Crackdown on illegal alcohol trade: Hawks uncover counterfeit operation

The Directorate for Priority Crime Investigation, popularly known as the Hawks, made a significant breakthrough over the weekend in the fight against the illegal alcohol trade by seizing sophisticated machinery used to manufacture counterfeit Smirnoff 1818 bottles at a site on Ogilvie Road in Howick.

This operation unfolded after intelligence from both the Hawks and the Durban Serious Commercial Crime Investigation team led to the confiscation of a container at the MSC depot in Durban, which apparently carried illicit bottles of the popular alcoholic drink.

The Hawks executed a search warrant on Saturday, based on intelligence they had that the container was destined for an address on Ogilvie Road.

The operation uncovered an extensive array of machines, indicating the scale at which the illicit alcohol was being produced.

Equipment seized included a bottle-blowing machine, high-pressure air compressors, evaporating temperature machinery, industrial chillers, and high-quality compressor air filters, alongside various sizes of counterfeit bottles.

This breakthrough bears weight in light of a recent call to arms from the Drinks Federation South Africa (DF-SA) for urgent national cooperation to tackle a burgeoning illegal alcohol trade now valued at approximately R25.1 billion.

The operations of the illicit alcohol market are said to result in an estimated R16.5 billion in lost tax revenue for the country annually, which had an adverse impact on the economy and public health.

The DF-SA reported that illegal alcohol now constituted about 18% of the total alcohol market in South Africa, which was a 55% increase in volume since 2017.

During a panel discussion earlier this year, experts addressed findings from the "Understanding the Illicit Alcohol Market in South Africa" study conducted by Euromonitor International, which reveal that nearly one in five alcoholic beverages sold domestically was illicit, with counterfeiting overtaking smuggling in terms of prevalence in the spirits sector.

According to a Euromonitor research consultant, Benjamin Rideout, various factors drove the expansion of illegal trading, including affordability, accessibility, and insufficient law enforcement.

"Things have changed. Based on our research and evidence from our store visits, we know that volumes are the highest they've ever been," he stated, which underscored the presence of counterfeit products within both the informal and formal retail channels.

The panel, which included prominent figures such as National Consumer Commission (NCC) acting commissioner Hardin Ratshisusu and DF-SA chairperson and South African Breweries (SAB) CEO Richard Rivett-Carnac, collectively highlighted the urgent need for coordinated efforts among government, business, and enforcement agencies to confront the constantly growing trend.

No arrests were made in connection with the Howick operation thus far, and police confirmed that investigations are ongoing.

The South African Revue Services and the trade and industry department were approached for responses, but none was received at the time of publishing.

DAILY NEWS