Despite the incredibly tough challenges facing HEINEKEN South Africa and our industry during the recent round of alcohol trade restrictions under Alert Level 3, we remain invested in the country. Ours is a long-term commitment.
HEINEKEN South Africa continues with operations and expansion of its Sedibeng brewery, albeit constrained under the current adverse climate. South Africa remains a priority market for HEINEKEN globally, and we continue to explore growth opportunities that will benefit the business and the local economy.
However, due to tough micro & macro-environment challenges, and with the additional strain brought on by the COVID-19 lockdown with restrictions on alcohol sales, we have had to reassess a number of our expansion ambitions including exploring the establishment of a brewery in KwaZulu-Natal. The ban is placing immense pressure on our industry to retain jobs, create new ones and contribute to the local economy.
Local production is hampered, resulting in ongoing efforts by the business to implement cost-cutting measures including, but not limited to, salary cuts as we desperately attempt to protect the jobs of more than 900 employees.
Approximately 117 000 jobs were lost in the industry during the first ban on alcohol sales. Currently, countless businesses that rely on HEINEKEN have had to close their doors or scale down their operations because of the sudden nature of the government’s decision to stop the sale of alcohol. This has caused job losses and untold suffering, stress and panic, with an estimated one million livelihoods at risks.
HEINEKEN joins many industry voices calling for the immediate recommencement of alcohol trade. We are willing to work with government on specific issues that negatively affect our society. The industry demonstrated its commitment in the initial resumption of trade, by delivering numerous solutions to ensure safe and responsible trading throughout our value chain. We urge the government to prioritise both lives and livelihoods at this time.
