Latest news with #RichardRivett-Carnac
The Citizen
a day ago
- Business
- The Citizen
SAB shouts cheers to township retailers
South African Breweries (SAB) has invested R500m in supporting township and informal economy retailers since 2021, part of its wider strategy to drive inclusive economic development across South Africa. The milestone was celebrated on August 4 at SAB's Bryanston offices through the Cheers to Retailers event, recognising the role of small retailers in sustaining South Africa's beer value chain. With 95% of SAB's production inputs sourced locally, the sector contributes 1.4% to national GDP. Read more: SAB launches SAB Sharp campaign in Bryanston 'Retailers are the backbone of our industry,' said SAB CEO Richard Rivett-Carnac. 'They create jobs, stimulate township economies, and build community networks.' Rivett-Carnac added that, as they mark 130 years of SAB, this is about honouring those who have helped build them from the ground up. Gauteng chief director for economic development Crezelda Venter praised the role of informal businesses in job creation and resilience. 'These are not just shops; they are grassroot drivers of innovation, adapting to load-shedding, using digital tools, and responding to community needs.' Venter added that SAB's investment focuses on infrastructure support, compliance training, and business development through its SAB sharp platform. 'The responsible trading programme, part of this initiative, has trained and accredited over 32 000 retailers under a tiered system: silver (regulatory compliance), gold (responsible sales practices), and platinum (community safety champions).' She pointed out that retailers, like Lungile Gama, who's been with SAB for over three decades, are examples of this transformation. Gama said, as she collected her award: 'My tavern was informal and basic, but with SAB's help, I have built a compliant, job-creating business that's a cornerstone of my neighbourhood.' Follow us on our Whatsapp channel, Facebook, X, Instagram and TikTok for the latest updates and inspiration!
The Citizen
4 days ago
- Business
- The Citizen
Hiking the price of booze is the way to go
The death rate from alcohol in poorer communities would surely come down if booze prices were increased. South Africans travelling abroad are often gobsmacked by the price of booze, especially in European countries. It's not only our weak rand at play there, it's also the fact that governments impose high taxes on alcohol to discourage consumption. A similar thing has been proposed by Treasury and it is being fought tooth and nail by the big alcohol industry icons. SA Breweries – via its CEO Richard Rivett-Carnac – believes that putting a minimum price per unit of alcohol would hurt the poor by making booze more expensive. ALSO READ: Report reveals 1 in 5 alcoholic drinks are fake: Here's how to spot them Longtime community health expert Dr David Harrison – CEO of the DG Murray Trust – disagrees vehemently with this, pointing out on our pages today that the death rate from alcohol in poorer communities is 4½ times higher than wealthier ones. Surely that would come down if booze prices went up? Harrison also points out that SAB sells its one-litre bottles of beer 2½ times cheaper than the equivalent in cans. One litre of this cheaper beer is enough to put a person 'well above the legal driving limit of 0.05%'. Given that booze destroy lives, sparks gender-base violence and costs taxpayer money in repairing the damage it causes, we support the idea of hiking the price.
The Citizen
4 days ago
- Business
- The Citizen
How cheap alcohol keeps hurting SA's poorest
The alcohol industry profits while heavy drinking causes widespread harm in poor South African communities. Recent comments by the South African Breweries (SAB) CEO Richard Rivett-Carnac, reported in Business Day, that minimum unit pricing for alcohol will punish the poor and turbocharge the illicit market, harming both the industry and public safety, must be challenged by fact. The fact is that the legal liquor industry is a major contributor to injury, disease and death in South Africa. Alcohol is a factor in about half of all homicides, traffic accidents and gender-based violence in this country. If the results of the SAB study into illicit alcohol are true – that illegal trade represents about a fifth of the total market – that still means that legally manufactured alcohol contributes up to four-fifths of the total alcohol harm in South Africa. The major damage is not occasional death from the wrong chemicals in illicit brews, but widespread harm from heavy drinking of all liquor products – whether they're legal or not. If the upper daily limit of what could be regarded as 'responsible drinking' is two standard drinks per drinker then, on average, drinkers consume 2½ times more than this and most of the excess is manufactured by the companies that now appeal to public safety as a reason not to introduce minimum unit pricing. ALSO READ: Saps probes officers after video shows police offloading beer bottles at liquor store SAB undercuts its words with its actions. Just one of its one-litre bottles of Castle Lager contains enough pure alcohol to push a drinker's blood alcohol content well above the legal driving limit of 0.05%. Those bottles are sold 2½ times cheaper per litre than the equivalent amount in three 330ml containers. This price difference is so large that it cannot be due to cost-savings in the manufacturing process and suggests a deliberate design to promote excessive consumption. There is evidence from South Africa that bigger containers encourage people to drink more. It is the price of these larger containers that will be most affected by the introduction of a minimum price per unit of alcohol. We must challenge the assertion that minimum unit pricing will punish the poor. ALSO READ: KZN woman arrested for R120 000 illicit alcohol A 2018 study of alcohol-related mortality in South Africa found that the death rate from alcohol in poorer communities is 4½ times higher than wealthier ones. Many people in poorer communities drink to escape the hardships of daily life in the absence of recreational alternatives. High rates of misery make it far harder for a person to 'drink responsibly' than someone experiencing the good life. The alcohol industry capitalises on their misery, flooding their communities with large quantities of liquor at lower prices. It is this behaviour that punishes the poor, not the proposed introduction of minimum unit pricing. Where minimum unit pricing has been introduced in other countries like Scotland and Wales, it has achieved its aim of reducing the prevalence of heavy drinking, with positive health benefits for poorer consumers. ALSO READ: Mlindo The Vocalist releases his long-awaited album on Mandela Day as a way of 'giving back' With the introduction of minimum unit pricing, there may be some growth of the illicit market, which could affect tax revenues but that must be dealt with in the same way that illicit cigarettes should be – with effective enforcement of a track-and-trace system from the point of production to the point of sale. However, the liquor industry's claim of massive growth in illicit sales is dubious, given that legal alcohol sales have grown substantially over the past decade. There is no evidence of significant erosion of the market. The role of extra taxation of the liquor and tobacco industries is to make them pay for the damages they cause to society. Government should not be confused by perverse logic. If the liquor industry caused less harm to our society in the first place, Treasury would need less money to pay for its damages. NOW READ: Report reveals 1 in 5 alcoholic drinks are fake: Here's how to spot them
The Citizen
05-08-2025
- Business
- The Citizen
Cheers to township retailers
The South African Breweries (SAB) has poured over R500m into local retail empowerment since 2021, with over 32 000 liquor retailers trained and accredited through its Responsible Trading Programme (RTP). At a ceremony held at SAB's Bryanston headquarters on August 4, the company celebrated standout retailers across the country during its Cheers to Retailers event, marking 130 years of operations. Read more: Sandton City celebrates 50 years with a retail festival The gathering honoured the small businesses that form the heart of South Africa's beer economy. 'These entrepreneurs are not just selling beer, they are driving jobs, local development, and social cohesion,' said SAB CEO Richard Rivett-Carnac. He added that they are the real engine behind their growth. Gauteng chief director for Economic Development, Crezelda Venter, delivered a keynote address applauding the resilience and innovation of local traders. 'Retailers are reshaping the economy from the ground up.' With 95% of SAB's inputs sourced locally, the company continues to roll out infrastructure upgrades, compliance support, and business development initiatives through its SAB Sharp platform. Retailer Lungile Gama, who's partnered with SAB for 33 years, was among those honoured. 'What started as a small tavern is now a compliant and sustainable business. I now employ people from my community,' Gama said. Follow us on our Whatsapp channel, Facebook, X, Instagram and TikTok for the latest updates and inspiration!
Daily Maverick
18-07-2025
- Business
- Daily Maverick
Illicit alcohol trade soars to R25.1-billion, posing threat to public health and economy
South Africa is grappling with a burgeoning crisis in the illicit alcohol market, which drains billions in tax revenue and poses serious risks to public health, with nearly one in five drinks sold nationwide being illicit. The Drinks Federation of South Africa has sounded the alarm on the illicit alcohol trade, which is now worth an estimated R25.1-billion and is responsible for R16.5-billion in lost tax revenue in the previous year. 'Illicit alcohol now makes up 18% of the total market — that's nearly one in every five drinks sold,' said Richard Rivett-Carnac, the CEO of South African Breweries (SAB) and chairperson of the Drinks Federation of South Africa. Echoing these concerns, industry experts are calling for a robust response. Jan-Harm Swanepoel, a partner at Adams & Adams, described the illicit alcohol trade as 'organised crime', calling for the full use of legal measures through coordinated and decisive efforts. Health and economic risks Rivett-Carnac stressed that this illegal trade not only threatened public health but also undermined formal businesses and job creation, and called for urgent, coordinated action across the government, industry and enforcement agencies. The illicit alcohol problem is exacerbated by the presence of dangerous substances, as confirmed by recent tests conducted by the University of KwaZulu-Natal. According to the tests, based on findings from the Euromonitor study, nearly 29% of adults know someone who has died from illegal alcohol, while 49% know someone who has been harmed by it. 'Many illegal products contain dangerous substances like methanol, which can cause serious harm,' said Shamal Ramesar, the head of research at the Drinks Federation of South Africa. How to spot illicit alcohol According to Ramesar, consumers and traders can look for several key indicators of illicit alcohol: Suspiciously low pricing, especially for brands priced significantly below market rates. Poor-quality packaging, including misspellings, faded labels, or inconsistent branding. Absence of excise stamps or government-approved labels. Unusual taste or smell, especially in spirits like vodka or gin which may contain improperly diluted ethanol. Unfamiliar brand names, particularly new and unregistered ones appearing frequently in markets or informal outlets. If a bottle seal is broken or doesn't make a cracking sound when opening, it has probably been tampered with. Bottles should have a consistent fill line, while bottles filled in backyard operations often have uneven liquid levels. Presence of particles floating in the liquid (particularly in spirits) indicates probable adulteration (deliberate and secret addition of inferior, harmful, or unauthorised substances to a product). Consumer behaviour Ramesar noted that although 83% of consumers were concerned about the health risks of illicit alcohol, many prioritised affordability and accessibility — especially low-income consumers who often choose illicit products due to cost savings, with illicit alcohol priced up to 70% cheaper than the legal alternatives. The market's widespread availability through informal and formal channels, coupled with shifts during the Covid-19 pandemic from home brewing to large-scale counterfeiting (now representing 31% of illicit volume), reflects an increasingly commercialised and industrial illicit trade. The legal industry's economic weight While illicit alcohol threatens public health and tax revenues, the legal alcohol industry remains a vital economic pillar. In 2022, it contributed more than R226-billion to South Africa's GDP, and supported nearly 500,000 jobs — directly affecting the livelihoods of more than a million people. The alcohol industry also generated close to R97-billion in excise taxes, funding essential public services such as education and housing. This extensive value chain — from producers to retailers and hospitality — stimulates broad economic activity, highlighting the far-reaching consequences of the illicit trade's growth. Counterfeit crisis The success of the legal alcohol industry is being undermined by a counterfeit crisis. The sector is plagued by widespread tax evasion and counterfeit products. 'This is no longer a small problem,' warned Benjamin Rideout, a consultant at Euromonitor International, in a statement released on Tuesday, 1 July 2025. 'Unlike some countries where home brews are the issue, South Africa is facing large-scale counterfeiting — especially in white spirits. The situation demands better control over production inputs like ethanol, and much stronger enforcement,' Rideout said. DM
