Kgalagadi Breweries Limited (KBL) Managing Director Renaud Beauchamp says the company will use P60 million for expansion, capacity building and Corporate Social Investment (CSR) projects in the year 2019.
He revealed the prospects on Monday during a media briefing and tour of KBL plants. He said the company will invest P25.5 million in Chibuku powder production plant while P8 million will be used to boost alcohol production volume rate, with new extra machinery purchased.
“We aim to make more important investments in the business in the coming year and this will go a long way in making the business to achieve and contribute to the socio-economic development initiatives and growth of this Botswana business, thus bringing true sustainable development difference to fellow Batswana,” he charged.
He said the company will also invest in the Corporate Social Investments (CSI) initiatives such as the Kick Start programme which aims to develop, support and equip local SMEs with entrepreneurial skills. Some P1.5 million will be channeled into the initiative whereby 15 new businesses will be funded at grant of P200, 000. Internally they are optimising and stabilising across the business as well as looking at various expansion opportunities.
“As a proudly Botswana business, KBL is committed to improving the lives in the communities we are part of and playing a positive role within them as well as enrich our country’s national economy,” he said.
Beauchamp emphasized that the reduced Alcohol Levy enables KBL to redirect financial resources to drive a number of more expansion and growth work streams.
20% alcohol levy reduction
KBL has moved on to implement the 20% reduced Alcohol Levy which has cut prices of alcohol brands such as St Louis Export, St Louis, Castle Lager, Castle Lite and Black Label. He said the price reduction is by virtue of Government’s reduction of National Alcohol Levy from 55% to 35%. KBL’s price reduction came into effect on December 17.
“We have listened to our valued customers, and we act in their best interests, passing this benefit to them as we discount prices beginning with the festive season. This is by the virtue of Government’s reduction in the Alcohol Levy,” he said.
He commended the government for its commitment towards making the regulatory environment more conducive to doing business in the country.
When quizzed on the possible impact that the development will mean to KBL business, he said it affords KBL more opportunity to reinvest back to communities.
He said although the levy hit hard on KBL when it was imposed back in 2008 rising to 55% this however did not affect the alcohol consumption as the Per Capita Consumption (PCC) stood at 36 litres, then declined to 24 and currently stands at 37 litres as of 2016.
He said the reduction in price will be subject to review should there be any new tax introductions or increases in the future that stand to impact pricing.