SABMiller is anticipating another soured year in Botswana as the government's tough stance on alcohol sales bites and the beer giant's business in Botswana adapts to a lower-margin environment. The 30% "social levy" on alcohol was introduced November 2008 and has weighed heavily on beer volumes but had an even sharper knock on revenue as drinkers have shifted to less profitable soft drinks. A 47% drop in lager volumes was reported for the 6m period ending September/09. However, the levy, which was aimed at cutting consumption, isn't having the desired effect and is encouraging smuggling and dangerous home brews. Cheap, high alcohol wines are being sold in plastic bottles for 70% less than the cheapest beers. Hloni Matsela, MD for Botswana said: "The business remains profitable but are we allowed to grow?" "I doubt it. We could face another levy" he said.
