SAB could dump 400 million bottles of ‘dumpy’ beer due to lockdown

Due to the nationwide lockdown, SAB risks losing 400 million bottles’ worth of beer in current liquid inventory, which will prevent the brewery from operating at full capacity for about four months.

This was revealed in the company’s reply to questions by eNCA.

The publication reported that the brewery would need to get rid of 400 million bottles of ‘dumpy’ beer, an estimated 130 million litres.

The publication reported that SAB has not been able to package and transport beer inventories between its depots and warehouses due to the lockdown regulations.

ALSO READ: Trucks seized by cops with millions in stock, but SAB says it’s all a misunderstanding

Last month the company had drivers arrested and trucks seized for moving stock around.

SAB has reportedly implored government to grant it the permission to move the inventory.

The brewery said if it is not able to transport inventory in the next 48 hours, it will be forced to dump it at an estimated loss of R150 million to the company.

SAB said that since 23 March it had not initiated any new brewing and since 26 March it had not sold or transported any beer for sale to anywhere in the country, which was in accordance with regulations during the lockdown.

SAB said its reduced operating capacity could lead to “material job losses”, an estimated 2,000 jobs, “half of SAB’s frontline workforce”.

“Another 75,000 jobs would be negatively impacted through the company’s domestic supply chain.”

In a statement posted on its website, the brewery company said there were “costly lessons” that could be learned from “The Prohibition” in the US with regards to the banning of the sale of alcohol during the lockdown.

These include that such a ban helps grow the illegal alcohol market in the country, which results in illicit liquor trading of “over R13 billion a year”, resulting “in annual tax losses in excess of R6 billion”.

Another lesson is that banning the sale of alcohol leads to an “overnight” change of law-abiding citizens becoming criminals, SAB said.

They said another lesson was that law enforcement resources were diverted towards ensuring that the ban was enforced.

“In South Africa, the growing illegal sales of all types of alcohol at exorbitant prices and the spike in looting of alcohol stores and storage facilities has been widely reported. An already strained and exhausted police force is now tasked to deal with additional problems, while the resulting legal battles to deal with these cases will further burden an already overloaded legal system,” the statement reads.

Another lesson they highlighted was that US prohibition – which lasted between 1919 and 1933 – never succeeded in bringing to an end the consumption of alcohol.

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