KWEKWE — Kwekwe Brewery, a City of Kwekwe subsidiary which is under the management of a private company Limsoll Trading, reopened this month, exactly a year after its closure citing viability problems.
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The brewery produced its first brew of the traditional sorghum Simba Beer on a trial run last week, with production projected to hit 36 000 litres per brew in the coming weeks.
Kwekwe Brewery, commissioned in 1996, was forced to close shop four years ago due to an unfavourable economic environment which negatively affected its operations, resulting in council entering into an agreement with Limsoll Trading to manage the beer brewer.
However, since taking over the business two years ago, Limsoll Trading faced several challenges which included lack of sound foreign currency capital reserve, inability to penetrate the market in the face of stiff competition and the need to refurbish the plant, forcing it to suspended operations.
Limsoll Trading posted a net loss of $14 354 against a budgeted profit margin of $1 071 and could not stock raw materials, forcing its temporary closure way after cutting production to only one brew of 9 000 litres.
According to documents of a recent full council meeting, the Kwekwe council and Limsoll Trading reviewed the agreement to allow the latter to start operating again.
During a full council meeting held last week the Kwekwe councillors gave the deal thumbs up.
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In the agreement, the local authority would receive dividends from Limsoll Trading (Pvt) Ltd.
