SAB storage almost at capacity, brewers flatlining as liquor ban drags on SAB will have to continue reducing production levels, which could lead to more retrenchments, and 30% of local breweries have been forced to shut down permanently. Source Wednesday, 27 January 2021, 07:26 The owner of Mad Giant Brewery, Eben Uys, checks the temperature of beer tanks in his factory, in Newtown, Johannesburg, on 15 January 2021.
BUSINESS NEWS - From obscure craft breweries to established international brands, the alcohol industry continues to be crushed by the weight of the continued, reinstated ban on alcoholic beverages.
South African Breweries (SAB) reported on Sunday that its maximum storage capacity was fast being reached at its nine brewing facilities.
The third government-imposed ban on the sale of alcohol in December was implemented to keep hospital beds free of liquor-related trauma cases, but the move has come at a hefty cost for an industry that employs more than 415 000 people.
President Cyril Ramaphosa. Photo: @PresidencyZA
NATIONAL NEWS - Pressure is mounting on President Cyril Ramaphosa and the National Coronavirus Command Council (NCCC) to lift the adjusted alert level 3 restrictions that came into effect in late December last year.
The NCCC returned South Africa to level 3 lockdown amid the second surge in Covid-19 infections and hospitalisations during the festive season.
Initially, Ramaphosa indicated the ban on alcohol sales, the closure of some beaches and public parks and the national curfew would only last for two weeks. However, the restrictions were extended on 11 January to much criticism from liquor traders, political parties, and business owners.
January 26, 2021
Craft brewers battling to survive blanket ban on alcohol
According to a survey conducted by The Craft Brewers Association of South Africa (CBASA), the vast majority of local craft brewers don’t see themselves surviving the third alcohol ban.
The poll was conducted among CBASA members following the announcement made by President Cyril Ramaphosa on 11 January 2021. The survey found that:
• 87.5% of craft brewers (7 out of 8) are at risk of shutting down permanently due to the economic impact of the third ban on alcohol;
• 60.3% of small business owners of craft breweries have had to retrench staff, with job losses occurring as a result of depleted reserves and savings which were used to survive the previous blanket bans on alcohol;
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NATIONAL NEWS - From obscure craft breweries to established international brands, the alcohol industry continues to be crushed by the weight of the continued, reinstated ban on alcoholic beverages.
South African Breweries (SAB) reported on Sunday that its maximum storage capacity was fast being reached at its nine brewing facilities.
This means that SAB will have to continue reducing production levels, which could lead to more retrenchments.
SAB retrenchments
The immediate effect is already being felt, with 550 temporary contract workers recently let go across the country.
“The third alcohol ban has resulted in a reduced demand for the temporary workers skills, this is no fault of their own but rather a result of the current operating environment.