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The Choking effect of COVID 19 on the Liquor Industry

Wendy Wandia by Wendy Wandia
August 26, 2020
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Coronavirus pandemic has seen liquor companies struggle to stay afloat during this period. Some countries like South Africa have banned the sale of alcohol in the country twice this year on, 30th March which was lifted on 1st June, it was later reimposed without notice on 12th July. The ban on alcohol in South Africa brought about trading constraints with the EU region.

In Kenya bars were closed for 30days yet taking alcohol in bars is taken as a social event unlike drinking at home. Diageo which is known for the making of Guinness stout and Smirnoff vodka recorded a drop in their revenues by more than half. In Kenya, Keroche has had to scale down its operations to survive the tough times. Some of the staff are on unpaid leave while others while others had to stay home longer.

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Alcohol intake in the country has reduced therefore reducing several sources of Income for waiters, waitresses, Barmen, and Bar owners. With this in mind business owners in this industry will have to change their model or way of doing things to cope with the evolving situation. Most of these companies have reduced their marketing budget and stopped their capital expansion projects.

Photo credits: Capital FM

Some of the companies have had to increase their online presence on social media sites and their website to get in touch with their customers and offer delivery services. Despite all the challenges, people can still buy alcohol in wine and spirits shops as bars await the lifting of the ban. In South Africa, the ban of alcohol was lifted on 18th August and the people are permitted to buy alcohol between 0900hrs and 1700hrs on Mondays to Thursdays.

It will be interesting to see how things will unfold and businesses get to at least ¾ of their annual targets to actualize on set revenue plans.

The pandemic is here to stay and like every other entrepreneur in different industries, bar owners should start thinking of an outside the box solution because these extraordinary times call for extraordinary measures.

Author: Nicole K.

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