South African brewer says it may dump 400 million bottles of beer

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South African brewer says it may dump 400 million bottles of beer

9:18 CAT | 08 May 2020

Beer at the Willinger Brauhaus in Germany that could not be sold due to the lack of guests is prepared to be given away for free. [Photo: Reuters]

South African Breweries, one of the world’s largest brewers, says it may have to destroy 400 million bottles of beer as a result of the country’s ban on alcohol sales that is part of its lockdown measures to combat the spread of the coronavirus.

South Africa stopped all sales of alcohol when its lockdown came into effect on March 27 and the brewery has seen beer pile up at its production facilities. The brewer is seeking special permission from government to move the beer to other storage facilities. The transport of alcohol has also been outlawed in South Africa.

SAB told news station eNCA on Thursday that if it’s not able to move the beer, which amounts to about 130 million liters (34 million gallons), it’ll be forced to “discard” it at a loss of about $8 million. That loss would put 2,000 jobs at risk, SAB said.

It would also be frustrating news for millions of thirsty South African beer drinkers who are going without.

South Africa is one of just a handful of countries that have prohibited alcohol sales as part of its fight against the coronavirus. India and Thailand also had bans on alcohol sales, but recently lifted their restrictions. Panama and Sri Lanka still have bans in place.

The South African government has also banned the sales of cigarettes in the lockdown and has been criticized over its hard-line approach.

Professor Salim Abdool Karim, one of the government’s top health advisers in the COVID-19 pandemic, defended the alcohol ban at a briefing with reporters on Wednesday. He said alcohol is a significant contributing factor to violent crime and road accidents in South Africa and banning its sale has reduced pressure on medical services.

Representatives of the alcohol industry say the government should allow alcohol to be purchased for consumption at home only.

Meanwhile, a German brewery on Thursday gave away some 2,600 liters of beer that it was unable to deliver to hotels and restaurants closed due to coronavirus restrictions.

Rather than throwing it away, the owners of the Willinger brewery, in the western state of Hesse, decided to dish out the light and dark beer free of charge.

Owner Franz Mast said he needed to empty the tanks as soon as possible to fill them up again with fresh beer and be ready for when bars are allowed to reopen.

The move went down well. Dozens of people stood patiently in line outside the brewery, wearing masks and keeping to social distancing recommendations. Many took full buckets and boxes back home.

“We also want to thank people, and we hope they are as supportive once we reopen, that they come here, recommend us,” Mast said.

The Deutsche Brauer Bund beer association has warned that brewers are facing a collapse in sales due to a slump in exports, especially to China and Italy. The lockdown at home, meanwhile, has left restaurants and bars shut and soccer stadiums empty.

Bavaria’s Oktoberfest, the world’s biggest beer festival, has been canceled.

The brewery had initially planned to give out 540 liters on Thursday, but that amount was gone within hours.

“I hope it helps the brewery, that is why we are here. This way, we can sit in the garden later today, in the sun, and have a nice Willinger beer,” said customer Natalie Julius.

Source: Reuters