Is the alcohol ban driving the industry down the drain?
The national lockdown and the alcohol ban is having a devastating impact on the alcohol industry and its customers.
On the line to The Money Show is Richard Ruston, the CEO of Distell.
It's dramatic - just at the end of April which is effectively five weeks of lockdown, we reported earnings down 25 per cent.Richard Ruston, CEO - Distell
We're predicting another dry month in May and perhaps some returns to sales in June. Our forecast is earnings will be down anything between 60 and 80 per cent.Richard Ruston, CEO - Distell
Our customers, the taverners, they are going to be far worse hit, many of them are in serious crisis. And of course small business of which there are many both upstream and downstream in the agricultural sectors.Richard Ruston, CEO - Distell
What we can do is produce to the extent that we can export. So we have specific permissions to run specific parts of our business to supply export demand.Richard Ruston, CEO - Distell
But for domestic purposes we are unable to either produce or distribute.Richard Ruston, CEO - Distell
Listen to the entire interview below.
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning.
This article first appeared on 702 : Is the alcohol ban driving the industry down the drain?
Lester Kiewit speaks to Business Insider's Andrew Thomson to find out about the firms diversifying during the time of Covid-19.Read More
The cigarette ban has killed the oldest store in South Africa. Lester Kiewit interviews Sturks Tobacco Shop owner Diane Chakim.Read More
Only very serious wrongdoing will get one declared a “delinquent director for life”, says Advocate Fay Mukaddam.Read More
National and business leaders have had to make some difficult decisions and will be expected to make many more as the crisis continues.Read More
The Purchasing Managers' Index remains dismal, stuck, depressed - suggesting subdued activity.Read More
As expected, the total lockdown that was in force resulted in almost zero vehicle sales.Read More
Covid-19 and the lockdown is a highly complex situation that will require new thinking that evolves over time.Read More
"Rwanda - they don't feel sorry for themselves. They don't blame foreigners or the rest of the world," says Nicky Verd.Read More
"I’m here for work purposes," says EWN reporter Petrus Botha.Read More
Expect a petrol price hike of about R1.20 per litre as the world economy gets into gear once more.Read More