Namibia Brewery Limited competitors are creating new beverage categories for consumers outside the boundaries of premium beers committed to the Reinheitsgebot.
The Reinheitsgebot (Purity Law) of 1516 involves quality specifications for taste, analytical and biological standards. It prescribes that malted barley, hops and water are the only ingredients used in brewing.
“We are aware of the increasingly competitive landscape and remain confident about our strategies. NBL has the opportunity to use its diverse offering to further innovate the product portfolio to capture the demand moment, which is different for every consumer,” said Vermaak Mbaroro, quality controller in the Ohlthaver and List 2021 annual report released this week.
He noted innovation across all business spheres remains a priority at NBL. In highlighting key risks for the group, he mentioned the ongoing foreign currency and exchange rate fluctuations, which affect their profitability and forecasting.
Mbaroro said to mitigate the potentially negative impact on import and export opportunities, they continually explore markets that provide exchange hedging and reduce operating expenses.
In addition, developing local suppliers remains a priority.
He added changes in the legislative environment for the alcohol industry could negatively impact NBL business. Although Covid-19 did not result in NBL ceasing trading during the financial year, NBL operated under challenging trading conditions across its operating regions, which impacted its financial performance.
“The past year was challenging. It once again highlighted the importance of continuous innovation in all business areas for NBL to remain relevant in the long term,” he said.
Volumes increased by 13% against the prior year for Namibia, while volumes for South Africa and exports were below prior year due to Covid-19 and the difficulties operating under challenging trading conditions.
NBL recorded revenue of N$2.6 billion, a slight increase from 2020.
Focus areas for NBL, Mbaroro said, are maximising opportunities for growth in local and cross border markets, innovation and cost-efficiency in all business areas, as well as digital transformation.