OnTap Magazine

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 % 60% 50% 40% 30% 20% 10% 0% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 60% 50% 40% 30% 20% 10 % 100% 9 % 80% 70% 60 5 40 30% 20 10% 0% 50% 40% 30% 20% 10 0% 0 90% 80% 70% 60% 50 40 30% 2 1 SURVIVAL STRATEGIES BUSINESSES HAVE USED TO SEE THEMSELVES THROUGH THE ALCOHOL BAN: Selling equipment (29%) Selling wort or raw ingredients (29%) Moved to cheaper premises (9%) Amalgamated with another brewery (5%) Producing non-alcoholic beverages (21%) Changed recipes to brew more economically (12%) Negotiated payment deferrals or holidays (44%) COVID-19 LOCKDOWN: THE FALLOUT FOR CRAFT BEER As On Tap went to print, the South African liquor industry had endured a complete ban on alcohol sales for a total of 14 weeks. Add to that an additional seven weeks of heavily restricted trading, including a ban on weekend sales and on-consumption trading, and you can imagine what dramatic consequences this has had on the craft beer industry. CBASA recently conducted a survey of breweries, brewpubs, brand owners and suppliers across the industry. The results are alarming. 25% 56% of business have been forced to retrench, with 53% of business retrenching more than 50% of their staff, and 32% of business retrenching more than 75% of their staff of businesses that applied have received full Government UIF payments for June and July with an additional 45% only receiving part payments 31% 0% 16% 12 2 years of businesses have decided to close of businesses have been able to access SMME debt relief finance scheme loans of business have been able to secure some kind of additional funding average number of employees per business the average expected recovery time of those businesses which survive 4/10 The aggregated outlook is very poor (1 = very bad, 10 = very good) cbasa.org