EVENTS
Innovation and collaboration
needed to reboot industry South Africa’s liquor industry, particularly craft distillers and brewers, have been hard hit by the protracted lockdown and ban on the sale of alcohol, with fears that many may not be able to survive.
Hard-hit craft brewers and distillers brace themselves for a rocky business restart
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XPECTING TO TAKE years to recover, the sector hopes that it may survive by collaborating and innovating. This emerged during an online panel discussion hosted by Messe Muenchen South Africa, the organisers of the food & drink technology (fdt) Africa trade fair, held in July. Moderated by Clive Belcher, chairperson of the Institute of Brewing & Distilling (IBD) Africa sector and MD of Global Beverage Solutions, the panel included Craft Beer Association South Africa (CBASA) chairperson Wendy Pienaar, brewmaster and founder of Brewsters Craft Apiwe Nxusani-Mawela, and Southern African Craft Distilling Institute (SACDI) secretary Pro Tem, Hendré Barnard, amongst others. Panellists noted that the sudden lockdown left brewers with beer still in tanks; it dried up key contracts and cash flow, and negatively impacted supply chains. This means that most would be unable to pick up production immediately when the ban is lifted again. Nxusani-Mawela said, “Brewing beer is a process. It takes three weeks, so restarting won’t happen overnight. Cash flow is also a problem, so buying raw materials and packaging will be a tight squeeze – if we can source these at all. It won’t be easy.” Pienaar added, “There are operational issues to consider – like getting staff safely to work, and making the brewery safe for customers and staff. Even if the ban is lifted,
it won’t be the end of the challenges we face.” Brewers and distillers might face challenges in obtaining yeast, hops, botanicals and bottles and producers would likely find that neutral spirits would be diverted to making sanitiser. “If producers are able to access alcohol, they might be able to get production up and running in around a week after the ban is lifted, but distillers and brewers will take a lot longer,” Barnard pointed out. SURVIVAL STRATEGIES Noting that craft brewers and distillers had been achieving slow growth even before the ban, the panellists said there would be tough times ahead for the entire sector. However, craft brewers and distillers could survive by innovating and collaborating. Barnard noted that the market would become more price sensitive, and that brewers and distillers would have to prepare for this. “There is a real possibility that the market is going to change. We are in a recession and the first thing to suffer will be luxury goods. Some things will become more expensive to produce and certain raw materials and bottles will be more expensive. If you are spending R50 on packaging, you need to consider rebranding, using cheaper packaging, and passing the savings on to consumers.” Pienaar said collaboration could help
the industry survive. “We need to think about buying as a consortium, working together, becoming more creative in using what is available. We also need to do market research to make sure that we are producing what the market wants and will move quickly.” Now is the time for brewers and distillers to work on industry collaborations, market awareness and innovative new ways to go to market. Facilities should also be preparing to reopen production by sourcing the safety equipment and personal protective equipment their factories and staff would need once the ban on alcohol production is lifted. “Food & drink technology Africa has always been a hub of local and international industry collaboration and innovation. As the world adapts in this new environment, we are committed to working with stakeholders to help them overcome challenges,” said Dain Richardson, senior exhibition manager of food & drink technology Africa. The spotlight will be on the challenges, solutions and emerging trends in the craft brewing and distilling sector at food & drink technology (fdt) Africa, the biennial trade fair for the pan-African food & drink sector next year. The fourth edition of this exhibition will be held from 13 to 15 July 2021 at the Gallagher Convention Centre in Johannesburg. •
2020 Quarter 3 | Food Manufacturing Africa
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