NEWS MARKET WATCH
The alcohol ban:
it’s about more than just booze The government-imposed alcohol ban impacted not only those that directly manufacture, distribute, sell and consume alcoholic beverages but also suppliers to this industry, writes Craig Groenewald.
he cascading effect of alcohol
T
The wine industry has a surplus of 289
prohibition includes the loss of
million litres due to last year’s lockdown ban
sulphate, as well as UVC lamps and water
excise tax revenue to SARS but also
and the excise tax paid on last year’s wine
pumps, have been severely impacted.
to manufacturers, winemakers and craft
production was R4.39 per litre which amounts
brewers. The impacts are many-layered.
to R1.27bn.
PEOPLE MAKE THE INDUSTRY
which leads winemakers to ask the impossibly
Bacteria and contaminant yeast will have a
Recent articles published on Fin24 confirm
tough question: What to do with this year’s
chance to get a foothold in breweries that are
that the alcohol industry employs upward of
harvest? They will most likely have to destroy
shut. For detergent suppliers, the shelf life of
415 000 people.
last year’s product or try to rework it into hand
their detergent already supplied deteriorates
sanitiser or grape spirit – at a massive loss.
over time. This combined with lower efficacy
This wine currently occupies storage space,
This number includes those that harvest crops, trash collectors and recyclers to plant
It’s that or frantically find an offshore buyer,
produce calcium chloride and calcium
The same holds for detergent manufacturers. Manufacturing plants are cleanest when they are run continuously.
means that brewers may blame suppliers for
and process engineers. No production means
which means South Africans could start to
poor microbial results and then change to a
no waste-product treatment and no by-
lose some of the world’s best wines to the
different supplier.
products such as spent grain, sold as animal
export market.
food; and spent yeast, used in the production of products such as Marmite.
With reduced beer sales comes reduced hops and barley requirements. This means
equipment for conducting non-routine
that there will be a massive surplus in 2021
analyses is going out of business as no
in which prices may plummet as competition
products are being sent to them.
to sell increases. An off-spin of this surplus is
FAST FACT New product development, launches, consumer research and NPD have been severely curtailed by the ban on alcoholic beverages.
to avoid product destruction. Farmers or brewers may rent storage space, which is not purpose-built for these consequences such as cross-contamination with non-food-grade products as well as contaminant pests and microbes. Glass and crown manufacturers must leave end of the life of that furnace.
WHAT HAPPENS TO LOCAL MATERIALS
temperature and if allowed to cool, the furnace
Grapes and hops are in the process of being
becomes damaged. It is reported that Consol
harvested right now for wine and beer
Glass furnaces stay on at a cost of R8m per
production, but what of last year’s leftover
day. Also left out in the cold are label and label
harvests? Farmers plan for local and export
glue suppliers, designers and manufacturers.
It takes 12 days to reach the target
markets and purchase farming necessities against the sale of these harvests. Spend
WATER TREATMENT SUPPLIERS
is proportional to calculated yield so when
Different products have different water
there is an excess of product, prices tumble,
specifications and the management of
resulting in loss of livelihood, product
water and downstream effluent is often
and materials.
outsourced. Manufacturing plants that
FEBRUARY 2021 | FOOD REVIEW
South Africa has a vibrant and strong wines, beers and spirits sector. To shut the entire sector down again will mean irreparable harm to the industry. •
raw materials which could lead to unwanted
their furnaces running as a stop means the
10
Also affected are laboratory services and specialist equipment suppliers. Expensive
ABOUT THE AUTHOR Craig Groeneveld is a master brewer with 22 years’ experience in the beverage industry. He owns SCG Consulting CC and Master Brewer Consulting which service the beverage industry. His specialties include: Manufacturing technology, problem solving, quality management, technical audits, beverage design and optimisation, spirits blending, new product development, novel processing, production innovation and sensory training.
