Beer shortage spoils party

"The stock shortages are phenomenal," said Chris Madgwick, owner of the liquor outlet. He is struggling to get his hands on especially Black Label and Castle Milk Stout in 750ml bottles and Castle Lite of any kind.

"It's driving me crazy," he said.

According to Madgwick, the profit margins of retailers in the alcohol industry are already small and owners of small liquor outlets like his do not make much money.

Beer sales are however expected to pick up due to warmer weather and the simultaneous showing of the Twenty20 Cricket and Rugby World Cup Tournaments.

"Just as luck strikes with two sporting showpieces at the same time, SAB snookers you with stock shortages," said a despondent Madgwick.

Madgwick is not the first frustrated liquor retailer to contact Fin24's sister publication Sake24.

SAB spokesperson Janine van Stolk confirmed that the brewer is having trouble with its distribution chain and is struggling to satisfy the demand for certain brands and packaging of beer in Gauteng.

"Earlier this year we had a shortage of glass, which is still causing a ripple effect on our supply chain", she said.

According to her, the brewer is working 24/7 to reduce the backlog and hopes to normalise stock levels within the next six weeks, depending on whether demand stabilises.

Van Stolk said that the cricket tournament in South Africa could lead to a bigger demand for SAB's products, but there is currently no evidence of this. She however said that the sudden warmer weather could fuel the demand for beer.

"The company has already announced that its sales volume has increased by 4% compared with last year - and that is without Amstel," Van Stolk said.

- Sake24