ZB slashes beer prices
By Malawo Malawo
ZAMBIAN Breweries has reduced the price of its Mosi and Castle lager.
In a statement announcing the price changes, Zambian Breweries stated that the recommended retail price of a 375ml bottle of both lagers is now K7 from K7.50.
Zambian Breweries country director Annabelle Degroot said the cut in price of the nation’s favourite beers was a response to the improved inflation rate and several months of a stable exchange rate.
“In response to government’s efforts to maintain a stable business environment, we are committed to retaining the affordability of our products,” Degroot said.
“Zambian Breweries expects the price reduction to encourage drinkers to move away from cheap illegally brewed high-alcohol beverages that pose a danger to public safety as well as denying government tax revenue.”
She however explained that overall alcohol consumption did not increase when beer prices drop.
“But rather, consumers tend to move away from cheaper higher alcohol options with an average ABV (alcohol by volume) of 43 per cent, back into clear beer with an average ABV of 4.5 per cent. This is an important driver of responsible alcohol consumption and government revenue collection,” said Degroot.
“The decision is also aimed at stimulating volume growth, tax revenue growth and its associated positive impact on investment, agriculture and employment.”