Source: Afdis to localise wine | The Herald November 12, 2019
Afdis says it plans to localise popular wine brands to prop up product volumes which have been seriously waning lately.
The spirits making firm’s ingenuity follows dismissal volumes performance by Afdis as aggregate demand slumped by 50 percent in the first quarter to September 2019 across all segments with a sharp contrast to an inflation driven revenue which surpassed last year’s record, growing by 286 percent.
Some of the popular wine and spirit brands incorporated under Afdis include Green Valley, J C Le Roux, Nederburg, Amarula and Montello.
While addressing shareholders at the company’s AGM on Friday last week, Afdis managing director, Cecil Gombera hinted on the firm’s idea of expanding wine brands under their banner.
“Plans to localise targeted popular wine brands are afoot and should give this category the needed market place boost,” said Mr Gombera.
The move comes at a time when just like a number of businesses, Afdis suffered a heavy blow from the prevailing economic turbulence which include foreign currency shortages. Spirits volume declined the least at 31 percent a volume performance that was boosted by the launch of ‘Whitestone’, a local Gin brand. Ready to drink (RTD) category declined the most at 63 percent while wines volume declined by 49 percent to close the period under review with a total product average of 50 percent uptake.
Mr Gombera indicated the reduction in volumes uptake was mirroring the tighter disposable incomes environment. — Business Reporter.