Retailers in the liquor industry are urging the government to ease regulatory burdens and simplify compliance requirements, arguing that excessive red tape hampers responsible trading and fuels the illicit alcohol market.
The call was made during an event hosted by The South African Breweries (SAB), which brought together industry stakeholders to discuss challenges such as underage drinking, illicit trade, and regulatory hurdles. The event also celebrated SAB’s 130-year legacy and its economic contributions, including supporting agriculture, small businesses, and job creation.
Economic Impact vs. Regulatory Challenges
The liquor industry contributes 3% to South Africa’s GDP and employs thousands across its value chain. However, retailers highlighted difficulties in adhering to complex licensing laws, zoning restrictions, and tax compliance—issues they say push some traders toward the informal or illicit market.
One retailer pointed out impractical regulations, such as the 100-meter rule prohibiting liquor sales near roads, which is nearly impossible in densely populated areas like Alexandra.
Illicit Alcohol Trade a Major Concern
The proliferation of counterfeit alcohol was a key discussion point, with retailers warning that unlicensed operators and undocumented foreign traders often sell cheap, unregulated liquor, endangering consumers.
To combat this, the Consumer Goods Council of South Africa (CGCSA) introduced a barcode-scanning app, “myCGCSA”, allowing users to verify product authenticity. If a scanned item does not match its database, consumers can report illicit products.
Push for Compliance and Ethical Trading
Retailers emphasized the need for better education on responsible alcohol sales, including preventing sales to intoxicated patrons and adhering to trading hours. Some also raised concerns about violence in taverns, urging stricter enforcement of safety measures.
The Liquor Board pledged to address historical challenges, including corruption and uneven enforcement, while promoting inclusive regulations that support both large and small businesses.
Industry Calls for Government Support
SAB and retailers are advocating for:
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Simplified licensing and tax processes
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Revised zoning laws to accommodate urban retailers
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Stronger enforcement against illicit trade
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Training programs for responsible alcohol sales
As the industry seeks a balance between economic contribution and social responsibility, stakeholders hope government intervention will foster a more sustainable and compliant liquor sector.