WATCH | Why we should care about the fate of SA’s beer producers

It’s known that beer has a rich heritage in SA. The beer industry is also a big employer and contributor to the country’s economy. Yet the sector, along with the broader alcohol industry, is increasingly under fire.

The recent alcohol bans due to the pandemic have also not only had a negative effect on the large beer manufacturers but the hundreds of small craft breweries in SA. The domino effect of the bans has also had a detrimental impact on businesses across the broader beer value chain.

The alcohol industry and consumers have questioned the three alcohol bans and off-consumption sales restrictions that have been imposed over the past 15 months. While government has stated that the bans are part of their plan to mitigate the spread of Covid-19 and ease the burden on the public health system, there is no evidence that prohibiting or restricting the sale of alcohol has this intended impact. What's clear is the strain the restrictions have placed on the beer industry and the 415,000 people that rely on it for income.

From 2015 to 2018, beer production contributed R387.1bn to the GDP. In 2019, government was expected to raise R25.1bn from alcohol excise tax alone. Apart from the direct tax contribution to the fiscus, beer manufacturers are also involved in numerous social and economic upliftment programmes.

There are also more than 200 craft breweries in SA. In a survey conducted by the Craft Brewers Association of SA, the impact of the first alcohol ban in 2020 alone was devastating: 87% of the 108 breweries across the country were unable to meet their monthly expenses, with 63% of all breweries having to implement retrenchments. A number of breweries were forced into permanent closure.

Businesses across the value chain have been jeopardised including: the suppliers of raw ingredients such as yeasts, barley and hops; labelling and packaging companies; glass manufacturers; township taverns (68% of these establishments are owned by women); and the hospitality trade.

Latest forecasts predict that it will take the beer industry another two to three years to recover to pre-Covid levels. However, smaller businesses may never recover, resulting in thousands of job losses and entrepreneurship opportunities.

In light of this, the question is: are alcohol bans the answer?

Join Business Day and the Beer Association of SA (Basa) discussion on the unintended effect of the alcohol bans, and whether the approach has been the right one.

Speakers include; Patricia Pillay (CEO of Basa); Apiwe Nxusani-Mawela (owner and founder of Brewsters Craft); Fanny Mokena (president of the Gauteng Liquor Forum and tavern owner); and Nadene Johnson (Euromonitor), who will discuss measures to save both lives and livelihoods during the pandemic, with alternative solutions to curb excessive drinking that causes social harm.

Date: July 6
Time: 9am-10am