2019 REVIEW OF OPERATIONS SORGHUM BEER BUSINESS

Sorghum beer volume was up 5% compared to prior year at a total of 3,7 million hectolitres. The volume turnout was spurred by strong demand throughout the year which was buttressed by the consistent product supply. Some production outages were recorded during the year arising from challenges in accessing imported packaging, extended equipment breakdowns and intermittent supply of utilities.

The business benefited from the increased production efficiencies at the Chibuku Super plants. The sales volume slowed down in the fourth quarter due to the reduced aggregate demand post the fiscal and monetary policy changes in October 2018 and February 2019 which led to higher retail prices.
Chibuku Super contributed 82 % of the volume, which was lower than target due to shortages of imported packaging materials. There were also challenges in accessing technical support from external brewing and packaging equipment suppliers who placed the Company on stop supply due to challenges in accessing foreign currency

The business continues to upgrade the brewing and technical skills of its employees through the Sorghum Brewing Academy (SOBA) that is run in collaboration with a leading university. This complements the specialised courses run by the institutes of brewing and packaging.
The Sorghum Beer unit has taken the lead in implementing integrated Safety, Health and Environment Management Systems based on the NOSA 5 Star Standard. Currently five breweries have attained the 5 Star rating under NOSA

The business continues to work collaboratively with the Liquor Licensing Board to assist traders to obtain and comply with liquor licensing. There are ongoing engagements with key stakeholders on the review of the licensing framework as informed by the National Alcohol Policy to engender the issues of responsible retailing and improving the ambience of the beer outlets particularly on-premise consumption bars. Particular focus is on upgrading ablution facilities around off-premises consumption outlets such as bottle stores and reduction of littering

The Chibuku brand is synonymous with sharing, friendship and our cultural heritage. The brand themes and activations focus on cementing friendships amongst consumers and their families as they enjoy the rich, smooth taste of Zimbabwe’s top traditional beer. The friendship theme was communicated in various platforms. The brand has increased its use of the digital platforms as it seeks to engage with our young male and female consumers.

The brand’s support and relationship with football continued to be strengthened by the running of the fourth edition of the Chibuku Super Cup that was won by Triangle FC in a final match against defending champions Harare City. The memorable cup final which was held in Triangle attracted a record crowd.

The Chibuku brand maintained its longstanding partnership with the National Arts Council and Zimbabwe Traditional Dance Association

(ZNTDA) through the sponsorship of the Chibuku Road-to-Fame and Neshamwari Dance Festivals. The 2018 edition of the Neshamwari Dance Festival had a fusion of contemporary dance competitions which aimed to connect with the younger generation. The winners of 2018 Chibuku Neshamwari Dance Festival won a cultural exchange trip to China that was organised in partnership with ZNTDA and Dream Star. Chibuku Road to Fame national finals could not take place due to the health restrictions on public gatherings following the outbreak of the cholera.

The Chibuku brand continues to take a leading role in creating awareness on environmental management. The “Maoko Pamwechete” campaign on PET waste management has been integrated with the group-wide “Make A Difference – Recycle” campaign with a focus on reducing littering from used PET bottles. There has been a significant increase in the recovery of used bottles as more recycling companies have found uses for the brown PET material. Our employees are taking part in the National Clean-Up Campaigns held on the first Friday of each month.

A total of 6 040 hectares were cultivated under the sorghum contract scheme in the 2018/19 season. The scheme provides cropping inputs and extension services to both commercial and communal small-scale farmers to grow sorghum for use in brewing traditional beer. Whilst this provides the company with its key raw materials, the program impacts on the livelihoods of over 7 000 families that participate in the scheme in addition to promoting the cultivation of small grains in arid and semi-arid areas