The Killer in Your Glass: Inside South Africa’s R25 Billion Illicit Alcohol Industry

The Killer in Your Glass: South Africa’s Illicit Alcohol Epidemic

South Africa’s love of a cold beer or a tipple of spirits comes with a dark side. Hidden beneath the clink of glasses is a shadowy R25.1 billion illicit alcohol industry that kills, fuels crime, and robs the state of much-needed revenue.

According to research by Euromonitor International, nearly one in five alcoholic drinks consumed in South Africa today is illegal, up from just 773,000 hectolitres in 2017 to alarming levels in 2024. To visualise that, it’s enough alcohol for every adult over the legal drinking age to consume a weekly 750ml beer, every year or to fill roughly 1,600 swimming pools.

A Booming Shadow Market

The post-Covid era was meant to be a recovery for legal alcohol sales, but the illicit sector has surged, driven by a mix of consumer demand and the lasting effects of lockdown bans. Euromonitor notes that smuggling, homebrews, and counterfeit spirits grew fastest during the 2020 alcohol sales ban, creating an underground economy that persists today.

Richard Rivett-Carnac, CEO of South African Breweries and chairman of the Drinks Federation of South Africa (DF-SA), warned that the consequences go beyond economics:

“This is not just a public health concern, but a direct threat to formal businesses that contribute to the economy and create jobs.”

The legal alcohol sector supports roughly one in 31 jobs nationwide and contributes over R100 billion in tax revenue annually. Illicit traders undercut this market, exploit consumers, and funnel billions away from public services.

The Human Cost

The dangers are far from abstract. Homebrewed and counterfeit spirits often contain unsafe additives to increase potency, and unsanitary production conditions have led to multiple deaths. In 2024, four farmworkers in Stellenbosch died after consuming compromised illicit alcohol.

DF-SA research shows that 80% of South Africans worry about health risks from illegal alcohol. Nearly half know someone harmed by such products, and almost a third report knowing someone who died after consuming illicit booze. Social media has been awash with warnings, as consumers share images of dangerous homebrew and counterfeit labels, amplifying public concern.

Euromonitor warns:

“Rising demand for homebrew during lockdown, coupled with increased production, contributed to the rise in illicit activities… Homebrews are often not produced in sanitary conditions and may contain lethal additives.”

A Playground for Organised Crime

The illicit market doesn’t just poison bodies, it funds organised crime. Smuggling rings, counterfeit operations, and illegal distributors are often linked to broader criminal networks, including drug trafficking and theft. These syndicates exploit vulnerable communities, evade taxes, and even corrupt officials, creating a feedback loop that entrenches crime and undermines law enforcement.

Law enforcement agencies face capacity constraints, with illegal networks spanning multiple provinces, making it extremely difficult to track and dismantle operations. DF-SA head of research Dr Shamal Ramesar calls the scale of the problem 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.”

Economic Fallout

The National Treasury is bleeding billions. In 2024 alone, illegal booze cost South Africa an estimated R16.5 billion in lost tax revenue, up from R11.3 billion during lockdown. These funds could have gone toward healthcare, education, and infrastructure, areas already under strain from economic inequality and public service pressures.

Counterfeit spirits, especially low-cost white spirits, account for a large share of these losses. Euromonitor’s reports show that the rise in homebrewed alcohol is not just a temporary blip, it’s an entrenched problem that continues to threaten fiscal stability.

A Call to Action

The illicit alcohol industry is more than just a market problem, it’s a public health crisis, a crime enabler, and a fiscal threat. Industry leaders, civil society, and government must coordinate efforts to crack down on illegal production, secure regulatory compliance, and educate communities on the dangers of unregulated alcohol.

As Rivett-Carnac puts it:

“When illicit traders avoid tax, undercut the market, and exploit vulnerable consumers, we all lose.”

With billions at stake and lives on the line, South Africa’s shadowy alcohol trade demands urgent, decisive action before more glasses turn deadly.

{Source: IOL}

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