DIAGEO SA LAUNCHES

TO HELP LIQUOR TRADERS

#WeChoose to Trade Responsibly and #WeChoose to Drink Responsibly

Diageo South Africa has assisted more than 400 on-premise establishments to rebuild their businesses after the Covid-19 lockdowns. A total of R200 million in stock replenishments, cash and marketing support has been given to bars, taverns and restaurants, as well as the beginning of a new movement to promote responsible drinking.

The #WeChoose campaign, launched by Diageo in Johannesburg, Durban and Cape Town, aims to help rebuild on-premise establishments that have been hit by repeated lockdowns totalling many months of closure or very restricted trade hours. “We want to see businesses thrive again and people to be able to come together, but we aim to do this responsibly in terms of both trading safely and consuming responsibly,” said Diageo SA’s marketing director Zizwe Vundla.

“The country’s extended alcohol bans have heavily impacted businesses and the families behind them, not to mention the wider supply chain, and the millions in lost taxes. Many small businesses have not survived, and jobs have been lost, causing people to slide into poverty,” Vundla said.

“By Diageo providing stock injections, formal on-premise outlets can use the revenue generated to help get their establishment back up and running – such as renewing liquor licences and replenishing other stock. Many of these outlets have exhausted their funds during lockdown and are unable to purchase stock to reopen. So, this is the difference between reopening and not.”

Each outlet chosen will receive stock of up to R6 000, depending on its size.

In addition, Diageo SA is providing marketing support to help generate publicity for onpremise outlets. “Many consumers might have forgotten their favourite local places during lockdown, so we are helping to remind them, while at the same time encouraging responsible drinking.”

Diageo will provide the chosen liquor traders with retail and “Business of Bars” tender training, menu design and production, branded collateral – such as umbrellas and glassware – and small-scale activations to help them drive their volumes, “all of which will be in line with Covid-19 regulations, helping to ensure customer safety”.

Issues such as underage drinking, binge drinking and driving under the influence of alcohol will be tackled as part of the campaign.

Wendy Alberts, CEO of the Restaurant Association of South Africa, said many restaurants had closed their doors because they could not trade through the restrictions. “It is imperative that all parts of industry come together. The consumer needs to play their part and the public needs to take responsibility – not only in the restaurant sector, but in terms of all public drinking.”

Lucky Ntimane, the convenor of the National Liquor Traders Council, added that the lockdown restrictions have been dire for 34 000 taverns, which had about 250 000 jobs linked to them. “Liquor traders must take a leading role in promoting the responsible consumption of alcohol.”

Diageo is calling on consumers and traders to remain vigilant about observing Covid-19 health and safety protocols.

”Diageo’s goal is an alcohol-safe South Africa and not an alcohol-free one. We truly believe that if properly and healthily regulated, the alcohol industry can be a positive force for South Africa,” Vundla said.

Here are stories of three township establishments who are receiving support from Diageo South Africa after the financial losses caused by the Covid-19 lockdown: 50 on Gugs owner, Sindile Kama

Diageo helps keep chisanyama fires blazing at 50 On Gugs

Cape Town’s most popular chisanyama may have less action with the pandemic, but 50 On Gugs owner Sindile Kama says his local market is returning for a taste of their favourite braaied meats and a drink with friends.

Kama has run the Gugulethu hotspot with his wife Thandiswa since 2013. The restaurant has an outdoor seating area where people clamour for a variety of meat dishes served with pap or samp and beans.

“Covid-19 took our turnover down to 20%, and our staff complement has halved since we re-opened,” Kama said. Kama said Diageo’s assistance came at the right time, saying #WeChoose was a big help, both in terms of financial assistance and in providing guidance regarding responsible trading. “People don’t realise that sanitiser costs money, especially over the long term. Must you increase your prices? Where does it fit into your budget? We are grateful to the alcohol industry for assistance.”

50 On Gugs focuses on the local market. And the locals are loving his food, especially the 50 On Gugs sausage “pizza”, made with the team’s own sausage with unique spices. “It has no base, we roll out sausage in a circle with wires holding it together, and once cooked we top it with cheese and our own chakalaka,” says Kama.

While Kama is the marketer, Thandiswa is the financial brains of the business, counting every cent. “My role is to grow the numbers and create relationships and make sure we keep on the good side of all the authorities,” he said.

To ensure the safety of his patrons, Kama has increased the size of his outdoor area allowing tables to be scattered. “While business is picking up, we cannot plan any events with the pandemic and the curfew.”

Reinvention keeps 88 Vilakazi Street thriving during lockdown

The Covid-19 lockdown might have changed the face of 88 Vilakazi Street but the pandemic hasn’t been able to stifle the creativity of Nkululeko Dada Maseko, who has reinvented his hospitality business to meet the challenges head-on.

“When Covid-19 hit, the gin bar we were running closed down and we came up with the idea to start something different for Vilakazi Street, which is very formal and mostly restaurants,” Maseko said. 88 Beach Soweto was born in the larger outdoor space behind the former gin bar, bringing a luxury party beach vibe to Soweto’s most famous street, featuring a large area of beach sand.

But cashflow has been tough during the lockdown and many jobs were lost as a result.

Maseko said Diageo’s financial support had helped the business to relaunch the gin studio space as Society 88. “This everyday venue will be a place to enjoy breakfast and do some work on your laptop, and in the evening, turn into a venue which curates experiences based on urban culture and music.” “Diageo was a great help: they put money into our bottom line and allowed us to trade by giving us stock. We are also investing in our infrastructure so that we have an indoor and outdoor venue, which is suitable for all seasons. We have built a good business, but we understand this support is not compulsory.”

“#WeChoose to trade responsibly and we ask our customers that they choose to be responsible too, and use #WeChoose to drink responsibly on their social media platforms to show support,” Maseko said.

Ronald Ndlovu, Manager, The Establishment, Soweto

The Establishment cocktail bar and restaurant chain battles post-lockdown restrictions

With “closed” signs on the doors of all three of The Establishment’s branches during the alcohol bans, gains made in the past five years have all but been destroyed thanks to the pandemic.

Prior to lockdown, patrons flocked to The Establishment for dining and a relaxed nightlife atmosphere, but for the past year, the branches in Alexandra, Spruitview and Diepkloof have suffered major losses due to the lockdown and alcohol bans.

The venues offer upmarket urban upbeat cocktail lounges and restaurants which combine South African cuisine, art, local fashion and musical entertainment artistry with Western influences, for “an unforgettable experience that will leave you coming back for more,” says manager Ronald Ndlovu. Ndlovu said that Covid-19 meant that “all our hard work has fallen by the wayside. In the restaurant industry there are not many profits, so once you’ve been closed for a month, you’re back to square one after paying rent and staff salaries.”

While landlords were generous at first, the third ban on alcohol sales has piled more debt atop outstanding debt from last year. “It is going to be a long road back,” Ndlovu said.

“We have been left with about 15 staff members out of 100.”

Diageo helped The Establishment by providing a cash and stock injection, which Ndlovu said alleviated a lot of stress from the first lockdown. Once The Establishment can fully trade again, Ndlovu expects that turnover will still be down and visitor numbers lower. “People are cautious because of the pandemic, but we will play our part by making sure our stores are safe and that our customers enjoy themselves safely."

Of the overall investment Diageo SA is providing, the R200-million has been split as such: • 20% towards stock injections, • 40% towards marketing and collateral, and • 30% towards outlet refurbishments and selling tools.

As the campaign involves, the budget is likely to increase and the splits may vary as things progress.