Producers of beverages in the country have started registering their displeasure against a directive by the Food and Drugs Authority (FDA) requiring them to withdraw certain alcoholic products from the market within six months.
Their bone of contention is that the implementation timeline of the ban on sale of alcoholic energy drinks and small-volume alcoholic beverages was unrealistic and could trigger severe financial and operational consequences.
However, the Food and Drugs Authority shares a different opinion. It explains that the directive which was grounded in its mandate under the Public Health Act 2012 (Act 851) to safeguard consumers had been communicated well in advance, with a six-month notice given to affected companies to enable them adjust production and clear existing stock.
The producers, led by the Association of Ghana Industries (AGI), insist that they are not against any objective of protecting consumers but argue that the directive should have been preceded by extensive stakeholder consultation and a more flexible transition period to allow them to adjust production and clear existing stock.
AGI forum
Representatives of the beverage companies took turns to share their displeasure at a forum on food and domestic tax policies organised by Association of Ghana Industries in Accra on March 17.
On the theme: “Strengthening public-private dialogue in policy formulation,” the forum highlighted growing concerns among industry players over the lack of early engagement by regulators, calling for a more collaborative approach to policy implementation to avoid disruptions to business operations.
It was attended by representatives of the major beverage companies in the country, AGI executives, and officials from the FDA, Ministries of Health, Finance and Trade, Agribusiness and Industry.
Lack of engagement
The President of the AGI, Kofi Nsiah-Poku, stated that the core issue was not the policy itself, but the lack of early engagement and consultation.
He explained that manufacturers were only informed of the policy changes at the point of product renewal, by which time large volumes had already been produced and distributed.
This, he said, had created a crisis as many companies that had invested heavily in production, packaging, advertising, and distribution now face the prospect of disposing of unsold stock within a limited timeframe.
“One major manufacturer alone is estimated to risk losing up to GH¢70 million worth of inventory, while others—particularly small and medium-scale producers—could suffer equally damaging losses,” he said.
Disruptions
Beyond immediate financial implications, the president stated that the directive threatens to disrupt entire production ecosystems.
“Many companies operate with long production cycles, often planning up to 18 months ahead. Raw materials, specialised machinery, and labour are all tied to these production lines.
“A sudden policy shift, without adequate transition time, renders these investments vulnerable. In some cases, machinery designed specifically for sachet or small-volume packaging may become redundant, potentially leading to job losses,” he said.
Market consequences
He stated that the abrupt enforcement of the directive could create supply gaps that may be exploited by foreign competitors or illicit traders, thereby undermining local manufacturers.
“There are also concerns that banning smaller alcohol units may not effectively address abuse, as consumers mostly the youth could simply shift to larger bottles or alternative products.”
He added that without strengthened enforcement of existing regulations, such as age restrictions on alcohol sales, the directive alone may fall short of achieving its intended public health outcomes.
“We only got to know about this new directive when we went to renew our licence; there had been no prior notice or engagement, so it came as a complete surprise to us,” one of the affected operators lamented.
FDA’s response
In response, an official of the Food Drugs Authority, Nora Terlabi, rejected claims by beverage producers that there had been no prior engagement on the directive, insisting that the regulator had followed due process and adequately informed stakeholders.
She explained that the FDA had issued a six-month notice to all affected companies and had directly communicated the decision to withdraw alcoholic energy drinks and small-volume alcoholic beverages from the market.
She stressed that the products in question had initially been registered for shorter periods—typically one year instead of the standard three—due to concerns about their composition, particularly the mixing of stimulants and alcohol, which were relatively new to the Ghanaian market.
She said that this shorter registration window had been intended to allow closer monitoring while safeguarding public health.
The FDA official maintained that the authority could not have introduced such a policy without notifying affected manufacturers.
“We actually wrote to each company, informing them that within six months these products had to be taken off the market, so it was unfortunate and a little disappointing to hear claims that there had been no communication,” she stated.
She added that companies had had the opportunity to respond if they had concerns about the timeline.
Background
Information gathered showed the FDA ordered the immediate withdrawal of alcoholic beverages blended with stimulants (alcoholic energy drinks) from the market, with a deadline of March 31, 2026.
This directive specifically targets drinks that mix alcohol with ingredients like caffeine, guarana, and ginseng, which are often packaged in sachets, PET bottles, or glass bottles.
The regulator cites growing scientific evidence linking alcoholic energy drinks and stimulant-mixed beverages to harmful health and behavioural outcomes, especially among young students.
Source:
www.graphic.com.gh
