adminThere is no going back on Ingwebu Breweries’ franchising programme, a senior company official said yesterday.
Mr Nkosana Ndlovu, the general manager (brewery) said the company has made the strategic decision which would enable it to derive more value to itself and businesses that are taking up the franchising initiative, than it would if it continued running the outlets on its own.
From the 58 outlets Ingwebu Breweries ran up to August 2011, it is only operating two iconic ones – MaKhumalo and MaDlodlo – after 56 were put under the franchising programme.
“That is where we are going,” said Mr Ndlovu.
“The franchising business is new but we are doing all we can for it to create more employment and empowerment for our people.”
He said it was getting increasingly difficult, if not impossible for Ingwebu Breweries to continue operating the retail section of the business profitably because of the immense overheads that come with a large entity doing that kind of business. So a strategic decision had to be made for the company to give space for private businesses to operate some of its outlets.
“Franchising is a good business strategy for us because of our size,” he added.
“We are a large entity so our fixed costs and overheads are also high. If a private operator comes in he or she has the ability to employ his friends and relatives, manage the business on his own. He can run it the way he wants because it nourishes his pocket. For us as Ingwebu, it is inherently difficult for us to operate at a desirable level of profitability because we are a bureaucracy.”
He said the company also recognises that the brewery is getting older, which means that it has become a little more expensive to run. For this reason, it would be put under a maintenance programme.
Ingwebu Breweries is based in Bulawayo and distributes its packaged opaque beer and draught (unpacked) beer in the city and the two Matabeleland provinces – Matabeleland North and Matabeleland South.
“We are based in Bulawayo and we distribute across Matabeleland region but there is scope for us to extend to Gweru and Zvishavane. In fact we are working on the logistics for that to be achieved,” said Mr Ndlovu.
Since dollarisation, there has been a noticeable trend whereby imbibers are turning away from opaque brews, preferring clear beer. This is possibly because clear beer is increasingly getting affordable for the wider segment of drinkers.
Ingwebu Breweries is cognisant of this change in taste, said Mr Ndlovu.
To ensure that its products remain relevant to contemporary tastes, he said Ingwebu Breweries would intensify measures to deliver a more modern product as well as improving packaging and hygiene.
He urged the company’s public to feel free to communicate with the company in a way that helps the brewery to improve its products so that they meet its clients’ demands.
Mr Ndlovu said the opaque beer is a “living thing” which goes out to the market as it continues with its fermentation process. To that extent, it has to be consumed within a certain period during which its taste and appeal would be at its best. In winter like now, the opaque beer can maintain its stability for up to seven days, but in summer it goes down to five days.
Online Reporter