The Western Cape Liquor Act – a barrier to transformation

When Women in Wine applied for a liquor license many years ago, we explained a new model to the Liquor Board. A wine producer would not always own land, grow grapes, or make wine in their own cellar.

Many new entrants, today often called Black Owned Brands, follow this approach. They buy grapes from various producers and make wine in the cellar of a larger producer. Sometimes, they use a different cellar every harvest.

The liquor license covered only their office, where they handled administration and sales. Customers did not collect wine at the office. Instead, couriers delivered wine directly from the cellar or storage facility to buyers.

We had to attend a Liquor Board hearing to explain this model before they granted the license.

When the Western Cape Liquor Act came into effect in 2012, lawmakers added stricter controls. The cellar hosting the new entrant now had to notify the Liquor Authority about wine made there.

The 2017 amendment expanded this rule. Small producers without a cellar must apply jointly with the larger producer to get approval for making wine in that cellar.

If a small producer changes cellars every harvest, the burden grows. They must apply for a micro-manufacturer’s license for their office, and also for each cellar where they make wine.

These applications, combined with annual renewal fees that rise every year, make compliance costly for small wineries.

Liquor Authority officials explained the rules as a way to ensure wine safety. But that reason falls short. The national Liquor Products Act already regulates safety and certification for all liquor products.

If the goal is to combat alcohol abuse, the rules miss the real issue. Harm occurs only once liquor is consumed – at tasting rooms, shops, or restaurants. The cellar, where producers make or mature wine, is not such a place.

The approval process also strains relationships between small and large producers. Many larger producers want to help small brands with winemaking. But they hesitate to share license details, photographs, or cellar plans required by the Act. They often believe that approvals could threaten their own liquor licenses.

In its current form, the Western Cape Liquor Act blocks new players from entering the wine industry.