Heineken SA shuts down production entirely and stops their plans for a R6 billion investment in a new production facility. The expanded operations on the North Coast were expected to produce at least 400 new jobs. However, the ongoing alcohol ban hurt the company too much. In mid-July, the company reported a decline of 52.2% earnings for the first half of this year. Aghast, people took to Twitter, especially as no compromise on the alcohol ban from Minister Dhalmini-Zum a looks likely.
Heineken SA stops production – giants start to fall during alcohol ban
We reported that Minister Dhlamini-Zuma rejected a suggestion that the alcohol ban gets lifted for wine and beer. She noted that no health statistics reveal that wine or any other alcohol makes a difference to trauma cases in hospitals. Plus, she noted, “alcohol is alcohol.” So, that dashed the hopes for any lifting of the ban in the foreseeable future.
But, as we noted, fears grow over job losses as the ban continues. How much longer can the economy sustain job losses and massive tax loss while the coronavirus bans remain in place? Well, not much longer, it seems. After all, Heineken SA is a giant in the industry. When giants start toppling, fears for the future rise exponentially.
Alcohol ban kills Heinekens production – true to not?
On Twitter, people ask if the news is true. It seems factually sound. News that Heineken stopped production came from The Citizen. The outlet explained, “In the wake of the coronavirus pandemic, the re-introduced ban on alcohol sales and the collapse of the restaurant and bar trade, Heineken South Africa has been forced to shut down production entirely.”
Meanwhile, the North Coast Courier noted, “Heineken [SA] proposed a R6-billion production facility [which] 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.” That’s a lot of jobs, a lot of lost opportunity, and a scary reality about comic growth in the sector now.
Twitter reacts to news about the beer production shutdown
People on Twitter might be called “keyboard warriors,” but they certainly reflect the temperature of the population to a degree. And clearly, temperatures rise across the board. Here’s what some of them said about it:
- @MzaniQueen: “Heineken SA is shutting down in SA and haulted on their R600 million expansion plan. 400 ppl will be retrenched. Weldone to everyone to celebrated these bans. Esp politicians who will get their fat salaries.”
- @tsheko2020: “Thieving 500 Billion while people about to loose their jobs Blaming alcohol for failing in dealing with covid_19 pendamic at large. This is the worst government in the history of this country, (Sic).”
- @pandanificient: “By the time we deal with Covid-19, which we will eventually, our economy would have gone beyond repair. This lockdown and alcohol ban were put in place to preserve life but they seem to be doing the opposite for people on the ground.”
Ja sho…. we are trying to save lives. But a young man died of hunger in his shack a few weeks ago because of lack of employment. Heineken was about to create jobs but now that's gon. And please believe there are gona be further job losses in the pipeline linked to Heineken SA
— Ronin Dex 🌍🇿🇦 (@a_nativ_gift) August 2, 2020
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