Maravi

Zambian Breweries slashes prices

Zambian Breweries slashes prices
By Chiwoyu Sinyangwe
Thu 22 Apr. 2010, 04:40 CAT

ZAMBIAN Breweries has announced a K500 reduction on regular glass bottle, which include Mosi, Castle and Carling Black Label.

With the reduction which took effect on March 2010, the recommended retail price (RRP) for a 375ml regular glass bottle of Mosi, Castle and Carling Black Label is now K4,000 from K4,500, with further price reductions being extended to imported brands.

Zambian Breweries marketing director Patrick Lead said the reversal from the increase announced last October followed recent reduction in excise duty from 60 per cent to 40 per cent in malt-based beer and from 30 per cent to 20 per cent for Eagle Lager.

“Zambian Breweries has already reduced these prices and we are hoping that distributors and retailers will do the same in the market once they have cleared the old stocks,” Lead said.

“It is expected that the full impact of the price reduction will take effect in a couple of weeks when old stocks purchased at old prices are exhausted.

The reduction was made on malt- based Lager including Ale and Stout whose excise reduction is from 60 per cent to 40 per cent, and sorghum-based Lager including Ale and Stout whose reduction was from 30 per cent to 20 per cent.”

Lead who hailed the reduction, which came though a Statutory Instrument issued by Ministry of Finance on March 26, 2010, said the move would bring local taxation in line with regional trends and achieve competitiveness of local beverages.

He said the move would also clamp down the smuggling of beer into the country and increase revenue to Treasury.

“Zambian Breweries Plc growth expectations have been enhanced following the recent reduction in excise duty from 60 per cent to 40 per cent in malt-based beer and from 30 per cent to 20 per cent for Eagle Lager,” said Lead.

Labels: PATRICK LEAD, ZAMBIAN BREWERIES

posted by MrK @ 3:11 PM