6 minute read
INDUSTRY NEWS
from Spotong Issue 2
by 3S Media
SAB ATTHE FOREFRONTOF BREWING WORLD
SAB in Alrode is the largest capacity brewery in South Africa
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BREWERSTO BENEFIT FROM EMERGING MARKET
is one of the largest Guinness markets in the world for Diageo. In the premium segment, the Heineken brand is showing a higher rate of organic growth in Africa and the Middle East than the company’s total volume growth in the region.
Brewers are set to benefit from the growing consumer market in Africa as more people on the continent move from home-brewed beer and spirits to commercially produced alcohol, according to a report by Moody’s Investors Service, a company providing research for economic analysis. The report says the overall profitability of alcoholic beverage companies’ operating in African operations is high and most should benefit from continued growth in the premium segment. The beer market in Africa currently represents only five percent of worldwide volumes with four players controlling more than 80% of the market - SABMiller, Diageo, Heineken and Castel Group. They have all obtained a first-mover advantage among brewers operating on the continent.
Irish whiskey, Jameson, recently won six medals at the 2012 San Francisco World Spirits Competition where judging was based on a blind, consensual procedure ensuring competitive integrity. More than 1 215 spirits from 60 countries were entered into the competition.
The medals were: Double Gold for Jameson 18 Year Old Limited Reserve, Silver for Jameson Rarest Vintage Reserve, Jameson Gold Reserve, Jameson 12 Year Old Special Reserve and Jameson Select Reserve Black Barrel, as well as Bronze for Jameson Standard Irish Whiskey. South African Breweries (SAB) Trade Brewer, Anton Erasmus, says the slightest variance in brewing, ingredients or method can affect a beer’s taste, aroma and even appearance. From the first germination of barley seeds to the final tankard of beer, only the highest standards are acceptable and that is their uncompromising commitment to brewing excellence, Erasmus explained during a media brewery tour at Alrode Brewery where he took reporters through the brewing and beer packaging process. SAB has a total of seven breweries in the country and the one in Alrode, in the East Rand of Johannesburg, is their biggest capacity brewery. Beer is best when it is fresh, so it’s packaged as quickly and efficiently as possible in high speed lines, into kegs, bottles or cans. The bottled and canned beer, which is more widely distributed, is pasteurised during packaging to ensure a longer shelf life.
SAB’s portfolio of brands includes a total of nine beers. It also distributes, and in some cases, brews a number of local and international brands such as Peroni Nastro Azzurro, Miller Genuine Draft, Grolsch and Pilsner Urquell. Their flavoured alcoholic beverages are Redds, Brutal Fruit and Sarita.
Liquor Traders Welcome ExTENSION OF SHEBEEN PERMITS
The Gauteng Liquor Forum (GLF) has welcomed the decision by the former Gauteng MEC for Economic Development, Qedani Mahlangu to extend Shebeen Permits in the province, by eight months, until 28 February 2013.
The GLF, which represents more than 8 000 shebeen and tavern owners, had previously voiced its concerns in a petition over the proposed changes to the Gauteng Liquor Bill, which would have seen Shebeen Permits expire last month. According to Mahlangu, the extension will provide the necessary space for the migration of Shebeen Permits into the ‘liquor licensing regime’. The GLF is satisfied with Mahlangu’s decision and believes this will lead to better regulation of the sale of liquor in the province.
A Shebeen Permit is a temporary legal document that grants the shebeen owner the right to trade. It has been estimated that the Gauteng Liquor Board has issued more than 15 000 Shebeen Permits since it was legislated in 2004, more than half of which are still active in the market. “We applaud the former MEC’s decision to extend Shebeen Permits for another eight months. We believe that this will give liquor traders across our province an opportunity to be a part of the process that will shape the Gauteng Liquor Bill going forward”, said GLF spokesperson Linda Madida.
“By taking this decision, Mahlangu is providing an opportunity for further engagement with all stakeholders during a process which will develop a legislative enabling environment for shebeen licensing. “ “At the same time, we’d like to remind our members to trade responsibly and within the rules stipulated by the permits. Permits are not for sale and their renewal is free of charge. MEC Mahlangu has given us all the opportunity to trade legally, so let’s all ensure that we do so responsibly”, Madida advised liquor traders.
Economic Development spokesperson Mandla Sidu said the extension of the Shebeen Permits was in the public interest and would ensure that the rights of individuals are not adversely affected and there is no unreasonable burden on anyone. Sidu said permit holders are fully protected and should operate within the framework of the law and comply with it at all times.
Mahlangu has been replaced by Nkosiphendule Kolisile as the MEC for Economic Development and Madida said: “We feel lost to the progress that was going to put our business in another level.
“But we hope the new MEC will just fit like a hand to the glove because he is not new to the problems that our businesses are facing. He has been part of the debate around the proposed Legislation.”
Department of Trade and Industry (DTI) has warned businesses and individuals interested in registering as liquor traders about fraudulent liquor licensing scams operating in Gauteng. The department said consultants involved in the scam lured applicants to pay exorbitant registration fees leading them to believe that they would receive registration certificates within two days to a week. “The consultants will then provide the prospective registrant with a fraudulent registration certificate,” said the department’s spokesperson Sidwell Medupe. Medupe said legitimate registration certificates issued by the National Liquor Authority (NLA) have security features and are easily identifiable. He said applicants must be informed on the standard and regulated fees for applications and the minimum waiting period to receive a registration which was 120 working days. Business people within the liquor industry were warned against trading without valid registration certificates because that constitutes a criminal offence. The department revealed that about 15 % of liquor traders in the country were operating without valid licences. According to the NLA this normally happens around the informal settlements, where traders were licensed earlier and continue to trade even after their licences were revoked.
The Gauteng Liquor Board (GLB) could not say how many liquor traders operate without licenses in the province but assumed that a majority of them are not interested in applying for licenses, whilst a few seem not to know how to go about it. ”During a majority of our raids, we discover illegal traders who don’t have a reason why they don’t have a licence,” says GLB Chief Director Ntsoaki Tsokolibane. “For the latter group we have introduced an online application system which we believe will assist a great deal. We also regularly conduct workshops to increase awareness about application processes, pro-actively or per invitation by various stakeholders.”
Tsokolibane says GLB conduct regular inspections or raids to establish whether or not traders have licenses and they also conduct out-reach programmes in schools ,as well as for liquor traders, to highlight the socio-economic impact of alcohol abuse. The NLA’s primary objective is also to balance the socio-economic impact of alcohol abuse with the economic viability of the alcohol industry.
Prospective registrants are urged to contact DTI’s call centre on 0861-843384 for guidance to liquor license application procedures and fees. Liquor traders who may question the validity of their registration certificates are advised to contact the Liquor Authority on 012-3941654 or the Gauteng Liquor Board on 011-3558663.
