[imagesource: 123RF/Vladislavs Gorniks]

The adjusted alert level 3 lockdown was extended and with it the restriction on the sale and on-site consumption of alcohol.

The restriction came about in response to increased pressure on the healthcare system as confirmed COVID-19 cases started to rise in South Africa. As we’ve learned from prior bans on the sale of alcohol, the numbers of trauma cases and violent crimes tend to go down when booze is removed from the equation.

Unfortunately, bans such as this one don’t come without their own set of casualties, with those in the alcohol and hospitality industries struggling to stay afloat.

To add to the strain, the black market booze trade is flourishing.

As Convenor of the Liquor Traders Formations, Lucky Ntimane, told IOL less than a week into the adjusted alert level 3 lockdown:

“Alcohol is being sold at ridiculously high prices, it’s happening and these prices are going to go up every week that we are closed.

“We are well aware of the numbers and we are concerned but it was expected, for me and our members we are concerned about the livelihoods and some balance needs to be struck.”

According to a study by Euromonitor, the alcohol industry loses R12,9 billion in gross revenue per year to illicit trade, which converts to a loss of R6,4 billion in alcohol tax contribution to the SA Revenue Service, with the World Health Organisation estimating that 24% of the alcohol market in South Africa is illicit.

Experts across the board are concerned that the extended ban will further entrench the web of illicit alcohol trade as consumers look for ways around the ban.

Consumers have indeed looked for and found ways around the ban. Even the cops are getting involved.

You can find just about anything on the black market, but, as Business Insider SA points out, you need to be prepared to pay a small fortune for it.

Messaging apps like WhatsApp and Telegram are providing the perfect platforms for sales and distribution.

In an offer made on WhatsApp to Business Insider SA, a standard case of white wine which would normally go for around R390 was being sold for R600, and a case of beer that would normally set you back around R300, was on the market for R500.

Another seller was punting an extensive range of options including a six-pack of Castle Lite, up to R120 from its average retail price of R75.

With each extension of the ban, the prices go up. The same supplier was selling a six-pack of Hunter’s Dry (standard retail price of R90) for R130 before the extension. Now it will set you back R180.

On Telegram, you’ll find some high-end offerings like Hennessy VS, at R700 a bottle (up from an average retail price of R470). If Jack Daniels is your thing you’re looking at R700 for a bottle that will normally cost you R280.

Jagermeister is retailing on the black market for R600, up from R270 a bottle.

For a more detailed breakdown of booze prices from Business Insider, that takes into account more brands, head here.

While SAPS has managed to bust a few suppliers trying to move stock, the trade seems to be too big to get a handle on.

In addition to the retailing of known brands, there has also been a rise in the sale of fake alcohol. According to the SABC, at least two deaths have been recorded caused by drinking a homemade concoction that allegedly included methylated spirits, paraffin, Disprin tablets, and matchsticks.

South African Liquor Brand Owners Association Chair Sibani Mngadi says “What we have noticed is that people do access pure alcohol, that is around 96 percent ABV and they neutralise it and fillup used bottles of branded products and sell them as genuine products to the public.”

The fake alcohol is produced on an industrial scale and sold on the black market.

Sales made on Telegram are particularly risky because it removes the usual ‘friend of a friend’ referrals that you’ll get on WhatsApp. Instead, it uses your location to allow you to chat with anyone nearby, even strangers, which opens up avenues for scammers to take advantage of unsuspecting folks looking for a drink.

The black market is risky business, and every drink sold makes things more difficult for legitimate producers in the alcohol industry.

[source:iol&businessinsider&sabc]