As of May 11, South African Breweries (SAB) is permitted to move its stock of alcoholic and non-alcoholic drinks between its manufacturing plants and its depots, after reaching an agreement with government.
Prior to this agreement, no alcohol was permitted to be moved, either by individuals or manufacturers and distributors.
Warehouses at SAB’s seven breweries are currently at full capacity and are unable to absorb any further inventory which impacts any current beer in the production process being bottled and stored, thereby resulting in SAB having to destroy and dispose of the stock.
The agreement with government will enable the company to transport its beer inventory over the course of the next few weeks and to avoid losses in excise tax for the government to the value of R500-million.
SAB states that the agreement, made during difficult times, is a clear indication that it can and should collaborate on solutions that will help protect the livelihoods of the over 250 000 South Africans across SAB’s value chain.
The distribution and sale of alcohol will remain restricted under the Level 4 lockdown.