HARARE – Beverages maker Schweppes Zimbabwe Limited (SZL) is failing to meet demand for its products owing to foreign currency shortages impeding its ability to source adequate raw materials.
SZL said the foreign currency allocations it is receiving from banks were inadequate to fully satisfy demand for beverages during the peak summer demand season up to December.
“We anticipate continued gaps in production, supply and availability of our products in the market. The recent panic buying in October 2018 depleted raw materials and finished goods inventories, resulting in supplies to both our domestic market and export market falling short of demand significantly,” SZL said in a statement.
To cushion itself from the foreign currency shortages, SZL started to export cordials and juice drinks into regional markets last year.
“Export volumes and revenues are growing appreciably to approximately $750 000 monthly but are still inadequate to meet monthly imported raw materials’ total requirements of $2,25 million for our beverage business.
“The domestic market will account for 95 percent of total beverages output while export market volume will account for five percent of total output for 2018,” SZL said.
Owing to an increase in the price of some of its inputs, among them sugar, consumables and spares, the price of the popular Mazoe Orange Crush has been increased to $4 per two litre bottle from $3,20.