SAB cans investments worth billions

File: SAB says the ban on alcohol sales has caused significant operating uncertainty for the company and the entire value chain.

File: SAB says the ban on alcohol sales has caused significant operating uncertainty for the company and the entire value chain.

Kevin Sutherland/Bloomberg via Getty Images

JOHANNESBURG - South African Breweries (SAB) has cancelled investments worth R2.5-billion as a direct result of lockdown restrictions on beer sales.

An additional R2.5-billion in planned expenditure remains under review.

READ: Liquor Traders Council want alcohol ban lifted

Brands in the group’s portfolio include Black Label, Castle Lager, Brutal Fruit and Hansa.

SAB says the ban on alcohol sales has caused significant operating uncertainty for the company and the entire value chain.

READ: SA Lockdown: SAB may need to dump 400-million bottles of beer​​​​​​​

The envisaged investments included upgrades to operating facilities and systems, as well as the installation of new equipment.

It is forecast that the jobs lost in the industry as a result of the alcohol ban will soon reach 120,000 and the excise taxes lost from the initial ban exceed R12-billion.

Source
eNCA