Beverage firms face GHS70 million loss from alcohol product ban

Ghanaian beverage companies are upset about a new rule from the Food and Drugs Authority (FDA). The FDA wants certain alcoholic drinks removed from the market in six months. These drinks include alcoholic energy drinks and small alcoholic bottles. Companies say this timeline is too short and will cause big financial problems.

The Association of Ghana Industries (AGI) spoke for the companies. They said they are not against protecting consumers. But they believe the FDA should have talked to them more before making the rule. They also want more time to change their production and sell off their current stock.

The AGI stated that one large manufacturer could lose GHS70 million worth of products. Smaller companies could face similar large losses. Companies plan their production far ahead, sometimes 18 months. A sudden change makes their investments risky. This could also lead to job losses and make special machines useless.

The FDA, however, said it gave enough notice. They stated the rule follows the Public Health Act 2012. The FDA explained that these products were approved for shorter periods, usually one year instead of three. This was because of health worries about mixing stimulants with alcohol. They said they wrote to each company six months before the deadline.

The FDA wants to remove alcoholic drinks mixed with stimulants by March 31, 2026. This includes drinks with caffeine, guarana, and ginseng. These are often sold in sachets, plastic bottles, or glass bottles. The FDA cited scientific proof that these drinks are harmful, especially to young people.

Companies are worried that if these products are banned quickly, foreign companies or illegal traders might fill the gap. They also think banning smaller alcohol sizes might not stop abuse. Young people could just switch to larger bottles or different products. They believe existing rules, like age limits for buying alcohol, need stronger enforcement.