RYAN CHIGOCHE
Zimbabwe Stock Exchange listed spirits and wine maker, African Distillers(Afdis), says it has moved to widen glass supply base.
Recently, Afdis was hit by shortages of cider bottles owing to limited supply from Consol, their South African supplier. Afdis has since roped in a Dubai based company to supply glass.
The company is also looking at other suppliers.
The development was confirmed by Afdis board chairman, Matlhogonolo Valela.
“Efforts are underway to widen the glass supply base to minimise product shortages in the future,” Valela said.
He added: “In the last quarter of the year growth of the ready to drink (RTG) segment was curtailed by the regional shortage of glass which led to supply shortages with the Hunters being the most affected.”
In its financial report for the 12 months to March 31, 2022, Afdis reported a profit of ZWL$722m from a loss of ZWL$704m.
Volumes increased by 36% driven by the wines and RTG segments which grew by 65% and 50% respectively.
Revenue grew to ZWL$8.7bn in the reviewed period from ZWL$4.7bn reported in the prior comparative period, driven by firm demand which resulted in higher volumes.
Meanwhile the company reported that the localised production of import brands is now imminent as the US$1m cider fermentation plant which took off last year is nearing completion.
“The business is investing in new capacity to improve efficiencies and reduce production costs while engaging relevant authorities to address compliance issues.
“Capital projects to localise some imported products are at an advanced stage of implementation,’’ Valela said.
The localisation of cider production is expected to cut the companies import bill and foreign currency requirements.
Through the fermentation plant apart from Hunters cider the company intends to produce products such as 4th Street which it is importing from South Africa.
Afdis is also worried that it will continue to face competition from counterfeit and illicit brands in the market.
Some of the brands which have flooded the market include counterfeits of imported brands which are being smuggled into the country from Mozambique.
Some of the bottled will be original brands but smuggled through various border posts
To remain viable the company is focused on business growth opportunities through product innovation , market share protection, production efficiencies and cost containment with the main goal of revenue and profitability growth.
