South Africa: South Africa Lifts the Fourth Prohibition on Domestic Transportation and Sale of Liquor Products

On July 25, 2021, South Africa partially lifted the prohibition on the domestic transportation and sale of alcoholic beverages. This was met with widespread relief, but there still remains uncertainty on how the government could handle future alcohol bans. The impact of alcohol bans to the domestic liquor industry and associated supply chains has been substantial. Alcohol bans have also substantially affected South African liquor imports, including the United States. While U.S. liquor exports from January to May 2021 have grown by 27 percent year-over-year, to US$6 million, this may not be enough to rebound to the pre-COVID-19 level of nearly US$17 million in 2019. The most recent alcohol ban likely slowed U.S. exports once again, and the uncertainty created by the ad-hoc prohibitions by South Africa has caused some alcohol brands to struggle to regain lost market share.