LIVINGSTONE MARUFU
Listed spirit and wines maker, African Distiller (AfDIS) has accelerated local production of its major products, a move which has resulted in the company saving about US$6m in the past five months.
AfDIS has been struggling to secure foreign currency to import wines and ciders as it could not get adequate money on the auction system.
“We are now at 95% local production in all our major products and this has saved us a total of US$1.2m monthly in the past five months,” MD Stanley Muchenje told Business Times.
He added: “AfDIS is mainly importing apple juice from South Africa with all other raw materials being procured locally.”
Muchenje also said the company has expanded its distribution channels and created demand through brand equity building to complement the localisation drive.
He said increased local production of wine and cider has lowered costs. This, Muchenje said, has also improved product availability which enabled the company to fully supply the market.
AfDIS will launch new products this year to accelerate localised production.
Muchenje said AfDIS recently launched a new range of Whitestone Gin, four flavours namely Classic, Pineapple, Strawberry and Blackcurrant.
He said the new range offers ginfluent consumers an amazing premium choice of flavours in a boldly embossed bottle packing.
Muchenje said this new range is positioned to compete favourably with any regional and international brands on quality and accessible pricing.
In its financial results for the 12 months to March 31, 2023, revenue for the company increased by 56% to ZWL$41bn while operating income increased by 15% to ZWL$5.4bn.
The top-line growth was driven by increased volumes.
Volume growth was strong at 18% above the prior year mainly driven by the Ready to drink segment, which grew by 23%.
Wines and spirits volumes grew by 16% and 14% respectively and the increase in volume was due to improved product availability, increased market penetration, and promotional activity.
The company said the acquisition of a major shareholder and partner, Distell Ltd by Heineken BV has been approved and implemented with effect from April 26, 2023.
The company continues to receive support from Distell in line with the existing franchise and technical arrangements.
AfDIS is investing US$1m in plant and equipment to ensure efficient production of high-quality wine and ciders.
