Sunday, 6 November 2016

New Eastern Cape Liquor Act Proposed

Eastern Cape Liquor Act -  The Eastern Cape Provincial Government recently gave notice of its intention to introduce  a new Eastern Cape Liquor Act.  Fourteen (14) months ago, extensive amendments to the current Eastern Cape Liquor Act was published.   Why not proceed to implement the amendments?  It seems that the provincial government thinks it will be easier to replace the current Liquor Act in total, instead of implementing the amendments of July 2015. Comment can be submitted on or before 8 November 2016 – allowing only 14 days to comment.

The highlights are summarised below.  Contact Us if you need information or advice on the proposed new Eastern Cape Liquor Act. 

1. There are definite links between National and Provincial Legislation – numerous definitions follow the definitions contained in the National Liquor Act.
2. It provides for a system of delegated powers to allow officials to exercise functions of the CEO
3. Creates 7 categories of licences
4. Creates a threshold above which no liquor may be sold
5. Introduces new licensing criteria
6. New supporting documents required
7. No automatic renewal
8. New fines / prison sentences.

Western Cape Liquor Authority - Guidelines for Special Event & Temporary Licences for 2016/2017 December Holiday Period

Western Cape Liquor Authority ("WCLA") - The Western Cape Liquor Authority (WCLA) has advised the following guidelines for special and temporary liquor licence applications for events and functions for the 2016 Holiday season :

Period of function1 December 2016 to 13 January 2017 
Cut off time for lodgement : 16h00 on 1 December 2016
Late Applications : Considered only after 13 January 2017

NB : Only certain events qualify for a special event licence, the rest must apply for a temporary liquor licence.   Contact Us to ensure you apply for the correct licence. 

Note 1 : All Special Event & Temporary Licence Applications must still be lodged with the WCLA at least 14 days before the first day of the event. 

Note 2: The Liquor Licensing Tribunal will be in recess from 13 December 2016 to 6 January 2017.  

Contact Us for applications for your Special Event & Temporary Licences for this season.

Tuesday, 18 October 2016

Liquor on Western Cape School Premises causes uproar

Liquor licence Western Cape - Liquor will be allowed to be sold at functions on school premises if a proposed amendment to the WC Provincial Education Act is approved.   The proposal has been published for public comment and immediately drew strong comment from those in favour, as well as those in opposition to it.   

WC Education MEC, Debbie Schäfer, said that the current definition of “school activity” is so wide, it may include events off school premises.  Naptosa (a Teachers’ Union) warned that schools would not control the sale of liquor properly, though failed to state the basis for his contention.   The proposal flies in the face of the much discussed national draft liquor bill – which proposes a ban on all liquor outlets within a radius of 500m from any school.  However, very little has been published of the fact the liquor is a provincial competency.   This means that Provincial governments, and not the national government, are the sole regulators of the retail sale of liquor.   It will be interesting to see whether the proposed amendment is written into law.   We expect that we haven't heard the last on this matter and will keep you posted.  

Sunday, 16 October 2016

Wine Tourism - Boosting Liquor Licensed Businesses

Wine tourism - 1 million bottles of SA wine are sold worldwide on a daily basis – presenting excellent wine tourism opportunities for local licensed and unlicensed businesses.

Liquor licence holders who have seized the opportunities offered by wine tourism, are already  reaping the financial benefits.   The Western Cape, especially, has established itself as a quality wine tourism destination, offering value for money and exceptional hospitality.
It is a fact that tourists are increasingly arranging their travels to include destinations in the food, wine and hospitality industries.  This is very good news for both licensed and unlicensed businesses.   Licensed liquor outlets can position themselves accordingly and enjoy the immediate benefit of selling wine and liquor products over the summer season.   Unlicensed business should seriously consider applying for a suitable liquor licence.   The initial, once-off cost will prove to be a small price to pay for the benefit of an additional income stream.   It will allow businesses to tap into this  tourism market which is set to continue to grow for the foreseeable future.    

The upcoming conference at the Spier Estate (see above) is bound to give fresh insights to all interested. Locals are urged to register at HERE as the workshops are very popular.

(Article by The Licence Co – sourced from

Tuesday, 11 October 2016

China’s Oktoberfest – 4 million Chinese can't be wrong!

Liquor.  An Authenic Oktoberfest in China – you must be having me on?  Believe it, ‘cause it’s true.   These are the facts :
  • Name : Qingdao International Beer Festival, held in August
  • Started  : German settlers in 1903
  • Where : Qingdao (1,5h flight from Beijing)
  • Size : 100 American size football fields (+- 7100  x  average residences)
  • Beer : Tsingtao – China’s biggest consumer export & 2nd most popular beer worldwide
  • Variety : 300 different kinds of beer to choose from
  • Attendance : +- 4000 million (yes, it’s correct!)
  • Entertainment : Oompah bands / Funfair / Opera / Circus / Walk-in beer barrels
  • What to say : “Ganbei!” = “Cheers!”
(Article by The Licence Co, from original in Daily Mail)

Tuesday, 4 October 2016

Proposed New National Liquor Policy causes a stir

Liquor Law - The proposed amendments to the National Liquor Act are contained in the draft National Liquor Policy - published for comment on 20 May 2015.  Anyone can comment up to 14 November 2016.  

The main policy considerations listed in the document are :

1. Restructuring the liquor industry,
2. Giving priority to facilitatio of entry and empowerment of new entrants, and
3. To better reflect on all social an economic costs associated with liquor abuse.

We list the most important amendments and comment in brief on the implications thereof.  

 Licence holders may be held liable for damage caused by their customers

The question is how a court will - legally - contribute the behaviour of a person to the supplier of a legal substance?    As one commentator aptly put it – will Pick ‘n Pay be held liable for a murder committed with a steak knife bought at one of its stores?   One can think of many more absurd examples.  It is bound to scare away, rather than attract new entrants to the industry.

Increasing the legal drinking age from 18 yrs to 21 yrs

The question is how someone can be deemed to have the necessary judgement to exercise his/her vote, but not old enough to choose what to drink?    Studies abroad have shown that raising the legal drinking age does not alter the drinking patterns of heavy drinkers.   In another instance, it only lead to a 6% reduction in the number of university students consuming liquor.

No liquor outlets within 500m from churches & schools

It is illogical and impractical to link any fixed distance between liquor outlets and certain institutions to alcohol abuse.  Why would a school boy, on his way to buy liquor, turn around because the liquor store is situated 600m (and not 500m) from his school or residence?   The answer is simple – he will not.   It is even more ridiculous to suggest that outlets within 500m of these institutions should have their licences cancelled after two years – if they haven’t moved by then.   This column regrettably does not allow for full comment on this proposal, save to say that it will not withstand the test of our constitution and established legal principles.   Members of Liquor Boards have the training and experience - they should be trusted to exercise their judgement in each individual application. 

Limiting liquor trading hours

The trading hours of the majority of liquor outlets coincide with times of the day when the citizenry are economically active.   It is naïve to believe that people will adapt their behaviour to when it conflicts directly with their social and economic interaction.  The e-toll saga is a good example, as are the prohibition era in the US and our own restrictive liquor policies during the apartheid era. The public would rather buy from illegally operated outlets or order more liquor before closing time.    

BBBEE – Codes

Much is made of the enforcement if these codes in the proposal.   It is seen as the main mechanism to drive transformation.  The irony is that these codes were withdrawn within a week of being published earlier this month.  The current codes haven't presented an obstacle to new entrants into the market. We trust the new codes won't have a negative effect when implemented.   

Trust fund

A trust fund to be used to combat alcohol abuse is proposed.  The industry will contribute a percentage to the fund, to be determined by the Minister of Trade and Industry (after consultation).   The state will have direct oversight and control over the fund and activities to be implemented.  It is foreseen that a government agency will be established for this purpose.   Governments in general have poor track records in managing these kind of funds.  This looks like a mechanism to fund the additional staff members required to build the staff capacity referred to in the policy document.    It is no less than another form of tax being added to an already overtaxed industry. 

In conclusion

Licensing is set to become even more expensive and onerous as it will become more difficult to comply to legislation.   It will become more difficult for small business to enter the market due to higher cost and risk. 

The emphasis of all role players should be on influencing positive social norms and values.   This will influence drinking patterns to a much larger extent than legislation requiring a host of new administrative infrastructure. If the energy required to implement the above proposals could be spent on promoting positive social behaviour (which is one of the proposals), chances are that we'll be much closer to reaching the goals set in this policy document.

[Article by The Licence Co (LiquorWise Division)]  

Monday, 26 September 2016

Western Cape Government to increase the price of liquor

Liquor Laws Western CapeThe Western Cape Provincial Government (WCPG) plans to reduce alcohol abuse by raising the price of liquor.   Its intention has been published in a green paper (accessible here), which also proposes to clamp down on drinking-and-driving and reduce liquor trading hours.   

A long list of proposals is contained in the green paper, of which the following are amongst the most interesting or alarming (depending on the status of the reader!) :
  • Increasing the price of liquor by -
    • raising taxes (excise duty), or 
    • introducing a minimum price for liquor products
  • Reducing liquor trading hours
  • A national ban on alcohol advertising, promotion and marketing.
  • Reducing the number of liquor outlets in areas where such outlets are considered to be too densely represented
  • Zero-tolerance for drivers - those whose licences aren’t older than 3 years or are under 21 years of age
  • Greater use of breathalyser testing (eg. testing pedestrians at hot spots)
  • Limiting trading hours
  • Reducing the density of alcohol outlets (500m radius - rule).
  • Reducing the actual alcohol content in beverages.
Comment can be forwarded to the WCPG on or before 30 November 2016