Little cheer as SAB mulls dumping beer
TIPPLERS across the country already suffering from withdrawal because of a nationwide ban on alcohol sales, will be further enraged after South African Breweries (SAB) announced that will be forced to pour 132 million litres of beer down the drain that has been sitting in tanks because of the lockdown.
The alcohol beverage industry across the value chain is suffering huge losses because of the lockdown ban on the sale of alcohol.
Vice president of corporate affairs at SAB Zoleka Lisa said: “SAB is respectfully requesting that it be allowed to transport packaged beer from its breweries to its storage depots for the sole purpose of protecting its inventory.
“Urgent action is needed to avoid material financial losses to both the government and SAB, as well significant job losses,” Lisa said.
Lisa said SAB had been prevented from transporting inventory from its breweries to its depots for safe-keeping.
Currently, SAB has 132 million litres of beer – roughly the equivalent of 400 million bottles of beer – sitting in its tanks. Lisa said if the brewery was not able to resume transporting inventory in the next 48 hours, it would be forced to discard this inventory at a loss of an estimated R150 million to SAB.
Tim Hutchinson, chief executive of DGB, the owner and producer of brands such as Bellingham, Douglas Green, Boschendal, Brampton, Tall Horse, Franschhoek Cellars and The Old Road Wine Co, said the complete lockdown of both local and export production, distribution and sales had been a crippling blow to the industry, made all the worse in the wine sector.
“South African wine exports were already in double-digit declines prior to the coronavirus so the shutdown will most certainly lead to the failure of a number of wine businesses. The outlook for May remains very uncertain as we don’t know when we can reopen South African operations later in the month and, unless this happens, I forecast some dire consequences for the wine and spirits sector.”
The Beer Association of SA (Basa) representing the Craft Brewers Association, Heineken SA and SAB, has made an appeal to President Cyril Ramaphosa to allow the sale for off-consumption beer trade to resume.
Basa chief executive Patricia Pillay said: “Despite the challenge of not being operational during the initial 21-day lockdown period, we have adhered to all regulations and continue to do so. However, the complete lockdown has not been without serious casualties. In the last 15 days we have had news of many beer outlets shutting their doors, with several people being retrenched. Within this industry that employs close to 250 000 people, these are many lives that are now being placed at risk.
“Secondary industries are also impacted by the shutdown including glass and bottle manufacturers, print and design companies, transportation, retailers, equipment manufacturers, electricians, plumbers, farmers and many more.
“Crime is also steadily on the increase, with businesses and depots being looted. Social media has been flooded with incidents of homemade concoctions being sold that are unsafe.”