Restrictive conditions for in-store wine tasting scrapped

In-store tastings have long been a practical and lawful way for retailers and wine producers to introduce products to consumers. A recent decision by the Western Cape Liquor Licensing Tribunal, and its subsequent reversal, highlights why this matters for the retail and wine sectors. We unpack what happened, why the initial conditions were problematic, and why the outcome is significant for retailers, liquor stores, and wine producers across the Western Cape.

Both the 1989 Liquor Act, which applied in the Western Cape until 2012, and the Western Cape Liquor Act that followed it, allow holders of off-consumption liquor licences, including supermarkets and liquor stores, to apply for approval to offer in-store tastings. Over the years, many retailers applied for and were granted these approvals. 

In September last year, the Western Cape Liquor Licensing Tribunal granted approval for tastings at a new supermarket operated by one of South Africa’s major retailers. However, the Tribunal imposed new and highly restrictive conditions on that approval.

These conditions limited tastings to new products only, excluding wines already on the shelves. They also restricted the tasting quantity to 10 ml per product and limited each customer to a single tasting. As a result, the retailer could not offer a selection of wines to introduce customers to its range. If allowed to stand, these conditions would have effectively undermined the ability of retailers, liquor store owners, and the wineries supplying them to market their products through in-store tastings.

We were surprised that the Tribunal decided to impose such restrictive conditions, particularly as there was no evidence showing that tastings in supermarkets or liquor stores lead to alcohol-related harm. One retailer, which had held tasting approvals under both the 1989 Liquor Act and the Western Cape Liquor Act and had offered tastings for decades, lodged an appeal against the decision. The Tribunal advised that it had reconsidered its position. It agreed to withdraw the restrictive conditions and replace them with conditions consistent with those previously applied to tasting approvals. This outcome represents a significant victory, not only for the retailer concerned, but also for other retailers, liquor stores, and wine producers, many of whom rely on retail outlets as a key sales channel.