South Africa: Alcohol Restrictions Cause United States Exports of Distilled Spirits to Lag

Since March 27, 2020, the South African Government has banned the sale and transport of all alcoholic beverages, causing strain on both the domestic and import industries. About US$16 million worth of United States (U.S.) distilled spirits exports are at risk if South Africa continues restricting the sale of liquor products as one of the measures to contain the spread of COVID-19. The South African liquor industry has also been adversely impacted through revenue losses (US$681 million), potential loss of employment (40,000 jobs) and possible closure of some liquor businesses. While the restriction on liquor sales and imports are expected to be eased by the end of May 2020, final regulations in this regard have not been published, thus raising uncertainty and concerns if this will be sufficient to prevent further losses for the industry.

South Africa: Alcohol Restrictions Cause United States Exports of Distilled Spirits to Lag