Ruminations on beer, good news, optimism, and government policy

Aweh dearly beloved fellow ruminants & groupies

Forgive me it has been two weeks since my last blog. One of the most gratifying aspects of writing this blog are the comments and interactions I have with friends and colleagues from all over the world. In many cases, I have not seen some of my readers for decades and in some cases, since I was at school forty-five years ago.

One of my groupies (or at least I would like to think he is) chastised me for the negative and cynical tone of many of my blogs. Talk of failed states, crime, no electricity or water, and the general decay of South Africa. Enough of that. It was suggested I should look to that relentless optimist and successful businessman Adrian Gore who says South Africans should be more optimistic.

Does he have a point? Well to an extent he does. If you read his message carefully his real message is that you should seek to engage constructively and not just withdraw and criticise. This is however not the same thing as optimism. He also says that you should take a stand against corruption. Completely agree. But taking a stand against corruption can come with a heavy price tag. How many people are prepared to pay the price particularly if you are not rich and powerful? Ask Andre de Ruyter and many other principled South Africans who have taken a stand against corruption. They are to be admired but one can forgive them if it dents their optimism.

In the spirit of optimism, I have decided to return to the topic of beer. South Africans like to party. The most popular beer in South Africa is Carling Black Label colloquially known as a Zamalek. A Zamelek quart (750 ml) currently costs R23.25 (USD $1.27). South Africa has some of the cheapest beer in the world. One can also buy a Lion lager quart for R20. If you want something more upmarket you can buy 500ml of craft IPA for R28.

There is so much in South Africa that is not working and is decaying but not beer. There is no shortage of that. One can get a cold Zamelek in every corner of the country no matter how remote. The taps might be dry and there might be no electricity, but you can always drink a cheap cold beer. That is something to be optimistic about.

Why is this? A very consistent theme I get from some of the students I teach is that all you need to solve the complex problems in South Africa is a good government policy. Once you find the magically correct government policy then everything will fall into place. Their primary interest is government policy. So I consulted Dr. Google and found the national liquor policy of 2016. Could this be the secret as to why we have ubiquitous cheap beer in South Africa? I urge you to read it yourself even if you can only manage the seven-page executive summary. Lots of stuff about alcohol abuse, transformation and licensing requirements, and regulating access to alcohol. Apparently, traders should not serve liquor products to already intoxicated persons. Then in case you were not aware of this it provides a very helpful guideline of how to recognise an intoxicated person. So just for those of you who might not know this if you observe someone becoming loud, boisterous, and disorderly you might like to consider the possibility that they are intoxicated. Dear readers, how many of you knew that?

Let us now consider a heretical hypothesis. The availability of cheap beer in South Africa has very little to do with the national liquor policy. If the national liquor policy were scrapped, I would even go so far as to suggest that beer might even get cheaper and be even more readily available. Of course, we can now start talking about alcohol abuse and the complex societal problems alcohol abuse creates in South Africa and worldwide. How successful the national liquor policy is in dealing with alcohol abuse is the subject of a separate debate, but I would suggest starting the debate with the proposition that it is not very effective.

The manufacture, supply chain, and retailing of beer in South Africa are all private sector activities and the entire value chain operates efficiently and cost-effectively. All that would be required to create beer shortages in South Africa would be to nationalise and transform the beer industry and create a fully transformed government national beer company. Let’s call it Beerkom.  Prices will rise, breweries will not be maintained, quality will decline and there will be beer shedding. Beer will be rationed, and quotas will be implemented. Soon Beerkom would start operating at a loss and require regular government bailouts. On the positive side alcohol abuse problems will be reduced. There might be the pesky problem of home brewing of alcohol but that is nothing that another government policy couldn’t solve.

If one wants to look for reasons to be optimistic about South Africa, then the private sector is a very good place to start. Constructive engagement by the private sector with the government is a reason to be optimistic. How the private sector manages to engage with the government and put the country on a better path is something to be optimistic about.

My bar fridge is fully stocked with Mad Giant Hoppy McHopface American IPA and this evening I will drink to the private sector. I might even get loud, boisterous, and disorderly and there will be nobody stopping me from drinking even more.

Thank you for all the ideas and comments. I really appreciate them and please keep them coming.

Regards

Bruce