Distell welcomes opening up of sector, but calls for clarity on key concerns

26th May 2020 By: Tasneem Bulbulia - Senior Contributing Editor Online

South African drinks company Distell Holdings has welcomed the announcement by President Cyril Ramaphosa that the country’s move to Level 3 of lockdown would include the sale of alcohol for home consumption under strict conditions.

Ramaphosa confirmed that these conditions had not been finalised and would be done so following further discussions with the sector.

Distell is part of industry associations that have been engaging with the government to develop practical trading proposals to support the government’s Covid-19 objectives.

“We welcome the movement by government to allow the alcohol industry to return to responsible trading. The alcohol industry currently contributes to nearly a million jobs along the value chain, and supports nearly 800 small and medium-sized enterprises.

"We are working with government and providing input on the draft proposals,” comments Distell CEO Richard Rushton.

Distell’s two areas of concern are the unintended consequences of restricted trading that will result in overcrowding, and continue to incentivise illicit trade, the company says. 

Secondly, it notes that it wants to ensure the economic inclusion of taverners who are currently excluded from transforming to off-consumption outlets.

One of the solutions is a ‘click and collect’ model which has been developed with taverns to ensure physical distancing measures are followed, in the same way that traditional restaurants will be allowed to operate.

The taverner associations have committed to ensuring adherence to health and safety regulations, as well as social distancing at all times.

This forms part of industry’s educational and training initiatives aimed primarily at 34 500 tavern owners to ensure they provide a safe environment for customers in which to trade.

Part of the support for taverns includes supplying free personal protective equipment packages, as well as educational and training materials to meet strict Covid-19 safety protocols.