(Bloomberg) --
Anheuser-Busch InBev NV’s South African division will challenge the country’s ban on alcohol sales in court, saying the measure to contain the coronavirus is unconstitutional.
SA Breweries, which makes popular lagers including Castle Lite, Hansa and Carling Black Label, supports a reduction in trading times, but sees a prohibition as “beyond what is reasonable and necessary,” according to a statement on Wednesday. The Johannesburg-based unit argues the decision restricts rights including freedom to trade and human dignity, it said.
The legal action comes about 10 days after President Cyril Ramaphosa banned alcohol sales for a third time in response to a resurgence in Covid-19 cases. The move is partly designed to ease the burden on hospitals from vehicle accidents and drinking-related violence, while discouraging large social gatherings that can accelerate the spread of the virus.
SAB will be looking to replicate the success of British American Tobacco Plc, which successfully argued that a ban on cigarette sales imposed last year was also in breach of the constitution. However, the case took about seven months to resolve and the ruling was handed down long after the restrictions were lifted. The government is appealing the decision.
Job Losses
The first two alcohol bans, which together lasted more than three months, led to 165,000 job cuts, according to SAB. The Beer Association of South Africa and the Liquor Traders Formation both called for state support this week, with the former saying smaller independent brewers face the prospect of collapse.
Ramaphosa is due to review current lockdown measures by Jan. 15. Some government officials are calling for stricter measures to be implemented, according to two people familiar with the matter, while others are pushing for a relaxation to protect the economy.
Distell Group Holdings Ltd., South Africa’s biggest wine and spirits producer, doesn’t support legal action at this stage and prefers to work closely with government to resolve the matter, the company said in a statement.
AB InBev, the world’s biggest brewer, acquired SAB as part of its takeover of SABMiller Plc in 2016. The South African company can trace its roots back to Johannesburg’s late 19th century gold rush, where it catered for thirsty miners.
©2021 Bloomberg L.P.
Últimas Noticias
Debanhi Escobar: they secured the motel where she was found lifeless in a cistern
Members of the Specialized Prosecutor's Office in Nuevo León secured the Nueva Castilla Motel as part of the investigations into the case
The oldest person in the world died at the age of 119
Kane Tanaka lived in Japan. She was born six months earlier than George Orwell, the same year that the Wright brothers first flew, and Marie Curie became the first woman to win a Nobel Prize
Macabre find in CDMX: they left a body bagged and tied in a taxi
The body was left in the back seats of the car. It was covered with black bags and tied with industrial tape
The eagles of America will face Manchester City in a duel of legends. Here are the details
The top Mexican football champion will play a match with Pep Guardiola's squad in the Lone Star Cup
Why is it good to bring dogs out to know the world when they are puppies
A so-called protection against the spread of diseases threatens the integral development of dogs
