The South African Breweries (SAB) said today announced that it has cancelled R5 billion in investments in South Africa over the next two years due to the alcohol ban imposed by government.
The company in a statement said it has canned R2.5 billion of investments this year and a further R2.5 billion next year.
SAB’s Vice President of Finance, Andrew Murray, said the cancelation of this planned expenditure is a direct consequence of having lost 12 full trading weeks, which effectively equates to some 30% of the SAB’s annual production.
“This decision is a result of the first, and current, suspension of alcohol sales which has led to significant operating uncertainty for ourselves, our partners, as well as colleagues in the industry, including participants in the entire value chain, and which impacts over one million livelihoods across the country,” Murray said.
“We are focused on our priority of ensuring the well-being and safety of our employees and all members of our communities, and this commitment will remain intact for as long as possible. We will continue our attempts at engaging with the South African government to obtain some form of clarity on when we can resume operations,” he added.
Addressing the nation last year, President Cyril Ramaphosa said the decision to ban the sale of alcohol again was made in order to free-up hospital beds occupied by those suffering from alcohol-related traumas
