SOUTH Africa-based cigarette manufacturer, Gold Leaf Tobacco, says 2017 has been “a fairly tough year” for them as a business due to volatile economic conditions coupled with the prevailing cash crisis.
BY MTHANDAZO NYONI
Gold Leaf Tobacco Zimbabwe country manager, Tanaka Matimbe told NewsDay that business has not been easy for them in 2017 but they managed to soldier on.
“We have done fairly well for a new brand in the market under the current macro-economic conditions with an increased artificial demand in the market of our products,” Matimbe said.
“We have had an upsurge in sales due to vendors swiping for products in shops that allow them to use bank cards and selling in the high density suburbs at lower cash prices and selling the cash at a premium and hence presenting a distorted picture,” he said.
Matimbe, however, could not divulge their current market share saying “in the absence of any formal research of the total market size and how competition was doing we do not have any numbers on how we have fared against our competitors.” “It’s been a fairly tough year for us as a business but we will weather the storm. We have had a challenge with imitation brands on the market but we are however glad that our consumers have managed to differentiate our products from these imitations.”
He said the company’s medium to long term plans to establish a manufacturing concern in Zimbabwe were still on the table.
As a business, Matimbe said they buy more than 70% of their tobacco requirements from the local market.
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He said despite the challenges that they have faced they are upbeat that 2018 will be a better year for them.
“Our brands have gained good traction and acceptance in the market after rebranding to our full name, Rudland and George. We believe we have a strong brand on the market with growing equity. The future is exciting for us,” he said.
