SAB abandons R5bn of capital investment

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The country's biggest beer maker, SABreweries abandoned R5billion worth of capital investment projects in South Africa on the 12-week alcohol ban imposed by the government as part of its response to the Covid-19 pandemic. busrep

SAB finance vice-president Andrew Murray said it would cancel R2.5bn of investment for 2020, while an additional R2.5bn of investment was being reviewed for 2021, due to the ban.

Yesterday, spirits, wine and cider group maker Distell said the industry had already lost 118000 jobs, and projections showed that a nine-week ban now would cost another 84000 livelihoods. Distell chief executive Richard Rushdon said almost 800 small liquor manufacturers, from wineries to craft brewers, faced bankruptcy because of the ban.

Murray said the first and subsequent alcohol suspensions had led to significant problems for the group’s operations and across the entire liquor value chain. He said this would affect more than 1million livelihoods across the country.

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