Port2Port.wine, a South African-based online wine marketplace, with over 2 000 wines from 400 producers and 11 countries, has launched a lockdown initiative allowing consumers to purchase key wines from some of its top producers for as long as lockdown lasts, with delivery after lockdown ends.
Government has outlawed the sale of alcohol during the lockdown to minimise the spreading of the COVID-19 pandemic.
Port2Port says the nation-wide lockdown and subsequent identification of wine as a non-essential item has rocked the South African wine industry, virtually rendering wine retailers powerless during this time of isolation.
The lockdown has also impacted the mushrooming on-demand alcohol apps in SA. However, the businesses have been innovating amid the crisis.
For example, on-demand alcohol delivery app Quench recently collaborated with Woolworths SA to provide same-day delivery of groceries to customers in major centres across SA.
SA’s largest grocery online service, Pick n Pay Online, partnered with alcohol delivery app BOTTLES, to help the retailer meet the significant increase in online orders during lockdown.
Port2Port notes that testament to the wine industry’s resilience, it has responded with a campaign to support wine producers during this challenging time.
“We are able to promote sales during lockdown, offer our customers an incentive to stock up their cellars now and receive one bulk delivery after lockdown,” says Nicolò Pudel, co-founder of Port2Port.
“We are also offering free online masterclasses and seminars with the likes of Michael Fridjhon and Alex Dale. We have seen a surge in sales and that will most certainly assist our marketplace vendors’ cashflow.
“From what I can tell, from direct contact and sentiment on social media, producers are fearful and frustrated. The constantly changing regulations during lockdown are extremely confusing. As an example, the lift of the initial export ban came as a massive relief for some, but then government went back on that quite quickly (before lifting it again).”
According to Pudel, the average winery has cashflow to last a month. “The fear of a further extension of lockdown, or an extension of the alcohol ban no matter what, is real and the situation is dramatic.”
On his views on the ban on alcohol sales, he notes: “I understand government’s motivations for the alcohol ban only partially. What I absolutely did not agree with was the initial ban on exports; it made no sense whatsoever. It was a huge blow to an already struggling industry. It is a huge blow to an already struggling industry.
“I think it’s not easy for anyone right now but most certainly nowhere else is it as tough for the wine industry as in South Africa. Overseas producers are able to at least focus on their direct to consumer and retail efforts while the on-con trade is at a standstill.
Pudel is, however, confident that a lot of business globally has moved online and it will stay that way.
He believes wineries will see an increase in direct sales, as soon as they are able to operate in South Africa.
“I don’t think that people will storm restaurants and bars right after lockdown but will rather entertain at home for a while. Even customers that were dubious about e-commerce have had the opportunity now to trust the channel and will get used to it, perhaps not of their own choice, but still. Digital adoption has had a massive boost.
“We have the great advantage of being a technology-wine company, are used to working remotely and operate a marketplace without any warehousing facilities. All this allowed us to do very well in South Africa while launching our UK business there where we can actually deliver wine to our customers,” he says.
On the lockdown positives, Pudel says: “I think there will be a shift towards direct and online sales. I think this will be a great advantage for wineries in the long-term, benefitting from higher margins, having control on product placement and owning customer data.
“I fear that traditional retail will struggle and on-con will also suffer for a while, but hopefully soon everything will go back to normal. Additionally, I think the general consensus will drive consumers to support local and hopefully this will result in an increase in South African wine sales.”
Share