-by our correspondent.
South African Breweries (SAB) has held back a further R2.5 billion of investment budgeted for 2021 following a third local ban on alcohol sales in the country.
SAB has so far cancelled investments worth R5 billion in South Africa following a number of alcohol prohibitions by the state. In August 2020, the maker of Carling Black Label and Castle Lager beer cancelled R2.5 billion of planned spending following a second alcohol ban.
“Given the material impact that this third ban on the sale of alcohol has on our business and the possibility of further bans, we have no choice but to halt these investments for the foreseeable future,” SAB’s Vice President of Finance, Richard Rivett-Carnac said in a statement.
The cancelled investments relate to upgrades to operating facilities, product innovation, operating systems as well as the installation of new equipment at selected plants, the brewer said.
“This decision will impact on the profitability of and number of jobs created by the companies that would have worked with SAB to execute the capital investment plans,” Rivett-Carnac added.