by 11 pm. Throughout the rest of the country, restaurants, drinking parlours, and entertainment venues may now serve alcohol beverages.
Extending Restrictions
Japan: Extending state of emergency in Tokyo – Japan will reportedly extend its state of emergency in Tokyo and other regions to 07 March 2021 to combat their third and most lethal wave of the virus, requesting that restaurants and bars close early and encouraging people to stay home. To date, official measures to control the virus have lacked legal weight and penalties, but passage by Japan’s lower house of a revision to coronavirus special measures would allow authorities to impose fines on those who break the law. Approval of the revision by the upper house is expected.
Consumption Levels
Argentina: Wine consumption increased 6.5% in 2020 – Argentina’s National Institute of Viticulture reported that consumption of wine increased by 6.5% during 2020. Consumption increased by 57 million litres to a total of 943 million litres. Red wines, which account for 78% of wine consumption, grew by 9% compared with 2019. Sparkling wines suffered losses close to 15% compared with 2019.
Drink Drive
United States: Plea deals in DUI cases in Hawaii? – Prosecutors, defense attorneys, and Mothers Against Drunk Driving in Hawaii are reportedly considering whether to offer plea deals to approximately 1,000 defendants in driving under the influence (DUI) cases in an effort to clear court logjams during the pandemic. The deal would be offered only to first-time offenders and in cases not involving accidents or injuries. Prosecutors would have discretion to deny offenders with exceptionally high blood alcohol content.
Research
Taiwan: Tannins in wine may inhibit COVID-19 – Research from the Chinese Medical University reportedly may show that tannins in wine might help fight the coronavirus by inhibiting the activity of two enzymes in the virus. The research suggests that tannic acid, which is a water-soluble polyphenol with antioxidants and free radical scavengers, may prevent infection and control the growth of viruses. The university plans to investigate whether wine or baijiu are more potent in tannins than grapes and sorghum, which have relatively high tannin content.