Is the alcohol ban driving the industry down the drain?
The national lockdown and the alcohol ban is having a devastating impact on the alcohol industry and its customers.
On the line to The Money Show is Richard Ruston, the CEO of Distell.
It's dramatic - just at the end of April which is effectively five weeks of lockdown, we reported earnings down 25 per cent.Richard Ruston, CEO - Distell
We're predicting another dry month in May and perhaps some returns to sales in June. Our forecast is earnings will be down anything between 60 and 80 per cent.Richard Ruston, CEO - Distell
Our customers, the taverners, they are going to be far worse hit, many of them are in serious crisis. And of course small business of which there are many both upstream and downstream in the agricultural sectors.Richard Ruston, CEO - Distell
What we can do is produce to the extent that we can export. So we have specific permissions to run specific parts of our business to supply export demand.Richard Ruston, CEO - Distell
But for domestic purposes we are unable to either produce or distribute.Richard Ruston, CEO - Distell
Listen to the entire interview below.
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