Category: Alcohol Regulations

Call to action – Alcohol adverts normalise binge drinking and under-regulation allows widespread access

23 September 2024

Reprinted from the Daily Maverick, by Zimasa Mpemnyama – 2024-09-19

Zimasa Mpemnyama is the project lead of the DG Murray Trust’s Alcohol Harms Reduction campaign. 

In August 2024, the Western Cape Division of the High Court confirmed that the Kannaland Municipality had failed to protect public health and safety when it granted liquor stores, restaurants, bars and the like permission to sell alcohol into the early hours of the morning.

Read More

Strategies for combating illicit trade in the liquor industry

18 December 2023

The nature of the illegal sale of alcohol means it is difficult to quantify the precise scale of illicit trade in the liquor industry. But Tax Justice South Africa, an NGO set up to tackle the large-scale tax evasion that is depriving South Africans of vital services, estimates that 500 million litres of illegal alcohol is consumed in South Africa every year, costing the country R6 billion in taxes. Furthermore, because the manufacture of illegal alcohol is unregulated, it may contain fatal levels of alcohol or other toxic ingredients. What is being done to combat the illicit trade in liquor? 

Regulation

Illegal sale of alcohol in the Western Cape is currently regulated by SAPS. It is not regulated by the Western Cape Liquor Authority and therefore premises suspected of illegal trading are not inspected by Inspectors from the Western Cape Liquor Authority. This activity falls outside of the scope of the Western Cape Liquor Act 4 of 2008 (as amended).  

White paper

The Western Cape Liquor Authority drafted the Western Cape alcohol-related harm reduction policy which currently is currently available for comment. The White Paper states:  

“Unlicensed liquor outlets and the illicit liquor trade identifies the concern of a lack of regulation leading to increased harm and the loss of tax and licence revenue that can be used to mitigate harms. 

The policy proposes taking steps to bring responsible unlicensed liquor outlets into the regulated space in a sustainable and responsible manner, identifying mechanisms and criteria that will enable the re-zoning of outlets for liquor sales in appropriate residential areas and prioritising upstream interventions targeting suppliers to the unlicensed liquor industry and the illicit liquor trade. 

Awareness of alternative economic opportunities should be provided to currently unlicensed outlet owners. Liquor enforcement units are to be capacitated and strengthened through increased resources and an integrated liquor enforcement approach, among other proposals.”

According to the Western Cape Liquor Authority, the number of licensed liquor outlets in the Western Cape in December 2015 was 9,296, comprising 8,888 liquor licences issued by the Western Cape Liquor Authority and 408 issued by the National Liquor Authority. In a 2015 survey, the number of unlicensed liquor outlets in the Western Cape was estimated at 3,483, equal to 37% of licensed outlets.

The White Paper proposes the following policy interventions:  

  • Take steps to bring some responsible unlicensed liquor outlets into the regulated space in a sustainable and responsible manner to facilitate compliance with minimum requirements.

The regulated space must be attractive for both traders and their customers. Incentives for becoming a licensed outlet should be clearly identified and communicated to current illegal outlets as well as the consequences of not becoming licensed. The application process for liquor licences must be simplified and streamlined.

  • Identify mechanisms and criteria, working with municipalities, that will enable the re-zoning of outlets for liquor sales in appropriate residential areas.

The importance of this is to ensure there is a clear basis for re-zoning. Zoning is a municipal competence. The issuing of liquor licences is a provincial competence and the proposal is to ensure collaboration between the two spheres of government in order to reduce harm, while bringing a predictable and regulated environment, particularly for outlets in residential areas. 

  • Prioritise upstream interventions targeting suppliers to the unlicensed liquor industry and the illicit liquor trade. 

A key strategy to combat the unlicensed liquor industry and the illicit liquor trade is to cut off the supply at the source. Obtaining information from community structures and enforcement officials of the licensed traders supplying the liquor, targeting enforcement operations on these licensed traders and lobbying for the prioritisation of the prosecution of them is recommended as a focus area. 

  • Place evidence before the justice system to argue for the prioritisation of liquor law transgressions and to be considered in the sentencing process for tougher sanctions. 

Unlicensed liquor outlets that cannot be brought into the regulated space and those that do not comply must face the consequences of the justice system, be prosecuted and closed down. Alcohol’s mind-altering effects are drivers of various and extensive harms, including violence (especially gender-based violence) and criminal activities such as robbery, murder and assault. The courts need to be cognisant of this and prosecutors need to be assisted with evidence, such as academic studies and statistics, placed before the courts. Consistent prosecution and heavier sentences will also act as an incentive to become licensed. 

  • Create awareness of alternative economic opportunities to currently unlicensed outlet owners who cannot be accommodated within the applicable zoning scheme.

A clear strategy benefiting and empowering individuals regarding economic alternatives must be developed and shared with the affected parties, including information on relevant business support programmes. 

This White Paper was drafted and has been in circulation since 2015, so whether these amendments and proposals are ever implemented remains to be seen.  

Help with your liquor licence

If your liquor licence application renewal is outstanding we can help you with submission and the correct documentation. We can handle objections and manage any compliance issues. Get legal help with your liquor licence application here.  

Ethical advertising

Understanding the ethical issues in liquor advertising

30 October 2023

Advertising alcoholic drinks is legal…but is it ethical?

Alcohol is a legal substance, enjoyed by millions without harm to themselves or others. On the other hand, alcohol is a drug which is abused, resulting in ruined lives, violence, and sometimes death – to the user or someone else. How do alcohol beverage producers navigate a vastly divergent customer base to safely and responsibly advertise their products to their target markets? The law permits the promotion of alcoholic drinks, unlike tobacco products, whose advertising or promotion is prohibited through any direct or indirect means by the Tobacco Products Control Act 1993. While both products can be addictive and have potential health risks, there are some key differences that contribute to the disparate regulatory approaches. Let’s look at the ethics of liquor advertising.

Read More

System of taxing liquor calls for an urgent review – opinion

31 July 2023

Reprinted from Business Day, by Fatsani Banda – 2023-07-28

It is understood that builders should focus on foundations as the houses they construct will not stand if they are not firmly set.

This analogy fits aptly into recent discussions on pricing strategies directed at the reduction of liquor  harm, namely excise taxes and more recently minimum-unit pricing (Mup), where the former forms the base of the policy norm, and the latter is yet to gain momentum as global best practice.
Read More

Limpopo liquor traders are against midnight alcohol sales cut-off

26 July 2023

Reprinted from Times Live, by Sinesipho Schreiber – 2023-07-25

Limpopo liquor traders have vowed to take the provincial government to court over the new regulation restricting alcohol sales after midnight.

Limpopo MEC for economic development, environment and tourism Rodgers Monama announced the provincial government would from August 1 implement a law restricting the sale of alcohol after midnight.

Monama said alcohol was a contributing factor in gender-based violence, child abuse, community instability, trauma incidents, rape and other crimes in the province.
Read More

Event liquor licence

7 June 2023

What you need to know about temporary and event liquor licences

“Pop-ups” are becoming common in all walks of life. There are pop-up restaurants, pop-up second-hand clothing shops, and pop-up cocktail bars. Regardless of the duration or the reach of the pop-up, if alcohol is sold, the outlet must have a liquor licence. Even a small function with only, for example, 20 people, hosted in a private home, requires a liquor licence if liquor is sold and not offered freely to guests. Furthermore, it doesn’t matter if the host owns a bar or restaurant and holds a liquor licence in their professional capacity. If they are selling liquor in another place, they require a liquor licence for those premises. The golden rule to keep in mind is: where liquor is sold, a liquor licence must be in evidence. There are two types of licence that may apply to the scenarios described above: a temporary liquor licence and an event liquor licence. Let’s look at the difference.

Temporary liquor licence vs. event liquor licence

When the new Western Cape Liquor Act 4 of 2008 (“the Act”) was drafted, the industry had hopes that applying for a temporary or event liquor licence would be a fairly quick and hassle-free administrative process. Unfortunately, the reality turned out to be somewhat different. When the Act came into operation on 1 April 2012, applying for a temporary or special event liquor licence became a daunting procedure.

The two types of licence are virtually the same. The distinction is that only holders of a permanent liquor licence can apply for a temporary liquor licence. A private individual or organisation wishing to sell alcohol at a one-off event must apply for an event liquor licence if they are not liquor licence holders in any other capacity.

The application process

The documentation and information that must be provided for an application for a temporary or event liquor licence is the same as an application for a permanent liquor licence, except that no zoning certificate is required. See the Western Cape Liquor Authority website for the documentation required for a permanent licence. Or find out how to renew your liquor licence.

Fee structure

An application for a temporary or event liquor licence must be submitted 40 days before the first day of the event. An application can still be submitted after the 40-day cut-off, but a penalty fee for late submission will be levied. The applicant must also apply for condonation for the late filing of the application. An unintended consequence of this regulation (or perhaps it was intended!) was that temporary and event licences became quite costly. Not all events are planned 40 days in advance. An opportunity might arise, for example, for a wine or craft beer producer to exhibit their wares less than 40 days in advance at a farmer’s market, perhaps as a late participant or substitute for a cancellation. In order to do so legally, with the proper licence, they will be subject to the penalty fees.

The penalty fee is a fee per each day the application is submitted late and currently the fee is R475 per day. Therefore, if the application is submitted on day 30 prior to the event, the application is 10 days late and the penalty fee would be R4,750!

Mobile liquor licence (spoiler alert – it doesn’t exist)

There is a misconception that the Act makes provision for a “mobile liquor licence”.  However, there is no such thing. A liquor licence is linked to a specific premises. Someone who holds a liquor licence on premises A is not authorised to sell liquor on premises B. If the premises A licence holder wants to sell liquor on premises B, they must submit the necessary application to the Western Cape Liquor Authority. This is the case even if someone else holds a licence to sell alcohol on premises B.

To illustrate this, consider the following scenario:

Premises B, with an existing liquor licence, invites a local wine producer to host a tasting of its wines on the premises. The producer holds a liquor licence at its premises (call them premises A), and premises B holds a liquor licence. Everyone is covered, right? Wrong! Only the holder of a liquor licence is allowed to sell liquor on the licensed premises. In this example, the wine producer must apply for a temporary liquor licence (assuming it is a permanent licence holder at premises A) or an event liquor licence (if the producer is, for example, a “garagiste winemaker” with no public premises), to host the tasting at premises B.

Help with your event liquor licence

Don’t fall foul of the Act. We will ensure you have the right licence for every circumstance and your application is submitted within the requisite time frames (or as quickly as possible if your event is less than 40 days away). Get legal help with your liquor licence application here.

How to renew your liquor licence

11 May 2023

Liquor licence renewal – the process to follow

Liquor licence renewal is required on an annual basis.  

The renewal date will depend on the type of liquor licence.  

In the Western Cape, there are two forms of liquor licence: a provincial liquor licence, which is issued by the Western Cape Liquor Authority, and national registration as a manufacturer and/or distributor, which is issued by the National Liquor Authority.  

Western Cape Liquor Authority

There are four types of provincial liquor licences issued by the Western Cape Liquor Authority:

  1. Micro-manufacture on- and off-consumption 
  2. On-consumption
  3. Off-consumption
  4. On- & Off-consumption  

These four licences must be renewed annually on or before 31 December.  

Under normal circumstances the liquor licence is automatically renewed by paying the renewal fee on or before 31 December annually.  

The Western Cape Liquor Authority sends out renewal notices annually from October onwards, but the onus to renew the liquor licence remains with the licence holder, whether a renewal notice was received or not.  

The renewal notice together with proof of payment of the renewal fee must be displayed on the premises, in terms of the Western Cape Liquor Act 4 of 2008 (as amended).  

Renewal fees increase annually on 1 December and the licence holder must obtain a copy of the renewal notice to ensure the correct renewal fee is paid.  If the renewal fee is not paid in full, the liquor licence will lapse on 1 January.  

Late payment of liquor licence renewal

It is possible to renew a liquor licence during the months of January and February, subject to a 50% or 100% penalty fee (depending on when the licence is renewed) on top of the renewal fee.  

In the event of late payment, a liquor licence holder will be required to submit an application in March for condonation of the late renewal and, upon approval of the application for condonation, a 150% penalty fee will have to be paid on top of the renewal fee.  

Complaints

In 2022 the Western Cape Liquor Authority implemented the Section 64 renewal process.  

If the liquor licence holder has received any complaints, Section 20 applications and/or negative reports from either SAPS or the municipality in the months between June (of the previous year) and end of June (of the current year), the liquor licence holder will receive a Section 64 Notice.  

The liquor licence will then not automatically renew through payment of the renewal fee. The liquor licence holder will be required to submit an application requesting the licence to be renewed for the following year. The licence holder will need to provide proof of a balance of probability that the renewal of the liquor licence will be in the interest of the public.    

Should the application in terms of Section 64 be submitted late, penalty fees will be applicable if the renewal application is approved.  

After renewal of the liquor licence, the Western Cape Liquor Authority will issue a renewal certificate, which the licence holder can download from its website.  

National Liquor Authority

National registration as a manufacturer and/or distributor must be renewed annually on the date of issue of the registration certificate. For example, if the registration certificate was issued on 10 May, renewal will fall due annually on or before 10 May.  

The renewal of a national registration entails more htan the payment of the renewal fee. Specific documentation is required, including, but not limited to, a tax clearance certificate, BEE certificate, proof of annual turnover, membership of certificate from Aware.org, etc.  

The renewal fee depends on the annual turnover of distribution activities.  There are various scales of fee calculation. After approval of the renewal of the registration the NLA provides the registrant with a renewal certificate.  

Get legal help with your liquor licence application here.

Liquor Amendment Bill report by DG Murray Trust

6 February 2023

In August 2022, DGMT’s Alcohol Harms Reduction (AHR) team held a workshop to create momentum around the Liquor Amendment Bill and study its potential impact. The workshop aimed to build collective knowledge and deepen the understanding of the regulatory changes proposed by the Bill. The workshop focused on the key objectives of the 2016 Draft .

You can read the report below.

Get legal help with your liquor licence application here.

WC Community Safety MEC says liquor law changes not biased

29 August 2022

Reprinted from enca.com – 2022-08-25

CAPE TOWN – The Western Cape Government is not targeting black and coloured liquor traders, according to Western Cape Community Safety MEC, Reagen Allen.

Traders have accused officials of bias in proposed changes to liquor licence laws.

Permits will no longer be renewed automatically and traders will have to reapply.

“It is 37 communities where these 116 outlets are situated. It’s not in your predominantly coloured or black areas,” he said.

“Politics is often brought in but here the facts are clears, details are listed on the website so that we can obtain public comment as well.”

Watch the video here.

Get legal help with your liquor licence application here.

Limpopo education MEC gets tough on liquor outlets near schools

16 March 2022

Reprinted from The Citizen, by Alex Japho Matlala – 2022-03-15

Education MEC Polly Boshielo said the proximity of liquor outlets to schools was a serious societal problem

Limpopo MEC for Education Polly Boshielo wants all liquor outlets that are near schools to either close or play ball during school hours.

The MEC warned that those who ignore the message from the liquor board will face the wrath of the law as she said her department was tired of playing Mr Nice Guy at the expense of the education of the children of Limpopo.

Read More
123