Beer Association and SAB prepare to serve Government a cold one

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The Government’s decision to place a blanket ban on the sale of alcohol has seen the alcohol industry up in arms about the decision for the fourth time.

South African Breweries (SAB) has stated, the latest decision was taken with no consultation or explanation, with the use of blanket bans being unstainable and continuing to exacerbate the job loss and economic decline across the beer and alcohol value chain.

According to the brewery, this restriction puts more than 1 million jobs and over 34 500 township businesses at a significant disadvantage and at risk.

 “The South African Breweries is very sensitive to the difficulties and plight we face as a nation in the fight against COVID-19. SAB fully understands the seriousness of the third wave and agrees that lawful and reasonable measures are needed to curb the spread of the pandemic to save both lives and livelihoods.” The measures include curfew times to limit movement, reduced indoor and outdoor capacity at gatherings, heightened law enforcement and the amplification of adherence to non-pharmaceutical interventions. “There is no scientific link that the consumption of alcohol raises the risk of contracting COVID-19, especially if alcohol is consumed safely and responsibly in the comfort of one’s home,” the company states,

With this in mind, SAB emphasises that it regrets the Government’s unfortunate decision to ban alcohol for the fourth time in 18 months and is deeply concerned by the continued discrimination of the legal alcohol trade. Adding to this, the company says the current ban comes at a time when the industry was gearing itself up for future stability and was ready to play its part in the country’s economic recovery.

As an organisation, SAB believes it is left with no other alternative but to defend its rights and take legal action, to protect its business and urgently overturn this decision. This move seeks to gain policy certainty, greater transparency in decision-making for the future sustainability of its business and value chain. “This additional challenge does not detract from the first legal challenge instituted by SAB earlier this year, and that challenge is still in process.”

The Beer Association of South Africa (BASA) fully supports the South African Breweries (SAB) court application to overturn the current 14-day fourth alcohol ban, which is in effect until 11 July 2021.

BASA elaborates, “We simply cannot stand back and watch more businesses and critical jobs being decimated and so, we stand with SAB on its decision to approach the courts to force Government to reopen the alcohol industry. BASA is also currently considering other possible action steps against the current ban and will communicate on these in due course.” Adding, the latest ban is cause for celebration when it comes to the illicit alcohol industry, which cost the national fiscus R11.3 billion last year alone. “The prohibition of alcohol will not stop South Africans drinking. Instead, consumers will purchase their alcohol from illegal outlets, putting their health and safety at risk.”

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