Following the directive for the closure of night clubs, restaurants and bars as a preventive measures towards further spread of COVID-19, Zambian Breweries – ZB has recorded a reduction in beer consumption and as a result cut its alcohol production by about 50% during this pandemic period.
The company has seen a slowed down consumption and sales volumes and therefore cut production volumes on threats of the coronavirus outbreak and it likely to record huge losses if the situation persists.
ZB Corporate Affairs Director Ezekiel Sekele has told the Zambian Business Times – ZBT in an exclusive interview on April 17, 2020, that the company has since lessened on beer production as producing more than enough will result into huge losses.
He however stated that despite the closure of bars and night clubs, alcohol is still being purchased in chain stores on take away basis, hence the company has not completely been negatively affected as responsible citizens have continued to adhere to government’s directive by drinking from their homes.
Sekele said ZB is still operating through its off-premise channel (distributors, wholesalers and supermarkets) for take-home occasions only and has pledged to complement governments preventive measures that have been announced to fight the COVID-19 pandemic.
“During this period, we are working tirelessly to keep our operations running in a manner that is safe and in accordance with the law and current public health measures. However, we are joining government in urging all consumers to enjoy and drink responsibly from home,” He added
He has further called on bars and night club owners to adhere to governments’ directive as doing so will not only protect people’s lives, but also avoid complete shutdown of stores which would negatively impact local businesses.
“We are grateful to government for allowing liquor stores to operate on take away basis because the complete closure of these premises would result in closure of business and to Zero percent performance and further have a huge impact to VAT and other statutory contributions which ZB makes which is about K80 to K100 million,” He said
