WINES and spirits manufacturer, African Distillers (Afdis) says total volumes for the quarter ended June 30, 2025, grew by 40 percent over the prior year, benefiting from strong demand, driven by increased consumer spending.
The company, in a trading update, said demand was largely driven by a record tobacco output, a good summer crop harvest and increased gold production and prices.
“The business also benefited from ongoing interventions by authorities that include the blitz against smuggled products and the banning of illicit ethanol-based cheap spirits,” reads part of the update.
There has been an influx of smuggled counterfeit goods which has been blamed largely on porous borders.
According to the Consumer Protection Commission (CPC), some of the illicit brews are being made in backyard industries, while some are being smuggled into the country through porous border posts, disillusioning customers who end up settling for cheaper but substandard products.
However, ongoing raids and blitz by authorities are intended to protect consumers from potentially harmful products and safeguard legitimate businesses from unfair competition.
According to the trading update, the Afdis Ready-to-Drink (RTD) category grew by 45 percent, with the recently introduced Hunters 660ml pack contributing positively to cider performance.
“The Spirit category increased by 36 percent, mainly driven by brown spirits, while wines grew by 25 percent, benefiting from good demand within the affordable segment,” reads part of the trading update.
The company’s turnover for the quarter under review at US$19 million was 51 percent above the prior year as a result of improved product availability and the strong volume performance.
“Management remains committed to sustained business growth, leveraging opportunities arising from the stable operating environment.
“A strong focus on profitability and margin enhancement through optimised brand and pack mix, route to market proficiencies and cost containment measures will continue to drive the business,” Afdis said.
Afdis, an associate company of Delta Beverages, has over the years invested in capacity as part of the broader strategy to improve the business. – Herald
Source: Thezimbabwemail
