AfDIS completes US$1m cider plant

AfDIS completes US$1m cider plant
Published: 02 June 2022
Listed spirit and winemaker, African Distillers (AfDIS), has completed the construction of its US$1m cider

fermentation plant as it quickens pace to produce ciders locally, Business Times reported.

AfDIS managing director, Stanley Muchenje, confirmed the development saying the plant was completed way ahead of schedule.

"We have completed the setting up of a cider fermentation plant with the processes having started last week. We have had some challenges on import cider yeast licence but we have now resolved the problem and we are ready to go," Muchenje said.

He said the US$1m is mainly for hunters dry and hunters gold but other ciders can also be processed in that plant to cut costs.

Muchenje said more jobs will be created in the process.

In its financial report for the 12 months to March 31, 2022, AfDIS reported a profit of ZWL$722m from a loss of ZWL$704m.

Volumes increased by 36% driven by the wines Ready To Drink segments which grew by 65% and 50% respectively.

Revenue grew to ZWL$8.7bn in the reviewed period from ZWL$4.7bn reported in the prior comparative period, driven by firm demand which resulted in higher volumes.

AfDIS is investing in new capacity to improve efficiencies and reduce production costs while engaging relevant authorities to address compliance issues.

Capital projects to localisesome imported products are at an advanced stage of implementation.

The localisation of cider production is expected to cut the companies import bill and foreign currency requirements.

However, AfDIS is worried that it will continue to face competition from counterfeit and illicit brands in the market.

Some of the brands which have flooded the market include counterfeits of imported brands which are being smuggled into the country from Mozambique.

To remain viable the company is focused on business growth opportunities through product innovation, market share protection , production efficiencies and cost containment with the main goal of revenue and profitability growth. Muchenje said AfDIS management will continue to explore growth opportunities and expand market share as well as improve production efficiencies and cost containment.

- Business Times
Tags: AfDIS,


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