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Senior Business Reporter
SHORTAGES of glass supply and the sprouting of counterfeit illicit spirit distillers have negatively affected African Distillers Limited (Afdis) operations as it could not match demand in the market, Chairman Matlhogonolo Valela said.

Covid-19 restrictions affected the glass supply chain from South Africa.

The core business of Afdis is the manufacture, distribution and marketing of branded wines, spirits and ciders for the Zimbabwean market and export.

A subsidiary of Delta Corporation after the beverages giant acquired additional shares last year, Afdis said the regional shortage of glass led to supply shortages with its Hunter’s brand being the worst effected.

To that end, the firm in its financials for the year ending 31 March said it was broadening its glass supply base.

In line with the Delta acquisition, Afdis’ financial year has changed from June 30 to March 31 to align with the group
“Volumes increases by 36 percent on the comparative twelve-month prior period mainly driven by Wines and Ready to Drink (RTD) segments which grew by 65 and 50 percent respectively.

“In the last quater of the year, growth in the RTD segment was severely curtailed by the regional shortages of glass which led to supply shortages with the Hunters brand being the worst affected.

“Efforts are underway to widen the glass supply base to minimise product shortages in the future,” said the chairman.

To hedge against growing competition from counterfeit and illicit spirits in the market and remain viable, the distiller said it will continue to focus on revenue and profitability growth opportunities through product innovation, market share protection, production efficiencies and cost containment.

The chairman added that capital projects to localise some imported products are at advanced stages of implementation.

The distiller said in inflation-adjusted terms, revenue was $8,7 billion and operating income was at $2,2 billion.

“In historical terms, revenue was $6,7 billion whilst operating income was $1,8 billion.

“Revenue growth in both inflation and historical terms was driven by firm demand which resulted in higher demand. Net cash on demand was $108,2 million.”