Illicit alcohol is on the rise in South Africa — here’s how it’s costing the country billions and putting your health at risk without you even knowing it.
The Counterfeit Alcohol Crisis: South Africans may be sipping on danger without even realising it — and it’s not just your hangover that should worry you. A recent study has revealed that counterfeit and illicit alcohol now makes up 18% of the country’s alcohol market, contributing to massive tax losses and posing serious health threats. Whether it’s that suspiciously cheap gin at a street bash or a fake-label whiskey at a pop-up tavern, chances are you or someone you know has unknowingly consumed illegal booze.
A R25 Billion Black Market
According to Euromonitor International, in collaboration with Drinks Federation South Africa (DFSA), South Africa lost R25 billion in untaxed alcohol sales, with R16.5 billion in lost tax revenue. Their six-month study, involving store visits, consumer surveys, and desk research, uncovered a booming underground liquor economy — all running parallel to the legal market.
Shockingly, 773,000 hectolitres (77 million litres) of alcohol are consumed annually through illicit channels. That’s enough to fill over 30 Olympic-sized swimming pools… with bootleg booze.
What Is Illicit Alcohol, Anyway?
Illicit alcohol falls into three shady categories:
- Counterfeit & unbranded products – fake versions of popular brands or completely untraceable.
- Smuggled liquor – legitimate products sneaked into the country to avoid taxes.
- Tax leakage liquor – legally sold products that are underdeclared or misclassified to dodge the taxman.
What makes this even more chilling is that premium spirits like whiskey, vodka, and gin are the top targets. These are often the go-to options for celebrations — and they’re being faked en masse, right under our noses.
A Discounted Danger: Why Consumers Buy It
The biggest driver? Price. On average, illicit alcohol is 37% cheaper than its legitimate counterpart, sometimes up to 70% cheaper, depending on the brand and type. With high living costs and tight wallets, many consumers — knowingly or not — opt for these cheaper alternatives.
But this cost-saving comes at a steep price. Aside from dodging tax, these drinks may contain harmful chemicals, improper alcohol concentrations, and no quality control whatsoever. It’s a cocktail for disaster.
Informal Trade and Online Sales: A Growing Threat
While traditionally sold via informal channels like street vendors and unlicensed shebeens, illicit liquor is now creeping into retail and online platforms, making it easier for unsuspecting buyers to get duped. Gauteng and KwaZulu-Natal were flagged as two of the highest-risk provinces for this underground trade.
This means that even that neatly-packaged bottle from a corner store or Facebook Marketplace could be a dangerous fake.
Crime Against the State?
Lucky Ntimane from the National Liquor Traders Council believes the country needs to take the issue more seriously. He suggests classifying counterfeit alcohol trading as a “crime against the state” to impose harsher penalties and boost enforcement.
Currently, sellers of illicit liquor face:
- Fines of up to R500,000
- Prison terms of 1 to 3 years, depending on the amount sold
Unfortunately, law enforcement struggles with limited resources and poor state capacity, giving illegal traders a wide runway to operate.
What Can You Do?
Consumers aren’t helpless. Here’s how to stay safe:
- Buy from reputable stores and avoid backdoor sellers.
- Check the label: If it’s poorly printed, smudged, or misspelt, walk away.
- Examine the seal and cap: Most legit products have tamper-evident seals.
- Smell and taste test cautiously: If it smells like paint thinner, it probably is.
- Report suspicious vendors to the SAPS or your local liquor authority.
Bottom Line
The counterfeit alcohol crisis is robbing the South African economy of billions, but more importantly, it’s putting lives in danger. As illegal traders expand their networks and consumers continue to chase bargain bottles, the health risks and financial consequences keep growing.
If the government hopes to turn the tide, stronger regulation, consumer education, and aggressive enforcement are essential. Until then, stay alert — because that cheap shot might cost you more than you bargained for.
Also read: KZN Police Seize R1.5M in Counterfeit Alcohol, Arrest Business Manager in Umhlali Raid
