EC’s tipplers downed R8.5bn
Industry supports thousands of jobs
MORE than R8.5billion of alcohol was consumed by Eastern Cape drinkers in 2013.
This is according to figures released recently by the Eastern Cape Liquor Board in a report which covered a 10-year period.
It emerged that household expenditure on alcohol in 2013 amounted to more than R8.5-billion in the province, up from R3.5-billion in 2004.
According to the research, the R8-billion amounts to 4.27% of the consumption expenditure by households in the province.
“Alfred Nzo District Municipality, followed by O R Tambo and Amathole spend the greatest proportions of total household expenditure on alcohol,” part of the report reads.
The Eastern Cape’s alcohol consumption, as of 2013, is 9% of the national expenditure.
“This is reasonable given the Eastern Cape accounts for [about] 12% of the national population and 9% of disposable income,” the report said.
The liquor industry in 2013 accounted for R7.7billion of the Gross Geographic Product (GGP) of the economy of the Eastern Cape.
“Approximately 23 620 permanent jobs are supported by the Eastern Cape liquor industry annually,” the report states. Tax revenue attributable to the liquor industry in the province is R3.9-billion.
“The economic impact of the liquor industry on gross capital formation is in the region of R3.4-billion per annum.”
Seven manufacturing establishments are active within the province.
These are predominantly microbreweries, in addition to one large SAB-owned and operated manufacturing plant located in Port Elizabeth.
“Therefore, the contribution of the liquor manufacturing sub-sector to the economy of the Eastern Cape is small.”
However, the report states that the support of the growth and development of microbreweries in the province would result in an increased socioeconomic contribution to the manufacturing subsector, both from increased GGP and increased job opportunities.
“Production of alcoholic beverages includes craft beer, wine and mead. The volume of production is approximately 160 000 litres of alcoholic beverages, the majority of which is mead, procured for the export market.” — siyab@dispatch.co.za