BEVERAGE maker and marketer, African Distillers Limited (Afdis), is investing US$8 million in a new packaging line as it ramps up capacity to meet rising market demand and support sustained growth.
In June 2025, Afdis revealed that the group was accelerating its portfolio expansion to align with shifting consumer tastes, as demand patterns increasingly favoured ready-to-drink beverages and affordable product ranges.
The strategy was underpinned by a planned US$5 million capital programme aimed at doubling total beverage production capacity from 18 million litres to about 36 million litres over the next five years, positioning the company for sustained volume growth.
With the US$8 million investment, Afdis is effectively strengthening the back-end capacity required to absorb higher output, improve product availability across distribution channels, and convert its expanding production base into realised sales.
“Management remains optimistic about the remainder of the financial year.
“The business aims to grow market share and enhance profit margins through continued effective distribution and cost management,” Afdis said in its new trading update for the company’s third quarter period ended December 31, 2025.
“To address increasing consumer demand, significant investments are being made in plant and equipment.
“Notably, the business is acquiring an additional packaging line valued at US$8 million.
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“This strategic investment will equip the company with the necessary capacity to efficiently meet rising market demand and support sustained growth.”
Afdis had US$1, 64 to every dollar of short-term debt, indicating a strong liquidity position and sufficient capacity to fund its capital expenditure programme.
“The economic environment continues to present opportunities for growth, benefiting from increased activity in key economic sectors such as mining, construction, agriculture, and diaspora remittances,” Afdis said.
“Ongoing restrictions on smuggled and counterfeit goods will support local manufacturing growth and maintain strong performance going forward.”
Revenue for the third quarter was US$30 million, a 62% increase over the prior year, and grew by 57% for the nine months to date to US$71 million.
According to Afdis, this growth is attributed to the strong volume performance through improved product availability across all distribution channels, particularly the independent trade.
The festive season also drove sales for the group.
“Volume for the quarter grew by 64% compared to the same period in prior year and grew by 51% for the nine months to date.
“This robust performance for the quarter was driven by strong consumer demand during the festive season,” Afdis said.
“The ready-to-drink (RTD) category delivered an exceptional growth of 92% over prior year, driven by a firm demand for cider packs.
“The wine category grew by 49%, sustained by the affordable range, while spirits grew by 30% over prior year, anchored by brown spirits.”
Afdis said the trading environment in the third quarter was characterised by relative stability in both inflation and exchange rates, which supported effective business planning.
“The business continued to benefit from increased consumer spend in the economy largely derived from mining, informal sector activity, and diaspora remittances,” Afdis said.
“The sustained regulatory enforcement against smuggled and counterfeit products by authorities had a positive impact on the industry performance.
“Conversely, the restricted circulation of ZiG coupled with elevated borrowing costs created obstacles for businesses seeking affordable capital, thereby impeding sustained economic growth.”
This publication understands that the beverage maker is prioritising profitability and margins through brand mix optimisation as well as market efficiency.
One major threat to Afdis’s earning potential, however, remains its ongoing tax dispute with the Zimbabwe Revenue Authority, which amounted to US$1,8 million, as of its half-year financial period ended September 30, 2025.
