SEVEN out of eight craft brewers might not survive the third alcohol ban.
This was according to the Beer Association of South Africa (Basa), that is made up of the Craft Brewers Association, Heineken South Africa and South African Breweries.
Basa chief executive officer, Patricia Pillay, said a poll among craft brewers found that not only were they facing shutting down, they’ve had to retrench staff with job losses occurring because savings were used to survive the previous bans.
“In addition, 41,3% of craft brewers will have to consider destroying stock from the festive season that will soon expire in storage, and 77,8% are unable to pay rent.”
Pillay said 30% of local breweries had been forced to permanently shut their doors, while 165 000 people lost their jobs.
“We have started issuing food vouchers for employees that remain in the employ of the few craft breweries that are still standing,” she said.
“This is a tragic tale for an industry that delivered 2,9 million meals during the hard lockdown last year.”
She said South Africa’s first black female brewery owner, Apiwe Nxusani-Mawela of Brewsters Craft, was one of the many small business owners who stood to lose everything.
“Basa remains acutely aware of the need for urgent interventions to curb the spread of Covid-19, but the blanket ban has come at the expense of thousands of livelihoods,” she said.
“Basa has written to the presidency and the Department of Trade, Industry and Competition and is awaiting further communication.”
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Pillay said if the ban got lifted soon, some businesses and jobs could be saved as they would be able to sell their stock before it expired.
“Lifting the ban on off-site consumption will allow people to enjoy beer responsibly in their homes without the risks associated with on-site consumption,” she said.
She said on Friday, SAB announced the indefinite suspension of 550 contracts of temporary workers with immediate effect.