Thirsty South Africans may soon find it difficult to get alcohol and other bottled beverages to buy as the country faces a nationwide glass shortage with the tavern sector expected to be the hardest hit.
Consol, Africa’s largest glass company, says soaring freight rates and delay in global shipments are hampering its ability to import bottles.
Convenor of the National Liquor Traders Council, Lucky Ntimane says only 90% of the elevated demand is being accommodated.
“As it stands, Consol is only able to accommodate about 90 to 95% of the elevated total demand. So, this is a big risk for us, because it means that taverners had to be subjected to rationing of products, as manufacturers cannot really fill the liquids into the glass that is not even available.
“So, there is a big risk, but we are comforted by the fact that Consol has done all they could to make sure that they come back online come May when the Nigel plant is fully operational.”
In 2020, Consol suspended construction of a 1.5 billion-rand ($98 million) facility in South Africa over concerns about the government’s propensity to ban alcoholic beverages.
Between March 2020 and August 2021, the state issued four prohibitions against alcohol trading, ostensibly to relieve the burden on hospital emergency rooms as it fights the COVID-19 pandemic.
During the first and longest ban, Consol announced it may close its glass furnaces, which operate at a cost of 8 million rands a day. The furnaces are not easily switchable, which makes them relatively expensive to operate. Ardagh Group SA agreed to buy the company in November despite the firm’s problems.
