2019 REVIEW OF OPERATIONS-NATIONAL BREWERIES PLC ZAMBIA

Traditional beer volume grew by 6% to 1,1 million hectolitres compared to prior year despite the tough economic and market conditions. Chibuku Super contributed 51% of total sales. The competition in the sector remains uneven due to the prevalence of draught beer offerings that do not comply with the legislation.

The Chibuku Super brand was relaunched in a 1,25 litre pack with improved graphics that align with the brand identity in the region. The pack upgrade provides an opportunity to offer keener retail pricing to the consumer. Post year end, the market has been excited by the arrival of a new malt based Chibuku variant in a 1,5 litre returnable bottle. This offers a better value proposition for the consumer as it addresses affordability while delivering on quality.

Visibility of our brands was greatly improved by the enhanced trade execution standards through the deployment of merchandising teams across the country reaching over 2 500 retail outlets.

The production facility at Ndola was re-opened during the year bringing the total number of brewing plants to three. This has enabled us to guarantee better service and product quality to our customers and consumers in Ndola. An additional four distribution depots were opened to complement our third-party distribution partners.The Company continues to focus on product quality and safety at the workplace through enhancing compliance to food safety standards and the implementation of the NOSA 5 STAR systems at all breweries.

We continued to work with Manja Pamodzi, a community waste recycling initiative that is creating new business opportunities particularly for women. The project helps to clean up postconsumer packaging waste, improving sanitation and hygiene in communities

We also commenced participation in the monthly clean-up campaign. This is a collaboration with local authorities and the communities which is meant to promote good hygiene and a clean environment.

We actively promote the procurement of locally produced raw materials from rural farmers, resulting in poverty alleviation and sustainable development of these rural communities. A total of 20 000 tonnes of maize is bought from small scale farmers for use in the production of our Chibuku.

We are committed to expanding our sourcing from smallholder farmers in a way that generates commercial value for the business and improves the lives of those in the communities we operate.