Latest news with #DrinksFederationSA
The Herald
02-07-2025
- Business
- The Herald
SA's illegal alcohol trade costs R16bn in lost tax revenue
South Africa's illicit alcohol market has grown by 55% over the past seven years, outpacing growth of the legal alcohol market, and is now worth R25.1bn. This has prompted a call from the Drinks Federation of SA (DF-SA) for collaboration between the government and the private sector to fight the growth of illicit trade in alcohol which has cost the government R16.5bn in lost tax revenue. Benjamin Rideout, research consultant at Euromonitor International, said nearly one in five alcoholic drinks sold in SA is illegal. 'Unlike some countries where home brews are the issue, SA is facing large-scale counterfeiting. The situation demands better control over production inputs like ethanol and much stronger enforcement.' The chair of DF-SA and CEO of SAB, Richard Rivett-Carnac, said illicit alcohol distorts the market and undermines trust in legitimate brands. ' In a tough macroeconomic environment, consumers are looking for bang for buck, goods that are affordable and the price gap of between 37% and 70% between illicit and legal alcohol makes illicit products more appealing, especially in low-income communities. He said 67% of surveyed consumers in the Euromonitor study, for instance, said they would knowingly buy illicit alcohol due to the lower price.' Moreover, he said illegal alcohol is a growing threat to South Africa's economy and public health. 'It drains billions from public funds, threatens jobs, and weakens the formal legal, taxed alcohol industry. Understanding the drivers of illicit alcohol growth and its magnitude is a step in the Right direction but we need stronger collaboration with the industry and government to really start removing the incentives that allow for the illicit market to thrive and intensifying enforcement.' During a panel discussion, Dr Shamal Ramesar, head of research at DF-SA, said 'communities are at risk, and the economy is the biggest loser when we delve into the pervasiveness of illicit alcohol. Recent testing with the University of KwaZulu-Natal found that many illegal products contain dangerous substances like methanol, which can cause serious harm. Unless we shut down illegal producers and educate consumers, lives will continue to be at risk.' DF-SA also announced a new national awareness campaign to help South Africans recognise illegal alcohol and understand the risks. The campaign will include tools for traders and consumers, tips on spotting fake products, and information on how to report them. TimesLIVE
The Citizen
05-06-2025
- Business
- The Citizen
Fake alcohol floods shelves as danger rises
Cheap fake alcohol is luring buyers and flooding shops. It's deadly, illegal, and costing South Africa R16.5 billion in lost excise taxes. Crime is enough to turn anyone to drink… but even trying to drown your sorrows you won't be safe, because 18% of the booze in South Africa is counterfeit. And, you're not just going to find it in holein-the-wall shebeens or backstreet taverns – some of it is also seeping into mainstream liquor outlets, according to researchers Euromonitor International, in partnership with the Drinks Federation SA. They revealed that the fake alcohol trade is worth more than R25 billion a year. The main victims are established brands, whose labelling is copied and placed on to containers of counterfeit drinks. The scale of the crime means the SA Revenue Service loses out on R16.5 billion in excise duty. ALSO READ: How you could be drinking counterfeit alcohol without knowing They say the bootleg business has increased 55% over the past seven years while the loss to the government has increased by 157%. One of the main attractions of the ersatz hooch is that it can be between 37% and 70% cheaper. South Africans hunt bargains like that all the time – but there are dangers. Not only could the hangover be greater from booze without quality control, but it might kill you.
