Zambian Breweries Plc. Clarifies Maltings Investment
30 October 2013
LUSAKA, October 29, 2013: Zambian Breweries Plc. has clarified that, whilst it is reviewing its planned US $32.6 million investment in a Maltings Plant as part of a review of its entire business operations, no decision to halt the project has been taken. The company has said that the proposed increase in excise tax on clear beer from 40% to 60% in the 2014 National Budget will have an impact on demand resulting from an upward price adjustment. As a normal business practise, this expectation has prompted Zambian Breweries to take a review of its operations and investment plans.
Zambian Breweries Plc. Corporate Affairs Director, Mr. Luke Njovu, said:
“The anticipated price increase on our clear beer will result in significantly lower volumes and will also make our product relatively more expensive when compared to similar products in the sub-region. From historical experience, this will result in increased smuggling of beer products from neighbouring countries. We have been in discussion with the government on the issue and we are pleased with their support and the conducive environment that they have created in support of local manufacturing.”
Zambian Breweries Plc. is a subsidiary of SABMiller Plc., which is listed on the London Stock Exchange. Apart from investing in the planned Malting Plant at the Lusaka South Multi-Facility Economic Zone, (MFEZ), SABMiller Plc., is also investing US $26m in a new opaque beer brewery in Lusaka under National Breweries Plc.
Released by the Corporate Affairs Office Lusaka
For further details, please contact:
Corporate Affairs Manager
Mobile: +260 96 1 776154
Office: +260 21 1 246572
This is a SABMiller subsidiary news release, it was first published in its local market on October 29th, 2013.