By KENNEDY MUPESENI –
ZAMBIAN Breweries (ZB) Plc will commence production and packaging of Castle Lite locally to stimulate demand for inputs like maize and sorgum from farmers in the country.
ZB managing director Annabelle Degroot said from the second half of 2016, the company would start the production and packaging of Castle Lite locally to avoid depending on imports.
Ms Degroot said that packaging equipment had been procured to facilitate for the company’s move to local production and packaging of Castle Lite.
She said in a statement that this would significantly stimulate demand from local farmers for inputs such as maize, sorghum, barley and cassava, among others.
“Packaging equipment has already been ordered to enable the company move to local production and packaging of Castle Lite from the second half of this year, thereby avoiding dependence on imports of that brand from South Africa,” Ms Degroot said.
Ms Degroot also said the downward revision in excise duty had provided impetus for further investment which would allow the company to revisit some of the projects that were previously placed on hold.
In the 2016 national Budget, the Government reduced excise duty for clear beer to 40 per cent from 60 per cent imposed in 2015.
Ms Degroot recalled that in January 2015, the firm reduced the price of its clear beer by eight per cent to stimulate beer sales despite the 50 per cent increase in excise duty.
“Despite the challenging economic environment, the company has been able to maintain affordability and price stability and we appreciate the support from the Government in reinstating the 40 per cent excise duty with effect from January 1 this year,” Ms Degroot said.
She said while this came at a substantial cost to the company, it continued to work with the Government to demonstrate how sales volumes could grow in the beer industry.
This did not only stimulate local sourcing, investment and tax revenue but also a reduction in illicit and smuggled alcohol.
“Zambian Breweries understands that pricing is important to stimulating volume growth and will continue to practice price restraint as long as possible in the current inflationary environment,” she said.