Counterfeit blitz propels Afdis revenue, quarterly performance

African Distillers Limited says the crackdown on smuggled and counterfeit alcoholic products has restored fair competition and supported a rebound in the company’s performance. According to Afdis, stepped-up border controls, large-scale raids, product seizures and tougher penalties on illegal traders have significantly reduced the presence of untaxed and substandard imports. Last year, the Government launched an intense, multi-agency crackdown on the illicit, counterfeit and unregistered alcohol industry, aimed at curbing health risks and illegal trade.

The operation, led by the Zimbabwe Republic Police (ZRP), resulted in significant arrests of manufacturers and distributors, particularly in Harare. The illegal products undercut compliant manufacturers, Afdis said in its third quarter trading update to December 31, 2025. Trade in counterfeit products created competition for registered operators, eroding formal sector revenues and exposing consumers to serious health risks.

For Afdis, the blitz against illicit traders has redirected consumers back to verified, locally manufactured brands, particularly in categories such as whiskies and spirits where counterfeiting was widespread. This has helped restore pricing power and market share for legitimate producers, while strengthening tax collection and improving consumption safety. Afdis cautioned that the intervention came after considerable damage had already been inflicted on the formal retail and manufacturing ecosystem.

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Prolonged exposure to illicit trade led to the closure or contraction of many formal retailers, job losses and a weakened tax base. AFDIS called for a more proactive policy approach, urging authorities to implement early-warning systems, predictive risk assessments and preventive controls at entry points to protect legitimate industries before losses escalate. Interventions by authorities have since reduced the impact of illegal trade and positively impacted performance in the alcoholic beverages industry.

“AFDIS delivered a robust performance as volume grew by 64 percent for the quarter and 51 percent for the nine months compared to the same period in the prior year. “This strong performance was driven by sustained demand across all categories, supported by the improved consumer spending and the clampdown on informal imports and illicit products,” said Afdis. In the period under review, Afdis delivered a strong third-quarter performance. Volumes surged 64 percent year-on-year, while revenue grew 62 percent to US$30 million, driven by festive-season demand and the positive impact of anti-illicit trade enforcement.

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