Breweries in South Africa face revenue losses amid alcohol ban

One of the biggest breweries in South Africa has cancelled plans for $143m (£110m) worth of infrastructure investment, due to significant revenue losses on the country’s alcohol ban implemented three months ago.

Budweiser, Beck’s, Leffe, Carling and Castle are among the beers distributed by South African Breweries.

“The cancellation of this planned expenditure is a direct consequence of having lost 12 full trading weeks, which effectively equates to some 30% of SAB’s annual production,” its vice-president of finance Andrew Murray said on Monday.

South African doctors have praised the sales ban for reducing the number of alcohol-related cases in their wards, meaning they can devote more resources to tackling coronavirus.

But the drinks industry has been lobbying for the prohibition to be lifted. Another brewer, Heineken, was quoted by local news site Fin24 as saying it had also halted investment that would have created 400 jobs

BBC NEWS

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