BUSINESS WRITER
Nestlé Zimbabwe has grown cereals exports by 20% after the commissioning of an additional line, an executive has said.
In November, the food and beverages concern launched a cereals manufacturing line which delivered a 30% incremental volume output servicing the domestic and export markets.
“Our exports on average since commissioning of the additional line have grown from an average of US$500,000 to US$700,000 per month for cereals,” said Eunice Ganyawu-Magwali, Nestlé MD for Zimbabwe, Zambia and Malawi.
“Our aim is to ensure progressive growth of exports, however with a view of generating foreign currency required to sustain our business operations and contributing positively to easing the pressure on the Forex Auction System without depriving the local market.
The push to generate forex comes as the firm has reduced its import bill to below 20% from above 85% through value chain development under the import substitution programme.
In November, the firm launched two new products, Nestlé Cerevita instant sour porridge and Nestlé Cremora with milk.
Ganyawu-Magwali said the response has largely been “positive and encouraging” and will form the foundations which will determine rating trends into the future.
“We are also not ignoring the negative reviews and will continue to work to differentiate the white noise and meaningful insights from the negative reviews so that we take appropriate remedies towards delivering on the consumer needs on a deeper level. Listening to all consumer feedback will give us more insights around both products while remaining sensitive that there is a large base of silent majority consumers who we will need to tap into as the products settle in the market so that we can incorporate all facets in our marketing strategy,” she said.
The products, Ganyawu-Magwali said were developed to deliver the objective of making our portfolio stronger at addressing local taste preferences.
This saw Nestle Zimbabwe focused on working to optimise its manufacturing platforms in December and January as the two products were new and the manufacturing processes different from existing portfolio.
“…we are looking at availing above 500mt of NESTLÉ CREMORA with milk and above 150mt of NESTLÉ CEREVITA Instant sour porridge and taking a strong view of servicing the domestic market demand first before considering export markets,” Ganyawu-Magwali said.
