Source: https://risingsunoverport.co.za/92274/alcohol-industry-cuts-off-supplies…
The industry has seen the devastating impact of the ban on the value chain. It has put in place responsible practices and forms of behaviour to trade responsibly to ensure that they protect the livelihoods of many thousands of people across the industry’s value chain.
Source:https://www.iol.co.za/capeargus/news/call-to-amend-western-cape-liquor-a…
Cape Town – People tasked with the provincial Safety Plan have asked the Department of Community Safety to amend the provincial Liquor Act as a part of its plan to halve the murder rate in the province over the next 10 years.
Community Safety MEC Albert Fritz said the amendments were further aligned with Premier Alan Winde’s “smart interventions”, aimed at reducing alcohol-related harm.
“During the lockdown, my department monitored the number of homicides which demonstrated that at the beginning of the lockdown, the murder rate had been halved,” he said.
He said as the country moved into alert levels 4 and 3 the murder figures increased, but then decreased slightly as the ban on alcohol and the curfew were reinstated.
Among the key proposed amendments were altering the Western Cape Liquor Authority’s liquor licence fees, permanently confiscating seized liquor after the payment of an admission of guilt fine, and inserting an objective test within the act to determine whether alcohol has been sold to an unlicensed outlet or individual.
Some included obliging licence holders to take reasonable measures to determine that a client is of legal drinking age and aligning the act with the Liquor Products Act to ensure a uniform definition of “Illicit liquor”.
Fritz said he had noted that between March 27 and August 28, the Western Cape Liquor Authority had conducted 129 investigations into contraventions of the National Disaster Risk Management Act Regulations.
“Of the 129 investigations, 50 section 71 matters were placed on the Liquor Licensing Tribunal’s case roll, of which 40 licences were suspended and 10 applications were dismissed.”
Chief executive of the Beer Association of SA Patricia Pillay said following recent reports of alcohol outlets breaching the level 2 lockdown regulations, the association had committed itself to identifying establishments found breaking the law and cutting off their supply.
Pillay said beer manufacturers would request the details from municipalities and provincial liquor authorities of businesses whose licences had been revoked and would stop supplying alcohol to them.
Source:https://ewn.co.za/2020/08/12/cape-town-restaurants-disappointed-as-alcohol-ban-matter-postponed
The applicants want all eateries with a valid liquor licence to be allowed to serve alcohol for on-site consumption.
CAPE TOWN – A group of Cape Town restaurants set to challenge the national lockdown regulations in court are disappointed that their case will only be heard at the end of the month.
The matter was set down for Tuesday but was postponed for two weeks.
The applicants want all eateries with a valid liquor licence to be allowed to serve alcohol for on-site consumption.
Owner at Chef’s Warehouse Liam Tomlin said the aim of the court application was to prevent a jobs bloodbath and a spate of permanent restaurant closures in South Africa.
“Every single restaurant that has a licence relies on that money; that’s why we have those licences to sell alcohol.”
In court papers, minister Nkosazana Dlamini-Zuma argues alcohol sales are banned to avoid over burdening hospital trauma units and save resources for the fight against COVID-19.
However, the applicants claim there’s no evidence that consumption at licenced restaurants contributes to the problem and the business models of most eateries depend on alcohol sales.
The applicants ask the court to at least allow licenced restaurants in the western cape to sell alcohol.
Last week, the Western Cape government said there was sufficient health capacity to deal with trauma admissions and COVID-19 patients.
In court papers the minister said the regulations were meant to apply generally and protect all South Africans fairly and equally across the country.Back to top
Source:https://ewn.co.za/2020/08/11/ct-restaurants-no-evidence-of-onsite-alcohol-use-adding-to-trauma-cases
CAPE TOWN – Cape Town restaurants will need to wait until the end of the month to challenge COVID-19 lockdown regulations in court.
The matter set down for Tuesday but has been postponed for two weeks.
The applicants want all eateries with a valid liquor licence to be allowed to serve alcohol for on-site consumption.
After the initial alcohol ban was lifted, it’s estimated about half the more than 34,000 trauma admissions to public hospitals across the country per week were linked to alcohol consumption.
However, the applicants argue there’s no evidence that consumption at licenced restaurants contributes to the overburdening of trauma units.
Owner at Chef’s Warehouse Liam Tomlin said: “Most of our guests will enjoy a bottle of wine or about three or four during a dining period. So, I really don’t believe the problems that the government are saying are related to our industry at all.”
The minister argues that allowing the sale of specific types of liquor in identified industries would not provide the effective relief the healthcare system needs during a surge in COVID-19 cases.
She adds that even though the application refers specifically to lifting the liquor ban in licensed restaurants, taverns, bars, shebeens and hotels will also be allowed to sell alcohol in unlimited quantities, as many of those establishments also serve a “meal”.Back to top
Cooperative Governance and Traditional Affairs Minister Nkosazana Dlamini-Zuma has disputed a claim by a group of restaurants that people are not frequenting restaurants solely because no alcohol can be sold with meals.
She said restaurant groups have not considered that there are risks associated with frequenting public places during the Covid-19 pandemic.
In her 103-page affidavit submitted to the Western Cape High Court, opposing the application led by Cape Town-based Chefs Warehouse restaurants, Dlamini-Zuma said the restriction on on-site consumption of alcohol was rational and lawful.
“It is denied that the eating-out experience would ‘be so absurd and unpleasant that nobody would actually want to do it’. The statement assumes, as a fact, that all people that frequent restaurants consume alcohol or go out for the alcohol, not the food,” Dlamini-Zuma said.
She said it was patronising for the group of restaurants to assume that everyone who visits restaurants wants alcohol, given that only 31% of people in the country consume alcohol.
“I do not dispute that a number of people do enjoy alcohol with meals in normal circumstances, but we are not living in normal circumstances. There are unprecedented times, which require all South Africans to adapt until we overcome Covid-19,” she told the court.
Temporary measure
Dlamini-Zuma reiterated the argument she made in other court challenges against the alcohol ban: That the prohibition on the sale of alcohol was taken as a temporary measure – until the rate of infections slows down.
“There is no desire on the part of government to leave this prohibition in place for longer than it is regarded as necessary,” she said.
The group has asked the court for an order that “all restaurants in possession of a valid liquor licence” should be allowed to serve alcohol with meals to their patrons on-site. This would be subject to the conditions of their liquor licence and all other applicable laws, they said.
The group is also contesting the physical distancing regulations.
It says the requirement to have 1.5m between all patrons should “exclude patrons voluntarily deciding to sit at the same table, sharing it”.
Dlamini-Zuma, however, said physical distancing remains the basic tool used to reduce the spread of the Covid-19 virus.
Restaurants also argued that they should be allowed to sell wine and beer, with the prohibition only for hard liquor.
Dlamini-Zuma said the government did consider imposing less restrictive measures.
“Making allowance for the sale of specific types of liquor, such as wines and spirits, even if this was implementable, in identified industries, would not provide the effective relief on the healthcare system that is required at a time of a huge surge in Covid-19 cases.
“The fact is that such a measure would be difficult to enforce.”
In response to the arguments of the economic consequences of the alcohol ban, Dlamini-Zuma said the government will re-evaluate the ban regularly “to also limit hardships facing the economy and individual livelihoods during this period”. Back to top
A sequence of hard commercial decisions by small, independent liquor stores around South Africa, and their landlords, is about to create a regulatory nightmare that will outlast the coronavirus crisis, liquor traders are warning.
If they’re right, the result will be a mass closing down of legal bottle stores, especially in the more far-flung parts of South Africa. Then, when alcohol retail becomes legal again, those bottle stores will be replaced by unlicensed shebeens operating outside of the tax net, and without regard for rules intended to curb alcohol abuse over the long term.
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Bottle stores are currently trying to figure out if they can (and should) pay their rent, say people in the industry, while not knowing when they may be allowed to sell again, and for how long prohibition will be lifted this time around.
The calculation is a complex one, and unique to each small business. Should staff be paid first, in part or in full? How much capital will be required to start from scratch, and is it better to hoard available cash to do so? How much stock is about to reach its sell-by date, and is it better to leave that for liquidators to worry about, if it comes to that? Will landlords be sympathetic?
But with every day of lost trade and ongoing uncertainty, more and more stores are failing to pay their rent.
Even sympathetic landlords can’t just let that slide, traders say; they are following their rights, which end in selling off stock and shop fittings to recover what is owed, and clearing out space for new tenants, if any can be found.
Before that comes invalidating leases for non-payment, which is where regulations come in. Liquor store licences are tethered to specific premises for reasons that include keeping them away from schools. An invalid lease means an invalid liquor licence, which at the very least will require a lot of paperwork to sort out.
Though they won’t say so on the record, for fear of making things even harder, bottle store owners are darkly amused at the idea that provincial governments (which control retail licences) will be able to process such paperwork expeditiously.
They also won’t talk directly about what owners and workers are likely to do in such circumstances, but the unspoken expectation is clear enough: the legal trade will simply become an illegal one, with a flourishing of unlicensed shebeens.
Operating outside the law has its commercial attractions, notably not paying tax. It also comes with disadvantages that include not having access to formal finance for expansion, and the threat of losing everything in a raid.
In 2020, one trade points out, booze merchants have learnt that they could lose everything anyway, through what they see as capricious government action.
Perhaps staying outside the law is simpler after all.
Source: https://citizen.co.za/business/2324529/liquor-traders-call-on-government-to-pay-back-licence-fees/
According to LiquorWise, a well-known restaurant in the Western Cape lost R1 million due to liquor expiring in kegs.
President Cyril Ramaphosa’s move to reimpose the ban on the sale of liquor has sparked a backlash as liquor licence holders now demand that the government pay back the money they paid for their licences.
The call has added to the liquor industry’s outcry over their suffering under the ban and that they were contemplating retrenching hundreds of thousands of employees.
Restaurant Association of South Africa CEO Wendy Alberts described the ban as “diabolic” and a “complete fiasco” and said members would have no choice but to retrench workers.
Separately, the licence holders yesterday said they paid good money upfront for licences but now, with the ban, they cannot use them to earn an income.
“Money shouldn’t be a problem for the government. After all, they lose billions from liquor; and cigarettes taxes go to the black market. Licence holders are saying – it’s payback time,” they said.
Last week, the licence holders complained about the liquor that expired in their stores because they could not sell it due to the restrictions.
According to LiquorWise, who are liquor licence specialists, a well-known restaurant in the Western Cape lost R1 million due to liquor expiring in kegs. “And he’s not alone. Many other restaurants are in the same dire situation.”
Despite the liquor having expired, they still had to pay suppliers. The situation has been worsened by insurance companies that refuse to pay out for the alcohol.
“Every day, more restaurants are proverbially drowning in their blood, being forced to commit commercial suicide,” LiquorWise said.
“Let’s support those many brave restaurateurs who are still fighting to survive and are keeping many thousands in a job.”Back to top
CAPE TOWN – The Western Cape Community Safety MEC said 65 liquor licence holders had been investigated for contravening lockdown regulations.
Community Safety MEC Albert Fritz said his department would continue to work around the clock to ensure liquor licence holders operated within the prescribed guidelines.
He said 65 liquor licence holders had been investigated for contravening lockdown regulations.
The Western Cape Liquor Authority conducted these investigations between 23 March and 5 June.
Fritz said since level three came into effect on 1 June, inspectors were widely deployed to monitor areas where non-compliance was most prevalent.
He said while the majority of the liquor outlets complied with prescribed health protocols, including the use of thermometers and hand sanitisers, three premises were found to be non-compliant.
Officials found one of the outlets sold 48 crates of beer to an individual who allegedly owned an unlicenced outlet.
Fritz said owners of non-compliant licenced premises may face a fine of up to R115,000 or have their licences revoked, subject to an investigation.
Following the 65 investigations, the Western Cape Liquor Authority has so far suspended 32 licences.
Fritz said he was extremely concerned that as the healthcare system was already under pressure as a result of the COVID-19 pandemic, the province had seen an increase in the number of alcohol-related trauma cases since the unbanning of alcohol under level three lockdown.Back to top
Source: https://www.heraldlive.co.za/news/2020-06-30-restaurants-to-challenge-patel-on-booze-ban/
The Restaurant Association of SA has sent trade and industry minister Ebrahim Patel a lawyer’s letter demanding to know why alcohol cannot be sold to sit-down customers.
The letter was written after the publication of directions in the Government Gazette regarding the reopening of restaurants — permitted from Monday.
The association said it noted with “bewilderment” that the sale of alcohol at restaurants was not addressed in the new regulations.
“Our client has already received confirmation from many of its members that their restaurants will not be opening, as without the sale of alcohol it will not be feasible to do so,” Ashton Naidoo of Mooney Ford, the lawyers representing the association, said.
“It is also nonsensical to allow the sale of alcohol as a takeaway but not allow for on-site consumption, as this allows for people to get into a vehicle, purchase a takeaway [food and alcohol] and drive about while consuming both,” the letter reads.
The association said it needed reasons from Patel for not allowing the sale and consumption of alcohol at restaurants as the decision “adversely” affected the constitutional rights of its members.
“Our client is entitled to be given adequate reasons for the decision.
“It is also stipulated in section 5 (3) that the decision you have made must be regarded as a decision with good reasons.
“Our client has thus instructed us to demand, within seven days hereof, that the sale of alcohol be allowed for on-site purchase and consumption at all restaurants, which are in possession of a valid liquor licence, alternatively, written reasons why the above request is being denied,” Naidoo said. — TimesLIVE
Source:https://www.dispatchlive.co.za/
The alcohol industry, blindsided by Sunday’s immediate ban on the trade in liquor and still reeling from R18bn in lost revenue during the first period of prohibition, has warned of disaster due to the new restrictions.
The industry including large players such as Heineken, AB Inbev, Distell and more than 2,500 wine farms represented by VinPro, issued a strongly worded statement on Monday warning of billions in lost tax revenue and growing job losses.
“The government’s decision has serious economic consequences, placing hundreds of thousands of livelihoods at risk,” the industry said.
The liquor industry, worth R137bn by its own count, supports 1-million jobs and contributes 3% to SA’s GDP. It has previously said the first ban of eight weeks including the period when it was unable to export goods, had led to a loss of about 118,000 jobs and had boosted illicit trade.
It reiterated its warning of the further entrenchment of the illegal alcohol trade, a day after President Cyril Ramaphosa announced a second ban on alcohol sales, in the hope of reducing binge drinking in order to free up hospital beds and medical staff needed to attend to patients injured by drunk drivers or alcohol-fuelled violence.
In reaction, the share price of Distell, producer of Hunter’s Dry ciders, Klipdrift brandy and Nederburg wine, dropped as much as 6.9% before recouping some of the losses to close 3.58% lower at R75.12, a level last seen two-and-a-half months ago.
The industry said if the ban is to succeed in reducing alcohol consumption, it “must be accompanied by considerably increased law enforcement” to combat illegal trade.
Since the first ban, alcohol industry leaders had regular meetings with government officials but were not consulted over the new regulations.
“The industry was given no warning … nor an opportunity to consult with the national coronavirus command council before a decision was made, and no consideration was given to the immediate logistical difficulties it poses for both suppliers, distributors and retailers alike.”
The industry said small businesses will be hardest hit. Herenya Capital Advisors’ trader and founder Petri Redelinghuys agreed. “In the nonlisted space is where the real bloodshed is going to be.”
He said listed companies such as Distell “have access to financial markets et cetera but not a lot of people have a vested interest in the restaurant down the road”. She added: “Some of the packaging companies are going to be heavily impacted as well.”
Wine farms are forced to rely on the export market. But “the average wine farm that is not world famous does not have markets to export to”, Redelinghuys said.
Liquor Traders Association spokesperson Sean Robinson, who represents independently owned bottle stores, said that the new ban would be devastating to small business owners, still reeling from the two-month closure in April and May and the four-day trading week since June. Sales have declined in recent weeks, he said.
With the government’s Temporary Employer/Employee Relief Scheme (Ters), a form of salary protection, having expired at the end of June, many small store owners simply cannot continue to pay staff.
“We don’t want to retrench, but we may not have options,” Robinson said.
A legal liquor licence is dependent on a valid lease, Robinson said. If bottle-store owners cannot pay rent and their lease is terminated by a landlord, the licence to trade expires. “Overnight, you don’t have a business.”
Lucky Ntimane, convenor of the National Liquor Traders Association, which represents 34,500 township taverns, said his members were facing a “dire situation”.
“Without a doubt they will go hungry and the majority of these businesses will go bust.”
The industry warned that boosting the illegal alcohol market will make regulating the industry and controlling abuse more difficult in the long term.
The incentive to sell illegal tax-free alcohol is high as it is a lot cheaper. For example, a single bottle of spirits retailing at around R130 will include R85
of taxes.
The liquor industry estimates that taxes lost due to the absence of sales and the burgeoning illegal trade during April and May amounted to R3.4bn.
In June, finance minister Tito Mboweni announced that the country would miss its 2020 tax target by more than R300bn.
After the first ban, Distell revenue was down 15.4% year on year from July 2019 to the middle of June 2020.
Spokesperson for Distell Frank Ford said the company would be negatively affected, but what exactly the impact on the business will be, remains unclear for the moment.Back to top
