Wine Estates – Charging a fee for Tastings?

When the Western Cape Liquor Act came into operation in 2012 the conversion of the liquor licenses held by wineries meant that they were now automatically permitted to charge a fee for wine tasting

However it seems that inspectors from the Liquor Authority and SAPS Liquor Officers are sometimes confused by license conditions which appear in licenses issued before 2012.

Wineries’ liquor licenses under the 1989 Liquor Act:

Under the 1989 Liquor Act, a producer’s license permitted a winery to make wine from its own grapes. The winery was permitted to sell the wine to the holders of liquor licenses and to members of the public – to take away.

If the winery wanted to also make wine from bought in grapes it had to apply for a special licence (off-consumption).

This license permitted the winery to make wine (from its own grapes and from bought in grapes) and sell the wine to the holders of liquor licenses and to the public – to take away.

Conversion of liquor licenses in terms of the Western Cape Liquor Act:

When the Western Cape Liquor Act came into operation in 2012 a producer’s licence and a special licence (off-consumption) was converted to a micro-manufacturer’s on- and off-consumption licence.

This is the only “micro-manufacturer’s liquor license” for which provision is made in terms of the Western Cape Liquor Act. (Section 33)

This license permits the holder to make wine – not only from its own grapes but also from bought-in grapes. It permits the holder to sell the wine which it had made to the holders of liquor licenses, to export the wine and also sell it to members of the public – to take away.

However, in contrast to the producer’s license and special licence (off-consumption), it also permits the holder to sell the wine which it had made for consumption on the premises.

Tasting “free of charge” no longer applies:

Since the holder is now automatically permitted to sell wine that it had made for consumption on the premises it is also permitted to offer the wine for tasting and to charge a tasting fee.

In terms of the provisions in the Western Cape Liquor Act which regulated the transition from the 1989 Liquor Act licence conditions which were in conflict with the provisions of the Western Cape Liquor Act no longer apply to licenses.

Since the holder of a micro-manufacturer’s on- and off-consumption liquor licence is permitted to sell wine for consumption on the premises a licence condition states that wine may only be offered for tasting “free of charge” no longer applies.

Errors with the transfer of records to the Western Cape Liquor Authority:

Unfortunately, when the Western Cape Liquor Authority took over liquor licensing, there were problems with the transfer of records from the former Liquor Board.

This is why many producer’s licenses and special licenses (off-consumption) were not recorded as micro-manufacturer’s on- and off-consumption licenses but only as “micro-manufacturer’s off-consumption” licenses or “off-consumption” licenses.

Although in many instances these errors have been pointed out to the Liquor Authority (and corrected by the officials) there are still many wineries of which the records have not been corrected.