Afdis focuses on growing home-produced brands

Published: 06 November 2013

African Distillers Limited MD Cecil Gombera told the AGM that the company recorded a 6% growth in volumes in the first quarter (July- September 2013) of the financial year as the group focuses on growing home-produced brands of some ready-to-drink alcoholic beverages and wines, zfn reported.

Gombera said the first quarter growth in volumes of 6% and turnover of 9% was largely led by locally produced products.

He said the business is on course to grow volumes.

"The business is on course to grow volumes by 16% and turnover by 20%," he said.

Gombera noted that they continue to see growth on the brown spirits which is in excess of 30%. He added that Viceroy and Chateau are performing very well and are in line with the group's targets.

On the whisky side, he indicated that they are very happy with the Gold Blend brand, "which is doing very well growing again in excess of 30%."

"We're putting a lot of effort behind our spirits. However, on the white spirits we see a lot of opportunity and we will be addressing the issues there particularly to do with the bottom end of the market where entrance of competitors from cheaper products has been noted," added Gombera.

The ready-to-drink business has been dominated by ciders, which the company has been importing and will continue to import up until the end of this financial year when it commence local production round about June 2014.

Gombera indicated that they are currently putting together the equipment and all the feasibility studies have been done.

Furthermore, he said they are very confident about the growth of ciders adding that in the growth product portfolio is Sting and Espirit.

He said the group is determined to dominate the ready-to-drink alcoholic beverages sector and they're confident of the strategies that they've put in place.

Gombera also mentioned that under the wine business the long time objective is to achieve a million litres annually.

He noted that the business, like all other businesses, faces the same challenges of disposable income and they're responding favourably by introducing products that appeal to the market.

"We're aiming to dominate every segment that we trade in. Our aim is to achieve 85% market share of all the segments that we trade in," he said.

- zfn

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