HARARE, November 2 (The Source) – Wines and spirits maker African Distillers is targeting a 30 percent growth of the ready to drink beverages in financial year 2017 driven by strong performance from ciders.
Afdis localized cider production in 2015 and the two ciders brands Hunters and Savanna are now well established in the market.
Group managing director Cecil Gombera told shareholders at an annual general meeting that this segment’s contribution to total volumes is expected to grow to 45 percent at year end, from 41 percent in financial year 2016.
“We will continue to attract new consumers in this category and growth strategies centre on market penetration as the products appeal to new consumer entrants,” he said.
Overall, Afdis volume and revenue for the first quarter ended 31 September 2016 registered growth after the group gained market share due to import restrictions.
Gombera said the Spirits category remains the dominant contributor of both volume and revenue, but its contribution is expected to decline as consumers migrate from the high value products.
The resurgence of the popular Viceroy brandy will enable the segment to maintain its market share, he added.
During the quarter, the wines category grew 28 percent. Gombera said 4th Street, the company’s major brand in the imported sweet wine segment continues to grow ahead of total wine market performance.
Afdis is a subsidiary of Delta Beverages.