Zambian Breweries $18m upgrade completed

INSTALLATION of new US$18 million equipment at the Zambian Breweries plant in Lusaka has been completed and this is expected to end the beer shortage in the market as well as the price abuse consumers are experiencing.

Beer shortage in May this year hit the market in Lusaka, triggered by the shutdown of production owing to the installation of new equipment at the Zambian Breweries.

During the same month, consumers saw prices of beer increasing with an average price for a small size Mosi going at K10 with big at K15 while the big castle goes for K17 and a small one is K10.

Castle Light big bottle is about K18 and small quantity is K10.

The company has however announced in its Interim Results for the six-month period ended 30 June 2021 that it has completed the capacity expansion programme.

According to the Company

Secretary, Deborah Bwalya, this would end the beer shortage on the market.

“We are pleased to announce that we have completed the awaited capacity upgrade in both of our breweries (facilitated by an investment of US$18M) which will end the current beer shortage in the market and the price abuses our consumers/retailers are experiencing,” Ms Bwalya said.

Meanwhile, Ms Bwalya announced that the business remained liquid with a positive cash position of K144 million as at 30 June, 2021.

She indicated that total revenues grew 46 percent, largely benefiting from volume growth skewed towards high profit margin brands and customer driven demand.

The business, she stated, recorded a total turnaround in profit before tax, ending the half year 199 percent above prior year, owing to both strong top-line results as well as implementation of prudent and efficient cost management practices.