Business Improves for Liquor Industry Despite Covid 19, SA Pleasantly Surprised

• The Liquor Trading Industry has recorded improved profit margins despite the current Covid-19 restrictions in South Africa
• The country's liquor traders were at the receiving end of multiple bans on the sale of alcohol over the last 21 months
• Citizens are calling for curfew on New Year's Eve to be lifted, with the restaurant industry saying it supports the demands

JOHANNESBURG - The current alert Level 1 restrictions in South Africa have done little to hamper business as alcohol sales have gone up amid the festive season, leading to an improved bottom line, according to the Liquor Trading Industry.

The country moved to an adjusted lockdown in September, which opened the door for bars and restaurants to trade alcohol until 11 pm. Similarly, liquor stores were able to revert to normal operating hours.

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SABC News reported that traders were initially uneasy over a potential negative outlook after the emergence of the new Covid-19 Omicron variant. After multiple bans on the sale of alcohol in South Africa over the last 21 months, the liquor industry felt justified in believing that another lockdown was in the pipeline.

President Cyril Ramaphosa, in his address several months ago, gave the green light for the continued alcohol trading after consultation with the National Coronavirus Command Council (NCCC).

The convener for the National Liquor Traders Council, Lucky Ntimane, acknowledged the challenges faced by the industry this year and implored the government to continue on the current trajectory as it is what the economy needs.

"It has been a challenging few months. However, we are [beginning to note] a slight recovery. We urge the government to allow the economy to flourish. There's no reason to implement alcohol bans that will subject our people to poverty in the future," said Ntimane.

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Further bans not necessary

Meanwhile, calls for the curfew to be lifted on New Year's Eve are intensifying, with the Restaurants Association of South Africa (RASA) saying it supports the calls citizens have made in the past few weeks and continue to voice out.

Citing there is no scientific evidence supporting the possibility of a peak in the infection rate if the curfew is lifted, RASA CEO Wendy Alberts said the economy is heavily reliant on freedom of movement among people.

"The reason for a lockdown was to adequately prepare the healthcare system. But there is no scientific data that suggests that lifting the curfew will lead to an influx in infections," said Alberts.

"What is known is that the hospitalisation rate is lower, and there's no strain on the healthcare system at the moment. The economy is negatively impacted [by stricter lockdowns], and so is our industry," Alberts added.

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Business Tech reported that the Consumer Goods Council of South Africa (CGCSA) warned against new alcohol restrictions. The association cautioned any measures which restrict the sale of alcohol as it would be discriminatory, uncompetitive, would worsen the viability of affected traders, and put jobs at risk.

Questions raised on industry priorities

On social media, some South Africans were impassive to the announcement, with some questioning whether the liquor industry undertook a corporate social initiative stance considering the flattering profit margins.

Briefly News takes a look at some of the loudest reactions below.

@Percy Mo wrote:

"The business is booming but they will never fund the kids of its customers to further the education or even donate stationery to its customers."

@Angelo Reis said:

"At the rate that the country drinks, alcohol companies should contribute towards national health care."

@Mduduzi Sithole added:

"It's alcohol for goodness sake. No matter the economy that industry will always get back up on its feet. We are a country drenched in liquor."

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No curfew on New Year's Eve says DA's John Steenhuisen

Elsewhere, Briefly News recently reported that different groups have called for the government to lift the 12 pm curfew before 31 December to allow people to celebrate.

One of the petitions come from the Hospitality Leadership group, which represents the South African hospitality sector, who say Ramaphosa should remove the curfew on New Year's Eve.

The group added that the curfew does not serve a purpose, as it does not curb the spread of Covid-19 and has caused many businesses in the hospitality sector to suffer major financial losses, News24 reported.

Source: Briefly News