Heineken SA shuts down production, halts R6bn expansion plans for North Coast

In the wake of the coronavirus pandemic and the collapse of the restaurant and bar trade, Heineken South Africa has been forced to shut down production entirely.

This has significantly impacted the company’s ambitious growth strategy, with the beer giant withdrawing its plans to expand its geographic footprint onto the North Coast.

ALSO READ: Heineken eyes North Coast for expansion

Heineken’s proposed R6-billion production facility was expected to provide a massive financial boost for the region, creating 400 permanent new jobs and making many more service-related employment opportunities available.

The Inyaninga site near Dube TradePort had been earmarked for its new brewery.

The Heineken portfolio includes eight brands:

Heineken, Amstel, Windhoek, Sol, Miller Genuine Draft, Strongbow Cider, Soweto Gold and Tafel.

The company said with no end date in sight for the ban on alcohol sales, executive salaries had been cut by 20% from May to December and no bonuses would be paid.

ALSO READ: It is official, Heineken to set up shop near Dube TradePort

The South African Liquor Brandowners Association (Salba), the Beer Association of South Africa, Vinpro, and the Liquor Traders Association of South Africa have warned that restricting legal alcohol sales will lead to the growth of illicit alcohol trade.

“The liquor industry has a wide and deep value chain employing almost one million people across the country. Government’s decision has serious economic consequences, placing hundreds of thousands of livelihoods at risk.”

Dear reader,
As your local news provider, we have the duty of keeping you factually informed on Covid-19 developments. As you may have noticed, mis- and disinformation (also known as “fake news”) is circulating online. Caxton Local Media is determined to filter through the masses of information doing the rounds and to separate truth from untruth in order to keep you adequately informed. Local newsrooms follow a strict pre-publication fact-checking protocol. A national task team has been established to assist in bringing you credible news reports on Covid-19.