SA’s R25bn illicit alcohol trade is the focus of this edition of Business Day Spotlight.
Host Mudiwa Gavaza is joined by Dr Shamal Ramesar, head of research at the Drinks Federation of SA (DF-SA).
DF-SA is an industry body that brings together producers of beer, wine and spirits. The alcohol industry contributes about R350bn to SA’s GDP.
According to a new study by the body, conducted by Euromonitor International, the volume of illicit alcohol is growing in SA, affecting public health, economic recovery and government revenue.
In SA, “illicit alcohol” broadly refers to any alcoholic beverage that is produced, distributed or sold outside the legal and regulated framework, says Ramesar. This means it bypasses government oversight, quality control, and, critically, taxation.
Outlining the economic toll of this trade in SA, Ramesar says one in every five alcoholic purchases in SA is illicit, based on the research. This translates to 18% of total sales.
Since 2017, illicit alcohol volumes have increased 55% to more than 773,424 hectolitres (77.3-million litres) in 2024.
Join the discussion:
The biggest driver for this growth is affordability, with 67% of people who buy illicit products wanting lower prices regardless of origin. This is based on a survey of 700 people as part of the study.
Ramesar explains how illicit trade affects consumers and communities; it impact on formal alcohol producers; growth over time; health effects; and policy and enforcement gaps.
Business Day Spotlight is a MultimediaLIVE Production.
Subscribe for free: Simplecast | Spotify | Apple Podcasts
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.