KBL shuts down operations

Alcohol ban bleeds company Suppliers will not be paid- KBL Hundreds of workers to go home indefinitely

Kto trading restrictions imposed on the alcohol industry by the COVID- 19 Task Force Team. The losses are equivalent to 100 days of sales over the last five months when the prohibition was in force. “In the last 5 months, we’ve lost more than 100 days of sales, which equates to close to 70 percent in revenue losses. In addition to our revenue losses and the previously reported P40 million industry losses by the Botswana Alcohol Industry Association ( BAIA), we have another batch of expiries to evaluate the total financial impact,” said Madisa back then.

This week, Madisa could not immediately disclose the amount that they have lost since the many alcohol bans that government has imposed in a desperate bid to stop the spread of COVID- 19. “As you know, we are part of Sechaba which is currently on a closed period,” he told Botswana Guardian on Wednesday night. Sechaba is a listed brewing group. It is expected to release its 2020 financial results in the next few months. galagadi Breweries Limited has been forced to halt production at its operations as a result of the latest alcohol ban, effectively sending hundreds of workers home starting next week Monday.

The ban, which was imposed by government on the 4th of January as one way of controlling the spread of COVID- 19, has adversely affected KBL’s operations and profitability, same as the prevous ones meted on the brewer last year. At the same time, KBL, which is a unit of Sechaba Holdings Limited, has also been forced to propose a two to three weeks unpaid leave for its employees. However, this move is being opposed by the Botswana Transport and General Worker’s Unions ( BTGWU).

KBL through its Head of Corporate Affairs, Masegonyana Madisa this week said it has made the ‘ very difficult’ decision to completely suspend its operations from 25th January 2021. This follows an initial phased suspension of certain KBL operations carried out in the weeks following the announcement of the ban. “From 25th January 2021, only a minimal number of critical roles will continue to be staffed, and all other operational activity will stop. As per the Government Gazette,

the alcohol ban is expected to end on 31st January 2021; however, should the ban be extended past

The The restaurant restaurant which which is is located located at at Kudu service service station station in in the the

this date, suspension of operations will continue. The company has also met with suppliers earlier this week to align with them that due to the current situation, KBL will suspend payments as of 6th February 2021, up for review pending the outcome of the current alcohol ban,” he said in a statement adding that KBL understands the impact this will have on the overall supply chain and those whose livelihoods depend on the beer industry and requests their understanding. Meanwhile, KBL service will restaurants also be dealing franchise a looming in its

service restaurants franchise in its labour issue with Broadhurst Broadhurst union representatives and Fairgrounds Fairgrounds who differ Shell Shell

on how many days or weeks employees shall go home unpaid. BTGWU Secretary General Thapelo Molefe told Botswana are are brands brands Guardian from from Simbisa Simbisa that Brands Brands following Limited. Limited.

service service restaurants restaurants franchise franchise in in its its their initial meeting owns, Broadhurst on operates the 11th and of franchises Fairgrounds January 2021, Intellectual Shell

owns, operates and franchises Intellectual

followed by another early this week, the union

Quick Quick Service Service Restaurant Restaurant (“(“QSR”) QSR”) brands. brands.

has made it clear that it can only agree to 5 days

are brands from Simbisa Brands Limited. unpaid leave against with with Simbisa Simbisa the employer’s to to bring bring the the proposal. Chicken Chicken Inn He Inn and and

owns, operates and franchises Intellectual owns, operates and franchises Intellectual

said as the union they have an understanding that

Quick Service Restaurant (“QSR”) brands. the employees have Quick to go Service 50/ 50 Restaurant with the (“employer QSR”) brands. during trying Chicken times. Chicken Inn Inn and and Pizza Pizza Inn Inn at at Fairgrounds Fairgrounds

with Simbisa to bring the Chicken Inn last last week, week, Assistant Assistant Minister Minister of of Trade Trade and and

with Simbisa to bring the Chicken Inn

“In as much Industry, as we understand Honourable Advocate how dire Sadique the situation is, the employer should also acknowledge

not only Chicken service Inn and customers Pizza Inn cars at Fairgrounds but also our commitments provide Chicken last as week, for employees. Inn the Assistant and community Pizza The Minister Inn at proposal within Fairgrounds of Trade which and

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by the management is just too much a burden and the employees not will only be service left with customers nothing. cars but We also

provide for the community within which

are meeting again tomorrow ( Thursday) and are hopeful that the management would understand. We are still feeling the effects of the 10 percent salary cut which is currently a matter before court. The matter is to be heard before the Francistown Industrial court in March this year. He said even though the management has asked for the withdrawal of the case the union will only do so if KBL gives convincing reasons to do so and promises that they would return to the negotiating table regarding the salary cuts,” explained Molefe.

Madisa in a statement said while the company wishes to express its gratitude to the Government of Botswana for the progressive assistance the alcohol industry has received over the years, it is however regrettable that this latest total ban on alcohol sales has resulted in the suspension of KBL’s operations, which will remain in place for as long as the alcohol ban persists. Due to the impact of the alcohol ban early last year, KBL implemented a number of job retention initiatives to avoid retrenchment, one of them being a temporary 10 percent salary reduction at all levels. Government reintroduced a ban on alcohol mid last year, after a surge in cases of COVID- 19 cases, the third such move since the first case of the virus was detected locally on March 30th 2020.

Sechaba, the parent company to KBL has suffered financial losses since last year when government started banning alcohol as part of systematic efforts to curb the spread of COVID- 19. The local media reported last year that, KBL lost approximately P568 million, thanks

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