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Kudakwashe Pembere Business Reporter
LOCAL beverages manufacturer Schweppes Zimbabwe plans to export some of its products into the Southern African Development Community. In an emailed response to The Herald Business, Schweppes marketing and public affairs executive Ms Unaiswi Nleya said the company has started discussions with some of the partners.
“We are already in the process of negotiating with various partners in the selected regional markets and should start shipping products as soon as we have concluded trade agreements,” she said.
“Our long-term goal is to grow our business beyond Zimbabwe. However, this year our regional business model is focused on driving exports of Mazoe cordials and Minute Maid juices into select regional markets, namely Zambia, Botswana, Mozambique and Angola.
“We have already restructured our organisation and set up a dedicated team just for that purpose,” she said.
Ms Nleya added that they anticipate to incur normal operating costs associated with developing export business.
She noted that the move into the region will increase the company’s production capacity.
“Besides the additional revenue which will add to our bottom line, exports will facilitate utilisation of excess production capacity which will in turn increase our plant efficiencies.
“This will help us to contain costs and reduce the effects of increasing raw material cost on our retail pricing.
“Cost efficiencies will make us a more attractive source market and facilitate further growth into other countries where there is opportunity,” she said.
While local industry’s capacity utilisation has been struggling below 40 percent, the beverages, sector has been performing exceptionally well.
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Bongani Ndlovu