Bralirwa eyes higher volumes with new plant, workers rendered jobless
The East African - 4 hours ago
By ALEX NGARAMBE Rwanda Today
Posted Thursday, June 26 2014 at 13:56
Bralirwa eyes higher volumes with new plant, workers rendered jobless


Photo: Bralirwa's new soft drink production line which was officially
launched on June 25, 2014. Photo/FILE
IN SUMMARY
Bralirwa, Rwanda's largest beer and soft drinks maker on Wednesday
launched a Rwf23 billion production plant that will see it increase
output.
With the technological and capacity upgrade of the soft drinks
production plant, Bralirwa will see its volume rise from 509,000 to
826,000 hectolitres per year.
The automation of the production process renders over 60 employees jobless.
Bralirwa, Rwanda's largest beer and soft drinks maker on Wednesday
launched a Rwf23 billion production plant that will see it increase
output.
The automation of the production process renders over 60 employees
jobless at Bralirwa which also manufactures Coca-Cola products.
The brewer employs between 200 and 500 workers both directly and indirectly.
With the technological and capacity upgrade of the soft drinks
production plant, Bralirwa will see its volume rise from 509,000 to
826,000 hectolitres per year.
The automated plant is replacing a manual production line which
employed mostly casual workers in the factory.
Dr Pierre Damien Habumuremyi, Rwanda's prime minister appealed with
Bralirwa not to dismiss the affected staff but facilitate them to
become entrepreneurs.
"Like Bralirwa has contributed to Rwanda's economy, it should help in
fighting unemployment by equipping their former staff with
entrepreneur skills for their self-employment," said Dr Habumuremyi.
Bralirwa has enjoyed relative monopoly for soft drinks with the
campaign to import Pepsi products from Uganda failing to pick
momentum.
However, with the planned construction of a multimillion plant in
Rwanda by Crown Beverages Limited (CBL), the maker of Pepsi Cola
products, Bralirwa's monopoly will be broken.
CBL has acquired a five-acre piece of land at the Kigali Special
Economic Zone (KSEZ) at Rwf12 million and construction of the plant is
expected to start soon.
Bralirwa, although still dominating the beer market, is facing stiff
competition from local brewery Skol and imports from the East African
Breweries Limited.
READ: Skol launches lager amid falling industry profits
However, with automated equipment, the brewer is aiming at cost
cutting at a time when the industry is struggling with high cost of
production.
"This investment will allow improvement in capacity to meet the
growing demand and satisfy customers with high quality products," said
Jonathan Hall, Bralirwa's managing director.
The new plant is coming at time when Bralirwa's net profit for the
year declined by 18.8 per cent due to low sales volume, limited price
increases and cost of sales which were adversely affected by increased
materials' prices and the impact of adverse foreign exchange rates in
2013.
However, overall revenue grew by two per cent in 2013 resulting from
favourable brand mix and strong revenue management. During the year
price increases were limited to Mutzig, Amstel and Guinness brands.
Volumes also declined by 0.6 per cent due to reduced beer volume of
1.2 per cent. Soft drinks after a strong first half of the year slowed
sharply in the second half to register a small annual increase of 0.9
per cent.
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SIBOMANA Jean Bosco
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