By MAIMBOLWA MULIKELELA –

NATIONAL Breweries Plc says competition from illicit opaque bulk beer has become a significant concern for the company.
This threatened the ability of the company to generate a fair return on their investment.
National Breweries is part of the SABMiller Group, one of the world’s largest breweries, with more than 200 beer brands and some 70,000 employees in more than 75 countries.
This is according to the annual report of National Breweries for the year ended March 31, 2015 posted on the Lusaka Stock Exchange (LuSE).
National Breweries chairperson Valentine Chitalu said the company faced competition from illicit bulk beer and this had become a significant concern.
Mr Chitalu said his organisation would continue to engage with the enforcement agencies and regulators on the matter of illicit trade.
“Competitive pricing of our products remains our core strategy, backed by investments to improve production efficiency, and an efficient sales and distribution network,” Mr Chitalu said.
He said the uncertainty created over the Government’s position on the mining taxes and generally tough economic conditions reflected clearly in depressed consumer demand.
Mr Chitalu said this resulted into continued growth of cheaper illicit opaque beer in the year.
“It was a year of change and new beginning for National Breweries as the company grappled with tough economic and market conditions while undergoing the construction of the a state of the art brewery and PET packing line in Lusaka at a cost of K200 million,” he said.
Mr Chitalu said despite the economic headwinds from exchange rate and inflation issues, and initial teething problems with the new plant.
“We draw confidence from the strong Gross Domestic Product (GDP) outlook.
While domestic economic growth faltered, the growth prospects are positive and we have confidence in our country’s economy in spite of the deterioration in inflation and exchange rate indicators,” Mr Chitalu said.
He said the Government’s continued investment in infrastructure projects will continue to spur economic activity and promote employment creation.
During the year under review, the company registered revenue growth of K397.8 million from K393.6 million the previous year.