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Global beer producer Anheuser-Busch InBev has added to the chorus of businesses lamenting SA's energy crisis, warning that the poor state of electricity generation is hitting its ability to produce beer.
"We cannot talk about a sustainable business environment without addressing the negative impact that electricity and water shortages have on our productivity," said Richard Rivett-Carnac, the South African Breweries CEO, in response to an emailed enquiry.
"Without water and electricity, we cannot manufacture beer, therefore the increased water outages due to infrastructure challenges and load shedding affect the water supply and production at our breweries."
The comments come after AB InBev reported record volumes in SA in its first quarter to end-March on Thursday, boosted by a 20% jump in sales of Carling Black Label, SA's number one beer.
READ | Brewing giant AB InBev reports record volumes in SA amid strong demand for Carling Black Label
South Africa has been suffering an increasing deficit in power generation capacity since 2007, resulting in electricity rationing that has resulted in businesses and households running without power for up to 12 hours a day at Stage 6 load shedding.
On Thursday, grocery retailer Pick n Pay also added to the business concerns, with its chair Gareth Ackerman strongly criticising what he called the government's inaction in solving the structural problems caused by inadequate investments in infrastructure for public services such as electricity production.
The electricity shortages cost Pick n Pay about a half a billion rand in its recent financial year, while it cost SA's biggest grocer Shoprite more than R560 million in diesel costs in its first half alone. Load shedding costs Tiger Brands about R1.5 million a day at Stage 6 load shedding, the company said earlier this year.
Unlike Pick n Pay's stinging criticism of the government's poor handling of the electricity capacity constraints, AB InBev adopted a polite and public relations stance.
"We are encouraged by and are supportive of the work government is doing to address the energy and resource challenges and we will support initiatives that help maintain the continuity of operations, prevent losses, and support economic growth," said Rivett-Carnac.