Latest news with #R16.5
IOL News
04-07-2025
- Business
- IOL News
Value of illegal booze market continues to grow, but not as fast as the legal sector
A legal shebeen in Alexandra township, Johannesburg Smuggling has dropped from one in three purchases of alcohol to one in every five, a new report by Euromonitor International in conjunction with the Drinks Federation of South Africa has found. Image: Nicola Mawson Fake booze volumes are growing faster than what smugglers are bringing into the country, although the value of sales in the illicit market are not gaining pace as fast as the legal one, with the cost of legal alcohol having been pushed up by price increases. This is according to the latest research from Euromonitor International in conjunction with the Drinks Federation of South Africa (DF-SA). It found that the market for illicit alcohol accounts for a fifth of total alcohol sales in South Africa. 'The drivers of illicit alcohol have changed over the last four years, with counterfeiting growing at the expense of smuggling. Since 2017, the market share for counterfeiting alone has grown from 24% to 31%. Its category value has almost doubled from R4.9 billion in 2017 to R9.8bn 2024,' their report said. In the report, they attributed this to the fact that demand has tapered off since the end of the COVID-19 pandemic and the resultant lockdown that saw sales of alcohol and cigarettes banned, leading to people turning to buying these items from providers who sourced them from over the border. Smuggling has dropped from one in three purchases to one in every five, the research found. 'However, counterfeit and illicit brands have grown substantially since the pandemic, becoming the largest illicit category by volume in 2024,' it said. Richard Rivett-Carnac, South African Breweries CEO and chairman of DF-SA said that the sale of illegal booze is 'not just a public health concern, but a direct threat to fiscal revenues and formal businesses that contribute significantly to the economy and job creation'. The legal alcohol sector supports around one in 31 jobs and generates over R100bn in tax revenue annually, said Rivett-Carnac. 'When illicit traders avoid tax, undercut the market, and exploit vulnerable consumers, we all lose, he said. Illegal booze cost the economy R16.5 billion last year, up from R11.3bn four years previously, when South Africa was in lockdown. The bulk of this amount came from illegal sales of spirits. When Finance Minister Enoch Godongwana presented Budget 3.0 in May, he was faced with a revenue hole of R75bn. The report stated that enforcement continues to be a challenge as both the South African Revenue Service and the South African Police Service 'have reported capacity and resource constraints, especially the illicit trade task team which deals with all illicit goods, not only alcohol'. However, it said that trade sources indicate that the greater involvement by industry in identifying culprits and working together with law enforcement agencies has resulted in positive outcomes. IOL
The Citizen
02-07-2025
- Business
- The Citizen
Report reveals 1 in 5 alcoholic drinks are fake: Here's how to spot them
As the problem worsens, so does the concern: Can you really trust what is in your glass? Are you sure your drink is real? A growing number of South Africans are unknowingly drinking fake alcohol. A report by Euromonitor has revealed shocking data about the country's illicit alcohol market. One in five alcoholic drinks contains illicit alcohol, meaning millions may be unknowingly putting their health at risk. This dangerous rise in fake alcohol is a serious threat to people's health and a heavy blow to the economy. Billions of rands are lost each year in tax revenue and legitimate business, as fake alcohol floods the market. As the problem worsens, so does the concern: Can you really trust what is in your glass? Illicit alcoholic drinks impact The Drinks Federation of South Africa (DF-SA) led a panel discussion to explore the findings of the report released in June and how consumers can be protected from fake alcohol. Chairperson of DF-SA and CEO of SAB, Richard Rivett-Carnac, broke down the effects that illegal alcohol has on the country. If billions from public funds are lost due to the growing rate of the illicit alcohol market, jobs in the industry will be lost. '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.' ALSO READ: Police seize R1.5m fake alcohol in KZN, one arrested How much illicit alcoholic drinks cost the country Euromonitor's report has revealed that the illicit alcohol market has grown by 55% between 2017 and 2024, a growth rate of 6%, outpacing the growth of the legal alcohol market. The illicit alcohol market is worth an estimated R25.1 billion and has cost the government R16.5 billion in lost tax revenue. Dr Shamal Ramesar, head of research at DF-SA, highlighted that communities are at risk, and the economy is significantly impacted due to this market. '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.' Protecting people Acting Commissioner of the National Consumer Commission, Hardin Ratshisusu, said it is important to make people aware of the illicit alcohol market; in doing this, more people will be protected from fake and unsafe products. He highlighted that people have the right to know what they are buying and consuming. 'Tackling this issue takes teamwork through better information-sharing, stronger partnerships, and public education.' To find out how illicit alcohol was distributed and consumed, Euromonitor surveyed the product's prevalence in retail and independent traders, as well as the habits and preferences of consumers. Through desk research, store visits and surveys across multiple geographic and income demographics, Euromonitor illustrated how the illicit trade makes up 18% of the country's overall alcohol market. This 18% amounts to the consumption of 773 000 hectolitres — or 77 million litres a year— with an estimated price tag of R25 billion. ALSO READ: SA loses R30 billion in revenue due to illicit trade in cigarettes and liquor Counterfeiting is a big problem Benjamin Rideout, research consultant at Euromonitor International, stated that illicit alcohol in the country is no longer a minor issue. 'Unlike some countries where homebrews are the issue, South Africa is facing large-scale counterfeiting. The situation demands better control over production inputs like ethanol and much stronger enforcement.' Jan-Harm Swanepoel, Partner at Adams & Adams, highlighted the importance of organised crime in fighting against the problem. 'We have the legal tools to fight, but what is now needed is alignment and action.' Symptoms of poisoning from fake alcohol According to Interpol, the below are the symptoms of poisoning from fake alcohol: Confusion Loss of coordination Vomiting Irregular or slow breathing Blue-tinged or pale skin Low body temperature (hypothermia) Stupor (being conscious but unresponsive) Unconsciousness (passing out). How to spot fake alcohol Think about the '4 Ps': Place: Only buy your alcohol from reputable and licensed retailers, bars, and supermarkets. Do not buy alcohol from unlicensed market traders or from customers in bars. Price: If the product is being sold significantly below its normal price or does not appear to include normal taxes on liquor, then it is likely fake. Packaging: Check for poor-quality packaging, spelling mistakes, and unusually shaped bottles. Look for the contact information and address of the manufacturer. If it is missing, the alcohol is fake. Inspect the seal on the bottle. If the seal is broken or damaged, the contents may have been compromised and are not safe to drink. Check for fake bar codes. If you have an app on your mobile device that scans barcodes, scan it and see if it lists the correct product. Product: Beware of bad smells! If it smells like paint stripper or nail polish remover, then it's likely to be one of these products. If it contains particles or sediment, or the contents have separated in the bottle, then the product is likely to have been thinned with tap water. NOW READ: Budget 3.0: Alcohol and cigarette prices will increase — here's by how much
IOL News
14-06-2025
- Business
- IOL News
Counterfeit alcohol in South Africa: The deadly consequences of the black-market
With 18% of alcohol sold in South Africa now illegal, the country grapples with the deadly consequences of the black-market. Image: Supplied South Africa is facing a serious rise in the illicit alcohol trade, now valued at over R25 billion, with significant consequences for public health, consumer safety, and the national economy. As the black-market industry grows, so do the fatalities associated with it. The Drinks Federation of South Africa (DF-SA) recently released research showing that the volume of illegal alcohol has increased by 55% since 2017, reaching 773,000 hectolitres in 2024. This accounts for 18% of all alcohol sold in the country. Head of Research at DF-SA, Dr Shamal Ramesar, warned that the figures should serve as a wake-up call. 'This study is a wake-up call. Communities are being exposed to harmful, unregulated alcohol, and the country is losing billions in revenue. 'It is urgent that government, industry and civil society work together to tackle this issue head-on,' he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The illicit market is valued at R25.1 billion this year, nearly double what it was in 2017, and has led to R16.5 billion in lost tax revenue for the government, with counterfeit white spirits accounting for the bulk of the losses. These aren't just economic concerns; the human cost is increasingly visible. In August 2024, in the close-knit farming community of Koelenhof near Stellenbosch, four farmworkers died after drinking what is believed to be expired or counterfeit alcohol sourced from a wine farm. Monecia Alckers was the sole survivor among her group; methanol poisoning was suspected after consuming the alcohol. Her sister, Jestine Alckers, said the group had previously consumed the same drink with no side effects, but this time, the outcome was tragic. 'They first complained about their eyesight, then they were nauseous and vomiting after drinking. And the following day they were dead,' she said. 'We thought they had eaten something, but now we believe it was poison.' Police confirmed that four inquest dockets were opened. Barrels of fake booze found in an abandoned building in Dunoon, Cape Town. Image: Supplied The National Liquor Traders Council has long warned of this growing threat. Convenor Lucky Ntimane said the problem has deepened since the Covid-19 pandemic, which created the space for unlicensed sellers to thrive. 'We urge our liquor traders not to purchase from unknown or suspicious sources, especially those selling below market value or with tampered packaging,' said Ntimane. 'These fake products are not only illegal, they are killing our people.' Traditional leaders are also raising an alarm. Sikelela Zokufa, founder of the Somagwaza Institute and a respected traditional surgeon, said illicit alcohol has infiltrated umgidi (traditional celebrations after initiation) season celebrations, endangering the lives of young initiates and their families. 'People want cheap and quick stock without considering the danger,' he said. 'Some are even being scammed; they pay, and the delivery never comes. Others unknowingly feed poison to their guests.' Zokufa urged communities to plan properly for traditional gatherings and join savings groups known as migalelo to buy from legitimate suppliers. 'It's better to serve what you can afford than to serve poison and bury your loved ones.' A national survey conducted alongside the DF-SA report found that 80% of South Africans are worried about the health risks of drinking unregulated alcohol. Nearly half said they know someone who was harmed by illicit alcohol, and 29% know someone who died from it. Among the biggest culprits are counterfeit spirits, particularly low-cost vodka and gin, along with smuggled alcohol, which still makes up a quarter of illicit stock despite a decline. The DF-SA is calling for a coordinated crackdown involving law enforcement, the liquor industry, and the government. 'Until we shut down illegal production chains and raise awareness, more lives will be lost,' warned Dr Ramesar. South African Liquor Brandowners Association (Salba) CEO Kurt Moore added that the illicit trade of alcohol harms the government because of the revenue loss. 'At the same time, the sale of illicit alcohol presents a health risk for consumers as illicit traders do not comply with the stringent manufacturing regulations. 'The manufacturing of these illicit products has become more sophisticated, making it more difficult to identify illicit products. Illicit traders also target white spirits because these products are easier to counterfeit. 'Illicit alcohol does not comply with the stringent manufacturing regulations, which pose a risk to consumers. The report does contain some insights from consumers who claim that they do know of individuals who were harmed by illicit alcohol, and some who have died having consumed illicit alcohol. Unfortunately, these illicit products are found in both the informal and formal sectors. 'Spirits are the most impacted by illicit trade.' Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
IOL News
13-06-2025
- IOL News
The alarming rise of South Africa's R25 billion illicit alcohol trade
Barrels of fake booze found in an abandoned building in Dunoon, Cape Town. Image: Supplied South Africa is facing a dangerous surge in the illicit alcohol trade, now worth over R25 billion, with mounting consequences for public health, consumer safety, and the national economy. As the black-market industry grows, so do the body counts. The Drinks Federation of South Africa (DF-SA) this week released research revealing that the volume of illegal alcohol has increased by 55% since 2017, reaching 773,000 hectolitres in 2024. This amounts to 18% of all alcohol sold in the country. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Head of Research at DF-SA, Dr Shamal Ramesar, warned that the figures should serve as a wake-up call. 'This study is a wake-up call. Communities are being exposed to harmful, unregulated alcohol, and the country is losing billions in revenue. 'It is urgent that government, industry and civil society work together to tackle this issue head-on,' he said. The illicit market is valued at R25.1 billion this year, nearly double what it was in 2017, and has led to R16.5 billion in lost tax revenue for the government, with counterfeit white spirits accounting for the bulk of the losses. These aren't just economic concerns; the human cost is increasingly visible. In August 2024, in the close-knit farming community of Koelenhof near Stellenbosch, four farmworkers died after drinking what is believed to be expired or counterfeit alcohol sourced from a wine farm. Monecia Alckers was the sole survivor among her group; methanol poisoning was suspected after consuming the alcohol. Her sister, Jestine Alckers, said the group had previously consumed the same drink with no side effects, but this time, the outcome was tragic. 'They first complained about their eyesight, then they were nauseous and vomiting after drinking. And the following day they were dead,' she said. 'We thought they had eaten something, but now we believe it was poison.' Police confirmed that four inquest dockets were opened. The National Liquor Traders Council has long warned of this growing threat. Convenor Lucky Ntimane said the problem has deepened since the Covid-19 pandemic, which created the space for unlicensed sellers to thrive. 'We urge our liquor traders not to purchase from unknown or suspicious sources, especially those selling below market value or with tampered packaging,' said Ntimane. 'These fake products are not only illegal, they are killing our people.' Traditional leaders are also raising an alarm. Sikelela Zokufa, founder of the Somagwaza Institute and a respected traditional surgeon, said illicit alcohol has infiltrated umgidi (traditional celebrations after initiation) season celebrations, endangering the lives of young initiates and their families. 'People want cheap and quick stock without considering the danger,' he said. 'Some are even being scammed; they pay, and the delivery never comes. Others unknowingly feed poison to their guests.' Zokufa urged communities to plan properly for traditional gatherings and join savings groups known as migalelo to buy from legitimate suppliers. 'It's better to serve what you can afford than to serve poison and bury your loved ones.' A national survey conducted alongside the DF-SA report found that 80% of South Africans are worried about the health risks of drinking unregulated alcohol. Nearly half said they know someone who was harmed by illicit alcohol, and 29% know someone who died from it. Among the biggest culprits are counterfeit spirits, particularly low-cost vodka and gin, along with smuggled alcohol, which still makes up a quarter of illicit stock despite a decline. The DF-SA is calling for a coordinated crackdown involving law enforcement, the liquor industry, and the government. 'Until we shut down illegal production chains and raise awareness, more lives will be lost,' warned Dr Ramesar. South African Liquor Brandowners Association (Salba) CEO Kurt Moore added that the illicit trade of alcohol harms the government because of the revenue loss. 'At the same time, the sale of illicit alcohol presents a health risk for consumers as illicit traders do not comply with the stringent manufacturing regulations. 'The manufacturing of these illicit products has become more sophisticated, making it more difficult to identify illicit products. Illicit traders also target white spirits because these products are easier to counterfeit. 'Illicit alcohol does not comply with the stringent manufacturing regulations, which pose a risk to consumers. The report does contain some insights from consumers who claim that they do know of individuals who were harmed by illicit alcohol, and some who have died having consumed illicit alcohol. Unfortunately, these illicit products are found in both the informal and formal sectors. 'Spirits are the most impacted by illicit trade.'
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.
