Wines and spirits maker, African Distillers has started exporting to Malawi while also working on venturing into Zambia and Mozambique. Afdis managing director Mr Cecil Gombera said the company is working towards exploiting new market opportunities and is also anticipating ciders growth ahead of market performance.
“We have so far exported into Malawi. We are closely watching the performance of the product in that market and planning the next shipments accordingly. We are now working on exports to Zambia and Mozambique,” said Mr Gombera.
He said the company sees moderate growth prospects in line with economic performance and anticipates ciders will continue to grow ahead of market performance.
“We are optimistic that we will deliver positive shareholder value through cost management and exploiting our balanced portfolio of brands to meet consumer needs and wants,” said Mr Gombera.
He said Afdis will generate adequate working capital from its trading to sustain operations throughout the planning period.
However, adequate facilities at reasonable costs have been secured with bankers to meet all additional funding that may become necessary from time to time.
He said strategies are in place to manage costs through improving factory efficiencies and eliminating all avoidable down-time in production.
“To ensure that we are efficient we have invested in a larger generator with capability to run the entire factory. While this ensures that we produce on schedule, it comes at a very high cost and we remain hopeful that the power situation will soon improve,” said Mr Gombera.
The wine manufacturer witnessed an 18 percent volume growth during the full year to June 2015 reflecting success in the localisation of ciders, which grew by 56 percent. The localisation of ciders is also expected to spearhead the business’ future volume growth strategy.