The new Act now regulates the manufacture and distribution of liquor with the proviso that the activities of micro-manufacturers (producers who manufacture less than 4 million litres of wine per year) will be regulated by provincial liquor legislation.
 
In terms of the transitional arrangements in the new Act, micro-manufacturers will continue to do business under their producers' licences or special licences (off-consumption) granted in terms of the old Act until such time as the various provinces promulgate their own provincial Liquor Acts, dealing with the micro-manufacture as well as the retail sale of liquor.
 
To date Gauteng and the Eastern Cape has already promulgated provincial liquor acts.
 
Kwazulu-Natal has published a draft bill and the Western Cape is currently preparing a draft bill which it hopes will be promulgated by October this year.
 
It is expected that the Western Cape Liquor Act will make provision for the conversion of producers' licences or special licences (off-consumption) for tasting rooms on wine farms to "licences for the sale of liquor for consumption off the licensed premises".
 
However no provision will be made for conversion in respect of producers who currently sell their wine under the exemption in Section 3(1)(j) of the current Liquor Act.
 
In terms of this exemption a wine producer may sell wine to licence holders without a licence if the wine is manufactured from grapes produced on land owned or leased by him or from grapes bought in and if the wine is manufactured in a cellar on that land or in a central cellar owned or leased by him.
 
In practice this means that some wine producers sell their wine to restaurants, wholesalers, hotels, wine shops and other licence holders without holding a liquor licence.
 
If such a producer wanted to sell his wine to non-licenced persons i.e. the public, then he would normally apply for a producer's licence or a special licence (off-consumption) depending on his particular circumstances.
 
As the exemption is not a "licence" which can be converted to the appropriate licence under the proposed Western Cape Liquor Act such producers will no longer be allowed to sell their wine to licence holders without the appropriate licence when the Act is promulgated.
 
As there will probably be teething problems with the implementation of the Western Cape Liquor Act (which could result in applications lodged thereunder taking some time before being finalised) it may be advisable to apply for an appropriate licence under the old Act in order to continue with the sale of wine after the promulgation of the Western Cape Liquor Act.