The Sunday News
WINES and spirit maker African Distillers (Afdis) Limited is targeting Mozambique, Malawi and Zambia as export markets in the next 12 months for its range of beverages following increased production at local units.
Afdis commissioned its state-of-the-art $5 million cider production and packaging line in Harare last month.
The new investment has resulted in the business’s installed annual production capacity improving from 34 million litres to 54 million litres.
The new packaging line produces 4 200 litres per hour an improvement from the old lines that were producing 1 300 litres per hour.
Speaking at the celebration of the successful commissioning of the new packaging line at Afdis’ Bulawayo plant last Friday, the company’s managing director, Mr Cecil Gombera, said although the new plant was designed for a new range of products, it would allow production of existing products at competitive and efficient levels.
“Afdis is proud to be making this investment at this time, particularly when many companies in the country are downsizing or have closed down. It is a clear sign of the confidence that the company has in the business prospects of and the future of Zimbabwe.
“It is also a clear indication of the company’s commitment to the industry and its willingness to invest in the business for the long term benefits of the country,” Mr Gombera said.
He said as the business focuses on expansion, the new investment would bring with it competitive advantage for the company to explore the regional market.
“We are looking at exploring the export market in the next 12 months and we are targeting the north of Mozambique, Malawi and Zambia and work has already started in as far as marketing of our products in these countries,” Mr Gombera said.
Before commissioning the new line, Afdis was importing its ciders from South Africa.
Mr Gombera, however, said the company would continue to export glass after the local manufacturer halted operations.
“It’s a pity that Zimglass is no longer manufacturing glass at the moment but we are in direct contact with our South African suppliers. We are also considering looking into East Africa and Zambia.
“In fact the issue of glass will not inhibit us in as far as making the product available as we source it from huge producers and we are landing it (glass) at a reasonable price,” he said.
The country’s sole flint glass producer, Zimglass voluntarily applied for judicial management in June this year citing lack of capital, debt and mismanagement.
Its liabilities worth $32 million far exceeded its $20,6 million assets.
The secured creditors, AfrAsia Zimbabwe, ZB Bank, Agribank and FBC Bank had tentatively agreed to swap debt for land, pending a meeting where they would vote to either liquidate or save the company since the shareholder was unable to inject fresh capital into the insolvent firm.
In its first quarter financial results Afdis witnessed growth in volumes and profitability. It is set to announce its half year results in January next year.
