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Business Reporter
Dairibord Holdings Limited, which continues to add non-milk value added products to its portfolio, will next year double the capacity of its maheu line of business as demand continues to increase.
The company retails its product under the Pfuko-Udiwo maheu brand.
On August 7, 2015; Dairibord indicated that the volume of sales for the half year ended June 30, 2015 rose 25 percent to 37,5 million litres largely driven by beverages, which rose 63 percent from a year earlier.
Volumes mainly grew “due to new products that were launched in the second half of 2014”.
The company’s Chitungwiza factory, which manufactures the product, was officially opened on June 19, 2014 as part of the company’s $10 million capital expenditure that was designed to drive volumes, enhance efficiency and cut the operating costs.
Last week, Dairibord said the company will be redoubling its capacity in order to continue matching rising demand.
“The overwhelming response by consumers mean that the necessary capacity to support this demand will be put in place. Dairibord will double capacity of Pfuko-Udiwo maheu in 2016. . .
“…Its exponential growth has propelled Dairibord to expand capacity because of the market demand.
We are proudly enjoying a healthy market share coupled with the fact that the brand sells itself.
“Market share is limited by capacity and we are working towards doubling it . . .
“Since its launch in May 2014, the brand has experienced a phenomenal growth and reception by the market has been overwhelming. Pfuko- Udiwo maheu managed to scoop an exceptional marketing award in the same year it was launched,” said the company.
During an analyst briefing in March this year, Dairibord’s group chief executive officer Mr Anthony Mandiwanza noted that following the introduction of its new product onto the market last year, demand far outstripped supply, which prompted the company to make an additional investment in order to double its processing capacity.
But demand continued growing.
However, Dairiboard claimed that the success of the new product has attracted a vicious campaign to discredit it, particularly through social media platforms.
Dairibord noted last week that the rumour of a rat that was allegedly found in one of its products were “a clear case of sabotage where pieces of cloth and paper were stashed in the unit of this brand”.
In the six month period to June 30, 2015, Dairibord reported a net profit of $317 000 from a loss of $481 000 in the same period a year earlier.
Revenues also rose to $47,9 million from $43,7 million a year ago.
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