Fin24 reports that according to a new report, SA’s alcohol industry is estimated to have lost R36.3 billion in retail sales revenues in the on-again off-again liquor bans between 2020, when the lockdown began, and when the latest one ended this month.  

It is also estimated to have resulted in job losses for 200,000 people across the formal and informal sectors.  SA’s formal and informal drinking establishments were banned from selling alcohol for 19 weeks.  Government has justified its decision to halt alcohol sales as a means of preventing an influx of trauma cases at hospitals and to have beds available for Covid-19 patients.  In a report commissioned by the alcohol industry, advisory firm FTI Consulting calculated the cost of the 19 weeks of the bans.  The impact of this, together with an additional five-week export prohibition, is estimated to have cost the industry about 30% of sales opportunities and 1.1 billion litres in sales volumes in 2020 and 2021 thus far.  The overall alcohol sales volumes declined by almost 17%, compared to 2019.  The beer sector was the hardest hit.  The industry employs 415,000 people, and the report estimates that 200,200 jobs will be lost in both the formal and informal sectors. The state will also be one of the bans biggest losers, with an estimated R29.3 billion tax revenue loss (excluding excise) and a R8.7 billion direct excise revenue loss.

• Read the full original of the report in the above regard by Penelope Mashego at Fin24

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