INDUSTRY NEWS

GLF

FAREWELL TO A LEGEND

By Linda Madida, President, Gauteng Liquor Forum

THE PASSING OF MR MAJOLA IS DEEPLY FELT BY ALL

It is with sadness that we have come to lose such a great leader as Mr Majola, an extraordinary man who lived under the sun and in our time. What a catastrophe this is for the Gauteng Liquor Forum and Gauleba. He had an undying passion for business, specifically in the liquor industry: many became traders through his efforts. Many found refuge in his efforts, too, and in him: when the government kept failing us in the liquor trading industry, he raised the highest economic standard in and outside Tembisa and for that we highly commend him and his expertise in the field. As a legend, he left a legacy for many. He understood that in order to be prolific one had to be proficient. His organizational skills remain unparalleled and phenomenal; his shoes will be too big to fill. On behalf of Gauteng Liquor Forum, we hereby wish to extend our esteemed salutations to the contribution he made in the liquor industry.

He had six following goals that he wished to achieve for our liquor traders:

1.Through his contribution he proposed changes in the 2013 liquor bill including shebeens licensing but to date the government has not responded.

2.He wanted to progress on all applications that were submitted through the liquor board but to date there are still no answers. The government had said that it will be a three-month process but we are now way over three months. 3.The conversion of shebeen permits to shebeen licenses has come to a stand still since the passing of the late MEC

Nkosiphendule; even the Yeoville case is still pending a response.

4.New entries into mainstream town planning are not functional especially

Ekurhuleni: they’re so incompetent that they cancel the meetings when we arrive at their premises.

5.The former Buphutatswana citizens were all promised the free concerned letter use but nothing they are now going for fraudulent permits. 6.It is very sad that all the liquor giants never saw what they have ripped off:

I am talking about people like Saint

Mahlala, Sam Buthelezi and others who never even saw what the shebeen license looks like. In all the above goals not achieved, the Gauteng Liquor Forum members will assume that the forum is not delivering when in fact it is our government that continues to fail us.

We vow to soldier on!

We extend our deepest condolences to Mr Majola’s loved ones and may his soul rest in eternal peace.

We at Spotong also wish to take this opportunity to wish Mr Majola’s family and friends our sincere condolences. Never can the role played by the tavern trade in the historical and ongoing struggle for social and economic freedom be forgotten. True leadership arises from within our midst, and leaders like Mr Majola are exactly what South Africa needs to confront its challenges in ways that make sense to the community. Who understands the problems of the people better than those who have had to confront the same problems and achieved success? Such leaders, who are the people’s unofficial representatives, ought to be consulted broadly by all those who share the goal of leading our country forward into the prosperous future that it undoubtedly deserves.

A HECTIC AND PROSPEROUS YEAR FOR NTHA

The National Tourism and Hospitality Association (NTHA) experienced a highly successful year in 2014, with a number of outstanding highlights

The association’s commitment, hard work and dedication led to it receiving accreditation from Cathsseta, the Culture Art Tourism Hospitality and Sports Sector Education and Training Authority, in January – recognition of the vital role it plays in the industry. In addition, NTHA was also recognised as the main sponsor of a 12-month learnership programme for 24 learners who will be accredited at the end with NQF level 4 cerctificates for professional cookery. On April 3 NTHA did it again by launching a conference centre and catering kitchen at its headquartes in Meadowlands, Soweto. The centre will serve the community by hosting events ranging from workshops to business expos, seminars, meetings and

NTHA team enjoy their year-end party at the end of a busy 2014.

birthday celebrations. The centre can accommodate about 150 people. The catering kitchen was officially opened by local councillor Takalani Nefotoni, NTHA executive Fanny Mokoena and entrepreneur Monde Dhladhla.

The kitchen is designed to accommodate learners participating in a learnership programme and who need a suitable venue for theory as well as practical work, before they are placed at companies. On April 23 NTHA, in support of Liquor Traders Against Crime and working hand in hand with the SAPS donated cosmetics packages to Victim Empowerment Centres as a way of giving back to police stations for the work they do.

And it doesn’t end there. On July 18 NTHA celebrated its annual Christmas in July event, which is now nationally known as 67 minutes, by donating blankets to needy senior citizens of Soweto.

On August 28 NTHA hosted a women’s day event, a highlight on its annual calendar. The event was held at the Meadowlands Conference Centre and women who attended were given scarfs as presents, while learners from Ndofaya Cateres provided delicious meals as part of their practical training. September the 26th 2014 NTHA celebrated Heritage day with senior citizens of Meadowlands who experienced the Sophiatown removals. Seniors danced to the Sophiatown music and enjoyed the African beer and cuisine prepared by Ndofaya Caterers. Arts and craft stalls provided further interest. October 17 saw NTHA celebrating annual Liqour Month. This involved each of its 24 branches bringing ten patrons to learn about the business of liquor outlets and to celebrate the day with them. The theme of the day was Codes

Ndofaya catering official opening with local councillor Takalani Nefotoni.

Ndafaya Caterers.

of Conduct, and this involved patrons and traders being educated about some of the essentials of the liqour industry and the dangers of drinking and driving. On December 10 NTHA held its end of year party at Krugersdorp Resort. All branches were present and the event proved a well deserved celebration after a very successful year. Lastly, on December 30 NTHA represented liquor traders at a prayer meeting for accident victims on Moloto Road in Pretoria. Moloto Road has one of the highest accident rates in the country, mostly due to speeding and drunken driving. So all in all, it was a very busy and successful year, and 2015 looks certain to be just as hectic.

WHEN GIANTS MEET SAB, COCA-COLA AND GFI TO JOIN FORCES owner of Coca-Cola Sabco, and 11.3% “This also signifies a strengthening of our strategic relationship with The Coca-

Three major players on the beverage owned by The Coca-Cola Company, the Cola Company.” scene – SABMiller, The Coca-Cola Company and Gutsche Family groups said recently. Management consultancy McKinsey

Investments (GFI) – are combining As part of the deal, Coca-Cola will also says that Africa’s consumer spending their soft drinks bottling operations in South and East Africa to create a group with $2.9bn in revenue across 12 fastgrowing markets. acquire SABMiller’s sparkling soft drink Appletiser brands globally, and buy or be licensed for a further 19 nonalcoholic names in Africa and Latin on shopping, banking, telecoms, and tourism could grow to $978bn by 2020, from $570bn in 2010. The new firm, Coca-Cola Beverages

This dramatic move will see the new America for about $260 million. Africa, will have more than 30 bottling company, which will be headquartered in SA, taking advantage of a range of exciting opportunities in the ever“The opportunity is significant, with favourable demographics and economic plants when the deal is completed, bringing together brands such as Appletiser and spring water Valpre in growing beverage sector. development pointing to excellent countries such as South Africa, Kenya, growth prospects,” said Alan Clark, Ethiopia, Mozambique and Tanzania.

It will be 57%-owned by the brewer, SABMiller CE. 31.7% by GFI, which is the majority ZIM CIDER PRICES PLUMMET AFDIS IMPLEMENTS EFFICIENCY, REAPS REWARDS competitive and start producing Hunters $1.60 while Savanna is now priced at $1.35 from $1.66 although most liquor

It’s not often that prices come down, and Savanna ciders locally. outlets round off the prices to $2.and when they do, it’s always a highly welcome development. “We will continue to bring down the It’s not the only instance of prices in

In a major development, Zimbabwe Stock Exchange-listed wine maker, African Distillers (Afdis) says the price of ciders produced under license will be [production] costs and therefore pass on the affordable price to the consumer. There should not be any fear about the quality of this product. This is a first the industry dropping in recent times. The move comes as last month listed beverages maker Delta Corporation (Delta)’s retail price of beer marginally reduced by between 22 and 25 percent world investment,” said Gombera at the went down from between five cents due to cost effective production from its official commissioning of the plant last and 20 cents across the whole portfolio $5 million new packaging plant. month. stating that affordability had become a big issue for the Zimbabwean

Cecil Gombera, Afdis’ managing director, The recommended retail price of consumers. said the company needed to invest in Hunters has gone down to $1.25 from new technology in order to be more Some call it “healthy” wine, and others say it’s about to start a revolution in South Africa’s wine industry. THE QUIET REVOLUTION IN SA’S WINE INDUSTRY LOWER ALCOHOL CONTENT, HIGHER PROFITS The wines are also harvested a month early to do away with the heavy, high alcohol content normally associated with wine. “The basic thing about this area, why I came here, is the soil,” says Eben Sadie, 42, a former surfer and the first of the renegade winemakers to settle here in 1997.

It has clear health spinoffs and doesn’t come with the heavy, high alcohol content for which South African wines The initiative involves a handful of young wine loving friends who are turning their backs on the very practices that have made the country’s “When people think wine, they see estate. But wine is all about the soil and the site.” are known. wine industry such a success over the Xavier Didier, a French sommelier based

These “new age” wines take their inspiration from the Rhône valley in decades. The land they have chosen for this in Cape Town, calls it a counter-culture phenomenon. southern France and hail from the exciting new development is drier and “They wanted to get out of the usual

‘Swartland’ (black country) region of healthier than traditional wine producing commercial channels of tourists and

South Africa, where they are being regions like Stellenbosch and Paarl and mass production, and this New World produced as naturally as possible, in soil the vines are thirsty for moisture and the style of wine, the fruits, the alcohol, the dense with nutrients. farms empty of tourist buses. Robert Parker flavours.”

FIGHTING BACK!

SAB TAKES ON ILLEGAL PERU BREW

SABMiller is determined to fight back against illegal alcohol producers in Peru.

The beer giant said recently it wants Peruvian fuel producers to buy locally produced ethanol as part of its drive to combat illegal alcohol, which makes up almost a third of the total alcoholic beverages market in Peru. The good news is that this illegal market appears to be feeling the strain, with illegal alcohol’s share of the market having fallen from 41% to 31% over the past 13 years, as more people can afford legal alternatives. Another reason for the decline is that beverage companies have extended their reach into new areas across the country. Illegal alcohol, though, is up to ten times cheaper than beer, so SABMiller, and its Peruvian operation, Backus, has a big fight on its hands. The company, along with other producers in Peru, is determined, however, to reverse a culture that is deeply entrenched in Peruvian society. Illegal alcohol, which is widespread in various Latin American and African nations, is mostly made in Peru from ethanol derived from sugar cane, according to Felipe Cantuarias, Backus’s vice-president of corporate affairs. Backus has taken the fight to illegal producers on several fronts, recently having launched a cheaper entry level beer and campaigning with government and other producers to highlight the health risks associated with illicit alcohols.

And that’s not all. It also wants buyers from Peru’s 10 major sugar cane suppliers to be placed on a public registry, while beer producers are putting a business case forward to government and fuel refiners on the merits of sourcing ethanol locally, Cantuarias said. It is hoped that ethanol prices will rise in time, by diverting much of the ethanol supply to new sources and cutting back on imports, thereby restricting supply.

To understand how important it is to SABMiller to take action against illegal alcohol production in Peru, it is important to understand that Backus has about a 96% share of the Peruvian beer market, which in turn has a 62% share of the total alcoholic beverages market. This means that illegal alcohols are SABMiller’s biggest competitor in the Andean country. Peru is SABMiller’s second-largest market in Latin America, behind Colombia.

REDUCING COST AND RISK SAB AND WWF-SA INTRODUCE SUSTAINABLE BARLEY FARMING PROGRAMME INDUSTRY NEWS

By SAB

Better Barley Better Beer, in partnership with the World Wildlife Fund for Nature of South Africa (WWF-SA), is in its pilot phase in the dryland area of the Southern Cape as well as in the irrigated barley areas in the Northern Cape. The pilot stage is focused on water reduction, improved carbon footprints, soil health and clearing of alien vegetation (as well as the protection and restoration of ecosystems) and is set to run for approximately two years. The Better Barley Better Beer programme involves a total of 26 barley producers who have either voluntarily opted to participate or who have been engaged because they hold important conservation assets on their properties. These assets include endangered veld, important water catchment areas and critical species.

Through structured engagement and advisory support, Better Barley Better Beer is aimed at empowering barley farmers to understand and implement sustainable farming practices, with 15 located in the dryland area and 11 in irrigation. The programme is an important element of SAB’s global sustainable development framework called Prosper, which highlights tangible targets to be achieved by the company over the next five years in the areas of responsible alcohol consumption, securing water resources, reducing waste and carbon emissions, supporting small enterprises, including emerging farmers, and the support of responsible and sustainable land use for brewing crops.

Farmers with critical conservation assets will be supported in engaging on biodiversity stewardship with the aim of protecting and restoring ecosystems. The stewardship concept is a new way of achieving conservation protection by creating positive, proactive partnerships with private landowners and conservation bodies, such as WWF-SA. custodians of our South African natural resource base, with advisory extension support to adopt best practice that ensures farming maintains, protects and restores key natural systems, while minimising the environmental impact of production activities for the benefit of producers, as well as downstream users,” says Inge Kotze, WWF Senior Manager: Sustainable Agriculture.

Through Better Barley Better Beer and other sustainable agriculture initiatives, including the construction of a multi-million rand SAB Maltings plant in Johannesburg and its Go Farming programme (which is geared at establishing and supporting emerging farmers), SAB intends to source more than 90% of its barley requirements from local producers.

“Having a fully-fledged and sustainable local barley sector means SAB can rely on contracts with local producers for approximately 93% of its brewing requirements, enabling us to hedge against volatile global commodity markets and, just as importantly, to keep tighter control of quality and ensure a sustainable barley growing sector,” says van Schoor.

Historically, SAB has played a pioneering role in the South African barley industry. It began growing barley locally more than three decades ago, a strategic attempt by the company to become selfsufficient. Since those early days, SAB’s support for the local barley industry has strengthened considerably and the company is today regarded as a critical role player. The strategic industry partnerships it has developed, as well as its close working relationship with producers, is what has helped to yield successes and drive further sustainable growth. “Our collaborative approach within the agricultural sector has proven to be the most effective method in creating sustainable growth, which is a key objective of any SAB investment. The existing knowledge and skills within the industry is invaluable to success,” says van Schoor.

This focused commitment by SAB to investing in the local barley industry extends to developing and supporting a more inclusive environment with equal opportunities. These efforts stretch as far back as the early 1990s when SAB initiated the Taung Barley Farmers Project in the Northern Cape. The programme has helped to encourage local barley production and create a sustainable source of income for smallholder farmers and it now supports more than 120 smallholder farmers, each generating a sustainable income with guaranteed access to market as supported by SAB. About 160 000 tons of barley are currently grown in the Southern Cape and a further 55 000t (64 000t in 2013 and expanding to 94 000t tons in 2014) are produced in the irrigation areas of the Northern Cape. SAB helped establish South Africa’s barley growing sector in the 1970s, a strategic move to become self-sufficient in producing the key brewing ingredient. The next phase of the Better Barley Better Beer pilot will be the roll out of specific guidelines to small scale and emerging farmers in the Taung area. These guidelines will be tailored to focus on training the farmers rather than auditing them.

INDUSTRY NEWS

STORMING JOZI BLACK BOTTLE “WEE JAUNT” TAKES JOHANNESBURG BY STORM

Stormy weather was no deterrent when Black Bottle, the super popular Scotch blend of single malt and grain whiskies, hosted a ‘wee jaunt’ in Braamfontein, Johannesburg, to unveil its new distinctive look and enhanced taste.

Popular in Glasgow and Edinburgh, a ‘wee jaunt’ is the Scottish equivalent of a pub crawl, but includes special entertainment at each stop.

The local version was a great opportunity to showcase Black Bottle, that’s now back in a black bottle as its name suggests. It also features a blend far closer to the original, first launched in 1879 by tea blender, Gordon Graham. Its fresh, floral nose with traces of new-sawn oak and smoke opens onto a silky palate with delicate smoke and peat, balanced by sweet oak and honey. Hipster-favourite, Anti Establishment was the first stop, where cocktails were matched with the magic arts. In the basement of The Bannister Hotel, guests sipped on tall drinks, while entertained by three Burlesque-style dancers. At Velo Café, they met Mr Black, the key narrator of the Black Bottle story, over whisky served neat or with a dash of water.

An epic after-party in an empty office space ended the jaunt on a high note.

Said Taygan Govinden, Black Bottle’s SA marketing manager: “We wanted to introduce the new look and taste of Black Bottle to selected Johannesburg media, trade and whisky lovers in an unconventional manner to reinforce our brand message: ‘Find Beauty Beyond The Obvious’. It truly was an unforgettable experience. Guests loved the concept, and of course, the new iteration of Black Bottle.”

The event was conceived and arranged by 3 Blind Mice and Signature Productions.

Judges commented that the Van Ryn’s team was clearly proud of their work. “They are obviously very focused on what they are doing and work hard to deliver it well. It is an impressive tour and great visitor numbers show that they offer visitors something quite different and interesting – such as the cooperage and the presentation on how barrels are put together. The tour also integrates well with other attractions on site. (Van Ryn’s)… offers informative and rich content delivered in an interesting way.”

Van Ryn’s brand home manager Fre-Nay Brown said the award was fantastic news. “The team is extremely dedicated to creating a memorable and entertaining experience and we hope this award will encourage locals who have not yet visited us, to come and try our premium brandies, learn about the magic of distillation and discover for themselves why South African brandies are world-class.”

BEST OF THE BEST IN BRANDY MORE INTERNATIONAL GLORY AS VAN RYN’S DISTILLERY CLAIMS YET ANOTHER AWARD

Around the world, tourists visit distilleries while on holiday in search of unique cultural experiences, and with brandy’s long history in South Africa – it was brought here in the 1800s by Dutch sailors – there is much to tell, culminating in recent awards for Van Ryn’s such as Best Worldwide Brandy and International Brandy Producer of the Year. The Best Distillery Tour award celebrates The Best Distillery Tour in the world is on your doorstep at the Van Ryn’s Distillery in Stellenbosch – this according to judges at the the effectiveness of thoughtful distillery tours. Judges were in search of the most innovative tour that offers tourists an educational and memorable experience into the 2015 Distillery Experience Awards. production and distillation of spirits.

TAX SUGAR, NOT ALCOHOL INDUSTRY NEWS

MINISTER TO CRACK WHIP

impose a tax on polygamy, nor are there any particular tax benefits for ascetics. Neutrality in terms of choice, alongside freedom to choose, is a basic tenet of our constitution.

Debiting the liquor industry for the state’s shortcomings is a little like blaming rape victims for being in the wrong place at the wrong time, rather than pursuing the rapist and dealing with gender violence.

This is the view of Michael Fridjhon, visiting Professor of Wine Business at the Graduate School of Business, University of Cape Town.

He points out that in mid November last year the Treasury hosted a workshop aimed at engaging with stakeholders on the subject of alcohol excise. It included speakers from the World Health Organisation, academia and representatives from the liquor industry.

“From the first session it was clear the purpose of the event was to denounce the demon drink as a prelude to justifying more onerous taxes on the sector,” he says.

“This much was evident from the way the agenda had been drafted: representatives from organisations dealing with the consequences of alcohol abuse were up first, setting the tone for the discussion”. Economists, says Fridjhon, “showed” that revenues from alcohol taxation were insufficient to “recover” the full costs to society from the damage wrought by alcohol abuse. “One even suggested that the value added tax earned from liquor sales should be discounted from the industry’s ‘contribution’ because, in the event of consumers giving up drink, they would be spending the money on other goods and services”.

He says the event served as “windowdressing” for what will be an evertightening tax squeeze to feed the never ending cash needs of government. He says those attending were deaf to the arguments that the massively increased tobacco taxes had driven a significant percentage of total consumption underground, and they were in denial that raising the excise would fuel the fast growing illegal liquor sector.

Frigjohn says the term “sin tax” has been in use for so long that it’s acquired a kind of legitimacy. And he says it is downright wrong to impose a tax on alcohol. “As far as the drink-driving issue is concerned, your offence was not that you drank alcohol, but that you then took to the road. Since this is an action subject to legal sanction in its own right, the mere fact that it is such a significant issue in our society is a measure of the failure of the state to police the legislation created precisely to anticipate this eventuality,” he says. He says some time ago he put a proposal to the Treasury for a tax that was easy to collect. “I suggested an excise on sugar in all its forms — sucrose, fructose and dextrose (all of which can be used to produce alcohol, legally and illegally). The rate of taxation could be worked out in proportion to the amount of sugar necessary to yield the requisite alcohol in the various beverage classes”. In other words, alcohol excise would be based on both the alcohol (transformed sugar) and the residual sugar. “Alcopops” and ready-to-drink beverages — which are gateway beverages for teenage drinkers and where the sugar and the alcohol together would bump up the excise — would suddenly be more highly taxed. By focusing on sugar, the key component that produces alcohol, and extending it to cold drinks, fruit juices and all foodstuffs to which sugar is added, from breakfast cereals to marinades, the taxman would open up a limitless revenue source, have an opportunity to modify what people consume, and make it vastly more difficult to produce illicit alcohol. This would also help to address public health issues like obesity and diabetes as well as alcoholism, and contribute (to the extent that people are economically rational) to a healthier way of life for all South Africans, says Fridjhon.

However, he adds, “judging from the outcome of the workshop, it seems the Treasury was merely paying lip service to the idea of using taxation to encourage better lifestyle options. It’s really only about the money. If you always do what you always did, you always get what you always got”.