Anheuser-Busch InBev's South African division cancelled a further R2.5bn investment after the government banned alcohol sales for a third time to control a resurgence of coronavirus cases.
The move brings the amount of spending called off by South African Breweries (SAB) to R5bn since the Covid-19 pandemic began to take off in the country 10 months ago.
The government has used various forms of drinking restrictions as a means of managing the crisis, to ease the burden on hospital wards that typically have a high volume of alcohol-related cases.
SAB, the maker of popular lagers Castle Lite, Hansa and Carling Black Label, has toughened its stance since the latest prohibition was announced on December 28.
The country's biggest brewer said last week that it would challenge the ban in court, saying the measure was unconstitutional.
"Given the material impact that this third ban on the sale of alcohol has on our business, and the possibility of further bans, we have no choice but to halt these investments for the foreseeable future," SAB's vice-president of finance, Richard Rivett-Carnac, said in a statement.
The spending had been earmarked for upgrades to operating facilities, product innovation and new equipment at selected plants, the company said.
AB InBev, the world's biggest brewer, acquired SAB as part of its takeover of SABMiller in 2016.
The South African company can trace its roots back to Johannesburg's late 19th-century gold rush, when it catered for thirsty miners.
Bloomberg
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