Agreement halts plan to pour millions of litres of beer 'down the drain'

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Agreement halts plan to pour millions of litres of beer 'down the drain'
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After a desperate announcement that it had to dump tons of alcohol, SA Breweries has reached an agreement with government to transport its stock to depots during lockdown.

This week the parties agreed on a solution that will enable SAB to safely transport its packaged inventory, both alcoholic and nonalcoholic, from its breweries to its depots.

“Warehouses at SAB’s seven breweries are now at full capacity and unable to absorb any further inventory, which affects any current beer in the production process being bottled and stored, culminating in the destruction and disposal of the inventory,” SAB said in a statement. Since the lockdown was announced, humanitarian organisation Scientology Volunteer Ministers has sanitised the equivalent of 658 football fields in Gauteng to protect South Africans from the coronavirus pandemic. The group works tirelessly to decontaminate buildings and vehicles used by the public. To date the group has decontaminated over 3 million square metres.

“To overcome the problem, SAB has collaborated with the government and reached an agreement which will enable the company to transport its beer inventory over the course of the next few weeks and avoid losses in excise tax for the government to the value of R500m.”SAB said it was not legally allowed to store brewed beer once it reached a certain capacity. Once breweries reach permissible limits, the alcohol needs to be stored off site.

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