LIVINGSTONE MARUFU
Zimbabwe Stock Exchange-listed spirits and wines maker, African Distillers (AfDIS), has expanded its supplier base for cider bottles after engaging a United Arab Emirates (UAE) firm as part of efforts to cushion itself from future shortages, Business Times can report.
Consol of South Africa has been AFDIS’ sole supplier of cider bottles over the years.
But, AfDIS managing director, Stanley Muchenje, this week revealed that the company has now roped in an unnamed UAE company to supply glass.
Muchenje said AfDIS was also looking at other suppliers.
“We are getting them (cider bottles) from South Africa but we have also expanded to the UAE to diversify and limit the risk of supply chain disruptions.
“We are getting 60% from South Africa and 40% from the UAE and with that plan, we are covered,” Muchenje said.
The supply diversification comes after AfDIS suffered severe bottle shortages early this year.
It also comes after AfDIS localised cider production to cut the company’s import bill and foreign currency requirements.
AfDIS said it would save about US$6m per year following the commissioning of a cider fermentation plant three months ago.
Muchenje said the plant was operating at full capacity utilisation.
In a trading update for the quarter to June 30, 2022, revenue for AfDIS grew 57% compared to the same period last year.
The company secretary, Lydiah Mutamuko, attributed the growth to improved demand.
The company reported an 18% revenue growth in the period under review.
Wine volumes grew by 30% while volumes for the spirits and ready to drink grew 23 and 12% respectively.
AfDIS, which has been selling imported wines and spirits, is now manufacturing the bulk of the products it markets and currently operates six depots located in Bulawayo, Harare, Kwekwe, Masvingo, Mutare and Victoria Falls.
