Tanzania Breweries Limited (TBL) Group has changed its operational model as it targets to grow its market amid shifting sentiments.
Speaking at the Second Ministerial Dialogue with the Private Sector in Dar es Salaam on Tuesday, the TBL Group’s managing director Roberto Jarrin said the company decided to tilt its model – by paying much attention on affordable brands - so as to align itself to new economic realities.
“With the existing market conditions, the company had previously been growing at the rate of negative 0.3 per cent. We were therefore forced to re-think our operating model and realign it to the realities of the market,” he said during the dialogue.
The dialogue was hosted by the Minister of Finance and Planning, Dr Philip Mpango and his Industry, Trade and Investment counterpart, Mr Charles Mwijage, in Dar es Salaam. It was a follow up to a similar gathering that was held in Dodoma early this year.
Christened “The Sate of Doing Business in Tanzania”, the gathering so participants discussing several issues that seek to improve the business climate in the country.
Mr Jarrin, who doubles as president for AB-inBev (TBL Group’s parent company) in East Africa, said as a result of the change in tack, TBL’s business started to grow by 20 per cent since June this year. “We are optimistic that this growth will continue and we are looking to invest in increased production capacity to cater for this because our plants are currently operating at maximum capacity,” he said.
The growth, he said, was mainly being driving by affordable brands and packs segment which are primarily sorghum based.
“The affordable segment of our market which essentially sources its growth from the informal sector, is price sensitive and for us to invest in a new brewery, we would like to work with the Government of Tanzania to create a stable and predictable excise regime. Increased production volumes will in turn translate into increased revenue collection,” he said.