Bralirwa registers a decline of 8 percent in soft drinks

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Bralirwa

Bralirwa soft drinks fell by 8 percent

 Bralirwa, the country’s leading beverage company has registered a decline of 8 percent in its soft drinks market, the Managing Director, Jonathan hall has said

In its half year results for 2014, soft drinks declined due to a fall in exports whilethe domestic market remained flat.

“As mentioned in 2013 year end, investments in the brewery and soft drinks plant have resulted in increased depreciation charges,” said Hall

Nevertheless, there was growth of 7.8 percent in the beer market which saw volumes increase to 805,000 hl in the first half of 2014 compared to 783,000hl representing 2.8 percentage changes in the same period in 2013.

According to the statement, revenues registered a 2.3 percentage change to 37,849 million up from 37,010 million in the same period under review last year.

“Revenue  growth  at  2.3 percent  was driven  bypositive  sale mix  and the  impact  of limited  price increase  onMutzig and turbo king in the  second half of 2013,”  the Managing Director noted

Hall notes that Material price increases coupled with the depreciationof Rwanda francs against international currencies mainly the Euros where the companygetsmost of its rawmaterials impacted negatively on costs of sales and other expenses.

But despite this, Hall says, “increased costs continue to be absorbed with no price increase on either beer or soft drinks put through the period.”

Experts say that the Rwandan beer market will remain broadly positive with anticipated growth in the second half this year which is likely to put keep high the country’s recently competitive market. For example the new brands from Bralirwa and its rival Skol brewery are expected to steer up the market and boost sales.

“We continue to invest behind our brands to build consumer royality,” he adds

Hall notes that  New brand campaigns for Mutizig, Heineken and Turbo king  are now launched into the market  as we invest   further to build the second and third beer brands(after Primus number one brand  as well as develop  the growing international  premium segment with  the Heineken.

 

 

About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

More posts by | Visit the site of Ndaka

 

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