We wish to announce that we have started a campaign to protect our local and honest entrepreneurs in the liquor industry from a criminal syndicate behind illegal alcohol manufacturing in KwaZulu-Natal.

Four male suspects have been arrested for the manufacturing of counterfeit alcohol in Westmead, Pinetown. This follows a joint operation undertaken by our entity, KZN Liquor Authority,  Department of Agriculture, Fisheries and Forestry and Diego South Africa, the country leading premium spirits company with a manufacturing plant in Isipingo, South of Durban.

According to our figures, on average, regulated alcohol production contributes R72-billion to the South African economy through taxation, VAT and excise.

Apart from the fact that more than R11.3 billion of tax revenue is lost due to the illicit alcohol trade, we remain worried about job losses and the health of unsuspecting consumers.

Our entity, the KZN Liquor Authority has ensured the licensing of township and rural based entrepreneurs as part of stimulating township and rural economy. To date, our entity is servicing more than 8000 liquor license holders throughout the corners of the province.

The tavern industry is estimated to be worth between R40bn and R60bn and accounts for 80 to 90 percent of township alcohol sales and 43 percent of all alcohol sold in South Africa. 

KZN is contributing tremendously to the national figures. Importantly the liquor industry has a wide and deep value chain employing almost thousands of people

Finally, as the department we affirm our commitment to protect our economy and local liquor license holders from counterfeit alcohol that is flooding the market.

We acknowledge the fact that the liquor industry remains critical in ensuring socio-economic development.

Many other sectors of our economy such as tourism, hospitality and entertainment rely heavily on the liquor industry. A thriving liquor industry is therefore in the interest of this province.

In this regard, we undertake to strengthen our working relations with our law enforcement agencies, SA Revenue Services, National Liquor Traders Council, South African Liquor Brandowners Association, the Beer Association of South Africa, Vinpro, the Liquor Traders Association of South Africa and alcohol manufacturers.

 

Issued by the KZN Leader of Government  Business and MEC for Economic Development, Tourism and Environmental Affairs Siboniso Duma