Malawi has suspended operations at the local unit of SABMiller [JSE:SAB], which manufactures the Chibuku opaque beer that has boosted the global brewer's African volumes.
Chibuku is a sorghum-based opaque beer which has penetrated deeply into the lower end of the market, taking root in countries such as Zimbabwe, Malawi and Zambia.
SABMiller's Malawian unit on Wednesday suspended production and distribution of Chibuku Shake Shake opaque beer, which is brewed by Chibuku Products Limited (CPL).
The Malawi Bureau of Standards (MBS) said it has stopped production and distribution of Chibuku in Malawi, citing non-compliance with hygiene standards by CPL at its Lilongwe plant.
“The Malawi Bureau of Standards has with immediate effect suspended production and distribution of Chibuku Shake Shake opaque beer for (the) Lilongwe plant due to non-compliance with hygiene standard(s),” the standards body said in a statement on Tuesday.
Inspections done at the plant concluded that Chibuku beer products are “unhygienic and not fit for human consumption”. The watchdog has committed itself to cleansing the market of all products that are not safe for human consumption.
“It is our mandate to protect the consumers and we have the power to seal unhygienic places. We are receiving information almost on a daily basis of traders who are selling unfit products to the public,” Davlin Chokazinga, director general of the MBS, said on Wednesday.
CPL was due to issue a statement on the development. SABMiller has made inroads into most African markets, where its products are faring well against competition from traditional brews.
However, biting economic conditions and currency weakness in some key markets have seen a drop in volumes and profitability.
Some experts expect the African market to register growth in the next few years as consumption is still low, while others believe competition from imported wines, cheaper spirits and illegal brews could be major threats.
Fin24
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http://www.fin24.com/Companies/Industrial/malawi-suspends-operations-at-sabmiller-unit-20160303