SA Breweries cans investment projects worth R5bn

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The SAB said in a media statement on Monday it was cancelling a R2.5bn investment project that was planned for this year while also reviewing another R2.5bn investment planned for next year due to the consequences of the the 12-week-long alcohol ban.

Image:Beer producer South African Breweries has canned local capital investment projects worth R5bn over the next two years due to the lockdown that has seen the sale of alcohol being suspended.

"These funds were previously scheduled as part of its capital allocation programme for this financial year, while an additional R2.5bn planned expenditure for the next financial year remains under review. "This decision is a result of the first, and current, suspension of alcohol sales which has led to significant operating uncertainty for ourselves, our partners, as well as colleagues in the industry, including participants in the entire value chain, and which impacts over one million livelihoods across the country”.

"This decision will also have an impact on the external supply chain companies that had been selected for these upgrades.

 

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