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IOL News
14-06-2025
- Business
- IOL News
Counterfeit alcohol in South Africa: The deadly consequences of the black-market
With 18% of alcohol sold in South Africa now illegal, the country grapples with the deadly consequences of the black-market. Image: Supplied South Africa is facing a serious rise in the illicit alcohol trade, now valued at over R25 billion, with significant consequences for public health, consumer safety, and the national economy. As the black-market industry grows, so do the fatalities associated with it. The Drinks Federation of South Africa (DF-SA) recently released research showing that the volume of illegal alcohol has increased by 55% since 2017, reaching 773,000 hectolitres in 2024. This accounts for 18% of all alcohol sold in the country. Head of Research at DF-SA, Dr Shamal Ramesar, warned that the figures should serve as a wake-up call. 'This study is a wake-up call. Communities are being exposed to harmful, unregulated alcohol, and the country is losing billions in revenue. 'It is urgent that government, industry and civil society work together to tackle this issue head-on,' he said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The illicit market is valued at R25.1 billion this year, nearly double what it was in 2017, and has led to R16.5 billion in lost tax revenue for the government, with counterfeit white spirits accounting for the bulk of the losses. These aren't just economic concerns; the human cost is increasingly visible. In August 2024, in the close-knit farming community of Koelenhof near Stellenbosch, four farmworkers died after drinking what is believed to be expired or counterfeit alcohol sourced from a wine farm. Monecia Alckers was the sole survivor among her group; methanol poisoning was suspected after consuming the alcohol. Her sister, Jestine Alckers, said the group had previously consumed the same drink with no side effects, but this time, the outcome was tragic. 'They first complained about their eyesight, then they were nauseous and vomiting after drinking. And the following day they were dead,' she said. 'We thought they had eaten something, but now we believe it was poison.' Police confirmed that four inquest dockets were opened. Barrels of fake booze found in an abandoned building in Dunoon, Cape Town. Image: Supplied The National Liquor Traders Council has long warned of this growing threat. Convenor Lucky Ntimane said the problem has deepened since the Covid-19 pandemic, which created the space for unlicensed sellers to thrive. 'We urge our liquor traders not to purchase from unknown or suspicious sources, especially those selling below market value or with tampered packaging,' said Ntimane. 'These fake products are not only illegal, they are killing our people.' Traditional leaders are also raising an alarm. Sikelela Zokufa, founder of the Somagwaza Institute and a respected traditional surgeon, said illicit alcohol has infiltrated umgidi (traditional celebrations after initiation) season celebrations, endangering the lives of young initiates and their families. 'People want cheap and quick stock without considering the danger,' he said. 'Some are even being scammed; they pay, and the delivery never comes. Others unknowingly feed poison to their guests.' Zokufa urged communities to plan properly for traditional gatherings and join savings groups known as migalelo to buy from legitimate suppliers. 'It's better to serve what you can afford than to serve poison and bury your loved ones.' A national survey conducted alongside the DF-SA report found that 80% of South Africans are worried about the health risks of drinking unregulated alcohol. Nearly half said they know someone who was harmed by illicit alcohol, and 29% know someone who died from it. Among the biggest culprits are counterfeit spirits, particularly low-cost vodka and gin, along with smuggled alcohol, which still makes up a quarter of illicit stock despite a decline. The DF-SA is calling for a coordinated crackdown involving law enforcement, the liquor industry, and the government. 'Until we shut down illegal production chains and raise awareness, more lives will be lost,' warned Dr Ramesar. South African Liquor Brandowners Association (Salba) CEO Kurt Moore added that the illicit trade of alcohol harms the government because of the revenue loss. 'At the same time, the sale of illicit alcohol presents a health risk for consumers as illicit traders do not comply with the stringent manufacturing regulations. 'The manufacturing of these illicit products has become more sophisticated, making it more difficult to identify illicit products. Illicit traders also target white spirits because these products are easier to counterfeit. 'Illicit alcohol does not comply with the stringent manufacturing regulations, which pose a risk to consumers. The report does contain some insights from consumers who claim that they do know of individuals who were harmed by illicit alcohol, and some who have died having consumed illicit alcohol. Unfortunately, these illicit products are found in both the informal and formal sectors. 'Spirits are the most impacted by illicit trade.' 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IOL News
13-06-2025
- IOL News
The alarming rise of South Africa's R25 billion illicit alcohol trade
Barrels of fake booze found in an abandoned building in Dunoon, Cape Town. Image: Supplied South Africa is facing a dangerous surge in the illicit alcohol trade, now worth over R25 billion, with mounting consequences for public health, consumer safety, and the national economy. As the black-market industry grows, so do the body counts. The Drinks Federation of South Africa (DF-SA) this week released research revealing that the volume of illegal alcohol has increased by 55% since 2017, reaching 773,000 hectolitres in 2024. This amounts to 18% of all alcohol sold in the country. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Head of Research at DF-SA, Dr Shamal Ramesar, warned that the figures should serve as a wake-up call. 'This study is a wake-up call. Communities are being exposed to harmful, unregulated alcohol, and the country is losing billions in revenue. 'It is urgent that government, industry and civil society work together to tackle this issue head-on,' he said. The illicit market is valued at R25.1 billion this year, nearly double what it was in 2017, and has led to R16.5 billion in lost tax revenue for the government, with counterfeit white spirits accounting for the bulk of the losses. These aren't just economic concerns; the human cost is increasingly visible. In August 2024, in the close-knit farming community of Koelenhof near Stellenbosch, four farmworkers died after drinking what is believed to be expired or counterfeit alcohol sourced from a wine farm. Monecia Alckers was the sole survivor among her group; methanol poisoning was suspected after consuming the alcohol. Her sister, Jestine Alckers, said the group had previously consumed the same drink with no side effects, but this time, the outcome was tragic. 'They first complained about their eyesight, then they were nauseous and vomiting after drinking. And the following day they were dead,' she said. 'We thought they had eaten something, but now we believe it was poison.' Police confirmed that four inquest dockets were opened. The National Liquor Traders Council has long warned of this growing threat. Convenor Lucky Ntimane said the problem has deepened since the Covid-19 pandemic, which created the space for unlicensed sellers to thrive. 'We urge our liquor traders not to purchase from unknown or suspicious sources, especially those selling below market value or with tampered packaging,' said Ntimane. 'These fake products are not only illegal, they are killing our people.' Traditional leaders are also raising an alarm. Sikelela Zokufa, founder of the Somagwaza Institute and a respected traditional surgeon, said illicit alcohol has infiltrated umgidi (traditional celebrations after initiation) season celebrations, endangering the lives of young initiates and their families. 'People want cheap and quick stock without considering the danger,' he said. 'Some are even being scammed; they pay, and the delivery never comes. Others unknowingly feed poison to their guests.' Zokufa urged communities to plan properly for traditional gatherings and join savings groups known as migalelo to buy from legitimate suppliers. 'It's better to serve what you can afford than to serve poison and bury your loved ones.' A national survey conducted alongside the DF-SA report found that 80% of South Africans are worried about the health risks of drinking unregulated alcohol. Nearly half said they know someone who was harmed by illicit alcohol, and 29% know someone who died from it. Among the biggest culprits are counterfeit spirits, particularly low-cost vodka and gin, along with smuggled alcohol, which still makes up a quarter of illicit stock despite a decline. The DF-SA is calling for a coordinated crackdown involving law enforcement, the liquor industry, and the government. 'Until we shut down illegal production chains and raise awareness, more lives will be lost,' warned Dr Ramesar. South African Liquor Brandowners Association (Salba) CEO Kurt Moore added that the illicit trade of alcohol harms the government because of the revenue loss. 'At the same time, the sale of illicit alcohol presents a health risk for consumers as illicit traders do not comply with the stringent manufacturing regulations. 'The manufacturing of these illicit products has become more sophisticated, making it more difficult to identify illicit products. Illicit traders also target white spirits because these products are easier to counterfeit. 'Illicit alcohol does not comply with the stringent manufacturing regulations, which pose a risk to consumers. The report does contain some insights from consumers who claim that they do know of individuals who were harmed by illicit alcohol, and some who have died having consumed illicit alcohol. Unfortunately, these illicit products are found in both the informal and formal sectors. 'Spirits are the most impacted by illicit trade.'
The Citizen
05-06-2025
- Business
- The Citizen
Fake alcohol floods shelves as danger rises
Cheap fake alcohol is luring buyers and flooding shops. It's deadly, illegal, and costing South Africa R16.5 billion in lost excise taxes. Crime is enough to turn anyone to drink… but even trying to drown your sorrows you won't be safe, because 18% of the booze in South Africa is counterfeit. And, you're not just going to find it in holein-the-wall shebeens or backstreet taverns – some of it is also seeping into mainstream liquor outlets, according to researchers Euromonitor International, in partnership with the Drinks Federation SA. They revealed that the fake alcohol trade is worth more than R25 billion a year. The main victims are established brands, whose labelling is copied and placed on to containers of counterfeit drinks. The scale of the crime means the SA Revenue Service loses out on R16.5 billion in excise duty. ALSO READ: How you could be drinking counterfeit alcohol without knowing They say the bootleg business has increased 55% over the past seven years while the loss to the government has increased by 157%. One of the main attractions of the ersatz hooch is that it can be between 37% and 70% cheaper. South Africans hunt bargains like that all the time – but there are dangers. Not only could the hangover be greater from booze without quality control, but it might kill you.
The Citizen
04-06-2025
- Business
- The Citizen
How you could be drinking counterfeit alcohol without knowing
A recent study has shown the illicit alcohol trade has increased by 55%, costing the South Africa roughly R25 billion in lost tax revenue. Illicit alcohol traders are making a fortune selling knock-off liquor to unsuspecting and desperate patrons. Euromonitor International, in partnership with Drinks Federation South Africa (DFSA), this week revealed the runaway popularity of the illicit alcohol trade. Between traders prioritising profits and consumers choosing cheaper options, the country is missing out on just over R10 billion, excluding Value-Added Tax (VAT), on untaxed spirits alone. Almost 20% of all alcohol Euromonitor's most recent study, conducted over the last six months, was presented to industry leaders virtually on Wednesday. To gauge how illicit alcohol was distributed and consumed, the global research firm surveyed the product's prevalence in retail and independent traders, as well as the habits and preferences of consumers. Through desk research, store visits and surveys across multiple geographic and income demographics, Euromonitor illustrated how the illicit trade makes up 18% of the country's overall alcohol market. This 18% amounts to the consumption of 773000 hectolitres — or 77 million litres a year— with an estimated price tag of R25 billion. 'This is largely driven by counterfeit and illicit brands. This is because counterfeiting and illicit brands target premium spirits such as whiskey, as well as premium vodkas and gins,' stated Euromonitor International Project Manager Benjamin Rideout. This translated into R16.5 billion in lost tax revenue, with South Africans' preference for white and dark spirits contributing to roughly R10 billion of the tax shortfall. 'If these drinks were taxed correctly and sold legitimately, this is what the tax value would be,' explained Rideout. Increasing fiscal loss Euromonitor stated that illicit traders were purchasing and manufacturing counterfeit labelling and packaging at an 'industrial scale'. While the main driver of lost tax revenue was counterfeit and illicit brands, which are replica and unbranded products, smuggling and tax leakage were the next highest causes. Smuggling of legitimate products is done via land, air or sea, while tax leakage was classified as compliant liquor that is intentionally misclassified or underdeclared. Having conducted the same study in 2017 and 2020, Rideout said the illicit alcohol trade in South Africa had grown in volume consumed by 55% in the last seven years. 'It has almost doubled in value terms, which is a function of inflation in general. Finally, the fiscal loss has increased by 157%,' Rideout said illicit alcohol was predominant in informal channels, but there was a growing trend of availability in retail and online sales. 'What this means is that the illicit market has established a distribution network, and we know this to be the case, particularly in Gauteng and KwaZulu-Natal. 'On average, illegal alcohol is 37% cheaper than legal alcohol per litre. In some cases, this discount can go as high as 70%, depending on the category and the brand,' he stated. 'Crime against the state' Euromonitor noted that the financial benefits to traders and buyers were given greater consideration than the potential health risks considered by either party. Convenor of the National Liquor Traders Council Lucky Ntimane said it was an outlets' responsibility to ensure they maintained high standards or risk ruining their reputations. 'We also know the catch of illicit alcohol is the price, so people don't really ask a lot of questions. The essence of illicit and counterfeit alcohol is that it is cheaper. 'However, a person who sells counterfeit, knowingly or unknowingly, they run the risk of their business not being supported,' Ntimane told The Citizen. Traders caught selling illicit alcohol can be subject to a fine of up to R500 000 or between one and three years in prison, depending on the volumes sold. Rideout stated that policing challenges included 'resource allocation and state capacity,' while Ntimane suggested a firmer hand needed to be taken with illegal traders. 'Because illicit and counterfeit alcohol robs the state of an income, maybe it should be classified as a crime against the state. In that way, the government can clamp down hard on these unscrupulous dealers, but also harsher sentences can be meted out,' concluded Ntimane. NOW READ: Budget speech: Here's how much more you'll have to pay for alcohol and cigarettes
