Zambian Breweries floods market with 18.9 million bottles of beer
By Gift Chanda
Thu 27 Dec. 2012, 14:00 CAT
ZAMBIAN Breweries Plc has flooded the market with 18.9 million bottles of Mosi and Castle larger to avert shortages this festive season.
The brewer of Mosi and Castle lager said it had so far offloaded over 1.3 million bottles (5,000 hectoliters) of clear beer from the Ndola plant and 17.6 million bottles (66,000 hl) from its Lusaka plant into the market to prevent shortages.
"We have not received any complaints in the last week and so we believe we are actually satisfying the market," said Zambian Breweries corporate affairs manager Yuyo Kambikambi in an interview yesterday.
"5000 hectoliters have been offloaded so far from the Ndola plant and the Lusaka plant has been offloading as per usual full capacity and for December alone 66,000 hl has been offloaded. So it has been a huge success because we are not getting any more complaints about shortages."
The SABMiller subsidiary, in November, began production at its new US $90 million (K450 billion) brewery plant in Ndola to romp up output following years of continued shortages especially during the festive season when demand is at its peak.
Beer consumption in the country increased 15 per cent in 2010 and was up 31 per cent last year mainly due to an increase in income levels and a rapid growing middle class.
Zambian Breweries, which accounts for about 90 per cent of beer output in the country, said it was steadily well on its way to operating at full capacity at the new Ndola plant.
The new brewery in Ndola will have an annual production capacity of 100 million litres, or 267 million bottles, a year.
"Therefore there is no need for people to panic buy because we are now well and able to meet the demand for our products with the new 1 million hectolitre plant which will officially be opened next year," Kambikambi added.
SABMiller plans to spend up to US $500 million a year for the next three to five years on building and upgrading breweries in Africa to ramp up beer production and meet growing demand from the continent's new middle classes.
Labels: BEER, ZAMBIAN BREWERIES
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Zambian Breweries irked by ‘tax evasion’ report
Tuesday, November 30, 2010, 17:03
SABMiller/Zambian Breweries’ response to ActionAid’s report
SABMiller the parent company of Zambian Breweries, strongly rejects the allegations made by ActionAid in its recent report on the group’s tax affairs. SABMiller does not engage in aggressive tax planning in any part of its operations, and the report includes a number of flawed and inaccurate assumptions.
Compliance with tax laws underpins all of our corporate governance practices. We actively engage with revenue authorities and we are open and transparent with our affairs.
SABMiller is a major direct investor, employer and tax payer in Africa, and our economic contribution to the continent is substantial. In 2009/10 we invested more than US$500 million in Africa and further expanded our operations with new breweries or acquisitions in Tanzania, Mozambique, Nigeria, Ghana, Southern Sudan, Uganda and Ethiopia.
SABMiller companies pay a significant level of tax. In the year ended 31 March 2010, the group reported US$2,929 million in pre-tax profit and group revenue of US$26,350 million. During the same period our total tax contribution remitted to governments, including corporate tax, excise tax, VAT and employee taxes, was just under US$7,000 million.
Seven times that paid to shareholders. This amount is split between developed countries (23%) and developing countries (77%). In both Colombia and South Africa, we contributed over US$1,000 million in taxation to each respective government’s revenues.
In the past ActionAid has made some constructive contributions to the debate on tax. SABMiller supports ActionAid’s recommendations regarding improved management of taxation in developing countries, including greater investment in the capability of local tax authorities and that business should be taxed fairly.
ActionAid’s ‘Accounting for Poverty’ report states: “Governments should aim to strike an optimal balance between raising revenue and attracting investment that benefits poor people when setting corporate tax rates and offering tax incentives.” SABMiller agrees, but we do not believe that they undertook this particular piece of research in the same spirit.
SABMiller is committed to supporting economic growth, social development and environmental protection in all of the countries in which we operate. Indeed, it is only by doing so that we will succeed as abusiness now and in the future.
Chibamba Kanyama – Corporate Affairs Director (Zambian Breweries Plc)
Labels: ACTIONAID, SABMILLER, TAX EVASION, ZAMBIAN BREWERIES
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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
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Zambian Breweries blames confusion over merger on employees
By Chiwoyu Sinyangwe and Henry Sinyangwe
Sun 11 Apr. 2010, 04:01 CAT
ZAMBIA Breweries Plc has blamed employees who refused to consent to transfer of their employment contracts for the current controversy that has surrounded its merger programme.
About 225 employees out of 305 who were affected in the consolidation process consented to having their contracts transferred into Zambian Breweries Plc.
Zambian Breweries Group this month announced that it had amalgamated Zambian Breweries Plc, Zambia Bottlers Limited, Copperbelt Bottling Company and Northern Breweries into one company - Zambian Breweries Plc.
But some of the affected workers at Zambia Bottlers demanded that they be paid their terminal benefits following the decision to incorporate the company into Zambian Breweries.
The workers stated that management was forcing employees to sign letters of agreement, which they did not even understand.
But Zambian Breweries Plc director for corporate affairs Chibamba Kanyama said all employees from the three subsidiary companies had been guaranteed of their jobs and no employee was to have their conditions of service negatively affected.
Kanyama said all employees were individually given an opportunity to consent to have their contracts of employment transferred from the affected companies into Zambian Breweries Plc.
“They all employees received letters Consent Letters to Transfer Employee Contract well in advance so that they could read and be able to follow-up with management and clarify areas on which they were not clear to help them make informed decisions,” Kanyama said in response to a press query. “In terms of employee/employer relations management sought both guidance and approval from the Ministry of Labour and Social Security who subsequently sent labour officers to witness the consent procedure. By the consolidation date, a total of 225 employees out of 305 who were affected in the consolidation process consented to having their contracts transferred into Zambian Breweries plc.”
Kanyama stressed that by merging the three companies under the Zambian Breweries Plc, the employment status for all employees remained unchanged.
He blamed “few employees who refused to consent to the transfer of their employment contracts” for the controversy that has rocked the transfer process.
“In short, what this consolidation means in layman terms and to the workers is that the name of the employer has changed while everything else remains the same,” he said. “It is in this respect…management is surprised to learn that the process of changing names has generated unwarranted reactions and publicity by those who did not agree with the consolidation of the companies. We believe this explanation will bring to rest the negative sentiments peddled by the few employees who refused to consent to the transfer of their employment contracts about the nature of this consolidation and resultant effect to employees.”
Zambian Breweries Plc announced the merger which was expected to bring about maximisation of synergies and added value for Zambian Breweries shareholders.
Currently these subsidiaries solely rely on Zambian Breweries for shared accounting processes, VAT (Value Added Tax) registration, supplier negotiations and invoicing.
Labels: ZAMBIAN BREWERIES
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Mutati urges ZB to embark on cultivation of raw materials
By Kabanda Chulu
Tue 27 Oct. 2009, 04:00 CAT
COMMERCE minister Felix Mutati has urged Zambian Breweries Plc to seriously embark on cultivation of raw materials such as barley and malt in order to be self reliant.
And Zambian Breweries managing director Pearson Gowero has said the production of Mosi Gold beer would give the company an opportunity to compete with international premium products both in terms of image and quality.
Commenting on Zambian Breweries’ importation of crystal malt and perle hops from Germany that is used in producing Mosi Gold, Mutati said government would continue creating policies that would enhance economic development.
“Stability in the economy is good for everyone and we shall continue making good policies but we urge Zambian Breweries to seriously consider growing some raw materials locally to become self reliant and also to add value and creation of jobs,” said Mutati.
And launching the Mosi Gold premium larger, Gowero said the innovation had marked another milestone in the development of Zambian Breweries.
He said the company would continue offering its valued customers a variety of exciting quality products.
“Mosi Gold has been created to continue building on Mosi Larger, which is Zambian Breweries Group’s iconic and flagship brand. Whilst Mosi Larger is growing strongly on the market, rewarding the loyalists and attracting new users, we feel the world deserves to share in what we already know since Mosi is the greatest tasting beer and a truly Zambian experience hence the introduction of Mosi Gold export,” Gowero said.
“As the country’s first beer in a green bottle, Mosi Gold provides huge opportunities for export and we are confident that with Mosi Gold we can compete with international premium products in terms of image and quality.”
Gowero said strict international brewing standards and only the best ingredients were used to produce Mosi Gold and these included specially imported crystal malt and delicate perle hops from Germany to impart the brilliant aroma, flavour and golden colour that define the beer.
Labels: FELIX MUTATI, GRAINS, ZAMBIAN BREWERIES
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Beer Festival
Written by Mwala Kalaluka
Tuesday, October 06, 2009 7:37:16 AM
THE curtains have closed on the first-ever Beer Festival organised by Zambian Breweries at Lusaka’s Barclays Sports Complex last week. Depending on what you went there for, the country’s maiden Beer Fest could only be analysed in a multi-barreled manner.
A dominating marquee had been imposed on the lush green at Barclays Sports Complex and the wire-fence that usually distinguishes the spectators from the soccer players was removed to pave way for the pitching of about six tents in view of the Beer Fest, which was spread across a period of three days.
The Sports Complex was parked with assorted motor vehicles inside and outside on Friday night when a corporate evening curtain-raised Zambia’s nascent Beer Fest.
Nicky Shabolyo of Zambian Breweries’ public relations wing, explained the corporate evening to the Sunday Post.
“This is mainly a fundraising event and the proceedings from here are going to be given to charity; to the Diplomats’ Wives Association,” Shabolyo says. “The people have bought tables and they are buying the beer.”
A quick peek at the people trooping into the white marquee and those loitering on the adjacent green with all types of alcoholic beverages in their hands, showed that the Caucasians were dominating the tally.
As a band blew trombones and saxophones and strummed guitars on a well-lit stage at the heart of the marquee, Shabolyo told me as follows: “Feel free, just grab a plate and get some food.”
Indeed at almost every point of the marquee’s corners was a buffet table and ‘very friendly’ servers were on hand to dish out the alimentary craves to the imbibers.
Inside the marquee, tables dressed in white cloths were strewn all over and families, friends and business partners ignored the abnormally cool night breeze to indulge in the intricacies of the Beer Fest.
Shabolyo said the Friday event apart from being a fundraising one, was meant to test the ground in terms of the country’s holding of a Beer Fest.
“We could not just go straight into the Beer Festival. We had to analyse the situation because this is the first time we are holding this,” he says.
A further review of the place showed that ample preparations were put in place to cater for the aftermath effects of people gathering in one place just to imbibe and interact.
Several portable toilets were straddling the marquee’s two sides and the traffic went on the upswing as the nights grew older.
Later, the master of ceremony announced some of the winners in an auction for some outing to a few selected tourist resorts like Chiawa, among others.
This was part of the fundraising aspect.
Another part of the Beer Fest that came out prominently was the camaraderie among those that attended the event on all the three days.
The next day, members of the public, who agreed to part away with their K50,000, made way to the Beer Festival to mark the commencement of the main event.
As opposed to the previous night, most of the festival attendees were spread on the green and a beer ticket later, one would be enjoying their beer among friends.
However, the selling of beer tickets and the Beer Fest itself were closed to people that were below the age of 18.
Yet during the Friday night, a couple of drunken young boys who walked to Barclays Sports Complex from an unknown place had a tough time trying to convince the judges as to why they should be allowed inside.
But the security officers put their foot down and the two ‘under-ages’ failed to get inside.
According to Zambian Breweries, the Beer Fest was supposed to avail Zambians an opportunity to sample the company’s products in an organised manner and about 10 types of beers were on display for the take at a reduced price.
Coincidentally, in countries like Germany, where such traditions hold sway, the month of October is the moment of positive reckoning for beer lovers.
While the Zambian Beer Fest came a few days before the month of October, it remains to be seen if it would reach the stature that its European kin has attained within a long-term traditional couch.
As usual, new things come with new feelings and Zambia’s first Beer Fest was no exception. Some people felt that the entry fee was too high, although noting that the much-sought draught beer was cheaper at K7,500 per mug.
Even though beer drinking has become a major component of the Zambian lifestyle, those with the other views calculated how many lagers one could buy from K50,000.
Anyway, these sentiments are part of the post-event analysis on the part of the organisers, as the country braces itself for the next Beer Fest and as lessons are drawn from the European October beer frenzy.
Labels: BEER, ZAMBIAN BREWERIES
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Shortage of Castle Lager hits Lusaka
Written by Kabanda Chulu
Sunday, August 16, 2009 3:53:03 PM
SEVERAL outlets in Lusaka have been affected by a shortage of Castle Lager beer due to inadequate supply by Zambian Breweries, the producers of the commodity.
And Zambian Breweries Group marketing director Patrick Lead yesterday confirmed the shortages and attributed it to a break of production at the Lusaka plant. However, traders and bar operators who stormed Post Newspapers offices in Lusaka yesterday said the Brewery was not being sincere.
“We have been experiencing this problem since last week and we are aware that it is not only here in Lusaka but also in other towns around the country where there are beer shortages as well, so the company should not say it is just a production breakdown but we think there is more behind these shortages because they have been persistent,” said the traders and bar operators.
“For example, we have reports from colleagues around Lusaka that if you do not get to the depots by morning, you will not find anything and this is a situation happening everywhere, hence putting us out of business.”
But Lead said the shortage was as a result of a production break at the Lusaka plant over the weekend.
“We have sufficient stocks in all our depots around the country. The issue about Lusaka where you observed shortages is that we do not hold too many stocks as we can supply at any time. We, however, keep enough stocks in places with logistical challenges and these are off the line of rail depots such as Mansa, Mongu, Kasama and Chipata,” Lead said. “The shortages were therefore limited to areas around Lusaka but production has resumed and the supply situation is now back to normal also the reduction in excise duty which was effected by government earlier this year has made our beer more competitive since we are now the supplier of choice for beer throughout Zambia.”
He said Zambian Breweries Group had planned for significant growth for all its brands.
“A new beer packaging line has been added to Lusaka and enough bottles have been ordered and delivered. A cellars block will be commissioned soon thus providing our Lusaka plant with even more flexibility to supply the market with your favourite beer,î said Lead.
“Castle is our most popular brand. We would like to apologise to our consumers who may have experienced difficulties in securing supplies over the weekend and assure them that supplies are back to normal.”
Labels: BEER, LUSAKA, ZAMBIAN BREWERIES
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Zambian Breweries welcomes LCC’s move on unlicensed beer outlets
Written by Nchima Nchito JR and Masuzyo Chakwe
Wednesday, February 25, 2009 3:23:25 AM
ZAMBIAN Breweries Group (ZBG) has welcomed the action by Lusaka City Council to crack down on unlicensed beer outlets and those selling alcoholic beverages to underage patrons.
And Lusaka City Council (LCC) public relations officer Henry Kapata yesterday disclosed that 32 of the 53 youths that were detained over the weekend for underage drinking are below 16.
In a statement, ZBG corporate affairs manager Wendy Muche stated that her company felt encouraged that law enforcement agencies were now responding positively to calls that her company has been making in the past.
“As a responsible corporate citizen, Zambian Breweries initiated a process of drafting a National Alcohol Policy which covers concerns about under-age drinking, alcohol abuse and the issue of trading in alcohol by unlicensed outlets, among others,” she stated.
She further stated that as a responsible corporate citizen, Zambian Breweries was concerned with the indiscriminate sale of alcohol in sachets and in places that were not licensed.
Muche called upon local authorities countrywide to intensify their efforts in clamping down on the sale of alcohol on unlicensed premises.
And in an interview, Kapata said most of the youths that were arrested over the weekend were between the ages of 13 and 16.
He said the rest were aged 23 and above and were charged for interfering with the State Police.
"These are the ones that were interfering with the police when they were trying to pick up the youths," he said.
Kapata further said the 17 bar owners would be taken to court and the council was preparing recommendations to revoke their licences.
LCC over the weekend detained some youths from Chilenje's Lazymen's area and the Avondale shopping complex for drinking while allegedly being underage. The council also detained some bar owners for selling beer to minors and operating without licenses.
Labels: BEER, LCC, ZAMBIAN BREWERIES
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Bottle shortage hits Zambian Breweries
By Fridah Zinyama
Friday August 22, 2008 [04:00]
ZAMBIAN Breweries has been hit by a shortage of bottles. In an interview, company corporate affairs director Wendy Muche said the shortage of bottles is affecting the company’s production capacity. Muche said Zambian Breweries currently had a challenge to find an adequate supply of bottles.
“Our biggest challenge at the moment has been bottles,” she said. “We have therefore been packing beer as and when we get bottles.”
Muche said the company has been buying bottles from South Africa. “But we would rather have the local people sell their bottles to us instead of always importing bottles from South Africa,” she said.
Muche appealed to the public to sell their beer bottles at the containers that are based in their areas. “We are buying those bottles and people should know that they can earn some money from the sell of all the bottles that they are keeping in the homes,” she said.
Earlier in the month, some parts of the Copperbelt and Lusaka provinces had been hit by a shortage of beverages. Muche said the shortage of soft drinks on the market would soon be normalised.
Most shops in Lusaka have run out of the soft drinks with some traders taking advantage and hiking the price of the drinks by between K100 to K200.
Some of the local bars also ran out of Castle Lager.
Retailers have attributed the shortage of the beverages to non -supply of the commodity from the wholesalers while the suppliers have also attributed the shortage to low supply from Zambian Breweries.
However, Muche said the company would soon embark on full production of soft drinks to meet the local demand.
Labels: ZAMBIAN BREWERIES
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Rising fuel prices call for strict controls, says Sekele
By Joan Chirwa
Thursday May 15, 2008 [04:00]
RISING fuel prices and agricultural commodities call for strict controls in business, Zambian Breweries Plc Company secretary Ezekiel Sekele has stated. And Zambian Breweries has stated that it failed to fully exploit market opportunities last year owing to a regional shortage of glass bottles.
In a statement to announce the company’s performance during the financial year ended March 31, 2008, Sekele stated that large proportions of the group’s costs were driven by agricultural commodity and fuel prices.
“This will simply re-emphasise the need for strict cost controls to be in place at all times,” Sekele stated. “The Zambian economy is however expected to continue enjoying the benefits of low inflation, low interest rates, a strong currency and robust GDP growth, and there is every reason to believe that these will translate into continued growth in demand for the group’s products.”
And Sekele stated that the group experienced strong underlying demand for most of its products during the just-ended financial year, but failed to exploit the market resulting from a regional shortage of glass bottles.
“A region-wide shortage of glass bottles prevented the group from fully exploiting these market opportunities. Nevertheless, volumes of both beer and sparkling beverages did grow over prior year by 2.8 per cent and 2.1 per cent respectively,” Sekele stated.
The group’s profit after tax was 36 per cent higher at K60.1 billion during the financial year under review compared to K44.2 billion in the corresponding period.
Net turnover increased by 20.5 per cent to K450.5 billion from K373.9 billion during the 2007 financial year.
“Prices of beer products had to be increased in February 2007 in response to an unexpected increase in the rate of excise to 75 per cent. Thus the increase in net turnover of more than 20 per cent is the combined result of both volume growth and prices increases,” Sekele stated.
“The fact that profit after tax was able to grow faster than net turnover, is partly due to the strong Kwacha lowering the cost of imported items, and partly due to the strong emphasis that the Group puts on cost control.”
Meanwhile, National Breweries saw a reduction in its net profit during the financial year ended March 2008, recording a 15.2 per cent loss compared to the previous year.
Labels: FUEL, INFLATION, ZAMBIAN BREWERIES
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Zambian Breweries, Zim firm sign deal
By Kingsley Kaswende in Harare
Monday October 29, 2007 [03:00]
A ZIMBABWEAN packaging manufacturing firm, Mega Pak, has entered into a deal to supply Zambian Breweries with crates for both beer and soft drinks. The contract will see Mega Pak supplying initially 300,000 crates and potentially raising supply to 1.5 million beer crates and 1.5 million soft drink crates, upon satisfying the first consignment.
The deal is a major boost to the manufacturing firm, struggling with lack of foreign currency to purchase its requisite materials.
Managing director, Martin Makomva, said Mega Pak would earn US $700,000 from the arrangement.
The company, which has been facing viability constraints in recent weeks, has just been handed down US $1.1 million by the Reserve Bank of Zimbabwe under its new facility to assist exporting firms.
The funds helped kick-start production that had been suspended since July.
"We are aware of the huge demand for foreign currency in the economy. We also take seriously our responsibility to conserve and to generate foreign currency for the country,” Makomva said.
He said Mega Pak would produce for Zambian Breweries sparkling beverage crates that contains 70 per cent recycled material and 30 percent virgin material.
The recycled material will come from used crates in Zambia, where Mega Pak will set up a temporary plant.
"Mega Pak will dispatch a shredding machine to Zambia to crush about 150,000 used Coca-Cola crates," Makomva said. "The crushed material will then be shipped to Zimbabwe for further processing after which it will be mixed with virgin material to produce the crates."
Zambia Breweries will buy the virgin material from Mega Pak's traditional suppliers in South Africa and deliver the material to Mega Pak premises in Ruwa, east of Harare.
Labels: PACKAGING, TRADE, ZAMBIAN BREWERIES, ZIMBABWE
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Lusaka resident sues Zambian Breweries
By Noel Sichalwe
Tuesday April 10, 2007 [04:00]
A LUSAKA resident has sued Zambian Breweries demanding K30 million damages for selling him a bottle of Fanta with sand. Francis Chileshya stated in his affidavits before the Lusaka magistrates court that on January 4, 2005 he bought a bottle of Fanta from one of the shops at inter-city bus terminus.
Chileshya stated that he also gave the drink to his nephew Jacob Mbao who drunk half of the bottle. He noted that after a few minutes, Mbao developed stomach pains and started vomiting.
He stated that later, Mbao had a sore throat, a headache and suffered dizziness. Chileshya stated that after reporting the matter to police, they were given a medical report. He stated that the drink was examined at Lusaka Urban Management Team.
Chileshya contended that the results clearly indicated that the drink was not okay and Mbao was later prescribed some medicine.
He stated that Mbao suffered physical and mental pain as a result of the incident.
He noted that after reporting to Zambian Breweries what happened, they admitted the claim and gave him a crate of drinks as a replacement for the one which was not okay.
"It is in the foregoing reasons that the plaintiff claims damages for the mental anguish suffered by the minor. The physical pain suffered and inconvenience caused to the entire family," argued Chileshya.
Labels: LAWSUITS, LUSAKA, ZAMBIAN BREWERIES
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