Liquor ban will hurt
RAMIFICATIONS: UP TO 18 000 WORKERS IN INDUSTRY COULD LOSE JOBS
Wine industry lost R200m a week on exports and R300m in local sales.
The alcohol ban might have been lifted, but the effects of the extended lockdown and related ban on the sale of alcohol-related products will continue to reverberate throughout the economy for a long time.
According to the SA Wine Industry Information & System, the wine industry alone lost R200 million a week on exports during the five weeks of no exports and R300 million in local sales a week.
These these are just the direct costs.
Wanda Augustyn, communications manager for SA Wine Industry Information and System, said their estimation was that about 80 wineries, with almost 350 producers, will be out of business, with 18 000 workers out of a job.
She said this equated to 15% to 20% of the sector and with the local market opening yesterday, it would also depend on the ability of the respective wineries to get back in business – both in sales volumes and the respective price points.
“Bear in mind we have been out of the market for [two months], which equates to 17% of a normal sales year. The implications of the lockdown are irreparable. Some businesses will close and thousands of people will lose their jobs – across production units, wineries and also in the tourism sector,” Augustyn said.
Speaking for SA Breweries (SAB), Annabel Sandamela said its primary focus was now to ensure that retailers were able to trade safely and responsibly.
She said it had developed an e-commerce option for the tavern owners to use a “click and collect” trading procedure to enable social distancing stipulations to be followed and to generally maintain Covid-19 protection protocols.
Sandamela said SAB planned to make use of its extensive distribution network among the taverns to supply personal protective equipment and educational and training material on Covid-19.
She said as one of South Africa’s largest companies, sustaining a workforce of over 5 000, SAB was appreciative of the efforts to ensure taverns, wineries and microbreweries were in place for safe trading.
“As an industry, a lot of thought has been put into ensuring that retail outlets like taverns, microbreweries, distillers and wine sellers are included in the regulations, and that the tavern space, with the right support is recognised as one in which trade can happen safely.”
SAB vice-president of corporate affairs Zoleka Lisa said safety remained the priority.
“We are minimising the risk of spreading Covid-19, while still allowing for economic activity to resume,” she said in a statement.
“As South Africa resumes the sale of alcohol in Level 3, SAB would like to remind traders to adhere to all safety protocols when making sales to the public and for consumers to practice responsible and moderate drinking in the safety of their homes.
“Our collective participating in adhering to these regulations and guidelines will be critical in the country’s fight against the Covid-19 pandemic.”
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The implications of the lockdown are irreparable