The South African Liquor Brand Owners Association (SALBA) says the sale of fake dop is costing the industry billions of rands.
SALBA CEO Kurt Moore says a study revealed that fake booze in South Africa is valued at R20.5 billion.
He says: “The industry conducted research in 2021, based on 2020 data to assess the size and impact of illicit alcohol in South Africa.
“The research, conducted by Euromonitor, confirmed that illicit alcohol trade in South Africa is valued at R20.5bn or 22 percent of the total alcohol market.”
According to Moore, fake alcohol is categorised in the report as counterfeit and illicit brands, which includes substitution, where empty bottles of legitimate products are refilled with cheaper illicit alcohol.
Moore explains: “In this category, we also include industrial manufacturing of illicit brands which do not comply with the legal production requirements. These counterfeit and illicit brands account for 23 percent of the illicit alcohol in South Africa.”
Over the weekend, City law enforcement officers stumbled upon an illegal distillery in Khayelitsha where people were allegedly manufacturing and selling fake booze in branded bottles such as Old Buck Gin, Gordon’s Gin, Jameson Whiskey and Smirnoff Vodka.
The officers also found empty boxes of Gordon’s gin bottles, bottle caps and labels as well as 17 sealed 25-litre canisters containing chemicals.
Moore says fake alcohol does not comply with the requirements for production set out in the Liquor Products Act and could pose a health risk.
He adds: It also robs the fiscus of much-needed revenue due to the evasion of excise tax.”
“The Euromonitor Report confirms that the fiscus loses R11.3bn in taxes due. Counterfeit and illicit brands account for 28 percent of that lost revenue.”