Distell CEO: What the sale of alcohol under level 3 means for the industry

South Africans can finally rejoice as the ban on alcohol sales, in place for over two months under the Covid-19 lockdown, is set to be lifted. This decision comes as a relief to many, including industry players like Distell CEO Richard Rushton. In a recent interview with CNBC Africa, Rushton discussed the implications of the resumption of alcohol sales under level 3 of the lockdown. The CEO expressed optimism about the industry's ability to resume operations responsibly and contribute to the economy. One of the key concerns raised by Rushton was the potential for overcrowding and chaos at retail outlets once sales are allowed. Drawing on the example of India, where similar circumstances led to incidents of violence and overcrowding, Rushton emphasized the importance of practicing social distancing and maintaining hygiene standards to prevent the spread of the virus. Despite these challenges, the industry has worked closely with government officials to implement measures that will ensure a safe and controlled environment for consumers to purchase alcohol. These measures include extending licensing capabilities to a variety of outlets and setting up protocols with retailers and taverns to enforce social distancing. With the lifting of the ban on alcohol sales, shareholders can look forward to a potential increase in sales as consumers replenish their stocks. However, Rushton also acknowledged that the road to recovery will be long and challenging, with projected earnings down significantly for the year. Ultimately, the resumption of alcohol sales under level 3 provides a glimmer of hope for the industry's recovery and highlights the importance of responsible trading practices in the current climate.