DURBAN - SOUTH African Breweries (SAB) is to pursue a legal challenge against the government after being hit by a fourth crippling alcohol ban.
SAB said it was sensitive to the plight the country faces and understood the seriousness of the third Covid-19 wave. However, it said there was no scientific evidence that the consumption of alcohol raised the risk of contracting the virus, especially if alcohol was consumed safely and responsibly in one’s home.
“SAB regrets the government's unfortunate decision to ban the sale of all alcohol for the fourth time in the last 18 months. SAB is deeply concerned by the continued discrimination of the legal alcohol trade, resulting in a burgeoning illicit industry”
The new ban had been implemented at a time when the industry was gearing itself for future stability and was ready to play its part in the country’s economic recovery, it said.
“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 and greater transparency in decision-making for the future sustainability of its business and value chain,” it said.
It said the additional challenge did not detract from the first legal challenge instituted by it earlier in the year and that challenge was still in process.
Non-profit company Vinpro, which represents around 2 600 local wine producers, has also headed to court.
Vinpro spokesperson Wanda Augustyn said their application was submitted to the Western Cape High Court, but a definite hearing date was yet to be confirmed. Vinpro managing director Rico Basson said the recent ban follows 19 weeks of revenue loss over the past 15 months “which has had a devastating effect on the wine and tourism sector, that employs more than 269 000 people”.
“More than 80% of the 529 wineries are small and medium enterprises, reliant on direct sales to customers. Although wine exports may continue, the industry exports less than 50% of annual production, with the other half sold on home soil. With no financial support from government for these businesses, their prospects, and that of employees, are bleak,” said Basson.
Meanwhile, the industry has called for the release of data used to formulate the advice that was given to justify the ban on alcohol sales.
The South African Liquor Brandowners Association (Salba) wrote a letter to the chairperson of the Ministerial Advisory Council (MAC), Professor Koleka Mlisana, to request the release of data.
In the letter, seen by The Mercury, the industry said the decision puts at risk the livelihoods of at least one million people who rely on the alcohol value chain for an income and a way out of unemployment and poverty.
Salba chairperson Sibani Mngadi said the industry would like to understand what international best practice or local scientific data was used to conclude that an off-site and on-site consumption sales ban was the best solution. He said the industry deserved clarification on how the current 14-day ban of both alcohol sales was supposed to alter infection trends.
“MAC has indicated that the current wave of infections is driven by the Delta variant first reported in India. We have verified that none of the states in India banned alcohol sales as part of the country’s response to the Delta variant of infections,” said Mngadi.
The association asked that the MAC make this information available as soon as possible to allow for a proper review ahead of the July 11 expiry date for the current restrictions.
THE MERCURY