SAB resumes trading as South Africa lifts alcohol ban for the third time

 

The South African Breweries (SAB) has announced the resumption of production, sales and distribution trade following the decision of the South African Government to partially lift its latest alcohol sales ban, which was initially imposed to combat the Covid-19 health crisis.

The Brewer tweeted: “SAB welcomes the resumption of trade, a positive step towards rebuilding the economy Together, we can create collaborative solutions for a better, sustainable future, which balances lives and livelihoods. This can only happen when we are responsible together.”

The alcohol bans which resulted in job losses, increase in illicit trading, and a significant decline in economic contributions, prompted major companies like Heineken and Glass manufacturing company—Consol Holdings Limited to halt investments and suspend production. Heineken also announced a 7% trim of its workforce and a necessary move to restructure its operations.

In late March 2020, the country implemented the first ban on the sale and distribution of alcohol and tobacco as a way of curbing the spread of the covid-19 pandemic. The ban was re-imposed in July, reversed in August; and in December, a third ban was announced.

The third ban was actively opposed by South African Breweries as the Company was set to contest the constitutionality of the re-ban in court, stating that the ban would be putting over 1 million livelihoods across its value chain at risk.

The United States, amongst others has placed a travel ban from South Africa in an effort to stop the spread of the highly infectious 501Y.V2 variant, which is believed to have originated there and which is suspected to be more resistant to vaccines. South Africa’s active coronavirus cases are beginning to decline, although with reported deaths and hospitalizations starting to follow suit. The country is the hardest hit on the African continent, with more than 1.45 million cases identified to date.

New restrictions have also been imposed as retail outlets will now sell alcohol between 10:00 and 18:00 from Monday to Thursday, and licensed outlets can serve drinks on-site from 10:00 to 22:00.

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