The draft Liquor Bill leaves the position of supermarket retailing of liquor
products unclear, and could allow hard tack and beer to be sold in competition with other outlets — like bottle stores.
This emerged in discussion this week in the parliamentary trade and industry committee. African National Congress MP Desmond Lockey was concerned that the effect could be to squeeze out competition.
One of the Bill’s key aims is to promote the entry of new players in the liquor industry and prevent what trade and industry Deputy Director General Astrid Ludin described as a “levelling [of] the playing fields” for black economic empowerment.
Ludin acknowledged that the legislation was silent on the supermarket issue but said the matter had been discussed by Minister of Trade and Industry Alec Erwin and his provincial counterparts, who had agreed it would be handled “at provincial level”.
Provinces have the exclusive power to hand out retail liquor licences while national government has power over distribution and manufacturing. At present, Ludin said, “a grocer’s licence” applied to supermarkets, which are allowed to sell wine
products only.
Committee members, including ANC MP Bongi Ntuli, were concerned about a possible ban on traditional home brews. Ntuli referred to some of them as “grandmother’s recipes”.
The Bill bans “concoctions” that are harmful to one’s health — which MPs pointed out could apply to all liquor. The legislation — to be formally tabled in Parliament next Monday — raise more questions than it answers. Public hearings after Easter will enable interested parties to gain more clarity. MPs were concerned about the powers given to Erwin to determine exceptions to the general aim to prevent vertical integration.
The minister will determine exceptions to the rule that companies operating in one of three industry legs should have no interests in the others. Players like Distell, SA Breweries, KWV and UDV Guinness could be affected by changes to the legislation.