More lose jobs at Zambia Breweries

The Zambia National Breweries Plc has announced that more of its workers in Lusaka have been made redundant following similar measures in Kabwe, Lusaka and Chipata earlier in the week.
Company Managing Director Annabelle Degroot said in an internal memo to employees that the main reason for the recent redundancies was the decline in profitability of National breweries as a result of the fall in Chibuku Shake Shake carton volume sales in the last year as consumers choose to drink cheaper opaque beer.
She pointed out that the sale of bulk opaque beer was illegal and many of the companies selling bulk opaque were avoiding taxes.
Annabelle explained that the bulk opaque dealers are selling their beer cheaper as they do not have packaging and tax costs.
She further lamented that Zambia Breweries has engaged relevant authorities on a regular basis but they have until this point been unable to enforce the legislation.
The brewing company has also suffered from increased packaging costs due to the depreciation of the Kwacha from K6 to K10 to the US Dollar.
Annabelle revealed that the Company has also recorded a number of thefts of raw materials and finished products by employees.
Zambia Breweries this week closed its Kabwe plant resulting in 61 redundancies while the closure of its Chipata branch resulted in 58 redundancies.
The Lusaka branch has been restructured resulting in more job losses in addition to the 17 redundancies recorded earlier in the week.
Illegal bulk opaque beer is being sold freely in all Compounds without any action from council authorities.

Share this post