OnTap Magazine

ontapmag.co.za | Winter 2025 | 5 Hi there, If there’s one thing we’ve learned over the past few months, it’s that South Africa’s beer industry is as tough as it is passionate. From weathering policy changes to battling the rise in illicit alcohol trade, we’ve had our fair share of challenges. But through it all, the heart of this industry keeps beating strong — driven by the people behind the scenes and the communities that keep supporting us. Our beer sector isn’t just about what’s in the glass. It’s a major economic player, supporting over 210,000 jobs and contributing nearly R100 billion to South Africa’s GDP. That’s a big deal. And at BASA, we’re here to protect that impact while making sure beer lovers like you get to enjoy your favourite brews responsibly and affordably. The Excise Tax Hike: Why It Matters One of the big issues on our radar this year has been excise tax — the tax added to alcohol products. We’ve been working closely with government to try and keep these increases fair and linked to inflation, so the pressure doesn’t get passed down to brewers and consumers. Unfortunately, this year’s Budget Speech brought a 6.75% increase, which is 2% above inflation. It’s a blow — not just to brewers, but to every person who enjoys their beer legally and responsibly. We believe there’s a better way: one that supports growth, not squeezes it. Illicit Alcohol Is Taking a Bigger Slice We’re also seeing a worrying rise in illicit alcohol — that’s fake, smuggled, or illegally made booze that isn’t taxed or regulated. According to the Drinks Federation, nearly 1 in 5 alcoholic drinks sold in South Africa is illicit. That’s bad news for everyone. What does this mean in real terms? Legitimate beer producers are losing sales. The government loses billions in taxes — R16.5 billion last year alone. And communities lose out on the benefits that come from a healthy, compliant industry. If nothing changes, we risk heading down the same road as the cigarette industry, where illegal sales now dominate the market. We’re calling for stronger enforcement, smarter systems (like digital tracking), and deeper collaboration between law enforcement and industry players. Because cracking down on illegal booze isn’t just about saving businesses — it’s about protecting consumers and the country’s economy. What’s Next? At BASA, we’re going to keep showing up— in boardrooms, government meetings, and public conversations — to fight for an industry that works for everyone. One where jobs are protected, taxes are fair, and every beer poured contributes to something positive. We’re also leaning into new ways of connecting — from TikTok to YouTube — because building a culture of responsible beer enjoyment means meeting people where they are. So thank you. Whether you’re a brewer, bartender, distributor, or just someone who enjoys a good cold one — your support helps drive this industry forward. Cheers to progress, purpose, and proudly South African beer. YOURS IN BEER, CHARLENE LOUW CEO of BASA LETTER FROM THE CEO OF THE BEER ASSOCIATION OF SOUTH AFRICA