May 2, 2024
Schweppes eyes long-term export deals
SCHWEPPES Zimbabwe Limited’s subsidiary, Beitbridge Juicing Company says it has seen an increased appetite for long-term collaborations, particularly from South Africa (SA)in the wake of supply chain disruptions after the outbreak of Covid-19.
Schweppes commercial and public affairs director, Unaiswi Nyikadzino told the ZimTrade exporters conference in Harare last week that the interruptions had paved way for the company to create new businesses arrangements.
“We have seen very positive responses mainly from businesses in SA. We have seen an increased appetite for collaborations, actually long-term partnerships where it’s not just a once off supply arrangement, but they want to work with us on long-term contracts for future supplies.
“This is a trend that we see going across the agro-business industry, especially in horticulture where producers are experiencing the same . . . where South African businesses are looking to trade more with Zimbabwean agro-businesses,” Nyikadzino said.
She added that Zimbabwean products, which had been struggling for international markets because of poor competitiveness driven by the use of the US$, which is stronger than regional currencies, have also been finding customers at competitive prices since the outbreak.
“We have seen some improved price competitiveness for our products. A challenge that many of us who are trading in Zimbabwe have had is that we are coming from a US$ base.
“A lot of the time our products are not competitive, especially in the region because of our high-cost base and a stronger currency base. Yes, we are trading and accounting in the local currency but the US$ is our base.
“However, due to supply chain disruptions of traditional sources of supply, we are seeing increased trade.
“For us as a B2B (business-to-business) supplier we have been able to supply some of our products very competitively in the region without having to discount all the time,” Nyikadzino said.
“A lot of the times most of us would discount our products just to earn foreign currency and there literally been no margin but we have benefited from those supply chain disruptions.”
Beitbridge Juicing was established in 2005 and started operations in 2006.
Its core line of business is the processing of citrus and other fruits into juice concentrate and other various by-products.
The company supplies more than 80 percent of Zimbabwe’s juice requirements.
Schweppes acquired a 100 percent stake in Beitbridge Juicing in 2014.
Earlier this year, it announced that it would invest US$35 million over the next decade into a 2 700 hectare citrus plantation, as it seeks to increase production and value addition at its Beitbridge juice processing plant.
The company is currently processing just half of its annual target of at least 40 000 tonnes of fruit.
