Senwes Scenario: September - November 2020 | Page 11

NEWS
THE IMPACT OF THE ALCOHOL BAN
On 12 July , President Cyril Ramaphosa announced the reinstatement of the ban on the sale , dispensing and distribution of alcohol with immediate effect . This announcement did not only catch many South Africans by surprise , but also left the alcohol industry in a state of panic .
The ban has a major effect on the entire value chain .
According to Maryna Calow ( WOSA ) the wine industry has been suffering losses amounting to R4,5 million per week in terms of local sales , while export losses amount to R300 million per week . This does not include wine tourism , which contributes to another R1 million per week .
The ban furthermore hampers industry growth and transformation with hundreds of SMME and micro liquor manufacturers facing downsizing and even closure . Smaller brands which have the potential to become future market influencers , now find themselves not being able to weather the storm . Hellen Ndlovu ( SAB ) agrees and adds that the uncertainty of the current situation takes its toll on all involved . She explains that farmers have just planted and that there is no surety that , as manufacturers , they will be able to take up all of the produce at the end of the cycle .
“ The entire value chain is suffering ” says Andre Muller ( Pernod Richard South Africa ) and states that the ban has several ripple effects . These include lay-offs , retrenchments , a shrinking consumer base and a loss of general momentum within the industry . The latter will play out over the course of the next few years .
All panel members agree that the longer the ban is in place , the more dire the situation will become .
THE VALUE OF COLLABORATION AND ENGAGEMENT Lucky Ntimane ( NLTC ) says that the crisis has managed to bring the industry together as a whole and that the level of collaboration and engagement has increased sharply . The rest of the panel shares this sentiment and expressed their hope of continued collaboration post-Covid-19 .
“ Before the industry was very fragmented and we only focused on each other as competitors . It is reassuring to know that now we are aligned and united in our efforts to not only get the ban lifted , but also to deal with the looming surge in demand that will follow . This newfound cohesion will also go far in assisting us to come up with a much-needed harm reducing strategy for the industry ,” says Sean Robinson , LTASA .
Don ’ t miss session 14 , which focuses on the wine industry – Visit http :// www . senwes . co . za / en-za / agri-value-chain for more detail and a recap of all the discussions .
SENWES SCENARIO | LENTE SPRING 2020 9